It’s halfway through 2024, but it’s never too late to improve your finances. Whether it’s reevaluating your financial goals, creating a budget, or increasing your savings, there are always steps you can take to enhance your financial situation.

In this post you will learn the following:

• Why you should improve your finances
• The 24 simple things you can do today to improve your finances

Related posts on money management:

• The Six Stages of Financial Freedom
• 55 Best Money Tips in Your 20s – How to Save, Retire Early, and More
• 10 Best Personal Finance Books by Pinoy Authors
• How to Achieve Financial Peace in Your 30s, 40s, and 50s

Why Improve Your Finances

The truth is, I didn’t start off well when it came to managing my money. There was a time when I was barely making ends meet. However, I’ve learned a lot since then and have made significant improvements in how I handle my finances.

For me, it all began with finding a compelling reason to take control of my finances. I needed a strong motivation to make serious changes in how I managed my money. Here are the reasons why I did it:

Break the cycle of living paycheck to paycheck 

I was tired of the endless cycle of living paycheck to paycheck. It felt like no matter how hard I worked, I couldn’t get ahead. I felt like I’ve been working for years but I still haven’t had any savings. 

Achieve financial goals 

I started having a list of things I want to achieve, and sadly, they all come with a cost. I knew I wanted to travel both locally and internationally. I want to have my own place, a cozy home that I can call my own. Additionally, I aim to build an emergency fund and save for retirement to secure my financial future.

Peace of mind and security

I made a conscious decision to reduce the stress and anxiety that had been weighing me down. This helped me relax and enjoy life more. I started pursuing my passions, traveling, and taking career risks without worrying about money holding me back.

Before you dive into any of the pain-free strategies to improve your finances listed below, take a moment to reflect on why you’re pursuing this. Understanding your motivation will help you stay focused and committed.

24 Simple Things You Can Do Today to Improve Your Finances

Here are 24 actionable steps you can take to improve your financial health, from building a budget to strategically saving for your future.

Calculate Your Net Worth

Knowing your net worth is one of the crucial steps you should take to determine your financial situation. 

Your net worth is the difference between your assets and liabilities. It is a fundamental personal finance metric that shows how close you are to achieving financial freedom.

In mathematical term:

Net Worth = Total Assets – Total Liabilities

Knowing our current financial net worth is an important to do list in personal finance. It could be your reference point, a map that could lead you to your ideal financial destination.

If this is your first time hearing the term net worth, please read Net Worth – What, Why, and How

Track Your Spending

Make it a habit to list down all your expenses, small or big from the start of the day until the end of the night. This money habit will give you the sense of knowing where your money goes. You can use a simple tool like a notebook and pen, a Google Sheet, the notes on your phone, or an app. 

Create a Budget

A budget is an estimate of your income and expenses over a set period of time. Normally done on a monthly basis, budgets work to:

• • Allocate your salary/income/money wisely
  • Know how much is coming in and going out in your cash flow
  • Identify the areas where you can spend less to save more

Creating a budget is one of the best ways you can improve your finances and take full control of your money! The best time to take the budget seriously is now. Do not wait for another end of the month or start of the month to create a spending plan.

Do this every month:

1. 1. At the beginning of the month, make a plan for how you will spend your money that month.
   2. Write what your expected income and  the usual expenses you have based on the last three months.
   3. Write down what you spend. Track every single peso that goes in and out of your pocket. 
   4. At the end of the month, see if you spent what you are able to follow your budget. Use the information to help you plan the next month’s budget.

Related read:

4 Simple Budgeting Methods You Can Try

How to Fix Your Budget and Make It Work

Top 10 Frequently Asked Questions on How to Budget Your Money

Build an Emergency Fund

There are five main reasons why an emergency fund matters.

1. 1. You can avoid debt and/or pulling from your savings accounts
   2. You have something to rely on or to fall back on
   3. You have peace of mind
   4. You can avoid late payments
   5. You can get ahead smoothly in your financial life

An emergency fund is supposed to ensure/ to assure that you still have enough money to continue your daily lifestyle for the next 3-6 months or until you get a stable source of income.

Life without an emergency fund is basically putting your finances in danger so as early as possible build one.

Here’s 11 ways you can build an emergency fund from scratch.

Automate Your Finances

There’s a life-changing trick I learned early on that I have not departed from – automate your finances wherever you can. Set up automatic transfers to your savings or investments to make sure you’re consistently putting money aside. This simple step can make a big difference in the long run.

Invest

Investing may seem daunting at first but the sooner you do it, the better. Instead of wasting that money on lifestyle purchases that do not accumulate in value, try opening an account in an investment vehicle that suits your risk appetite.

Over the years these three things remain the wisest advice I’ve ever read when it comes to investing – invest now, invest regularly and invest for the long-term.

These posts are important to be read before you decide to invest:

8 Things You Should Do Before You Invest

How to Invest for Beginners in the Philippines

How To Invest Your Money for the First Time

How to Invest Your 5,000 Pesos 

How to Worry-Free Invest in the Philippines

Believing These 4 Myths About INVESTING Keeps You From Growing

On Investments Gone Wrong

3 Best Investment Strategies for Beginners + A Look at How I Invest 

Where To Best Invest Your Money 

Investment Options You Can Try With Your Bank

Investing During Pandemic – What should you do?

Things that I realized since my First Investment

Increase Your Income

A higher income means more room for savings and investments. If you want to improve your finances, the fastest way you can do that is to increase your income.

There are some ways you can do it, from maximizing your current role to exploring new opportunities. Here are some suggestions:

• • You can negotiate a salary increase.
  • You can express your interest for a promotion.
  • You can identify the relevant skills you have, get online courses or certifications around it, and use it to your advantage.
  • You can offer your expertise and start a side hustle to generate additional income.
  • You can consider a part-time job that complements your schedule in your full-time work. 
  • You can change your career in case you’re really unhappy or unpaid with your current work. 
  • You can monetize your passions such as selling handmade crafts or becoming a blogger. 

By combining the above strategies with smart budgeting and saving habits, you can surely enhance your financial life.

 

 

Read next – 41 Ways to Make Extra Money while Working Full Time

 

Pay Off Your High-Interest Debt

To get rid of debt is one of the best moves you can do to improve your finances. It’s like getting a much needed rest after a day of hard work. It’s like resting your feet after running a marathon wearing high heels. 

High-interest debt, such as credit card debt, can accumulate quickly due to the high interest rates, making it challenging to pay off. By prioritizing the repayment of high-interest debt, you can reduce the amount of interest you pay over time and free up more money for savings and investments.

Related read – How to Get Rid of Debt and Reclaim Your Finances

Set S.M.A.R.T. Financial Goals

Setting goals is actually a good indication that you are finally taking control over your finances. It is now you hoping again, challenging yourself again, and moving forward for a better year ahead.

Make sure you set your goals S.M.A.R.T. meaning they are Specific, Measurable, Attainable, Relevant and Timely.

• • Specific – Are your goals specific enough that it contains the right keywords and figures you need to visualize?
  • Measurable – Do you have a way to track your progress?
  • Attainable – Is your goal achievable based on the current situation and the resources you have?
  • Realistic – Is your goal worth-it to begin with?
  • Time-bound – What is your deadline for reaching your goal?

Here is an example:

Instead of saying – save more.

Say – Save Php 1000 a month as an emergency fund this 2024.

• • The goal now is specific – the amount you want to save is available plus the reason why you are saving up is there.
  • The goal now is attainable – if you base the Php 1000 in the current salary you get, I don’t see any reason why you can’t attain the said goal.
  • The goal now is measurable – you will save every single month. You know exactly that Php 1000 should accumulate every month.
  • The goal now is relevant – it is a must to build an emergency fund. Having a buffer money for emergencies is a must do for everyone.
  • The goal now is time-bound – again there is a deadline available, this 2024.

Live Below Your Means

Being able to live solidly within your means carries with it an understanding that there’s a time and place for spending your hard-earned cash, and a time for conserving and saving for whatever future goals you have.

A firm understanding of these will allow you to live within your means, but comfortably. Make sure your expenses are below what you actually earn.

Try to be intentional when making a purchase and ask yourself if it is something you really need or you just want.

Use Credit Cards Responsibly

Credit cards can be a powerful tool, but like any other tool, they require responsible use to avoid the pitfalls of debt and high-interest charges. 

Here are simple ways you can be better in using credit cards:

• • Pay your balance in full, every single month! Doing this avoids interest charges, late payment fees, and other hidden fees. In case you are not aware, paying just the minimum keeps you in debt for a longer period and significantly increases the total amount you repay.
  • Only spend what you can afford to pay off in full each month. Don’t treat it as free money and try your best to avoid the temptation to overspend. 
  • Understand the fees that come with your credit card. Know your interest rate, annual fees, and any cash advance charges. Avoid cash advances due to the typically much higher interest rates.

Read next – 6 Things Consumers Should Check when Evaluating Credit Card Offers

 

Review Your Current Subscriptions

Study your cash flow and see what subscriptions you can stop for a while. It could be gym membership, subscription to Netflix/cable or perhaps the weekly food delivery.

Instead you can exercise at home, watch regular TV channels and cook at home. It may be an added task and time allotted on your part but the money you save can be put directly to your emergency fund.

Cook More at Home

When it comes to managing your budget, dining out can become quite costly. Planning your meals and buying groceries in bulk can help you save money in the long run. Additionally, preparing meals at home allows you to have better control over the nutritional content of your food, enabling you to enjoy healthier options.

Join Saving Challenges

Saving challenges is a good way to adapt to the habit of saving money. You have all the motivation to save every extra cash you have because the end goal is clear. Joining saving challenges adds gamification too. It feels like a game you can win, which can be motivating and keep you engaged to save.

Just make sure to choose a challenge that fits your budget and goals. 

Related posts:

7 Money Saving Challenges

1% Money Saving Challenge and How to Do It

10 Best Peso Sense Ipon Challenge Stories

 

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Become a Smart Shopper

Here are things that will make you become a smart shopper:

• • Before leaving the house, make a list of items you need to purchase, whether it’s for groceries, household items, or general shopping. This will help you stay organized and ensure that you don’t forget anything essential.
  • Differentiate between your needs and your wants. This allows you to prioritize essential purchases and avoid unnecessary expenses.
  • When considering high-priced items, do your own research first. This may involve reading product reviews, comparing prices from different shops, and evaluating the long-term value of the item.
  • If a particular item is unaffordable, it’s wise to explore alternative options that are more budget-friendly. By being mindful of your budget and exploring alternatives, you can make informed purchasing decisions that align with your financial goals.

Reduce Your Monthly Bills

Now, if you really want to save money each month then you need to reduce your monthly bills. A sudden decrease on your monthly bills gives you the means to save automatically.

• • Cut back on your energy consumption. Unplug electronics not in use. Spend less time on watching TV or being on the computer. Turn-off the lights especially at night time. Find appliances that have energy-saving features.
  • Reduce monthly subscriptions from cable TV, Netflix, magazine, gym membership or beauty box. Just focus on what you truly need.
  • Focus on paying your debt. Debt hinders you in saving money each month. Pay-off high interest slowly but surely. Avoid using your credit card and being more in debt. For personal loans try to negotiate with a lower monthly pay so not all your money goes in paying.

Have a Financial Binder

A financial binder means a central location for all your important financial documents. Having one helps you stay organized, informed, and motivated on your financial journey.

Your financial binder should include essential documents whatever applies to you such as copies of your IDs, your insurance policies, investment statements, loan documents, tax documents, and receipts of any major purchases you had. 

By keeping your financial information organized, you’ll be able to navigate your finances better.

Take Good Care of Your Health

Remember the saying health is wealth. Schedule regular checkups, eat nutritious meals, exercise, manage your stress and have quality sleep each night for optimal health and productivity.

Learn the Value of Life Insurance

Life insurance can be a complex topic, but understanding its basic value is one of the best things you can do for your finances. 

Here’s the thing: life is unpredictable! Life insurance acts as a financial safety net that catches you and your loved ones when life throws unexpected curveballs. 

There are different types of life insurance for different situations. Here are some essentials:

• • Term Life Insurance: This is the most basic and affordable option. It provides coverage for a specific period (like 10 or 20 years).
  • Whole Life Insurance: This combines a death benefit with a cash value component. The cash value grows over time, and you can borrow against it or withdraw funds for emergencies.

The least you can to do your research, compare quotes, and find a plan that fits your needs and budget. There are tons of resources online and even insurance agents who can help you navigate the options. Trust me, a little effort now can save you a lot of stress (and money) down the road.

Related posts:

Reader Question – Which Do I Prioritize First? An Emergency Fund or Life Insurance?

BPI Direct Save-Up plus Insurance First Impression

Why I Closed my BPI Save-Up plus Insurance Account + How to Do It?

 

 

Improve Your Financial Literacy

Financial literacy is important. The more you know, the better you will become when it comes to your finances.

With proper financial education you can make better financial decisions. If only we were taught about how money works, how to save, how budget and how to invest when we were young. Then maybe the moment we receive our first paycheck, we’ll know what exactly we need to do.

Here are some easy activities you can do to improve your financial literacy:

• • Read personal finance blogs and books
  • Listen to financial podcasts
  • Follow financial influencers and organizations on social media
  • Chat with friends or family about money

Remember that financial literacy isn’t just about absorbing information. What matters most is you put that knowledge into action. You can learn more about financial literacy and why it is the secret key to growing your money in this post – Financial Literacy.

Boost Your Retirement Savings

As early as now, boost your retirement savings. The earlier you begin, the more time your money has to grow and compound. By prioritizing your retirement savings now, you can set yourself up for a more secure and comfortable future.

Retirement is a huge life changer both financially and emotionally. It doesn’t end when you hit the age you want or when you fill out all the necessary forms to retire. It’s not just about stopping your current work or career but living the rest of your life in purpose and stability.

 

 

Related content – Let’s Talk about Retirement

Find an Accountability Partner

I believe in accountability partners. I prefer sharing my goals online because it helps me stay accountable for my actions. If you are married, this could be your spouse. If you are single, you may have your sibling or parents. Just share it to someone so you can be committed in taking actions.

Protect Yourself from Scam

Scams are becoming more prevalent, and scammers are continually becoming more sophisticated in their approaches. Now more than ever you should protect yourself from scams. 

You can do it by staying informed about the latest fraud tactics, verifying the legitimacy of offers and requests, and being cautious about sharing personal or financial information. Always double-check the identity of the individuals or organizations you are dealing with, and never hesitate to seek advice from trusted sources when in doubt.

Start Now

Last but definitely not the least in the things you can do to improve your finances is to start now! The real magic happens when you take action. Don’t wait until tomorrow, next week, or next year to start improving your finances. 

The sooner you start, the greater impact it can have on your financial future. Starting now is the most important step.

Final Notes from SavingsPinay

I hope you enjoyed this article on the 24 things you can do to improve your finances. To summarize here they are:

• Calculate your net worth
• Track your spending
• Create a budget
• Build an emergency fund
• Automate your finances
• Invest
• Increase your income
• Pay off your high-interest debt
• Set S.M.A.R.T. financial goals
• Live below your means
• Use credit cards responsibly 
• Review your current subscriptions
• Cook more at home
• Join saving challenges
• Become a smart shopper
• Reduce your monthly bills
• Have a financial binder
• Take good care of your health
• Learn the value of life insurance 
• Improve your financial literacy 
• Boost your retirement savings
• Find an accountability  partner
• Protect yourself from scam
• Start now

Every little bit of improvement counts for your finances. There will be challenges along the way, but with perseverance and smart decision-making, it’s possible to break free from the stress of financial strain.

What are other things you can do to help improve your finances? Which from the list is your favorite?