5 Simple Tips to Be On Your Way to a Financially Healthy Future
5 Simple Tips to Be On Your Way to a Financially Healthy Future
The state of your finances is just as important as the physical, emotional, and spiritual aspects of your well-being. Keeping track of your money flow should be one of your top-most priorities to have a healthy, happy life. Here are some simple steps to manage your finances.
1. List all your income sources and expenditures. This way, you can check how much you spend and how fast you spend your income. Live within, or better yet below your means. Writing down your expenses can also make you aware of your financial status and let you see where you can cut corners in your budget.
2. Pay off all your debt or start to. Especially for credit card holders, pay more than your minimum card payment or pay off all your monthly card dues. Paying just the minimum will take a long time for you to be debt-free. Also try to use your credit card only to buy necessities or for emergencies. Pay cash for the clothes, cosmetics, shoes, and accessories you want to buy.
3. Save up! This goes without saying. Open a separate passbook account and make sure to deposit in it regularly. The amount you put in could be as little as P100, but make it a point to just deposit into the account and not withdraw from it. You’ll be surprised to find that after a year, all the small amounts you deposited added up to a large sum.
4. Don’t be scared to invest. Once you’ve saved up to say a minimum of P20,000, you can start investing your money into mutual funds or other investment schemes. Though there is an element of risk to all investment schemes, don’t let your money just sit. Just make sure you research thoroughly first how you want to invest your money so you know what you’re getting into.
5. Think positive. Believe that you can turn your money woes around. All it takes is hard work, discipline, and making the wise decision to keeping a healthy bank account and less stressed mind.
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