Money makes the world go round. Regardless of what other people say, money will help you survive because without it, you won’t even be able to buy the basic necessities; and let’s face it, it is better to go through life knowing that you have more than enough money to spend.
But how do you arrive at a point where you have more than enough money to spend? This is where we come in. In this site, you can get tips and tricks on how to manage your personal finances and at the same time, give tools on how to manage it more effectively. As you go through our website, you will slowly learn how to be financially stable no matter what your age is.
Let’s start at the beginning so that we can equip you with the basic principles we know would be helpful as you earn and spend more each day.
The rule of thumb in personal finance is that you have to spend less than what you are earning. This means that you have to adjust both your mindset and your lifestyle to fit your income. To be systematic about this, you have to know first how much your monthly income is and compare them to your monthly expenses. The next thing you should do is classify those expenses. Are they fixed costs? Are they mostly for leisure and entertainment? It would help that after you categorize them, you could make a pie chart to identify where the bulk of your income goes.
Now we’ll go into two of our techniques in managing your money. First, we focus on the present where you will be making a monthly or weekly budget. Your pie chart would be helpful here because you can gauge which expenses you should cut down and prioritize. Second is you should also practice looking at the future. When we say ‘future’, we mean a few months from now to a few years. A key to managing your money is being prepared for what the future brings and also for having enough savings to reach your goals.
Finally, there is another principle we often teach our clients. It’s called investing. A lot of people are still hesitant when they hear this word because they feel that there are a lot of risks. Instead of taking a calculated leap, they settle for hiding their money under the mattress or keeping it in a savings account that will only give a 2% increase in your savings. In this site, we plan on changing that mindset and we will guide you on how to have successful investments.