Simple ways to balance saving and spending
Credit to Author: JOSH MASCARIÑAS| Date: Thu, 28 Feb 2019 16:17:49 +0000
Most Filipinos only keep less than P5,000 in their bank accounts, said a 2017 Bangko Sentral ng Pilipinas (BSP) report. Though the number of deposit account holders in the Philippines had improved by 6.8 percent in 2017, 62 percent of depositors still keep small amounts of money in their accounts.
Odd, right? Knowing how jampacked malls are every payday. Indeed, this gives a sense of how Filipinos deal with their finances.
Yes, it’s hard to find the middle ground between saving and spending. It’s like falling on one end of the spectrum or the other. Either you religiously save until you deprive yourself of the things you like, or you spend until you run out of money.
However, if you always complain about how difficult it is to save money, you’ll never get to fund your ideal lifestyle. You don’t want to live paycheck to paycheck. If you want financial stability, you need to find a balance between saving and spending. The following ways can help you:
Start saving early
Saving money at a young age allows you to develop good spending habits. It helps you focus on your budget and avoid necessary expenses when needed. It’s also important to determine a definitive percentage that you’ll save from your income. Saving 20 percent of your gross income is a good start, as what Investment Adviser Eric Roberge suggests. This practice will greatly benefit you as you earn more in the future, giving you the opportunity to save more.
Make adjustments depending on your financial situation
Be fully aware of your financial situation. This will help you prepare when you need to make adjustments on your budget. Be ready for the times when you don’t make enough money (if you have an unstable income). Occasions like this may prevent you from saving money thus hurting your financial plan.
Evaluate your financial actions and determine what works and what doesn’t. Simply adjust how much you spend versus how much you can save. Make sure it equates to how much you earn in general.
Follow a holistic financial plan
A holistic financial plan will help you achieve a balanced and secured financial future. Prepare responsibly because you’ll need money to fund and afford the lifestyle you want to attain.
You may splurge on your wants today, but always keep tomorrow’s needs in mind. This mantra will help you follow an effective financial plan that offers the best of the present and of the future.
Get a financial accountability partner
A financial accountability partner can help you evaluate your financial actions given his or her financial management skills. This person can coach and help you commit to your finances. A financial accountability partner can also help you meet your long-term financial goals, manage your everyday spending, and keep track of your money-related decisions.
It’s important that you stay transparent with your financial accountability partner. Seek guidance and advice from him/her, especially when you’re tempted to spend beyond budget. Share your money struggles as well as your achievements with this person.
Attaining a balance between spending and saving depends on how well you save versus how much you spend. Remember, it’s important to allocate money first before spending. It will give you an overview of your financial actions for the time being. It will also help you identify which expenses need to be adjusted.
After all, balancing your funds is not a one-shot try on achieving financial stability. Don’t be scared to make a mistake. What matters is that you pick yourself up and start balancing again.
Josh Mascariñas is a content writer at MoneyMax.ph. Save money on car insurance, credit cards, and loans when you compare and apply at www.moneymax.ph! Visit our website to know more.
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