Bridge To Gold

Archive for the ‘Finance’ Category

I’ve read this fantastic article on the web that says a lot on how to save more money. It’s really upsetting to know that most people on the middle-class have problems with managing their own finances. Managing finances is not that difficult, in fact, you don’t need to be a pro to handle your own finances.

The easiest and most effective method of saving money is by living the frugal lifestyle. You’ve read it right! When I was a child, I was introduced to frugal living at a very young age. Although my family is well-off, my mother made sure that I and my siblings would learn how to save money and avoid spending money on things that are unnecessary. However, my grandmother is a doting grandma, and she would often sabotage my mother’s frugality lessons.

Everyone can learn how to manage their own finances, only if they will have the willpower to do it. When you’re living a frugal life, you always save money as much as possible. That includes avoiding useless expenditures, consumption of unnecessary things and on top of it, the avoidance of excessive expenditures using credit cards or loaned money. Taking advantage of free coupons and discounts is also a great idea.

Money is like a smoldering rod that you can’t hold in your hand for long. Living from one payday to another has become a lifestyle for many. The payday mentality leaves you with very narrow breathing space for little surprises or unexpected expenses, worst it leaves you with nothing, no back up.

Every payday, everyone rushes to the mall to shop, splurge, buy the must-haves, dine out, run to the nearest bar-stop, and always rationalizing that we need to indulge ourselves – a motivation, as others try to coat it sweetly.

Bottom line is – no savings, living from payday-to-payday. As I mature and my responsibilities elevate, I learn to understand money more and gained an enormous knowledge about money matters.

I started to be more conscious of my expenses. I’ve modified my behavior towards money. I’m eliminating the unnecessary expenses that share a big chunk off my take-home pay, always sticking with my allocated expenses. I don’t underestimate a few peso savings now, it can amount to a few hundred pesos in a week and a thousand in a month. I’m looking money at a different angle.

The rule should be to set aside a percentage for your savings first and whatever is left would be your spending money. While most do it the other way around, income minus expenses equals savings. We all know it won’t work that way. Spend wisely!

We’ve all heard about the importance of keeping a savings account, especially from our parents. Having money safe and secure in a financial institution assures you that should an unforeseen event occur like a sudden sickness or accident, you have somewhere to go to for your money instead of getting a loan. Nonetheless, a lot of people still don’t have a savings account. Here are a few good reasons to help you change your mind:

· Your money earns interest.

The interest rate banks add to your savings account may not be a big amount, but money is still money. Think of it this way – without doing anything, you still make extra money. Compare that to keeping your money in a drawer in a house!

· Your money is safe and secure.

Your money will be safe and sound from robbers who might enter your house or a thief who might snatch your bag. Banks may be held up too, but savings accounts are secured by the PDIC (Philippine Deposit Insurance Corporation). If you’re worried about a bank closing, save money in a bank only up to the amount insured by the PDIC.

· You Don’t Need a Loan when there’s an Emergency

Unforeseen events do happen, and in case they do, you’re ready instead of going to a loan shark who will charge you a hefty interest rate.