With people looking to invest their hard-earned money more and more these days, or put their savings into worthwhile places, it often becomes a question of “how do I spend my money wisely”. When you ask yourself this question, look to the experts for advice.
Liezl Quiliza is a world-renowned Finance Adviser based in the Middle East, and had a few things to say about how to handle your finances.
1. Put at least 20% of your income into savings, no matter how large or small your paycheck is.
2. Seek help from a financial adviser, especially if you are unsure how to manage your funds.
3. Start saving and investing early on, knowing your portfolio inside and out will be extremely beneficial later on.
Other financial advisers like Randell Tiongson, author of No Nonsense Personal Finance: A Step by Step Guide, advise that before you think about investing;
4. Consider building a buffer fund as the market tends to be volatile.
5. Think long term as there are no shortcuts to building wealth and patience is extremely necessary.
Fitz Villafuerte offers a few tips to people attempting to get better at allocating their finances, or to people who’ve never had a knack for budgeting:
6. Track your expenses and stick to your financial plan. It may be hard at first, but stick to it and it’ll get easier through the years.
7. Control your impulse buying. Difficult as it may be, you can overcome it by giving yourself time to buy the item. Ask yourself if you actually need it now, if you can actually buy it with cash, and if it can wait until you do have the cash for it.
8. Become more systematic. Tracking your expenses using a notebook or smartphone allows you be more meticulous with your finances and may help eliminate unnecessary purchases.
The author of Stock Smarts, Marvin Germo, has plenty of lessons and tips on his websites. He also cites that the way you use the money you have ultimately determines the outcome of any endeavor you may undertake. He also imparts a few lessons to people looking to manage their finances:
9. Create a positive cash flow before you invest – having a negative cash flow prior to investing may cause issues, especially if you don’t have a buffer fund and if your investment doesn’t perform well that year.
10. Get out of debt – the path towards financial freedom is a difficult one to walk on, and getting out of debt is one of the ways you can stay on it. Eliminate debt by living below your means and staying away from consumer debt as much as possible.
At the end of it all, your finances determine the way you live your day-to-day life. The way you make your finances work for you, though, is something you can always get a little help with. Look to books and blogs on financial advice for more ways you can make your money work for you.
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With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.