How we handle our money is a determining factor on whether or not we’re responsible individuals. You don’t have to like it for it to be true. No matter what you personally feel about finances, or how you view money in general, our financial state is one of the aspects of our lives in which our value is measured; and this is not pertaining to how much money we actually have (though there are a lot of people who put a lot of stock in that). This is about managing your personal finances properly. Your financial health affects that way people perceive you, and truthfully, it’s going to affect how you perceive yourself.
So, if you’re one of those people who’re in constant financial difficulty, or merely want to improve your financial standing, there are little things you can adjust to put yourself in a more ideal state of financial health.
Use your credit card more wisely
If you’re trying to clean up your act financially, the best place to start is to consider how you use your credit card. You can free yourself from a huge deal of financial troubles by simply limiting your credit card use for necessary payments. Remember that credit cards come with specific fees that we all tend to neglect until it’s time to pay the bill.
Create a budget
The key to a healthy financial life is properly allocating your funds. Create a daily budget based on your necessary daily expenses, a little extra for emergency situations, and a monthly budget that takes into consideration all your monthly payments. By the simple task of planning your expenses, you’ll see exactly how much money you spend and how much money you can actually set aside. You’ll be able to start your savings and develop a level of self-control when it comes to spending as you now have a specific guide to how your money should be used. One reminder, though: be sure to create a budget that you can actually stick to. Be realistic. This way, you avoid any possibility of you actually going off on your budget plan.
Minimise loaning money to people
Helping people out is a good thing, but let’s be frank here. There are moments wherein lending people money takes a lot more out of your own financial life than you care to recognise. This isn’t to say that you shouldn’t lend your friend a few bucks from time to time, but if you do feel the need to help out, then be wiser in choosing which people to lend money to and why. Helping is good, but you know what they say about too much of a good thing.
Be open to opportunities to earn more
Even if you’ve a job, additional sources of income can never hurt as long as you’ve the time and energy to do so. A part time job, maybe a small business, any additional revenue stream, will do your financial health a world of good.
Cut corners whenever you can
Question your necessary expenses on how necessary they actually are. Do you really need to eat out at lunch when you can cook food at home? Do you really need to take a cab when the bus will do just fine? The thing with most people is that they often confuse convenience with necessity, thereby spending more. Try to avoid this habit by looking at every part of your lifestyle you can cut corners on. You’ll be surprised at how much you end up saving.
Having a financially healthy life not just feels good because you have more money in your pocket at the end of the day, but you also know that you’ve everything in control if ever you find yourself in unsavory situations. Remember, there are few better feelings in the world than knowing you’re able to manage every aspect of your life properly. If you want to know how this feels, then perhaps it’s about time you put your financial situation to rights.This contribution is exclusively written for SzeHau.net by MoneyMax.ph, the Philippines’ leading financial comparison portal which helps Filipino consumers make the right financial decisions as they settle on the best credit card, home loan, broadband plan, and more—fast, comprehensive, and free.