When we were growing up, not every one of us was taught how to handle our finances. The great concept we are told when we were young is to study well, so that we can get a decent work with a good salary to assure our family’s good wealth, our children’s education, purchase our dream car and dream house but, ta-da! Surprise! Unfortunately, a decent job won’t just do it all.
When I started working, I was surprised that even if I already got a high-paying job, finances is still a difficult concern. So here, let me share to you these powerful points that brought change to my personal finance.
KNOW THE FACTS
When we say, “know the facts,” I encourage you to first know your own financial profile. Those who are already in the investment industry are already aware of the financial profile survey usually have to be filled out first before signing up or during signing up for an investment, but more than that we can take part in simple ways to figure out and understand our own financial views and behavior. Let me share to you how I do mine:
Here is an example of a personal monthly budgeting which I also apply with my own finances. In this simple way, I figure out how much I would be spending for a month and to what is it allotted for, also knowing how much I can save or place as an investment it makes me aware and well-informed on how my finances’ flow. I do this every month, making it a habit sustains a healthy attitude and makes wise with my spending. After this, you can now expand your knowledge about investments that are best suitable for you! Engage in facts! Study! Learn! And always know the facts!
Don’t be afraid to make it simple, don’t even make it complicated. You don’t need to be a Math genius to figure this one out. The important thing is that YOU KNOW. It makes you one step ahead to being financially wise.
UNDERSTAND YOUR PRIORITIES.
Now that you are one step ahead, after you figure out the current flow of your finances, it’s time to lay down the things that you want to save up for or you need to prepare for. Considering the table stated on point number one can also give you a timeline of when you could purchase the thing you desire, or when to start your own investment in a specified time only if you keep the discipline of being consistent and sticking to the concept. Let me also share to you these questions that I answer before I plan, purchase or invest on something:
-Do I want it? (If NO, then don’t. If YES then answer the second question)
-Do I need it? (If NO, then don’t. If YES then answer the third question)
-Can I afford it? (If NO, then don’t. If YES, GO! )
But be careful because the third question is sometimes tricky, sometimes we can afford it only if we would compromise something, if you are to compromise something just because of the thing that you are desiring to purchase, DON’T.
REMOVE FEAR OUT OF THE GUIDELINE.
It’s okay to be cautious, but if you being cautious is keeping you from possible opportunities to expand your financial wellness, then I believe that is fear. But if you use fear as an advantage and motivation to expand your financial wellness, then you are on a great path!
Fear is normal. It is in our nature, our instinct. If experts aren’t afraid of losing financial wellness, coming up with an insurance, investment and other financial wellness concepts couldn’t have been possible. It is up to you on how you would use your financial fears to your advantage.
Now that you know the facts, and you understand your priorities well, and removed fear out of the guideline, let me leave you with this one simple point that can bring a difference to your personal finance —-
“IT’S NOT ABOUT HOW MUCH YOU HAVE, IT’S WHAT YOU DO WITH WHAT YOU HAVE THAT MAKES THE DIFFERENCE.”
Criselda Dejuras is a Bancassurance Sales Executive at BPI-PHILAM who excels in her work in spreading financial literacy in the country today,