Be Wiser and Richer this 2023!

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by Rick Daligdig

The Year 2023 brings us new beginnings.

We are more optimistic in the new days ahead of us. Yes, we committed “some misdeeds” this year especially in handling our finances. Budgeting is even more challenging because of unexpected events like the 14- year high inflation, the unlimited oil price hike, and our yearly disasters like strong typhoons that cripple our buying power. More often than not, the ordinary Juan Dela Cruz is striving to make his ends on daily basis and having savings is not among his priorities. But even if we are a minimum-income earner or middle-income earner we must learn the art of preparing for rainy days. It was proven during the hard lockdown and when we are placed in a community quarantine where we are not able to report to our work because of pandemic. Even though the government was able to support us through “ayuda” but given the tight fiscal position of the government, their help has some limitations. If there is one thing that the COVID-19 pandemic thought us, that is to prepare for unexpected circumstances, especially in our finances.

Moving forward to 2023, here are some tips and advice which I know you already heard but as the old saying goes “ Reminder is the best medicine for those who are quick to forget”.

A. The Needs vs Wants – this is basic but always fails to observe. Sometimes we interchange the two. Sometimes justifying wants that it is a needs is becoming an excuse. Example: People NEEDS to EAT, that is a basic need but it turns into a wants when we want to eat in a fancy restaurant wherein you can cook your meal in the house which is more cheaper. In these two contradicting terms, we need this word, “Practicality”. In these hard times and if you want to start savings then strip off some items in your budget. If you always take your lunch in the fast food then maybe it’s time to cook your meal. You want coffee? Which one will you choose…Starbucks or 3 in 1 coffee? Every peso you can save will be a great start to putting up savings.

B. Plan your budget. Financial gurus teach the “envelope system” where each envelope indicates the corresponding expenses and their budget. In these you can learn which one will you prioritize and it will make you more discipline when it comes to budgeting your monthly expenses. Not only expenses have a designated envelope! Provide an envelope indicating your future plans like travel, buying a new phone or gadgets and of course savings.

C. Create an emergency fund. People often mistake that emergency fund is their savings already. Emergency Fund is money that is intended for unexpected or emergency purposes. Savings is the money that you want to grow and invest it for a longer time. If you don’t have one, it’s high time to start with an emergency fund. Now.

D. Get an Insurance – Yes you heard it right! Filipinos are very allergic when we talked about INSURANCE. Maybe because we are scared about topics of death. But Guys there are only two events in our life that is constant…. TAX and DEATH. Nowadays Insurance companies are offering this type of insurance called Unit Linked Variable Insurance Plans which is a mixed of insurance and investment. This is a very good investment not only to you but to your family as well as it gives a sense of peace and security to them when you are already gone in this world.

E. Avoid Bad Debts – there are good and bad debts. Good debts are the ones that you used to put up something that will increase your cash flows. Examples are credit intended to put up or expand your business, buy a parcel of land, or buy a car that you will enroll in to TNVS company. Of course, the bad debts are credits that you used but did not return at all. I will not give examples anymore because it will be too many to mention and I know you have examples already.

F. Increase your Cash flows – given you do the first four that I mention but still not to avail. Maybe it’s high time to increase your wallet or payroll. If you love your job right now we don’t have a problem with that but if you are really serious to start saving then you can look for a side hustle. You can do online selling, part-time work or jobs are now available also you can do multi-level marketing (MLM) just to be vigilant to choose which is the legit and ethical one. I’m not suggesting to leave your job now, you just find another source of income to increase your cash flows.

We have a lot to suggest but I think these are the most basic ones we need to remember. It is not the issue of how much are you saving but the attitude and discipline that you impose on yourself to start saving. So guys if you want to be richer this 2023, then Be wise in handling your hard-earned money. Happy New Year KaMilenyo! Save wisely!

 

PHOTO CREDIT:

https://comvergentrecruitment.co.uk/knowledge-hub/

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