June 7, 2023

10 Helpful Money Management Tips

Economy on money finance and money management

Introduction

Who needs a challenging yet still doable helpful money management? What should be the upright perspective be under the ipso facto money management tips?

Money management—It should not be lying at a great distance and faraway lands but must be within the containment of your immediate grasps. Help wanted for money management? — Inquire within as it can be adequately learned.

In arduously backbreaking times as this longish 3 years covid-19 crisis and beyond, the human race invariably learns on how to industriously economize. The act of a distinct good economizing is characterized by an eminent befitting reminder for you and for the hemmed of your pockets too. We live for today exhibiting gusto and firsthand vigor, yet we likewise need to make necessary reserve and save for some emergency just as we need to save some for the hereafter future of the family too. Money management and money skills functionally work closely together consummately.

Most significantly, we need to logically understand it need not be to the confined humanity of being severely frugal that you don’t learn to revel in enjoying life once in a while. Specifically on foodstuffs, our physique needs the right supplementary nutrients from the plant-based foods to sustain growth, essential vital processes and to furnish energy for achieving sufficient work. Henceforth, money management comes beyond beneficial.

Who but you would think why do we requisitely need to be subsisting scanty in consuming our money by putting into a good use? Why do we need to demonstrably exhibit some stinginess or have a penny-pinching in spending and money management?

3 Distinct Money Skills

1. Learning to be considerably conscious regarding your modifications of spending versus your revenues and coordinating expenditures.

2. Making confident certainty your budget lasts longer all months and all year round by planning and allocating funds.

3. Help yourself by making it a habit to keep track and stay within your budget. You adhere to your budget wisely.

Here’s a list of helpful money management tips to provide some guidance on you with something useful and necessary for saving money and in achieving improvements in money matters.

10 Helpful Money Management Tips

1. Allocate funds for savings, recurring expenses, and lifestyle

Savings. Upon receiving your monthly fixed compensation of paycheck, purposely set aside 1/5 of your salary. It is important to earmark a certain quantum amount, so you won’t consume it wastefully on uncalled-for and unnecessary things. More so, your money won’t completely be taken up in a blink of an eye. How to compellingly carry out all of this seemingly? You can have a literal coin bank. or steadfastly execute the envelope system. Invest some of your savings after a few months to make it grow.

Recurring Expenses. Set aside a certain amount for all your monthly bills, from electric bills, water bills. Cable, Wi-Fi, phone, monthly grocery, budget for weekly market day. Moreover, set aside for emergency fund.

Whatever is left from your savings and expenses, that’s what you will spend—follow this and you will be fine.

Table1. Sample of Financial Budgeting and Helpful Money Management

PhP55,000 (US$980.07) – monthly salary

AMOUNT	PARTICULARS
PhP10,000 (US$178.19)	– savings
PhP3,500 (US$62.37)	– recurring bills
PhP10,000 (US$178.19)	– recurring expenses/food
PhP15,000 (US$267.29)	– school
PhP2,500 (US$44.55) _______________________	– emergency fund
PhP36,000 (US$641.50)	– subtotal
PhP14,000 (US$249.47) _______________________	– lifestyle fund
PhP55,000 (US$980.07)	– TOTAL

*NOTE: Invest in business for additional expenses.

Lifestyle fund. Allocate about 20%-30% of your income for lifestyle spending. This comprises movies, restaurants and travel. Basically, anything that doesn’t cover your basic necessities falls under this category.

3. Avoid overspending

Don’t keep purchasing the current trends on gadgets from the latest iPhone model to e-tablet, latest laptop, latest computer, additional car which you won’t use regularly or not a necessity when you are still saving.

Spend on experiences, not things. Instead of buying pricey material or apparel or objects—go for a concert or a picnic at the park. It gives you more lasting happiness, yet not in a costly manner.

3. Be a wise buyer

Purchase at thrift stores. And buy on sale season—shopping malls habitually go on sale from 30% to 50% discount on the X-masses, Thanksgiving Day, Summer sale, Foundation Day of the city or wherever area or city you may be residing. Do your buying of plant-base foods like veggies and fruits on the wet market where it is less costly, and you can save more.

Add-ons, usually grocery stores at the shopping malls give a 50% discounts on fruits that will be spoiled in the coming few days one (1) hour prior to the store closing time; and have promos like buy one-take-one on items that will expire in a few months’ time like bath soap, shampoos, canned goods, tupperwares, kitchen wares etc. which are usually displayed on the center aisle rack. Purchase a solar panel and reduce your electric bills. Buy appliances with inverter to save the cost of electricity.

4. Have a mini greenhouse

Start having a mini greenhouse at home. Planting and growing some of your plant-based foods yourself in your garden or backyard is not only fun together with your family and friendly to your pocket, but you get to ensure what foods you provide your family and kids are always fresh and healthy. If you have smaller space, that’s not a problem at all as you can perpetually grow plants in big pots and even put some in your kitchen, parking lot and terrace as ornaments.

5. Shop solo

Shop solo on a weekend. Regard shopping with a deep-seated, serious attention. Ever have a friend who says that you look amazingly stunning on every clothing and apparel you try so you get indisputably persuaded to believe and purchase? You love your friends, yet better save your socializing in the house with friends or for a walk in the park, or coffee shop instead of in the malls.

Choose whom you go out with. We need friends and associates, but it’s equally important that you have friends who are with you not only in happy times or drinking session but most important of all, they are also with you in achieving your goals in life.

Good friends will understand that you can’t often go out with them on a regular weekend gimmick. If they are real friends, you must be comfortable in honestly saying to them that you are saving for a certain period or months hence you have to pass because you are about to buy a fridge for instance. If they are real friends, they will understand and support you.

6. Avoid ordering delivery foods every day

Do away with eating foods outside every day or ordering delivery foods every day. Rather, learn the basics of simple and quick 15 minutes cooking at home and enjoy your time with your kids. Lessen dining out just once or twice a week, or on emergency cases.

If you are used to purchasing the best coffee Frappuccino’s from Starbucks every day, that would cost you big bucks. A caramel macchiato drink at Starbucks cost PhP200 (US$3.57) or the dark mocha Frappuccino PhP215 (US$3.83 x 30 days = PhP6,450 (US$114.92) monthly. Instead of ordering it daily, why not do it once a week? 210 (US$3.74) x 4 = PhP840 (US$14.97) monthly. So, you get tday,o save PhP5,610 (US$100) per month on Starbucks.

Or if you keep ordering meals at Kenny R$114ogers and Burger King thrice a week, amounting to PhP1,000 x 3= 3,000 x 12 months= PhP36,000. Why not make it once a week Php1,000 x 4 = PhP4,000? You save another PhP32,000 monthly.

5,610 (US$100) x 4months = PhP22,440 (US$400) savings from Starbucks

8,000k (US$142.56) x 4months =PhP32,000 (US$570.22) savings from Kenny Rogers

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Note: With savings in 4 months. You can start investing it in a small business.

7. Avoid being an impulsive buyer

To avoid being an impulsive buyer, consider three (3) things before buying anything. First, consider if you have a budget for it. Second, consider if you really need it or not. Third, can you afford to pay it in cash? If you are gonna borrow from someone, then don’t. Just save from your monthly salary before buying anything, unless it’s an emergency.

8. Avoid habitually borrowing money

Avoid habitually borrowing money unless it’s really an emergency. And pay it on time. If you’re going to use it or invest it in business, then that’s fine because it has a sure return investment. But if you’re gonna borrow it just because of “luho” or vain luxury, then don’t.

9. Be a wise parent

Send your children to college at excellent state universities in your place. It certainly serves a dual purpose—your child gets the best quality education therein with educated professors, and relatively the educational expenses are friendly to your pockets as well.

10. Have other sources of income

Add to your means with sources of income—the most vital secret to attaining success with your money management. Never just rely on your monthly salary alone—more so if you have children to feed…Otherwise, your boat in the family will sink. If you already have a family—focus on having ways to gain additional sources of income for your family.

If you are working 6 to 8 hours a day in the office—add to your sources of income like investing in a small business. Or you can teach in college or in graduate school after your office work on Fridays and Saturdays. Engage in a minor tutorial service or tutorial business, more so you can even tutor kids yourself, and house rentals.

Refocus on your skills—like selling art painting personally created by you, sketch and drawings, driving lessons business, welding business, baking business, small milktea business, small laundry business, computer repairs or better yet IT programming services. Moreover, you can start selling online, or sell farm animals like chickens and turkeys, have a mini greenhouse and sell plant-base organic foods which is a growing trend, etc.

There are actually a multitude of things you can do to add to your monthly sources of income. Because on temporal globe, no one else will love your children like you do as a parent. Just as do not expect other people to send your own children to school—that is wholly wrong as it is the sole responsibility of the parents to do so. Be a role model-parent to your kids. The secret lies in your own handwork, dedication and love for your own family, coupled with continuous prayers. Always pray with a grateful heart as a family and invariably say grace at mealtime.

10 Helpful Money Management Tips

Table of Contents

Introduction

3 Distinct Money Skills

10 Helpful Money Management Tips