5 Steps To Reset Your Finances - The Filipino Rambler

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Saturday, November 5, 2022

5 Steps To Reset Your Finances


We are on a global inflation crisis. Just last October, the Philippines had the highest headline inflation in 14 years. The consumer price index climbed 7.7% , the fastest rise since December 2008. Tough times indeed and without knowing how to begin, managing the finances can be stressful. Here are 5 steps to reset your finances and get ahead with your savings.


1. TAKE INVENTORY OF YOUR FINANCES.



Start with your cash flow- this is where your money comes and where it goes. As an employee, my source of income largely comes from my salary pay. My regular monthly bills include amortization for my house, electricity, internet, cable, credit card, insurance plus daily living expenses like food and transportation. I make sure I allot for these first and then some for my personal savings and emergency fund. Anything that is left is for whatever else that I want. 


2. MAKE A BUDGET PLAN



A budget is a plan for every peso that you have. Again, always start with the necessities. You don't want to have a negative cashflow, right? Personally, I follow the 70/20/10 rule. 70% of my income for the monthly bills, 20% for personal savings and emergency fund and the remaining for personal gratification. After a hard days work, it's important to pamper yourself on a little something so don't be guilty if you shell some extra because you deserve it. And yes, you can create any budget framework that will best fit you.


You can track your progress by listing it. I do bullet journal and I always include a budget spread every month. If you lack creativity, a simple list will do. On a notebook, have an inventory of all your daily expenses. By doing this, you can control costs and see where you're spending your money at and how much you're spending.



3. MAKE SMALL CHANGES


On the recent mini-forum organized by the team of Cebuana Lhuillier that I attended, Savings Pinay Izza Glino mentioned about finding small ways to reduce daily expenditure in order to save more.


I usually just buy lunch when I'm at the office. But lately, prices have ballooned and I noticed I've been spending more for my food. I've decided I'd prepare 'baon' instead and I'm able to save more. 


I also choose to walk instead of riding the trike when going to the LRT from our house. Not only do I save 60 pesos for skipping the ride, I'm also able to do a little cardio. Not bad, right?


Also, taking care of our health should not be neglected. If our health is at its optimum, we're able to cut on medical expenses. 


4. FOCUS ON THE GOAL



I've already shared this on my previous blogs- I follow the formula I x V= R or Imagination combined with Vividness becomes Reality. If you want to save, be more accurate. Put numerical value on it and a timeline like, I want to save 12,000 by the end of year. So that means you need to save 1,000 monthly. Make it specific, measurable and with a deadline.


Set achievable goals and know your why. This is what's going to motivate you. German Philosopher Frederick Nietzsche once said, "He who has a why can endure any how." When you have a 'why', you become more focused and passionate on your goals. 


5. OPEN A PERSONAL SAVINGS ACCOUNT


Having a savings account could be a right move for your finances. As soon as I receive my monthly pay, I immediately transfer an amount for my personal savings and emergency fund. Having a mobile app makes this easy. 


I know opening a bank account here in the Philippines can be a bit difficult for some due the many requirements needed. But if you are really keen in having a savings account, I highly recommend opening one at Cebuana Lhuillier Micro Savings. It's a regular savings account but doesn't require maintaining balance. And since there's more than 2,500 branches nationwide (there's probably a branch near you), it's very convenient and accessible. 


To open a Micro Savings account, just go to any Cebuana Lhuillier branch, bring 1 Government issued ID, P50 minimum initial deposit and P150 for card fee. Check HERE for more info. 


FINAL TAKE


Resetting finances can be a hard task but with the proper motivation and focus, it is achievable. Everyone wants financial freedom and a life with less stress. Leaving you these words from Earl Nightingale: All you need is the plan, the road map, and the courage to press on to your destination.


May all our goals become a reality. 

5 comments:

  1. Thank you for sharing this steps and tips sir allan big help po talaga ito and very informative na mag aapply sa pang araw araw na pangangailangan.The best din talaga ang Cebuana Lhuillier na may ganto to make sure na may mararating ang pinag ipunan mo.God bless po🥰

    ReplyDelete
  2. Thank you for sharing this , very informative and very helpful po tlga ito ❤️ ito tlga ung mga importante natin gawin ..

    ReplyDelete
  3. Thank you for sharing this steps and tips sir allan tamang tama po ito lalo na is about financial na sobrang laking problem din ng karamihan.Thanks to Cebuana Lhuillier for sharing this lalo na ang Ipon na magagamit talaga in the future or emergency.

    ReplyDelete
  4. Important steps/guides for everyone about finances !
    Thanks for sharing this
    Maganda may kaalaman tayo dito kasi tayo naman ang makikinabang in the future kaya habang maaga start to save money through Cebuana Lhuillier,the best ka at maaasahan

    ReplyDelete
  5. Great idea 💡 thank you for sharing po 💗 big help talaga nito to balance our finances at syempre hindi talaga mawawala yong savings na pinaka important

    ReplyDelete

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