5 important
your expenses. Start by writing down all your monthly necessity expenses such as food, rent, utility bills, etc. These are the items that are essential to your sustenance – shopping binges not included! It is recommended that your necessity expense does not go beyond 60 percent of your monthly income to provide room for your other expenses. Whatever is left in your budget after deducting your necessity expense is the “free portion,” the amount that you can allocate either to savings, “wants,” or both.
Implementing a spending plan is like getting into a new exercise but once you get started, your system will naturally get used to it and eventually be a regular part of your routine.
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as a job loss, hospitalization or amount of money immediately can happen to anyone, regardless of age and social status. That’s the reason why you’d like to allocate a portion of your monthly income to an emergency fund. Being prepared for such eventuality provides you with an indispensable hedge - mended that you save to establish between three and six months’ worth of your expenses as your out an amount that you can save regularly until you reach your desired emergency fund size. The like to establish is your health and life insurances. Being young and single doesn’t mean that you protection like life insurance. Life ensure that we do not cause any our family in case of untimely demise. If no one in your family is dependent on your income, get the expenses they would incur for funeral costs, etc. Getting a life insurance of P500,000 is a good number to start with.
You are born in the age of information and everything “instant.” Instant information, instant coffee, instant noodles and instant access to credit are plentiful. While it is true that purchases using credit card offers convenience and freebies, it also encourages spending something that you haven’t earned yet and might lead to a vicious cycle where you work, receive paycheck and pay credit card dues. It is a cycle - tionally drain you and in which you’d wish you hadn’t engaged. They key is to stick with cash payments. If your current cash balance cannot afford it, it means you have to delay it momentarily. Do not be trapped in the “YOLO” mentality, although it is not true that You Only Live Once; in fact, statistics shows you’re likely to live an average of 68.5 years – that’s about 25,000 days. Now, that’s a lot of days living miserably if you fall into the trap of instant
3. 4. Resist debt. Invest in education.
Improving your competencies through continuous education is what will separate you from the majority of your peers. Successful people, whether in the corporate world or in business, have one thing in common – they do not stop learning. Invest in your most Remember that knowledge is one commodity that is not subject to your skills and competencies for they will be your springboard to - tive marketplace.
5. Grow your money wisely.
One of the advantages that you have over me, your boss and your parents, is time. Your age makes - ment. You have more years in which to grow your money and make yourself rich. Did you know that if you save at least P100 a day and invest it monthly in an investment vehicle that yields 10 percent interest every year will accumulate for you roughly P1 million in 15 years? Not bad for a daily saving that costs as much as your latte from your favorite coffee shop. Learn about stock investing, great investment instruments to use as you begin your investment journey.
Best of luck!