Learn to be Financially Wise this 2017
by 
#2017Mantra: To be Financially Wise
Thinking of going to Bantayan Island with friends first weekend of 2017? Think twice my dear! You might regret it.
While swimming in Sta. Fe’s beautiful beaches with your Anne Curtis-inspired two piece or showing off your Matteo Guidicelli’s oozing abs may be a good idea to kick off a good vibe for the new year and for your IG feed and followers of course, our grey haired men would not allow us since spending in the first day or days of the new year will entail us to do much spending the entire year. And that is a bad “palihi!”
With the technological advancement and the advent of social media, social pressures arise rapidly. Among them are the You Only Live Once (YOLO) philosophy, buying the experience culture and the instant gratification of the present rather than building the future. And the most affected age group is the millenials, who are considered born between 1980 and 1998. Majority of us, despite of the emerging advancements which we can use positively, turn to practice a bad habit of living a life going broke. But hey, don’t fret! Here are some money saving tips for you, especially Cebuanos, to make the most of your money, to become financially wise this 2017, and to make the most out of life.
Tip#1: Create a monthly budget plan
Do an unplanned purchases, spontaneous trips and friends eat out ring a bell? Certainly. These are just some of many situations we are guilty of. Creating a budget plan for all the possible monthly expenses won’t hurt your butt. Budget plan serves as a guide and a reminder to live within your means. Moreover, a wisely crafted budget plan helps in determining your goals and priorities and how much is your allotment in each expense. This will help you arrive to your next pay check. According to the article “5 Finance things Millennials should do” published by inquirer.net, people in their 20’s are possible to have 30-40% savings in their income if they stick to the budget plan. It also noted that this behaviour in this age period will surely have positive impact in your financial future.
Tip#2: Make an Emergency/Savings Fund
It is undeniable that most of Filipinos don’t have savings or don’t save from the incomes. Reality check: it is a wrong move since emergency situations are inevitable to happen. Thus, preparing for this will surely save you from sea of debts. The article “5 Worst Money Mistakes that EveryMillennial Make” by Securitybank.com suggests to keep your emergency/savings fund in a separate account to avoid confusion with other expenses. This will also prevent spending the fund to unimportant matters.
Tip#3: Record your expenses
A business column titled “Money Saving Tips to Achieve Financial Freedom” published in Manilatimes.net said that recording your expenses helps in monitoring the movement of the expenditures. It will aid you at the end of the month in evaluating your budget plan whether effective or not, followed or you just went to the other bridge. Doing this tracks all your expenses even the little ones which you mostly forget. Moreover, part of the expenditures is the borrowings too. The same inquirer.net article pointed out that financial institutions and credit card companies target those in 20’s who generally love to enjoy life and buy things such as expensive phones and buy seat sale flights to name a few. Thus, minimize borrowings as much as possible to avoid being lured into debt and make your record list quite long.
Tip#4: Start Investing
Investing is the least considered action of most Filipinos when it comes to financial management. Reason? It is due to lack of financial literacy. Possibly, quite many millenials understand the importance of investing but sadly it is not put into practice. Again, reason? Possibly, it is because of laziness and siding more on the instant gratification of the present instead of building the future. Reading financial material books, attending seminars and watching videos among many are ways of educating ourselves in this matter, particularly in investment. It is true that communication or information is aid but it doesn’t stop there. Acting on what we know should be done next. The same sources said that if you’re just starting, try to put some money in Unit Investment Trust Funds in your banks. The best time to begin investing is while you are still young because you have a lot of time to take risks and grow your wealth. If it fails, you still have ample time to recover.
Yes, it is true that there are several factors to be considered why millenials act this way. But no matter how you justify things, being wiser in money management should weigh heavier than to instantly fulfill our social gratifications such as your plan of going out to Bantayan Islands. There is no wrong in pampering yourselves but keeping the balance is the secret. So, as we count the remaining days of 2016, we need to slowly imbibe and start to plan out the New Year ahead. Don’t be lazy! Do it! Do it! Do it! And of course, you could never go wrong with this reminder: #Mantra2017: To be financially wise.
