When it comes to budgeting, Arianna just won’t let us off the hook with, “almost is never enough.”
We’ve made it quite far, yet still not doing good enough, that’s it. But hey, no one should be broke forever, we got to shake it off and inhale the thought of wealth and prosperity in our personal finances.
Financial planning is and will always be an eternal practice in what we call adulting, or should I say tander-ing up.
Here are some money saving tips for your financial planning skills get lit.
1. Have a ‘Needs vs Wants’ list
A rule of thumb is to identify what you need and want. What you need are things that you can’t survive with, house, food, shelter and clothing. However, in the 21st century, it is also vital to factor in graduate or post-graduate studies and technology needed for work.
Now, people would ask, can we just splurge on fashion and technology, while also enjoying 5-star luxury dining? To that question, I would give you a BIG NO.
Try identifying what you really need, think of the bare minimum that you will need not the maximum to live an ultra-comfortable life. Quick way to check is whether it consumes about 10% of total monthly income, then it is a want.
2. Apply the 50-30-20 rule
Now this article becomes a mini-finance advisor session.
Many people end up in the list of who’s who among the broke because of the lack of priority. Budgeting and finance are highly contingent on the way we see the things that we allocate our resources on. A fact is we will have unlimited wants, we can’t want a SkillShare subscription today and a higher-end Master Class subscription tomorrow. The difference is that we might end up hoarding things that we don’t really need or use.
With the 50-30-20 rule, we are able to prioritize things and still get the things we want but on fixed timelines. Here is the budgeting list:
- 50% for needs
- 30% for wants
- 20% for savings.
Emphasis on 30 for wants, because this is where we are most vulnerable to becoming unfaithful to. Come on, no one likes cheating cheetahs, more so, baes who don’t believe in fidelity.
In case your want for the greatest pleasures in the world just like those brand new Air Pods 2 or the Virgil Abloh- Louis Vuitton collection, then the trick is to save up a cumulative amount of those 30 percent’s every month, before you know it, you can be a true beast in style and financial budget.
3. Activate your savings through high-interest plans
Now, your ego and super ego may be agreeing with me, but your id just won’t give up, it now whispers, “inflation will cost the value of your money more, compared to luxury that appreciates over time…” It holds some truth to it, but the playing field is unequal, because luxury products were given much thought, but money? Not so much.
The key is to have proper financial goal management. Research about attainable goals and make your money grow. A way to keep that id whispers silent down is to start investing.
From life insurances, stock markets, to conservative deposits that insure maximum gains. The key is to get to talk to the investment planners from these companies and know what you’re getting yourself into.
4. Investment on your Future
Speaking of reaching the tanders and lightning phase, we will all get there, when the glory days of youngster and hipster have to come to a close. Treat this as something like a personal financial planning for how you want to live in the future.
Now, that perhaps, hasn’t given you much motivation. However, doing that will help you live your best life and still live a new flavor of glory, perhaps through travelling, in a rest house, or whatever you prefer.
In order to get those, it is important to talk to a retirement planner. Bankers from Manulife, BDO, Metrobank, Security bank, among others are surely willing to help you in brightening up that future. You got to have a money manager mindset of how much money you have to save up to recreate that dream retirement and start saving up for that. Retirement savings don’t fit a one size fits all, it is all based on your preferences and situation.
5. Money Management Apps
Keeping track of all those expenses and money may just bring you accounting class trauma, just as tita Celine once sang, “it’s all coming back to me now.”
When we continue to suck at remembering things and keeping receipts, Bobbie then becomes our ultimate spokesperson:
Luckily technology is on our side. our budgeting list, don’t have to be a complete sob story.
Currently there are free applications like Mint, PocketGuard, and You Need a Budget, to become our saving grace in disastrous situations. These applications will cater to your different needs, just try one out and see how it works.
“Remember, your older you will either thank or curse your younger you.“Randell Tiongson
What are the biggest challenges that you face when it comes to budgeting? Share them below!