Happy 2013 everyone!! My apologies for the late greeting. It’s already the 10th day of January but have you listed down your new year’s resolution yet? Some of you might begin changing your eating habits, being on time to school or work, learning new craft and the list goes on. Also, this may be the great time of the year to review your finances. Whether you have set aside 20% of your last year’s income to savings and investment or not. But if you haven’t done it yet, now is the time.
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1. Set Goals
What are your short-term and long-term goals? Do you want to be debt-free? Are you planning to buy a car this year? Which places do you want to go with your family and friends? Do you want to increase your income? For whatever goals you want to achieve, write them down on your journal/planner or even on sticky notes – place them where you can read and get reminded every day.
2. Make a Budget
Remember to save first before you spend. It is a rule of thumb to save at least 20% of your monthly income to your emergency fund in the bank and investment. For some Christians, they do tithe 10% and what is left goes to your expenses usually 70% of your income. Personally, I do the envelope system which I learned from my mentor, Bro. Bo Sanchez. You can allocate one envelope for each goals. It’s just like setting a “fund” for travel, shopping etc.
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3. Track your Expenses
If you are used to watching movie every week, why not rent DVD and watch it at home? Or instead of using credit card for shopping, pay it in cash so you are living within your means and debt-free too. I didn’t mean to deprive you but look for ways in which you can save those extra money. Remember, identify your needs from your wants. Learn to prioritize.
4. Increase your Income
Is your monthly income insufficient for your family needs? Or do you have a passion in photography or baking and you want to monetize it? Keeping your regular job is good but you may also consider getting a job on the side that you enjoy doing to increase your cash flow.
5. Learn to Invest
Stock Exchange (PSE) Index is reaching all-time high levels almost
every day. But no matter how our economy is doing well if you are not investing, you will not take advantage of its growth, and make money
as well. Bank deposits only give 1% interest per year but price increases 3-5% yearly. Now is the time to invest. How? Invest in Mutual Funds or Stock Market. But be sure to educate yourself first. Read books/articles/blogs. Ask your friends. Look for Financial Advisors or Mutual Funds Representative. If you do not have yet, I can assist you.
Now, what are your financial resolutions this 2013? Share some by leaving a comment below.