When it comes to personal finances, the term “budget” usually has a negative connotation. It implies putting a limit on particular items to buy or on other things that one wishes to spend on.
Looking at it from a different perspective, a budget is not just a list of things to spend on, but also the money used to spend with. This means that everyone who has money or who buys things has a budget.
A budget is like a diet. Whereas everyone has a “diet,” nobody wants to go “on a diet.” Taking this analogy a step further, there are ways to get the most of a budget such as by setting a limit and sticking with it—which is hard to do, and almost against the nature of every Filipino.
However, there are several ways to be conscious of your budget, and to live with a budget, without feeling uncomfortable about it. The following are some ways to live within your means without getting too stressed about it.
Set aside Savings
Saving up is hard to do. But, the easiest way to do it is to get it out of the way as soon as possible. Consider joining a cooperative or starting a trust fund. By enrolling in long-term investments like mutual funds with reputable banks, you can set aside the money, which your future self will thank you for.
When managing your finances, think of upcoming expenses such as payment of your bills or paying for child’s tuition fee. As early as possible, set aside money for these to avoid encountering possible issues and stressing yourself due to recurring expenses.
Look at Cash Flow
Evaluate your cash flow and settle a minimum amount you can live with. Anything more than that is already considered a luxury, which can hurt you in the long run. If it would require you to cut down on your expenses such as buying expensive clothes, consider finding cheaper yet good alternatives for it.
Write It Down
If you cannot write down or track all your expenses, you can download an app that can help you monitor your finances. Doing this helps you keep updated of your expenses.
Being on a strict budget is hard work. If you’re constantly working hard to earn money, reward yourself or splurge every so often. You can still go out once a month or even once a week, as long as you know how much that will cost, and where the money comes from. If you have been looking ahead, you would have allotted some money for these days.
Live within Your Means
You can set aside expenses to fit the money you have or set aside tasks and look for part-time jobs for specific expenses. You want to go to Singapore for a vacation? Get a part-time job to pay for that vacation. You want to buy a new gadget? Sell your old device and save up for the difference. With your salary, you cannot pay for everything that you want to do, so you have to get another source of income.
Raise Funds with Short-Term Loans or through a Pawnshop
A pawn shop can be a great source for meeting your quick cash necessities. If you know that money is going to come in soon, you can pawn a gadget, jewelry, or even a car for the short term.
While traditional pawnshops have been of great assistance for a good amount of people, pawning is now easier through PawnHero—the first online pawnshop in the Philippines. In just three easy steps, you can pawn your preloved item and receive the highest appraisal possible. At only 2.99% monthly interest rate, rest assured that PawnHero will be your go-to when it comes to all your financial-related concerns.
With these tips in mind, you can take your budget, enjoy it, and make it stretch even more. By looking at it this way, you can have less stress when creating a budget.
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