We have to admit it, generally, Filipinos do not assess their financial health at the beginning of the year. Often than not, they just have an earn and spend financial mindset. Budgeting doesn’t entirely make one financially savvy. Although Filipinos are good short-term savers, they still rank high in debt.
Now, if you are one who wants to revamp the way how finances are managed effectively, then this is how you can successfully plan your financial health for the new year.
1) Check your financial health diagnostics.
The first thing you need to do is to check your financial portfolio or your financial standing. Get a financial audit by knowing your existing assets, your annual income, current savings, and listing your possible receivables ( Receivables are the money you’re expecting to receive aside from your monthly income in the form of cash, business income, value of inheritance, and payment of debts to you.)
Afterwards, list down your liabilities and expenses (these are the loan, credits, bills and other monthly charges you need to accomplish). Then get the difference of your assets and liabilities (Assets minus liabilities) to determine your financial worth.
2) Know where you can earn more.
Now that you know your net worth, it is time to plan how you can earn more. You can choose to either invest for short-term and long-term. You can go to various financial institutions such as bank and ask the right people about their investment baskets. Don’t make hasty decisions and study which one best fits your financial needs.
If you want to venture into business, think which one can get fast return of investments.
3) Set financial goals.
After determining your financial standing and finding out possible investments, it’s time to set your financial goals. These are the things you want to accomplish all throughout the year. Do this by writing down both your short and long term goals. Label each goal as a “want” and a “need” with the needs as top priority. Place a corresponding budget for each goal and the timeline it takes to save money to achieve the goal.
4) Set financial milestones.
Reward yourself for every financial milestone. Let’s say when you reach a Php 20,000 mark, then give yourself a pat on the back through pampering yourself. You deserve it! Reap the good harvest. But don’t be too impulsive and as always spend wisely!
5) Learn when to reward yourself.
With every milestone, you get to have a small celebration. Each small success leads towards accomplishment of your goals. So keep yourself motivated.
6) Create a goal frame.
Finally, create your own goal frame. This is like a vision board, the goal frame should consist of your financial goals. Take for instance, how much you want to save at the end of the year, say have a six-digit savings before the year ends. So, aside from the list make a goal frame and hang it from where you can see it everyday.
Dedicate your free time to follow these tips and keep that “bahala na” and “mamaya na” attitude at bay, in time you will see the light of your financial health plans.
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Jhon Kenneth Delos Reyes
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