Last time, I have published about the 5 worst money mistake that you should avoid and now it’s the other way around, I want to make a post about the 5 best money move that you can make. For all of you out there, I’m not a professional financial adviser.
I am only a humble blogger writing about financial stuffs for more than two years as of this writing. I hope my ideas and topics would be interesting and help you on your financial decisions. If you want to know me more, click here.
Just like what I said before, there are many mistakes that you can do with your money. But, on the other hand, you can also good things with your money. In this post, I would like to list the 5 best money moves or decisions that you can make with your money. Please keep reading on.
1. Spending less than what you earn
Few months ago, I published a post in this blog about the best financial advice that I can give to someone. In that article, I have talked about the importance of spending less than what you earn. Do you know what does it mean?
It means you should only spend below your means. If you are earning P12,000 per month, make it your goal to spend money below that amount. Simple as that but not easy to do, right?
My wife and I started tracking our expenses 4 years ago using Google Docs spreadsheet and it helps a lot in budgeting our income. At first, it may seems hard but I tell you, it will become normal for you as you continue doing it.
In this way, you can have a history of your expenses each month which can give you data on where do you spend the most. In case of our family, we spend more on food, almost 50% of our expenses goes on buying of our food. I think we are not impulse spender and both of us are frugal but not hoarder.
2. Paying off debt
One author I read says that debt is slavery. Perhaps it’s exaggerated but on one side, it might be true. When you owe money to a person, you need to pay back no matter happens. It’s your obligation.
I am not against taking or applying for a loan especially if the purpose is good like using the money for starting a business or building your own house. However, you must carefully plan how you can pay the money you owe. I think it is better to get a loan from the bank or other financial institution than borrowing money from your friends or relatives.
In this way, you will avoid the conflict in the future or the “debt of gratitude” thing. It’s only my suggestion but not will be applicable for all persons.
If you have debt at this moment, you can see my post here about how to get out of debt. In that article, I discuss several ways on how to pay off debt.
Perhaps, you’re thinking that I have no debt. I have, actually. One debt is the mortgage of our house and the other one is the installment of our motorcycle. I’m glad we will be able to pay completely our house this coming July and we’re still planning to pay the motor in whole amount this year.
In paying off debt, you need to have a plan on how to do it. Perhaps, you might also need to avoid on unnecessary expenses and impulse buying or you must increase your income. Paying off debt is one of the best money move that you can make so do it now!
3. Saving a portion of your income
In the book, “The Richest Man in Babylon”, the author George Classon, mentioned that the first cure for lean purse is to start thy purse to fattening. It means start saving now, no other time is the best than now. I don’t care if it is P1 or P5, the important thing is you should start now even how small it is.
Maybe you’re asking how can I save if my salary is too low? Yes, it might be very small but still you have money! I would not be surprised you don’t have saving if you don’t have a job.
But, if you are earning each month, I think it is not an excuse that you cannot save. Like what I said, save in small amount first, like P5 or P10 a day. You will be amazed as the months go by that our saving is building up.
For OFWs out there, I think you are more capable of saving money especially those who are working in a good company. You can arrange an automatic savings account through BPI Direct Save-up if you don’t have a discipline to do so.
You have to open a BPI savings account and then apply for a BPI Direct Save-up afterwards. It will be better also to apply for BPI express online so you can monitor your remittances to your BPI account and view the balance you have in your account.
Some financial books and blogs suggest to save at least 10% of your monthly income. Maybe it is too high for some people so you can make it lower depending on you expenses. The important thing in saving money is you should start as early as possible and there’s no too late in saving.
4. Investing money in stuffs you understand
Investing might be in the form of business, stocks, mutual funds, UITF, bonds or other forms of investment available in the market today. Some people are investing their money in online ventures and businesses like blogs and websites. Other people are investing in their hobbies that they think might be a good source of income in the future.
In all these investing ventures, I think the most important thing is to know and understand what you are investing. You should study first if this investment is legitimate and not a fraud or scam. It might be helpful to ask your relatives and friends who know some investing knowledge or go to the Internet to research about the company. It is better to be skeptical than falling into a scam.
I have been investing in mutual funds and Philippine stock market since 2010. Before I invested my money, I have read several blogs and financial books about investing. I would say it helps me a lot where to put my money. I would suggest you do the same. Click here to get started your financial education and learn how to save and invest your money.
5. Giving your money to worthy causes
Maybe you have notice the phrases in the lower right side bar of this blog. If you are regular visitor of this blog, I’m assuming you know that I’m supporting one child through World Vision and donating some amount of money to FEBC Philippines.
I have not yet started to give my first donation at World Vision, I’m hoping to give it this month. For FEBC, my wife and I have been giving since last year but not on a regular basis. Hopefully, this year we can give regularly to both of these organizations.
I’m earning some amount of money through this blog, and I’m planning to give a portion of those amount in FEBC and World Vision. I’m not saying this thing to brag but to encourage you to give also. There are many ways and methods on how to give, some organizations accept donations through credit cards, PayPal, direct bank deposit, Bank transfer, post-dated check and a lot more.
I want to encourage you to give especially if you have the capacity to do so. If you help other people, it is one of the greatest enjoyment and satisfactions you could ever have.
I am not limiting my giving only to money. You can give or share your time, skills and talents to other people. I’m not good in writing but I’m willing to share my knowledge about financial stuffs through this blog. In my simple way, I am hoping I can contribute and help to the advancement and welfare of other people.
In the Philippines, I have seen many organizations and activities now are increasing with the aim of helping other people who really need it the most. I hope this will continue so that the next generation will be more capable of helping and building more good things for our country.
Final Word I Want to Say
Money is good, it is not evil. God uses our money to help other people and at same time increase more the money we have. I hope you learn something about these 5 best money moves that you can make. It is now you part to carry out these things.
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