The definition of financial freedom varies from person to person in the Philippines, but generally, it is a state of being where one does not have to work for money and can be self-sufficient. Many people want to achieve this status because they want to be rid of the shackles of their jobs and live a life they truly enjoy. As a result, most individuals start setting aside money at an early age.
“When should I start saving?” Students, fresh graduates, and professionals who have been working for years have all asked this question at one point in their lives. Although some people’s respective situations can make answering this more difficult, the answer is relatively simple: you should do so as soon as you can.
Others may think that saving at an early age is not essential, but this is wrong. Setting aside funds at an early age will allow you to set up your finances so you can stand on your own two feet a few years after graduation or provide for your new family when you get married.
Here are a few things you can do as you work your way toward financial freedom:
Set Realistic Financial Goals
Every individual has different financial goals in life. In order to set realistic objectives, it is crucial that you first identify your priorities. For example, some people want to earn more money to start their own business, while others simply want to make sure that they have enough for their child’s school tuition for the following year.
Regardless of how much your target is, it is essential to remember that setting realistic financial goals is the key to success in the long run. If you set financial goals that are too high, you may feel dejected when you don’t reach them. This is why you need to anticipate what to do if unexpected situations require you to shell out money.
Open a Savings Account ASAP
Once you’ve answered the question, “why is it important to start saving early?” one of the things you can do next is find a reliable provider of financial services. Setting aside funds for the future is not always easy, and keeping track of your expenses can be difficult. However, you can use tools and practices to ensure that you aren’t spending more than you can save.
A savings account can help you with this endeavor as it helps you see where your money is going. Furthermore, this type of account is interest-bearing, which means your money will increase every month depending on the amount you currently have and the rates provided by the financial institution you are under.
Save Money From Your Monthly Salary
There is no one answer to the question, “how do you save money from your salary?” This is because each of us has different monthly expenses. For example, some may be preoccupied with paying off their business loans while ensuring they pay their employees on time. In contrast, others are busy trying to figure out how much they should allot for their utilities, groceries, and more.
Whether you are an office worker or a business owner, one of the first things you need to do is determine how much you earn every month. Afterward, you must list your monthly expenses and select which ones you think you can get rid of or replace with more affordable options. In particular, you can use coupons when you go to the market or keep an eye on specific deals to get the most out of your money.
Keep Yourself Updated With Financial Issues
On top of financial literacy, people nowadays should keep themselves updated regarding the various developments in the financial industry. This sector is constantly changing, and it is vital to keep yourself updated with the most recent developments so you are not blindsided.
If you have invested your money, this is even more significant. Reading through articles or watching reliable news sources will help you make better decisions since you will have a clearer understanding of the market. This means you can avoid losing your hard-earned money because of a sharp or sudden drop in stock prices.
Try To Earn Extra Through Side Hustles
Side hustles are a great way to earn extra income when you decide to start saving. They can help you supplement your current income and make ends meet. The first step in starting a side hustle is to identify what you want to do. You have to figure out what skills you have that are marketable and what type of work will give you the most satisfaction.
Once you know what you want to do, it’s time to find the right people or companies who will pay for your services. Aside from looking for a reliable company to work for, make sure that the working hours of your part-time job don’t overlap with your full-time one. Lastly, make sure that your current employer doesn’t have any rules and regulations that bar you from applying to other companies.
Saving for the future is all about setting up your financial plan so that you and your family can have a comfortable life when you are older. However, this can be difficult because it requires patience and discipline. The best way to set aside money is to start small and gradually increase your monthly savings. It’s also important to find out what you’re spending on and ensure that your expenses align with your priorities.
When you’re ready to start saving, you can be sure that Cebuana Lhuillier can be your partner through every step. We offer various financial services, including micro savings, pawning, and micro loans. To learn more, feel free to browse through our other pages or get in touch with us today.