It's payday! After a day or two,you don't have any cash left and you have that terror look with the big question "What happened,When,why,how". You try your best to remember where you use your money and it got even more painful. You use three fourths of your money to pay all your debts and bills due for the month,sometimes it's not even enough to pay everything! So month after month,you are working to pay your debt.Your salary is not enough.Then,you start considering getting maybe a second job,or maybe seek promotion or worse thing,some people consider selling one of their kidneys or just sell blood. You might have achieve your goals,but at the end of the day,debts are still piled up.You are so stressed,you don't get enough sleep.You have lesser time with your family. When are you going realize that it's never the answer to your problem.I have known very hard working people in my life who never get rich.Yes,they have high paying and stable jobs but it's still never enough. What's going on? They spend way too much more than what they earn! We call it " luho" or "abubot" specially for women who loves shopping and buying things we don't actually need. Liability explained is how much money spent while asset is how much money you earned. You can start small by learning some soft skills and being " in the know" and use it as an asset. Thankfully,I might have inherited a bit of my mother's "pagkakuripot" so I kept track of my daily expenses I'll always know where my money goes. I'm a huge supporter of Education,Wellness and Savings and I'm very vocal about these things so it would really be a shame if I can't even practice it on my own. This year,my goal is to focus on these three things and hopefully I can inspire and help others to do the same too. We are not all born business minded.We have our individual passion about certain things but when it comes to debts,it's really something that we can all agree to work on.There's nothing more stressful than working so hard all your life and when you grow old,you just grow old too tired and stressed out that all you could remember was spending your life paying debts instead of saving up or atleast be debt free. It feels awful when you receive your salary and the following day,it's gone.Then you are stressed out and have to borrow money to sustain you til next payday.And the cycle goes on and on.What's wrong? It's 2015 and I thought of writing something worth reading. I'm far from being a financial expert,I have mo background on it or whatsoever but I'm using my heart and clean intention to encourage anyone struggling in this area. I just want to write about something financially that most working people can relate with. I have watch a video that inspired me hugely and I just thought of sharing it too in the hope of inspiring you too. The video talks about savings and investments.It explains what assets and liabilities mean in layman's term. I'm going to express my thoughts about financial management and suggestions to be debt free.I have been working for a long time and really struggled how to manage my finances. So I'm going to share some helpful tips I've learned along the way on how to be debt free. 1) IDENTIFY YOUR NEEDS OVER YOUR WANTS When you need to do grocery,make a list first of what you need and stick on your list.This way you don't add not needed items on your grocery. 2) SETTLE ALL YOUR BILLS FIRST Once you receive your salary,make sure you pay important bills to avoid late fee charges or to avoid bills pilling up.Just simply know your priorities. 3) LIVE YOUR WAGE Don't be a social climber.What does that give you? Yes,you get to be happy in few seconds but once you get home,you will face tons of bills to pay because of unnecessary things you purchased just for the sake of being cool. I think this is one of the biggest challenge today specially when we live in a materialistic world. We purchase the most recent phones,laptops,cars,cameras,i phones.We host parties even if we can't afford.Come to think off,we can still live decently even without these things. If you cannot afford it,cut down your "luho". You can still live without those things.It's not the end of the world.If you want something,be sure you work hard for it and pay it before having it. 4) STAY AWAY FROM CREDIT CARDS I think these is the real deceiver in our lives.Credit card companies offer promising promos.It's cool to have credit cards.You just swipe and go. If you want something in life,you have to work for it right? It should be the same with your finances.When you have credit cards,it's always "get it now pay later" and that's goes with your salary.You will be working all your life paying your credit card.You will never experience freedom.You are always enslaved to it. It's always tempting.Since you have a card in your hand,you buy things mostly out of impulse before even realizing it's not needed as compared to working and saving for it,gives you time to re validate if you really needed it. The best word to summarize everything mentioned above is " discipline". Another thing,your spending habits reflects who you are. Are you a social climber? Are you trying hard cool dude? Are you that show off kind of person. I actually find most rich people live a humble life.You don't see them post on instagram or social media where they are at,what they have for dinner,how many business they have.Probably for their security but they usually those people who are doing other creative things during their spare time. 5) ASSET VS LIABILITY There should be more asset than liability.Asset refers to the money you make,liability refers to your expenses. One thing I practice for the past two years is keeping tract of all my expenses daily and compute it at the end of the month.This way,I'd know where my money went and how I spent it. 6) STAY AWAY FROM THOSE PRODUCT BROCHURES AT WORK Everyone in the office sells something and sometimes looking on their brochures is tempting.At first,you just flip pages,then you see interesting things then you thought you needed and order them and pay them on pay day.Half of your salary is gone already even before payday. During pay days,the environment in the office get real crazy. There's business anywhere.It's hard when there's temptation everywhere.If you don't have that money,don't buy yet. 7) HAVE EMERGENCY SAVINGS ASIDE FROM SAVINGS Sometimes,there are events such as accidents,illness ,tuition or other emergency needs that's clearly unexpected and we need urgent money. So we borrow anywhere despite the huge percentage because we badly needed them. My advice is,why not start having emergency savings? This way,when there's an emergency then you simply have the money you needed instead. Oh well,these are just some of my thoughts.It's very amateur but I use my heart and concern as my tool so I guess pwede na ?
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