2021 was an amazing year for me. I must say my financial and debt management aspect has contributed a lot in my success. Let me share how I have managed to survive last year 😂 and how you can manage your finances well. I am not a financial expert, but I think you can learn too from my experience. Before, I have suffered from stress and all my credit cards got maxed out and I got a negative credit score due to my negligence. When I started to make things right and created a budget plan, I have noticed that I already gained a positive credit score. Now, it’s the other way around— the banks are the ones offering me an instant loan, but I consistently decline or ignore them.😄
Welcome to our first Tipid Tips for 2022! 😉
Why Do We Have to Create a Budget Plan?
Creating a budget plan helps you track your monthly expenses and it also helps you save money. Of course, that would depend on your monthly income and your lifestyle. This helps you analyze as well in which particular category did you overspend and from there, you can decide whether to upgrade, downgrade, or eliminate a service/purchase.
Above is the sample of my budget plan. I opt not to disclose the exact amount of my monthly budget. It clearly shows that almost half is allotted to loans/credit cards. So, at least, for the whole year, I know that I don’t have to muss a single payment. Now, the rest depends on the actual expenses.
1. Create a budget for the entire month.
2. Record the due dates of your bills so you can pay on or ahead of time. I use a digital planner for this so I can put a check ✅ mark if I already have settled the payment for the bill.
3. Manage your savings using your mobile or online banking app so you can check anytime. If you have multiple bank accounts, you can separate which one is for business, for bills, and for personal use. (I have BDO, Landbank, PNB and UnionBank).
4. Make sure that you have sufficient funds especially if you have auto-debit transactions.
5. Take the time to check the transactions. I failed to check my online bank account, and when I did, I panicked when I found out that I wasn’t able to issue additional checks and deposit funds for our car loan. It’s a good thing that I have called the collections department and it was a total relief that I have availed the Bayanihan program so the agent explained to me that i don’t have to worry because it’s not yet my due date.
6. If it’s really not within the budget, you need to sacrifice like eliminating or downgrading some services that you need. During this time also, we need to be wise in making decisions.
7. You can splurge on luxury items or vacations if you have the budget. I did it using my credit card (for monthly installments) because I can monitor and it is under control. Don’t dare to do this if your credit limit isn’t enough.
This 2022, part of my New Year’s resolutions is to spend money wisely. You can do it especially if you have a simple lifestyle, but budgeting is still a must for every household. As what I have mentioned, once you have recorded your monthly expenses, you will be able to analyze your spending habits and come up with a way to save. With our situation, though we do not have our savings for now, because I have a lot of loans, I am still thankful because we are still surviving. I know that one of these days, I will be able to have my bank account just for the savings alone. Let’s stay positive—New Year, new hope, and yes, more money and savings. Let’s claim it!