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Simple tips on How to Manage your Money

I’m not a finance guru, but here are some thoughts on managing our money. Might help you now or in the future.

1. Stay away from bad debt.

Before you invest, make sure you are not in debt. For example, credit card debt or salary loans. I think the exception here is investing in a property rather than renting. Stay away from credit card debt! Unfortunately, I learned this the hard way. Took me a few years to clear myself from debt. If you’re using your credit cards to pay for the points and bank promotions, this is okay. Just make sure you pay your statement balance in full so you don’t get charged with interest.

2. Keep your cash flow going.

Stick to your job and generate as much passive income as you can. I don’t consider doing projects in the sideline as passive but that will help in your cash flow if you still have time to do those.

3. Track your expenses.

To be able to save money, you need to keep track of your expenses. For me, I use a simple spreadsheet to track my cash flow and expenses for each month. Knowing what you spend is really helpful when you need to cut down on your costs. This one I don’t do but you can even take it to the next level by identifying which are needs and which are wants.

4. Take advantage of bank promotions to grow your money.

Feel free to move your money around where the interests are higher. It works here in Singapore, not sure in the Philippines.

5. Always research when doing a large purchase.

Look for bargains. Saving some money will definitely be good for your cash flow. If you need to buy from Divisoria or online to save money, do it!

Have you done any of these?