Most Filipinos are having difficulty when it comes to managing paychecks, living from payday to payday.
To better manage one's paycheck, registered financial planner Jake Lingan gives the following tips:
1. Reassess your current money situation
Speaking on ANC's "On The Money," Lingan suggests identifying one's income and expenses. He said of the best ways to reduce unnecessary expenses is to categorize your expenditures.
2. Know where you want to go
Establish realistic goals and set a deadline. Identify expenses that you need to maintain and separate them from areas where you can reduce spending.
3. Cultivate options
If your income is not enough for your expenses, Lingan says there is no other choice but to augment your income either through a business or passion projects that can become money-making ventures. Attend trainings and seminars on self-employment.
3. Discipline yourself
Lingan says one of the best way to reduce expenses is to create an illusion that you do not have money since people tend to spend more when they have money.
4. Execute your plan with constant monitoring
Abide by your financial plan and monitor your expenses so you know how you are doing.
5. Always review your plan and adjust
Follow the four steps religiously with constant adjustment depending on your financial goals. Lingan says this should be done as a cycle to identify whether one is still on track or whether a reassessment of expenses is necessary.