It’s the 15th of the month and you’re once again excited as you will be receiving your next paycheck. You make a list of things to be bought, bills to be paid, and probably plan your next weekend getaway. After all priorities have been dealt with, you go back to how things were before the 15th or the 30th of the month—broke. To some, it’s a cycle of earning, spending, and losing money. Sometimes, you feel that you’re stuck in that cycle, and it gets a little bit frustrating especially if you begin to realize that your needs are growing that your current salary can no longer meet them.
In the Philippines, resorting to financial loans has become a quick solution for wage earners to meet their growing personal needs and demands. Loans in the Philippines range from small quick cash loans to large housing loans. People avail such loans and are expected to pay the amount with a certain interest after a specific number of months. This bridges the Filipino’s lack of financial resources and their growing needs. However, Loans in the Philippines can also become a burden especially if payments do not meet the agreed deadline, resulting to a certain increase in the interest. A worst case scenario would be the giving of monthly payment to pay for the growing interest instead of the actual amount of money being borrowed. This explains why some Filipinos are literally swimming in debt.
Being free from debt and making the most of your financial resources is a matter of personal discipline. In order to achieve these, here are simple ways on how to manage your finances:
1. Evaluate your Needs and Wants.
You can easily determine the things than you need and the things that you need out of desire. By prioritizing your needs over your wants, you can actually determine where your money is supposed to go. This way you don’t see your money going elsewhere other than the things that you actually need.
2. Know the Simple Formula of Salary Minus Savings Equals Expenditure.
Filipinos usually determine the amount that they want to set aside after all expenses have been made. However, this gives people a reason to spend more on their needs and set aside less for savings. But, if the amount to be set aside is determined before the amount to be spent is decided, people learn to value and prioritize savings. Moreover, this helps people prioritize their needs rather than useless wants.
3. Turn Loans into Assets
As what was mentioned, Loans in the Philippines bridge the people’s lack of financial resources and their growing needs. Loans extend the people’s purchasing power in order to purchase goods and/or services that they cannot have with their regular salary. However, availing loans does not necessarily mean spending it with personal wants and needs. If managed well, loans can become an asset or even a fortune! Instead of buying that new car, you can actually invest that money into any business venture that you have in mind. Study the needs of your community and you can have an idea on what kind of business to start. This way, you are not only working to pay for your loan someday but you are working toward financial stability.
Money can be blessing or a burden to anyone. Manage it well, and it can always be friend to you.
Kath Martinez, understands the intrinsic attributes of making excellent content that suits the needs of every business especially when it comes online financing. She can conceptualize and implement marketing plans, explores profitable B2B opportunities and then absorb Loan Solutions PH services.