Earning enough income is just the first step towards financial success. Knowing how to manage your money is an entirely different story that can make or break your wallet.
A person may earn a 6-figure income but if managed poorly, that income may go as quickly as it has come. This is one of the reasons why a lot of Filipino families struggle with making ends meet.
The Philippines’ pambansang wealth coach Chinkee Tan is no stranger to poverty, growing up in a struggling family himself. With difficulties raining on his life left and right, he did not succumb to these hardships and instead used them as learning experiences that helped him reach the success he basks in today.
Want to learn the secrets of Chinkee Tan and reach the same financial freedom he has today? Here are his 5 tips to managing finances successfully towards a happy and financially secure life.
1. Choose a simple lifestyle
This may be cliche but choosing a simple lifestyle is indeed Tan’s secret to financial freedom. Learn how to differentiate between wants and needs and accept that buying your wants all the time is not the best practice if you want to be financially independent.
With the onslaught of social media and being virtually surrounded by all sorts of budol finds everywhere, from food to travel places to clothes and pretty much anything that can be bought, social media has become the perfect place to get you to buy something– and also the perfect place to practice the value of self control and choosing a simpler lifestyle for the better.
2. Look for more sources of income
Most successful entrepreneurs would go by the saying, “don’t put your eggs all in one basket”.
With the instability of our situation today, especially with the pandemic, it is not a good idea to rely solely on one source of income. Taking the example of a bed, if it stands on only one foot it is likely to fall over– same with a single source of income making a person vulnerable to financial crisis especially during times of instability.
3. Save as much as possible
We cannot deny that urge to spend especially during the 10th and 25th day of the month, also known as sweldo day. Although it is not bad to treat yourself sometimes to buying your wants or pampering yourself, it is also important to save as much as you can.
Remember that at the end of the day, it is not about how much you make but how much you actually save. During times of crisis or emergency in the future, you’ll certainly thank yourself for not giving in to the urge of buying the latest iPhone or going on that “minsan lang naman” shopping spree.
4. Only spend the money you have
With the blinding offers of credit card companies, it is definitely tempting to give in and spend all that amount they are willing to let you borrow. Only do so if you are sure that you can pay off your credit card bills every month, otherwise, Tan will be disappointedly shaking his head when he finds out that you bought yourself things with money you do not have.
No amount of happiness with buying whatever you want today is worth the stress of finding out how to pay it off later.
5. Invest in financial education
Some people may find the idea of financial education as a mere waste of money and that they can manage their finances well on their own. This belief that financial education is not necessary is why you need it in the first place.
Investing in financial education may seem like an unnecessary expenditure but seeing the values and knowledge that you gain from it, you will surely feel its outcome years later when you find yourself saving more than the amount of money you invested for your education.