At the start of the new year, a higher level of hope encourages us to have a better direction in life. Most of you probably told yourself that "2023 will be your year," Just like for everyone, this is a chance to become better versions of yourselves and reach your goals.
If there's something that the pandemic has taught us, it is important to set goals related to health and wellness and have money-saving goals. But you all know saving is more challenging than spending, especially with the monthly sales discount you can find online and offline.
If you haven't thought about it yet, here are 4 Steps on how you can start:
Set your personal financial objectives
The first and most important step you have to take is setting your personal financial objectives because this will serve as your guidebook to identify the necessary steps in reaching your goals.
Every person has a different circumstance when it comes to personal finance. Nobody has the same expenses, rent, obligations, or way of life. When you're prepared to take control of your financial situation, you need a strategy that addresses your unique issues, not your neighbor's.
To set your personal financial objectives, you can start by asking yourself these important questions below:
- What are your short and long-term goals in the future?
- How much are your current expenses? Identify both fixed and variable expenses.
- Do you have current savings or investments? If yes, how much are you allotting for each?
These are just a few questions you need to ask yourself before building your financial objectives. Take note that the important thing here is to have a clear picture of your current financial standing and what kind of life you want to build in the future. Reflecting on these aspects will help you to identify what objectives you need to set and how you will achieve them.
Set realistic goals
Once you have reflected on your financial objectives, it's time to set your goals. And when we say goals, it should be REALISTIC!
As mentioned earlier, you have to ask yourself about your current financial standing, which means you have to be aware of the following:
- How much you are making.
- How much you are spending.
- How much you are putting in your savings and investments.
Being aware of these matters will allow you to be more realistic in your goals and help you avoid setting over-promising goals for yourself.
Every financial objective should be S.M.A.R.T. It should be specific, measurable, achievable, relevant, and time-bound. The SMART acronym will serve as both your how-to manual and the benchmark for your financial goals.
You can also categorize your financial goals into three: Short Term Financial Goals, Medium Term Financial Goals, and Long Term Financial Goals.
Short Term Financial Goals
- These are goals that you can set & achieve within one to two years. It could be saving goals that you could set for a family vacation, upgrading a gadget, or treating yourself to a solo trip to your favorite dream destination.
Medium Term Financial Goals
- Medium-term financial goals typically take five years to complete. Even though they are a little more expensive than short-term saving goals, they are still reachable with focus and diligence. Medium-term financial goals include paying off debts like credit card balances and loans and putting money aside for a car down payment.
Long-Term Financial Goals
- Typically, it takes far longer than five years to accomplish this kind of goal. A few examples of long-term objectives could be saving for future investments like a new home, retirement, or a college degree.
Build a budget
After you identify and write down your financial standing, personal financial objectives, and your SMART Goals, you know you have to set a budget that you will follow.
Both expert personal financial professionals and newbies who are just learning how to budget money find the 50-30-20 approach effective. This method allows you to divide your income into three and how much you should allot for each.
How it works:
50% is allotted to your needs
30% is allotted to your wants
29% is allotted to your savings, investments, or debt repayments
After drafting a budget, add up all of your anticipated costs and deduct that amount from your net income. Your number should be close to zero if you have no extra funds to cover unforeseen expenses. Review your spending plan once more and make changes as necessary until you come up with a budget that can give you enough wiggle room.
Find creative ways to save
There are plenty of creative ways to make saving fun and challenging. One of the most creative ways Filipinos come up with is the "upon challenge."
An Ipon challenge is a tactic that entails maintaining a saving goal routine for the entire year. Ipon challenges are performed regularly, purposefully, and strategically, assisting you in maintaining your savings aim and financial objectives.
Some examples of the Ipon Challenge you can try:
52-week ipon challenge
The 52-week ipon challenge entails weekly savings in varying amounts, beginning with the first week of the year and continuing until the last. Filipinos love this ipon challenge for a good reason: it's adaptable, so you may start modest this week and go large the next. How much you can afford to set aside each week will determine everything.
Bi-month ipon challenge
Try this bi-monthly ipon challenge if saving money every week sounds more like a chore than a rewarding hobby. Because you part with your money less frequently than with the 52-week money challenge, it's simpler to stick with (24 weeks versus 52 weeks).
365 days ipon challenge
If you want something less complicated, you can save money more simply by setting aside a set amount each day. No need to perform difficult calculations or memorize numbers. You could also try saving through the old-fashioned piggy bank. Then you can set the alarm on your phone to remind you to save some cash each day.
Saving may not be as easy as spending, but once you have a clearer idea of why you are doing this, what your goals are, and how you can achieve them, you'll realize that it might not be easy, but it is all worth it in the end. With the right mindset and planning, you can have a better year.
For investment opportunities, contact Vista Residences now and secure a good future home for yourself and your family.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
