EPISODE #112: Tips on How You Can Handle Your Finances Better This 2021 - Peso Smart PH

Track where your money goes this 2021!

➜ Income/Expense Tracking Sheet: https://tinyurl.com/y4h3kfx9

Here are some things you can do to handle your finances better this year:

1. Set up a goal - It may be cliché or overrated for some, but having a definite goal in mind would really help you out. As an alternative for new year's resolutions, I think it's better for us to set up goals for ourselves that we can hit within a year. Whether it's getting that promotion that you've always wanted or putting up the business you had in mind for some time, it all starts with a goal.

2. Define your why - You need to know the reason or the rationale why you're doing something. Example: putting up or opening a new business is your goal, so the question is, why do you want to do that? The answer will surely differ from person to person but a common reason would be to exit or quit the 9-5 job. If you know your 'why', then it's gonna be easier to stay committed to your goal and take action to actually achieve it.

3. Save up - This might be the most used new year's resolution of all time. After buying tons of stuff (that you don't need) the previous year, you've decided it's time to finally save some money up for the future. We can all take Mark Cuban's advice ($4.2B net worth as of January 2021) to save up at least 6 months worth of your current salary/income. This will be your emergency fund and should be invested or shelled in an asset class that's highly liquid (example: high interest rate savings account).

4. Pay off debts (or don't got into debt at all) - Most common debt is credit card debt. We're addicted to get/purchase something now even if we don't have enough resources (money) yet. Jay-Z ($1B net worth as of January 2021) said it best, "If you can't buy it twice, you can't afford it!". However, there are good debts as well, the ones that give you more money/cash flow. More on that here: https://youtu.be/vuhA2bLNTec

5. Invest - Can't stress this enough, and hopefully more of you will start investing this 2021. It's much better to start as early as you can. As Warren Buffet said, "Never depend on single income. Make investment to create a second source." and "“If you don't find a way to make money while you sleep, you will work until you die.” Basically, you need to make your money work for you, aka make your money make more money HAHA! Hope that makes sense!

By the way, yung tip #2 to #5 always goes back to tip #1, which is setting up a goal. Lahat ng ito are correlated to one another, in some way and hopefully this helps you out handle your finances better this 2021!

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