Unwanted Financial Habits That You May Want to Avoid
Some people have to live paycheck to paycheck because they don’t have a good financial plan for their life. This type of lifestyle will be very vulnerable for people. If you are in this situation, you will risk yourself from getting any problems in the future. Your paycheck may not be enough for covering all of your expenses every month.
The cycle will continue in the future when your salary is not enough for your expenses in your daily life. During this pandemic situation, you will never know if you are still getting the next paycheck or you are going to get a termination letter. This year will be a good time for you to start managing your expenses, so you can save for the future. Here are some financial habits that you have to avoid.
Not tracking all of your expenses
It is one of the most common problems that many people have. Credit card payment will be the new model for paying for any products or services either offline or online. More than 60% of customers in the Philippines have more than 1 credit card. You may be one of the credit card users, but you don’t check your credit card transactions every month. Some of them take a fast loan for travel like this, and not only in official banks.
When you are using a cash payment, you may not track your expenses properly. If you want to achieve your financial goals, you should avoid making this mistake again this year. You can take a pen and your book. Write down all of your monthly expenses. Always separate your needs from your wants and you can stick to the basic things.
“Bahala na si Batman”
This is another common mistake that many Filipinos make every month. They may have a “Come What May” mentality. It is actually harmless until you realize that you are broke. In this situation, you are going to wake up and realize that you have already been living beyond your means. What will happen when you are fired in the middle of the month, especially when you still have this mentality?
You need to change your mind by setting up a new mindset. You should choose to live a rich and beautiful life. It will guarantee that you can get multiple sources of income every month. You can start investing your money in some instruments, such as stocks, bonds, companies, and some other interesting business opportunities.
Impulsive Buying
If you still have this habit in your daily life, you should stop it immediately. Many Filipinos feel happy when they get an income in their bank accounts. During this pay period, many retail stores and malls present crazy deals for their customers. Through all of these discounts, many people are interested in buying some unnecessary things from stores.
It is recommended for you to do a clear budgeting before you purchase any items from your favorite stores. For example, when you earn about PHP 25,000 per month, you should limit your spending up to 30% of your total income. The other 70% of your income should go to investments and savings.
Limit your wants to treat your relatives with a fantastic thing
Many people in the Philippines have the “Hiya mentality”. They usually want to treat their relatives and families with some fantastic things. It will show that they have a big heart. However, it will be dangerous for you if you don’t have a limit on this habit. You need to be smart about this habit.
Not all of your savings may be allocated for this activity. You may want to consider investing your money in vacation trips for them or buying health insurance schemes for them. These things will be much more important for them, so you can ease their financial burden, while saving some money for your future.
Conclusion Following all of those tips above can help you improve your finances this year. When you need instant cash for students here, you may want to consider taking a short-term loan from Robocash. This online loan platform will help you get instant cash from PHP 1,000 to PHP 25,000 depending on your financial needs. The cash will be deposited in your bank account immediately. Don’t forget to make a clear plan on how you can repay the loan on time.