Financial Management: Start A New Journey + Doable Tips
It’s been a couple of months since I left my regular office work and took a huge leap of faith in pursuing blogging as of today. I am not speaking for the end of itself, but I am speaking as someone who had some transition especially on my finances. I lost over 60% of my usual income a month since then. Financial management became a top list topic by that time til now.
For over two and a half years at my office work, I never had that sense of savings in my hand even when I tried (*smirk). Although, I am not saying I am spending on worthless things at all. I spent my salary commonly on my payments, dental and aesthetic maintenance, food, some stuff that I am really happy having them now and of course, the first on the list, tithing. Basically, I was living just enough for everything financially and working just to make a living. Now, what happened when I got a cut down on my income and my aspirations on financial management?
Financial Management: A Turnaround
A couple months now, I am earning just about 40% of my previous salary. It’s not easy, I must say. Living a lifestyle of buying what you need and now thinking everytime you have to buy, “do I need this as of the moment?” This season of my life is developing some self-awareness as to how and where I invest my resources. I bet, you will also when you know that you just have a little compared to what you used to have. Right?
But having limited resources should not limit you from buying what is essential. When you buy something and you are dead sure that it is essential for the time being, think about this.
“The price of a commodity will never go to zero. When you invest in commodities futures, you are not buying a piece of paper that says you own an intangible of company that can go bankrupt.” – Jim Rogers
Sometime in the future, we will value what we have bought now because we know and realize that the price of commodities will never go to zero, instead they go higher. As of now, when I buy something, I am pretty sure it won’t cost the same years, even months from now. If it’s essential, I go for it!
Financial Management: Savings, Not Sacrifice
When I look back from today, I am seeing different goals I have set along the way. I followed through and monitored my new goals and reassess them now. I realized that to save is not a total sacrifice. I enjoy eating the food I want, buy things I need, and go where I want to go now as I would before exiting my office job. Plus, I can meet new people and live the reality and the beauty of life and community.
To save is not a sacrifice but a matter of financial management. Thinking about my rat race a couple of months because I thought I won’t have enough for the day, God was actually teaching me, step by step, on managing the resources He blessed me with. As I have said, I developed new goals and align my budget on them, monitor them and reassess the whole thing. At the end of it all, I had an extra untouched money. It all started from saving a little every day. The loss of 60% of my previous salary is not that painful anymore when I began to start a fresh and start it right.
Financial Management: Enjoy Life Now, Still Save For Later
So, does it feel like you are reading your own story in my experience? I started my own journey in managing a bit of my finances in my little efforts. Over time, when you are hitting your goals and monitor their progress, you will begin to see the picture of a better life. The quality of life will improve. After all, that is the ultimate goal, right?
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Before I let you go, here are some tips you can take home to help you thrive every day!
4 Major Tips To Survive The Journey of Financial Management
Develop Different Sources of Income
Most of us, especially the younger gens “millennials”, is programmed and cultured to have one full-time job and that’s enough! That’s not a totally bad idea. However, it can be better to have at least two sources of income. The cash flow would be smoother.
With the type of your current work, if you can, you can additionally play along different freelance or part-time works to add up to your inflow money. That could be very challenging. Hey, I am there and still progressing today. And that’s a whole lot lesson to learn on time management skills
Afterall, if you want to have one source of income and you want to focus there, make sure you have enough that you are able to set aside a portion into your savings. While there is an actual flood of freelance opportunities for you depending on your skills and network.
Avoid Working in the Hassle of Metro City
A metro city commonly hosts several and some of the largest companies in the country coming from the capital. This fact makes it even more attractive for anyone to want a job in it. I’m not exempted.
Well, while its beauty can’t be covered, so is the ugly truth in it. Having the bustle and all, the cost of living and working in a metro city, Metro Manila, is higher compared to a city from the province. Consider the lifestyle, can you save or is it just enough to buy your basic needs? Remember, to save means to support your essentials in the present while you can keep a portion for the future. How is your travel time from home to work? Is it taking you hours? Take note, time is the most expensive currency every working individual has. Don’t waste it.
Unless you need to work in the metro city, consider finding a job closer to your home so that you can really save from your salary.
Create a Monthly Budget and Track Daily Expenses
According to the research report conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation in 2016, nine (9) out of ten (10) millennials overspend, under save or take additional debt at least one month per year. That’s a lot considering its respondents were from the west! Imagine if the people who participated in the survey are from us who are suffering badly from economic collapse domestically or within the household.
However, budgeting is not easy as it may sound. To start, we need to really have a historical data on our daily expenses and we can approximately estimate a monthly budget from there. As for me, I am trying to take note of my daily spending essentially to come up with an effective budget plan. Make a list of what to buy monthly or periodically; this will also save you time and energy.
Sure, it’s very challenging and crazily difficult. But as you do it every day, it will just be as normal as you breathe in and out. You will become more motivated when you are seeing the money you are saving daily adding up.
Connect with Respected People in the Field of Financial Management and Literacy
Have the people around you and get the right voice to listen to. We may not be able to befriend all financial management and literacy gurus in the country but most of them have active blogs and social media pages. You can start by following their story and their life lessons. We emulate their process and learnings as we duplicate their financial success!
Financial Management: Start Now!
What are you waiting for? Start your own story of financial success and inspire more people to achieve financial independence. Start a little but start it right! I will leave you this very truthful quote from Albert Einstein.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
You will never know where your little coins or couple of peso bills can take you. So treasure them and keep them in your savings. You will definitely get a compound interest when you know how to invest every single one of them!
The transition and the new field I am venturing into will go a long way still, I know! Let’s see each other along my journey! Start your little steps now towards financial stability and independence in the future!
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