How to handle money properly?

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1. Spend what is left after saving

Most people save whatever is left after shopping. But that is wrong. As soon as you collect your earnings, you should immediately save a portion of it. Then after that, you can budget the remaining amount for your bills and other things.

2. Know if you really need or simply want something.

As much as possible you should just spend money on the important things you really need. The problem is we sometimes think we need something but when you carefully think about it, it is really just a want. Just like buying another pair of shoes or a new dress every month or so. Do you really need 5 pairs of shoes?

3. Do not use credit cards

The credit card itself is not a problem. It is our discipline in using it that creates the problem. If you know you can fall into the trap of using a credit card to buying things you cannot afford, then it would be best to simply avoid having one at all

4. Take note of your daily expenses

Having a detailed list of everything you spend money on will greatly help in improving your spending habits. When you know what useless things you buy frequently and see the total amount you actually spend on it in a month, you might be surprised. If you buy expensive beverages like Starbucks twice a week, you can easily be spending P1,500 per month for those drinks alone.

5. Invest

You can start by buying and selling little items or create your own products like artwork, food, and desserts. But the best and highly underestimated investment that you should spend money on is education. It does not necessarily mean going to school. You can just buy books, online courses, and attend seminars/workshops on things you want to learn about. The more knowledge and skills you have the more money you get.

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