Being financially responsible is the key to prepare for your future. This can’t be easy, but as long as you’re determined and has self-discipline you can easily do it.

Read also: Importance of Saving for Emergency Funds

Here are some tips that can help you to manage your money smartly:

• Set up a budget plan

Doing a budget is the first step to be in control of your finances. This will give you overview on how you’re spending the money that you earned. Keeping your budget profoundly would mean that you should stick with it to avoid ending up in debt. You can also have the chance to save money that you can use for unexpected expenses.

• Open a savings account

As much as possible, you should open a separate savings account from your payroll account. But, to avoid withdrawing money unnecessarily, try to open a regular savings account without an ATM card. Deposit a fraction of your monthly salary into your savings account.

• Refrain from using credit cards

Using credit cards can tempt you to spend your money any way you want it even beyond your means. The bad side of the story is that by using your ATM card you may get into debts. Thus, to manage your money wisely, you should spend cash that is on your hand and within your limits.

• Cut your household bills

Another way to manage your money properly is to cut your household bills if they are beyond your budget. Encourage every member of the family to get involve in cutting your bills, thus save money for other expenses.

• Avoid incurring loans using credit cards

Applying for loans using credit cards involve highest rate of interest. However, if there’s a great need to seek for loans, try applying for personal loans from banks that offer lower interest rate.

Read also: Saving Money Through Jar Money System

Achieving financial stability starts from knowing how to manage your money wisely. Even if your monthly income is sufficient, but you still need to be thrifty in spending your hard earned money.

The post Helpful Tips on How to Manage Your Money Smartly appeared first on Pinoy Business Ideas.

Not all people understand how difficult it is working in a foreign land and away from the family. Yes, the salary may be more than enough to provide a decent living for the family, but why many OFW families are still in a financial crunch especially when an OFW comes home.

The truth is being an OFW can take a toll on both your financial standing and personal relationships with your family. In fact, there are instances in which once an OFW ceases working abroad, his or her family ended up with just a little amount of savings. Why is that happening?

Read also: How OFW can get out of Debt and Save Money

Here are some reasons why OFW’s and their families are facing difficulty in saving money:

Overspending

This is one of the major reason why OFW’s are not able to save money. Their families tend to overspend the allowance sent to them every month without consider the budget. In the same manner, OFW’s also overspend money just to compensate the time they’re away from their families by buying things they don’t really need.

Cost of living

OFWs may not save money because of the higher cost of living overseas. If an OFW is not thrifty in spending money, there’s great possibility that saving money for the future may be difficult.

Failure to identify an asset versus liability

Apparently, as OFW’s earn higher income they are easily swayed to buy things without identifying whether it is an asset or a liability. Most of the time they tend to buy things that would only take money from their pockets without anything to gain in the future.

Get-rich-quick attitude

Many OFW’s are practicing the get-rich-quick attitude that’s why they were tempted to invest in the wrong investment instruments. Thus, they end up losing money rather than saving it for the future.

Lack of financial goals

Working overseas takes a lot of courage as you will sacrifice to be away from your family. That’s why it’s important to set financial goals. Setting realistic goals will keep you in the right direction and make the most of your time.

Read also: List of Top OFW Business Ideas

Saving is indeed challenging especially if a person isn’t savings-oriented. Practicing the right financial behavior is the key to save the hard-earned money for the future once an OFW retires.

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