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.

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Well-paying jobs are not the only reason why someone can start building his wealth. In fact, it has something to do with your habits.

No matter how big your salary is, if your spending habits are too much and you are spending more than what you are earning, you will still find it hard to save.

So since habits are the first things that you have to fix in order to get rich, here are the money habits you need to adopt ASAP to make a fortune.

1. Learn how to allocate your income for savings. You have to set a certain percentage of your income for your savings. Let’s say you have to set 10 percent aside for your savings and make sure not to spend it or better yet, put it on a savings account. Then work on the remaining amount for all your other expenses. When budgeting your money, the remaining 90 percent is what you will have to work with.

Read also: Saving Money Through Jar Money System

2. Let go of your little unnecessary expenses every day. We all have these tiny little splurges every day that we can actually just let go of. If you cut these expenses, they will make a huge difference over time. Say for example, you are used to buying soda every day for lunch. Why don’t you just ditch it and set the money aside, and resort to water instead.

3. Set goals. You need to set a specific amount for your savings. Give yourself an exact timeframe. For example, you have to give yourself a year to save this specific amount of money. By having a goal in mind, it will get easier and easier especially when you are beginning to see that your sacrifices are actually bearing fruits and you are seeing growth in your savings accounts.

The post Money Habits that Separate the Rich from Just Only Making a Living appeared first on Pinoy Business Ideas.

Saving money is for everyone both young and adults. In fact, it’s important to teach your kids to start saving even at their young age. This is the best way to save for the so called “rainy days”.

It does not necessarily mean saving in the bank because you can save money even at home. This money saving system will help you learn to make more money, manage and budget your money to enjoy a balanced lifestyle. You’ll also learn how to spend your money wisely.

The Jar Money System was conceptualized by T Harv Eker that aims to teach people about the effective yet simple way to manage money.

How the Jar System Works?

Proper money management can be rewarding in the future. To reap success, you should start implementing the system and make it as a habit.

Here’s how you implement the jar system:

Jar #1 – Necessity account or NEC (55%)

The money you’ll put in this jar is for your daily expenses and paying your bills including utilities, mortgage, rent, food, clothes and other necessities to live.

Jar #2 – Financial freedom account or FFA (10%)

You can use the money in this jar for investment or creating passive income streams. Make sure not to use this money unless you become financially free. But, you should spend only the ROI and not the principal amount.

Jar #3 – Education account or EDU (10%)

This money jar is for education expenses and personal growth. Investing for education is a perfect way to utilize your money. You can use the money for your school expenses and buying things having educational value.

Jar #4 – Long-term saving for spending account or LTSS (10%)

If you’re planning bigger purchases, you can use the money accumulated in this jar. It can also be used for travel expenses.

Jar #5 – Play account or PLAY (10%)

The purpose of saving in this jar is for nurturing or pampering yourself. You can spend the money when making extra purchases, getting a massage or a weekend getaway.

Jar #6 – Give account or GIVE (5%)

As the name of the account implies, you can spend the money in this jar for giving away in charities or foundations. You can also use the money for special occasions of your family and friends.

Read also: Importance of Saving for Emergency Funds

Using the JAR money system can help to make the most of your money. You won’t only achieve financial freedom but also peace of mind.

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