How to Start Financially Right This 2021?

Hello everyone! It's been so long since I've updated this blog. I wanted to write a lot of things regarding finances but this pandemic really hits hard, don't you think? It made me more busier and crazier. :) And because it's new year, time for new beginnings! I am hoping to relive this blog and share more of my experiences financially so let's start with our New Year's Resolution 2021 for our first post.

What is your New Year's Resolution for 2021? Walang kamatayang pag-Iipon din ba? :) How to start financially right this 2021?

Let's make it simple and attainable. Here are a few list that also works for me and I hope it will work for you too!

Start to track your expenses

Noting down the expenses will help you picture the exact amount on where your money is going. You worked hard for that money so spending it should be worth it.

Budget every single cents

When you start to track your expenses, you'll know where your money goes and you should be able to cut unnecessary expenses.

Savings first before expenses

This is where the budgeting comes in. What's left after putting away the savings is what you are going to spend. They say that you need to have a big salary to save. It's not the salary, it's more of the spending habits.

Build your emergency fund

Who would have thought that Covid19 will change our life? If we have build our emergency fund earlier, we will not worry anymore with the bills that are piling up, food that we need to eat everyday, and especially getting laid off from work. Let' be more prepared this year. Recommended emergency fund should be at least 3 months worth of your salary. But with the events happened last year, 3 months will not be enough. So the bigger your emergency fund is, the better.

Separate your savings, expenses and salary account

When the lockdown started last year, I took advantage of my E-Wallet. I made sure I have my online account so no need to go out in case I need money. My salary goes to my BPI account, savings to my BDO account, and expenses to my Gcash account. It helps me more to segregate the things I need to spend on. Not having the cash on hand also disciplined me not to spend. I just think of it like invisible money.

Pay your debts

You can do it slowly or better yet, wag ka ng mangutang mars! :)

Invest when there's left

One of the major mistakes I did in the past. Build your emergency fund and savings first before diving into any investments. Let's talk about small investments soon.

Have two or more sources of income

If you already made an effort to all of the above and yet you don't have enough savings yet, try to look for other sources of income. 

So what's your new year's resolution this year? Share it on the comments section below.