Getting ahead in terms of finances doesn't necessarily mean that you have to have a fat paycheck. Having lesser salary than your friends who've managed to save is not an excuse for not saving at all. This week i have been blog hopping around to see where Filipinas mostly put their money on, many are disappointed that all their salaries seem to disappear at once.
Here's a rough estimate of our top expenditures:
1. Food - you may think food is cheap but with all the tempting cafes sprouting about and posh restaurants that promise a better eating environment, we can't help but pay more to enjoy more. A hectic working day sometimes really deserve a fancy dinner to get you going.
2. Trinkets/Accessories - because we love mall hopping, we also don't want to leave empty handed. This is the next money vacuum out there. It includes bracelets, cellphone accessories, hair accessories, and beauty products.
3. Clothes and shoes - need i say more?
4. Family - empowered women serve as breadwinners to some families and they continue to help out their parents with bills, hospital expenses, etc.
The list goes on but I can only manage to write until the fourth one. How do we get around these expenses? Maybe, we should put ourselves in number one. Paying yourself first, no matter how small, think P100 pesos for every week, is not a bad idea.
Also, the next time you go to the mall, have a list of things YOU NEED to buy. Better, send your sister to buy it for you instead so you won't arrive with more than you need.
When it comes to food, we are actually paying for the right to eat in a certain environment, quiet, with the right blend of people, and maybe some music. How about scheduling a once a week dinner with friends? Just to avoid spur of the moment dinners and you can also look forward to this day when a stressful one hits you on the head. Tip: always look at the bottom of the menu if service charge and vat are included/excluded.
Family is always our priority, explore options of putting up a small business for your parents so they can depend on a regular stream of income, no matter how small it is, it will help.
Try this: On your next payday, try to list down EVERYTHING that you spend. from there you will discover useless purchases that you can scrap out soon so you can end up having more.
Showing posts with label expenses. Show all posts
Showing posts with label expenses. Show all posts
Sunday, October 28, 2007
Friday, October 5, 2007
The Good and Bad about Credit Cards
Nowadays it's easy as pie to get credit cards. Go malling and you'll find agents handing out application forms and approving accounts within a week or so. They'll even text you to remind about your application and requirements.
Are credit cards a good thing? My answer is, that the answer lies on the hands of the card holder.
The Good
Credit cards are heroes when it comes to emergencies. Not shopping emergencies but when you find yourself short of cash for gasoline, food, or bills. Hospitals accept credit cards and somehow, a credit card becomes a status symbol of sort. Like a golden ticket to restaurants and other establishments. But with the onset of easy applications and approval, i doubt if this still holds true. Another plus is credit cards let some people manage their expenses more because they are logically presented in the bills. Installment payments are also enabled by credit cards and sometimes, it's 0.00% interest! You can get that laptop without having to evacuate the entire wallet.
In short, credit card gives the holder flexible terms and security in times of money shortage. It organizes their expenses and for some, the cash outlay will be more controlled because you'll only cash out once a month. It's also a bit safer to carry a card instead of cash.
The BAD
And this i'll tell from experience. I shall coin this the "doubling effect". When you have a credit card and you are an impulse buyer, i suggest getting a pair of scissors and cut the card in the middle. Credit cards may make you feel like you have two times the money. Imagine, you can buy this on credit and you can buy that with your cash on hand. This is mostly the case of poor credit card victims.
When the bill arrives, you won't be able to pay the entire balance because you already exhausted your cash on hand. And here is where the interest ball starts rolling. 3% may seem small but when you pay 3% every month and it adds and adds up to the debt, it becomes a financial strain.
What to do
Personally, i suggest not getting a credit card at all if only for personal reasons. If you already have one, prevent yourself from swiping it for petty purchases wherein you can simply use cash. Paying cash hurts more than swiping a credit card, wouldn't you agree? and by using real money you realize that it is a real expense.
Credit cards are good to use for major and planned purchases like gadgets, appliances, or intangible services that are PLANNED. Especially with installment terms. Just make sure you already have the money to cover everything before buying. Simply use the credit card to give you an extension and flexibility in cash outlay.
I could ramble all day about credit cards but I guess these are the major points all of us, including me, need to remember. I've already trashed my credit cards since last year. Even when they tried running after me and give me new ones, i decisively declined. From then on I cured myself of the doubling effect and started saving more.
Are credit cards a good thing? My answer is, that the answer lies on the hands of the card holder.
The Good
Credit cards are heroes when it comes to emergencies. Not shopping emergencies but when you find yourself short of cash for gasoline, food, or bills. Hospitals accept credit cards and somehow, a credit card becomes a status symbol of sort. Like a golden ticket to restaurants and other establishments. But with the onset of easy applications and approval, i doubt if this still holds true. Another plus is credit cards let some people manage their expenses more because they are logically presented in the bills. Installment payments are also enabled by credit cards and sometimes, it's 0.00% interest! You can get that laptop without having to evacuate the entire wallet.
In short, credit card gives the holder flexible terms and security in times of money shortage. It organizes their expenses and for some, the cash outlay will be more controlled because you'll only cash out once a month. It's also a bit safer to carry a card instead of cash.
The BAD
And this i'll tell from experience. I shall coin this the "doubling effect". When you have a credit card and you are an impulse buyer, i suggest getting a pair of scissors and cut the card in the middle. Credit cards may make you feel like you have two times the money. Imagine, you can buy this on credit and you can buy that with your cash on hand. This is mostly the case of poor credit card victims.
When the bill arrives, you won't be able to pay the entire balance because you already exhausted your cash on hand. And here is where the interest ball starts rolling. 3% may seem small but when you pay 3% every month and it adds and adds up to the debt, it becomes a financial strain.
What to do
Personally, i suggest not getting a credit card at all if only for personal reasons. If you already have one, prevent yourself from swiping it for petty purchases wherein you can simply use cash. Paying cash hurts more than swiping a credit card, wouldn't you agree? and by using real money you realize that it is a real expense.
Credit cards are good to use for major and planned purchases like gadgets, appliances, or intangible services that are PLANNED. Especially with installment terms. Just make sure you already have the money to cover everything before buying. Simply use the credit card to give you an extension and flexibility in cash outlay.
I could ramble all day about credit cards but I guess these are the major points all of us, including me, need to remember. I've already trashed my credit cards since last year. Even when they tried running after me and give me new ones, i decisively declined. From then on I cured myself of the doubling effect and started saving more.
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