Every time we enter a new year, we all come up with a fresh set of resolutions including how we plan to handle our finances for the rest of the year. For many of us who are not experts in finance and money management, we all look for a certain level of inspiration so we can craft up new rules for our finances.
To help us out, Home Credit has offered these five tips to help us manage our money better this 2020:
1. Be realistic
Targeting to pay off all your debts is good and all, but you need to be realistic to make it successful. When assessing the amount that you want to pay off for the year, make sure that you leave enough budget to support your regular lifestyle. You have a higher chance of making financial mistakes like overspending if you limit yourself too much, so try to find the perfect middle between achieving your financial goals and supporting your needs.
2. Have a purpose
Wanting to start or grow your savings ‘just because’ is good, but you can feel more inspired if you connect it to an actual purpose. Do you want to travel to your dream destination? Buy your very first property? Get a life insurance? Having an end goal in mind will give you a clearer vision (and better motivation!) when trying to achieve your goals.
3. Keep your money in separate accounts
Having multiple accounts can be difficult to handle, but it can also be helpful if you want to make it easier to manage your finances. Have a separate account for your savings where you can automatically move or deposit your money—and forget about it. If you want to have a clearer view of your finances, you can even create a separate account for the different things you’re trying to save for (property, travel, etc.). Want to be extra sure that you don’t easily spend your savings? You can opt for a checkbook or even simply leave your ATM card at home so you won’t get easily seduced to withdraw your funds.
4. Have a splurge budget
This sounds counter-intuitive, but it’s actually helpful in the long run. Limiting your spending too much can backfire and make you more prone to sudden overspending so make sure to give yourself room to breathe and enjoy. The secret is to set the right amount that you can actually spend on recreation. To do this, take out the cost you need to cover your basic expenses and the amount you want to save. You can use what’s left on yourself.
5. Be smart in managing your cash flow
Sometimes, emergency situations will require you to touch your savings. Did an important household appliance breakdown? Do you suddenly need to shell out a big amount for something? In cases like this, what you can do is to consider other options that can help you afford things without draining your savings. Cash loans and installment plans are a good option for this because you can pay the cost gradually. Reputable providers like Home Credit—which now offers other financial products like cash loans and credit cards on top of their in-store product installment plans—is a prime example of an option you can consider. It’s so easy to apply for their products, too! You just need to provide two (2) valid IDs and even apply to their partner stores or online. Processing of your applications won’t even take long—you just need less than a minute to know your results. So the next time you find yourself in need of some financial help for something important, consider to do it the easy way and #iHomeCreditMoNa!
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