Financial Management Tips

Do you have enough savings? Are you ensured? Do you have more than 5 "insurances"? Do you know your net worth? Were you able to save more than your net worth? If your answer is yes, I wish to ask how you did it and hope to give me some tips.. If you answered no to any of the above, then let's help each other out.

I am not an expert when it comes to financial matters. I am a self declared frugal but there are times that I spend just out of the whim! Though I can say I am earning quite well, I was not able to manage it carefully not until a few years back. Let me share you some tips that I was able to accumulate over time on how to improve one's financial condition.

- Spend less than what you actually earn
- Every payday, pay yourself first before others. This means to already allot a certain amount of money for savings.
- Invest wisely and save more!
- Have at most 2 credit cards. One does not need more than these actually. Remember to pay off every amount due in your card during its due date.
- Determine which are wants and which are needs. Insurance is a need. A high tech phone is a want. Travel is a want and so is jewelry. If you can afford these wants without sacrificing your need, so much the better.
- Do not put all your money in the bank. The saying "do not put all your eggs in one basket" applies to financial matters. It is not advisable to keep money in the bank more than 5x your monthly spendings. It is important to build this emergency fund as well. The minimum emergency fund one has to set up is at least 3x monthly expense.
- Divert excess amounts to insurance or other pre-need plans (life insurance, educational, endowment, pension etc..), mutual funds, bonds, stocks or equities
- If you have kids and would want to get them pre-need plans, best to get these before they turn 8 years old since rates are still low and affordable.
- Explore and join a cooperative group that you are comfortable with or has a good reputation
- If you will invest a few of your monies in the bank, best to go with reputable rural banks or have it enrolled in the bank's various strategic management growth funds.
- maximize loans- put them in good use and make sure to pay off loans when it is due.
- Take advantage of various credit cards' 0 interest schemes when you want to purchase "high ticket items" that are in a way needs for the family.
- Discuss with your family or partner any major ticket purchase that you are thinking of.
- Treat yourself once in a while
- Explore ebays, flea markets for great and affordable finds!
- Maximize housebrands and compare other brands' prices
- Buy in bulk for things you always use.
- Learn how to budget. It is best for couples to have a financial diary if they want to track down their expenses. Though this is quite tedious specially if done monthly, one will soon get a hang of this.