When you have money at hand, you have basically four options on what you can do with your money.

Spend

This is the money you are planning to spend soon.

As soon as we get our paycheck, we already have a plan where our hard-earned money will be spent.

For some, food is first on the list. Eating out with friends in Samgyeopsal, milk tea, eating out with friends in fast food chain like jolibee, mcdo and more.

For some, shopping is the very first thing to do. Buy there, buy here, buy everywhere.

Each time we have money, we spend for our wants and needs. Most of the time though, we spend on things we don’t really need to impress people we don’t like.

Instead of spending money on things you don’t need why not try to save money for future emergencies like now with the spread of covid-19 all-around Luzon having a fund intended to shoulder all out of the budget expenses is a great help.

Save

I believe you should only save money for building up your emergency fund and financing your short term goals for the upcoming 1-2 years.

Saving is a habit you got to master to change your financial life. As you save a significant amount of money, you’ll feel confident in the choices you took.

More money means more options for you. Do you want to travel? Instead of travel now pay later why not save now and travel later? It’s more enjoyable to spend the money you have than to borrow money that incurred interest overtime.

Invest

To gain interest and grow wealth in your medium to long term goals.

Savings and investment can produce income from interest and dividend payments. Your money is working and earning passive income. The additional income allows you to increase your savings or investment portfolio.

Wealth creating assets grow as market prices rise. Until the asset is sold, the increase value does not affect your income. Thus, it does not impact your budget.

The more asset you have, the richer you’ll become. Your money tree will make you rich.

Donate

Donate to a charity that provides good deeds to God’s people, helping other people in need of your helping hand is a sowing good deeds. You will never know it might give you an amazing reap one day.

You should give back at least 10% of your income.

You are helping the less fortunate people to have a better life by providing them a tenth of your hard-earned money.

Final note

Normally, the average Pinoy only knows how to spend their hard-earned money on the things they need and want today and when they’re short in cash the very first thing they do is borrow money.

It’s not embarrassing to be one of those average Pinoy. I am once part of the group and luckily I learn how improved my finances.

If you really want to change your financial life start saving money, you can also start investing once you save at least 3-6 months of your monthly income.

Think of it like this, if you bypass saving up your emergency fund and you start by investing, suddenly you are in need of money due to an unforeseen event you will pull out the money you invested even at loss.

You wouldn’t want that, would you?

I believe in sharing gods blessings, giving back a tenth of the money I earn is a small gesture of giving love to other people.

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