Getting your money habits back on track after the pandemic might seem overwhelming, but it really isn’t impossible. With some research and the right tools, you can get through this crisis with better financial health!
To help you move forward, we’ve compiled the financial tips shared by our webinar panelists Marco Tarog and Addi Guevara on Bangon Tayo sa COVID: Budgeting Tips for Every Juan.
How can I save money if I have more expenses but less income?
Use digital apps or spreadsheets to keep track of your financial situation. You should actually be doing this year-round.
List down your expenses and subtract the total cost from your income. Find things to cut down on—if there’s nothing left, you’ll have to get creative with your financial plan.
You can start off by simplifying your lifestyle. Find cheaper alternatives for your regular purchases, and spending less on your wants.
Next, look for a savings account that will give you a good interest rate, and try not to touch the money you deposit. If you’re able to save consistently, you can also try availing of more productive investments like bonds and UITFs.
You may also opt to increase income by selling unused items or even starting your own small business. In both of these cases, remember that your network is one of your best assets. Make sure to offer products or services that you know they’ll want!
Is it advisable to deposit money in banks for the new normal?
Banks insure deposits up to P500,000 per depositor. On that note, it is safe to deposit money in banks. But given that bank interest rates are so low, it’d be wise to avail of assets or investments to make your savings more productive at the same time. Remember to conduct thorough research before investing!
How can I get out of debt if I’ve used up my emergency fund during this pandemic?
Times like these are what your emergency fund is for. Don’t lose hope—it can always be rebuilt!
Ideally, your debt-to-income ratio (your monthly debt payments divided by your gross monthly income) should be under 40 percent. To keep debt manageable, pay off higher-interest loans first to avoid accumulating extra fees.
You can also accelerate your loan repayments by cutting down on expenses and increasing your income using the tips we’ve shared above.
What’s the best way to start investing now?
Bulk up your savings so that you can take advantage of the best opportunities you may find to invest. If you’re new to this kind of thing, it’d be best to start with small, short term investments to help you develop discipline.
Pro tip: don’t put all your eggs in one basket. It’s always safer to have a diverse portfolio of investments to ensure that your finances aren’t too badly hurt in case something happens in the market.
Keep researching and learning from your experience, and very soon you’ll be equipped with enough industry knowledge to pursue bigger and more productive assets!
Stretch your salary with these saving tips