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Thread: How to manage your Finances?

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    Default How to manage your Finances?

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    The bigger task of educating young people is to equip them with knowledge, skills, and habits that will make them independent and responsible individuals. That is from where you are now if you are a young person depending entirely on your parents' financial resources into someone who will soon become independent, earning your income and supporting yourself.

    The outlook is frightening for many but as you read this, hopefully, it can help you. You will learn how to manage the financial aspects of your life. Congratulations that you are taking the first step towards personal independence, which is to become a financially independent individual. Remember that your goal is to become a financially independent individual who can provide from your resources, all of the three major expense categories: housing, food, and living expenses.

    The road towards being financially independent is to have money and that is why the first step is to have a job. Indeed, some young people go straight to start a business right out from school but the majority of them will have to find work first to earn a living and acquire experience and maturity. The essential step to acquiring a job is to look for job opportunities that fit your qualifications.

    Don't stop looking as soon as you find the first offer. Consistently search for more job offers so you can compare both offers. The better chance for you to get the best job if you have more options in your hands. And in comparing the job offers, you must not just look at the salary between the jobs but you must also compare the non-monetary benefits that it has as well. Now that you have a job, you can start with some tips that you can use in your journey towards financial independence:

    1. Smart Spending
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    Keep track of your daily expenses. The first step to becoming financially independent, that is to gain control of your financial situation, starts with recognizing where your money goes. Save before you spend instead of saving what is left. Take a closer look at how your spending habit goes. Start by writing down everything you spent money on for one week in a pocket notebook. Be sure to write down everything you buy and how much it costs. Include rent, jeepney or tricycle rides, cellphone prepaid "load" payments, groceries, and even small purchases like "soft drinks" or snacks. By continually making writing down a habit about your daily expenses even though it is beyond the one-week exercise. Many people do this out of habit and are in a better position to improve their spending habits than those who do not keep a tab of their daily expenses.


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    Cut down unnecessary expenses. Now that you know exactly how you spend your money each week, notice the areas where small amounts of money are disappearing. This is what you called spending leaks that may include buying soft drinks daily, going to an Internet cafe, eating outside almost every day, and impulse buying. You may feel that it does not seem to spend a large amount of money since it is just a small bill but these leaks can sum up to a bit of money. You can create a blank form of your daily spending. And then once you have identified your spending leaks, you can determine ways to plug them by making small changes in your habits. For example, if you're taking soft drinks every lunch at the cafeteria every workday, you probably spend at least P10 each time. It may add up to P100 or surprisingly a P1,000 in your money in a year. If you want to spend less on your lunch you can bring a tumbler and get a refill of water instead of buying bottled water and in that case the money you will be spending may help reach your financial goals, such as paying for a new personal computer or bicycle which could, in turn, save you some more money compared to renting at an Internet cafe or riding a tricycle for those short trips.

    Shop Smarter. You read it right! You can stretch your money by being smart when shopping. The following are the steps to stretch your money. The best way to be a smart shopper is to make a plan. Before going to the grocery try making a list of what you need to buy and avoid making a purchase that is not on the list. You must stick to your list since it is the reason why you are making a list in the first place. And always keep in mind that an item is on sale does not necessarily mean it is a good deal. If you will not use it then do not buy it. Try to have a mental count or another separate list of what you already have in the house so you will not stack up on the items that you must be using first. In that way, you could use the money on necessities. For you will not run out of necessary items, you may purchase it at a clearance or sale price instead of the regular price when you must have the item. Because you can notice that buying from your nearby sari-sari store is more expensive than from the grocery store. Bonus Fact: Your emotions affect your shopping. Be careful of the statement "I deserve this" mentality and try avoiding the brands that are expensive and the so-called lifestyle products.

    Be aware of the Power of Advertising. Try having a habit of thinking of what does the advertiser wants to sell with this kind of advertisement. Keep in mind that you must buy the product/s or services because you need them and not for what the advertising company framed your mind to it. Almost most of the time this technique works so you must be very careful about anything that is being sold as a lifestyle. So do not mind the name of the brand, their catchy slogan, and especially the showbiz endorser on it. Just simply ask yourself if you need that product.


    2. Savings
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    The 10% rule. Paying yourself first. Nowadays, one of the main reasons why people have some financial troubles is the lack of savings. That is why you must make sure you avoid this kind of problem since it has affected many people around the world. As what we have tackled above, you must Save first and then live within your means, and not the way around. That is the simple formula that reflects what is financial responsibility is all about. We already know that saving money is not as easy as 1 2 3, but it is important in achieving financial independence and in securing your future. Every time you receive your salary, save at least 10% of it before you spend that money. You now have the remaining 90% of your income and you may now start by figuring out your spending plan that is the basis of your 90% salary. You can start by setting aside a certain amount of money for your income and establishing your short and medium-term goals. And if the case is that you received your salary on an ATM account, you can choose to withdraw only 90% of your salary and remain behind the 10% as your savings. In order, your money never hits your pocket and no room for spending it. And when you gather the savings in your ATM, you may move the money to your own or another bank account that offers great interest.

    So why am I saving? When saving, you should think about the money must fall into three categories: money for an emergency fund, money for short-term purchases, and money for long-term goals.

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    Money for an Emergency Fund Saving. Your first goal when saving is you should create is allocating enough money to cover your basic living expenses for three to six months. This money should be kept in an easily accessible savings account in a reputable bank with a branch close to where you live or work and not in a long-term investment asset like real estate. Always put in your mind that you can only touch this money when there is an emergency, such as there is an unexpected medical bill or if you lose your job. Once you already create an emergency fund, you can now begin saving an amount of money to reach your goals, for example, purchasing a new laptop or household appliances, acquiring a new car or building your dream house, putting into reality your dream wedding, setting aside for your child's education, or may it be creating your retirement fund.

    What to do with the Money? Having savings already, you have four choices on what to do with that money:
    a). Save. As we have discussed lately, you can save your money for an emergency fund and finance your short, medium, and long-term goals
    b). Spend. This will be the money that you are going to spend soon.
    c). Donate. You may donate a favorable amount of money by doing charity works or you may help your parents and siblings first, especially when it comes to helping them to finish their studies.
    d). Invest. Putting your money into an investment can gain interest and can grow in the long run.

    Savings and investments can create an income that is from its interest and dividend payments. The money is continuing to work and earning income as well. And that additional income permits the person to increase its savings.

    3). Goals
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    Whatever goals you have in your mind, you can write it and label each of them in three categories.
    a). Short-term: Might include buying a new cellular phone, household stuff or helping your sibling finish their studies.
    b). Medium-term: It could be taking up your masters degree or buying a new car.
    c). Long-term: It includes acquiring a new home or retire with enough funds to live conveniently.

    Your goals must be SMART. Setting SMART goals, which means Specific, Measurable, Achievable, Realistic, and Time-bounded. Make sure that you prioritize your goals. Ask yourself which ones are the most important? Work toward achieving these goals first. One step at a time.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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  3. #2 You can automatically minimize the read posts in your account in the 'Forum Settings'
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    Woah thanks for the tips ♥️ Thanks for the very informative article 🙌

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Many schools have not yet incorporated the subject of personal financial management into the teaching system, but everyone will have to face this problem at a later date. Take the United States for example: 58% of Americans have no retirement plan and don't know how to handle their finances when they are old.
    • It was generally believed that a deposit of US $ 300,000 was necessary to support life after retirement, but the average American only had US $ 250,000 at that time.
    • The average credit card bill for each family is $ 152,000.
    • If this data sounds the alarm for you and you want to turn things around, take a look at the following suggestions: These specific goals can make you live a better life.

    create a budget

    1. Record all your consumption in a month.
    You don't need to hold back, as long as you have a general idea of ​​how much you spend in a month. Save all receipts, track your cash outlays, credit card expenses, and see how much money you have left at the end of the month.

    2. At the end of this month, carefully study how much you spend.
    Don't write down how much "expected" you spent, but write down how much "actually" you spent. Make a category summary of your expenses. For example, your monthly consumption might look like this:

    Monthly income: $ 3000
    spending:
    • Rent / mortgage: $ 800
    • Water, electricity and gas cable: $ 125
    • Daily necessities: $ 300
    • See also: Invest in the most successful traders. More details.

    • Eating out: $ 125
    • Gasoline: $ 100
    • Emergency medical expenses: $ 200
    • Arbitrary fee: $ 400
    • Deposit: $ 900

    3. Now, write down your actual budget.
    Based on your actual monthly expenses - and your historical consumption budget - how much you will spend in each category each month. If necessary, you can also use several online budget platforms.
    • In your budget, separate the "planned" budget from the "real" budget. The planned budget is the amount you plan to spend on each category each month. The plan must be the same every month and calculated at the end of the month. The actual budget is the amount you actually spend; this data varies from month to month, and is finalized at the end of the month.
    • Many people will leave a lot of room in their budget for a deposit. You don't have to plan for savings in your budget, but people generally think this is a good idea. Professional financial planners will also advise their clients to set aside 10% -15% of their income as deposits

    4. Face your budget honestly.
    This is your own money - no need to deceive yourself about how much you spend when budgeting. If not, you are the only victim. On the other hand, if you are unclear about your expenses, your budget may have to be tracked for several months before it can be implemented. At the same time, don't write unrealistic numbers until you know what they are.
    • For example, if you want to save $ 500 each month, but you know you need to cut back on food and clothing to get there, then don't set this goal. The goals must be realistic. Looking back at the budget you wrote down, which categories could be spent less and saved in your savings?

    5. Monitor your budget.

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    The hardest part of budgeting is that your expenses are different each month. The good part is that you log all changes in real time, so you have a clear picture of where you spend your money in the year.
    • Creating a budget allows you to see how much you're spending, if you didn't know beforehand. Many people find they spend money on many trifles after making a budget. Knowing this will allow them to adjust their consumption habits and spend their money in a more meaningful place.
    • Be prepared for unexpected expenses. Budgeting can also tell you that unexpected expenses will occur at an unknown time - but accidents can actually happen. For example, it is clear that you are not going to "plan" for the car to be dismantled or your child will need medical care, but it is important to be prepared for the accident, especially when it occurs.

    don't waste money

    1. Don't buy anything you can borrow / rent.
    Do you often buy magazines and leave them in the dust for a few years? Books, magazines, props, party props, and sports equipment can all be rented for a small amount of money. Renting often saves you the trouble of maintenance and maintenance, frees up space for storage space, and makes you value more when you use it.
    • Don't rent blindly. If you need to use something for a long time, it is best to buy it. Do a simple cost analysis to see if it's good or not.

    2. If you have enough money, make as much down payment as possible when you buy the house.
    For most people, buying a house is the biggest and most important expense of their life. Therefore, it is very important to use loans wisely. Your goal of repaying your loan should be to minimize interest while balancing the remaining budget.
    • Pay upfront. The first 5-7 year loan repayments are often the highest interest-paying years. If the withholding tax and other methods can be used, part of it will be returned to the loan. Early payments can help increase assets quickly by lowering interest rates.
    • See if you can pay back the loan every two weeks instead of every month. Apart from the loan repayment plan of 12 times, it depends on whether they can repay the loan 26 times a year. If there are no additional costs involved, this method can save a lot of money. Some lenders may charge a high fee for this. If so, they still choose to pay off the loan every month.
    • Negotiating with lenders to mortgage back. If you can lower your interest rate while paying back the same loan amount, then go for it

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    3. Understand the importance of accumulating credit cards.
    A credit card with a high credit score may be able to give you very low-interest loans and new loans, which you don't need to kiss. Even if you rarely use a credit card, you still need to have one. If you are not confident, you can lock it in the closet.
    • Treat credit cards like cash, it's that simple. Some people think of credit cards as a cornucopia, even though they know they can't pay, they still have to pay, and they only pay the minimum payment amount each month. If you plan to use a credit card in this way, you will have to prepare a large amount of money to pay interest and various expenses.
    • Strive to achieve low utilization of the down payment. Use of a low down payment refers to the ratio of your credit card down payment to your credit limit. In other words, if you use a credit card for an average down payment of $ 200 per month, and your credit limit is 2,000 per month, then your down payment ratio to the limit is very low, only 1:10; if you use a credit card on average each month If you have a down payment of $ 200, and your credit limit is only 400 per month, your usage of the down payment will peak, reaching 1: 2.

    4. Spend based on how much you have, not how much you want to make.
    You may think that you have a high income, but if your true financial resources are not, then you are targeting yourself with your current consumption habits. The first point of spending money is this: Except in an emergency, you can only spend money you have, not money you expect. This way you won't owe any money and you can plan for the future.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Wow this so much information in managing my finances.
    Thnx more power!

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    You know what, teenagers nowadays must learn how to save and not rely entirely on their parents

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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    creating a budget allows you to look how a great deal you are spending, if you failed to recognize in advance. Many humans find they invest in many trifles after making a budget. understanding this can permit them to alter their consumption conduct and spend their cash in a greater significant vicinity.

    See also: Invest in the most successful traders. More details.

    Be prepared for unexpected fees. Budgeting also can tell you that unexpected charges will arise at an unknown time - however injuries can definitely manifest. for example, it's miles clean that you aren't going to "plan" for the automobile to be dismantled or your toddler will need medical care, but it's far critical to be organized for the coincidence, mainly whilst it takes place.See if you may pay again the mortgage each two weeks rather of every month. other than the loan compensation plan of 12 instances, it depends on whether they can repay the loan 26 instances a year. If there are no additional costs involved, this technique can keep a lot of money. some lenders may additionally price a excessive rate for this. if so, they nonetheless pick to pay off the loan every month.


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    How to manage your finances.

    One of the most sensitive areas of personal life is finance. One can invariably conclude that almost every economic, cultural and social activity revolves around finance. Successes in most cases are measured by how well personal finances have been effectively managed. Whatsoever attainment had been made at any point makes sense when personal finance reflects a good measure of success.

    A productive life is the one that has proved a good management of his finance. The inability or failure of any individual to manage his or her finance effectively is a total or colossal failure that eventually affects so many aspects of life.
    It is for this reason that as an individual, there is a need to have all the necessary knowledge required for this purpose.

    See also: Earn with no risks involved and no deposit required right now!


    Name: manage your finance.PNG Views: 35 Size: 505.0 KB

    Different strategies must be adopted in the management of finance and this is the focus of this article. The strategies are as follows;

    1.Creation of budget- Budget has to do with projection of how resources (especially finance) should be allocated for different purposes. This is expected to be with a good sense of priority. One should make sure that he or she does not allow expenses or unnecessary expenses to put pressure on his or her income. In a very simple manner, every individual needs to learn to live within his means.
    2.Emergency fund- It is evident that an emergency is inevitable. This could in terms of one form of disaster or the other such as sickness, accident, or some other unplanned expenses. It is always not interesting when it is at this point that one has to start looking for funds that may not be readily available. For those who have bought insurance policies, the case may be a bit bearable but in addition to this, there should always be separate funds to take care of this to a very good extent. In summary, there should be a provision in place for emergency or contingency

    See also: Invest in the most successful traders. More details.

    3. One way or the other, there may arise a need for a loan or to borrow some amount of money from friends or well-wishers. This when done should be in such a way that one can afford to repay when due for the sake of integrity. This would be realistic when it is within the scope of what can be controlled. As much as possible, debt must be controlled to prevent situations from getting out of hand.
    4. Wise use of credit cards- The use of credit cards is one of the best opportunities to have an access to fund at any time. It is however very tempting and one may end up spending beyond his capability which may end up becoming a serious burden at the end of the day. It is good for one to learn how to control spending using credit cards and possibly put a limit on it.
    5. Credit score must be maintained- having access to a loan is good because it makes it helps in the situation of emergency. Ability to repay increases ones credit score. With a good credit score, one has more opportunities or more access to funds which is encouraging. For this reason, one should try as much as possible to make sure that there is always an improvement in credit score.
    6. No matter ones level of attainment or achievement in life, it should be understood that immediate family comes first. Every individual should set the priority of taking good care of his family. Consideration for ones family in terms of budget and sustainable standard of living should be given a top priority.
    7. Regardless of the path of success that one must have towed, the day for retirement will come. This is the time that one may not have the strength and the zeal to perform as much as he had always. The important thing at this point is that there should be a financial comfort to take care of oneself and his family. It is for this that there should be a retirement plan in place from the outset. Retirement plan must start from the early stage through savings and different types of safe and low-risk investment. It does not matter how much one earns as a salary or makes as a businessman, there should be enough discipline to set aside a portion of ones income for the defined purpose.
    8. Maximize tax breaks- There are different types of taxes that are being paid in every society. This may eventually become a burden if it is not well handled or managed. One should make use of every opportunity to benefits from tax breaks or holidays if possible. This is a form of saving directly or indirectly.
    9. It is not an exaggeration to conclude that life could be unfair many times, but with the effective use of some reliable guiding principles, one is bound to succeed to a great extent. Emergency and unexpected demand will always come with pressure but one needs to learn how to handle it well. One of the best approaches to this is to learn to relax. In many cases after one has rested or relaxed he is likely to have a cognate solution or a better approach to the situation on the ground.

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    10. Getting an education in finance is very essential. These are obtainable through different sources such as the internet, different institutions, seminars, religious groups etc. Knowledge is undoubtedly power in away. One should gather enough knowledge and understanding of finance. This is through what one will know different types of investments, businesses, wealth creation processes and so and so forth.
    11. Discipline- All these strategies cannot work well without discipline. It takes someone who is determined and disciplined (with complete emotional detachment) to apply all these. Money or finance has a lot to do with emotions and greed and it is discipline that can be used to handle it.

    All these factors when well-considered and applied will ensure success in every area of life especially finance.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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