Being Money Wise

     Despite having a good-sized family income, most of us are finding it more and more difficult to have a growing savings let alone a savings for that matter. No matter how many boosts our family income gets -- from salary increases, bonuses, allowances, etc., we still find our finances bottomed-out from month to month. What to do to be money wise nowadays? Here are 3 tips on how to save and invest wisely.

     1. Save First Before You Spend

     A fool-proof way of saving money is to set aside at least 10 to 20% right off the top. I want to mention, however, that as a Christian family, we strongly believe in giving to God the first 10% of our income. It is called the tithe and it belongs to God. So, the 10% I am talking about here is net of the tithe. For years, we have experienced God's Word to be true. As we faithfully seek His kingdom and righteousness FIRST, He does add all things unto us.  (Matthew 6:33). If you are a Christian, I recommend that you prayerfully consider doing so too.



     As for the 10 to 20% savings, being money-wise would mean  making sure that this stays saved. Think of ways to make it "inconvenient" for you to touch that money other than putting it in a piggy bank or a savings account with an ATM. Why not convert them to a different currency, a stable one at that like the US dollar for instance? When it is sufficient enough to be kept in a time deposit account, do so. Go for long term. Remember, this is not emergency fund. This is savings for you and your family's future. I am sure that both the hassle of going to the money changers and the pain of pre-termination penalties would strongly control your urge to splurge.

   

     2. Know Where Your Money Goes




     Make a list of all your expenses. This will help you properly pin down your spending habits. Most find that what eats away constantly into their income are small on-impulse purchases that add up.

     This will also aid you in making a modest budget based on your newly tweaked income. Living within one's means is not that hard. It just takes getting used to.

     And while we're on the subject of living within our means, let me just encourage you to think a thousand times before you buy big-ticket items. Most us tend to fall 

into the trap of letting our precious money go too easily in




pursuit of a dream car or house. Having downpayment-money is not always a safe gauge of our readiness for the task ahead. 

     Being money wise would make us hold on to that money until we are most certain that we can sustain the rest of the payments. This way, we spare ourselves from huge losses. 

   

     3. Do Not Chase Returns

     When your money has accumulated and you are ready to move on to the next level, you will do well never to go for high-yielding investment vehicles. Mr. Francisco Colayco, a trusted wealth-management voice in the country is quick to remind first time investors, "growth or making money we can't control, but the risks, we can. 90% of us or focused on the gains, not on what could happen that could make us lose our investment. Having said that, we



should be aware that what we invest we could stand to lose. If we can't afford to lose our investment, we shouldn't risk them."

     It doesn't hurt to do your own research too. Find out which investment types out there suit you. You might also want to find yourself a trustworthy and well-informed financial adviser. It's like having a coach who will guide you in this new and exciting journey and make sure that you do not only begin enthusiastically but that you also strongly finish. :)


     I hope that these three helpful tips for being money wise helps you gain a steadily growing savings soon.


     Enjoy the ride! :)