I grew up in a very poor family. My mother is a housewife and my father is a fisherman and a farmer. He is so hardworking that he was able to provide food on the table. We have a  piece of land and he planted different kinds of root crops like sweet potatoes, cassava, bananas, corn.. etc…. and during the harvest, we sell it to the villagers.

I really thought we are good, We are living ok, until one day my eldest brother got into an accident. I saw my parents so terrified because they can’t able to bring my brother to the hospital because they have no money. No savings at all. They needed to borrow money from our neighbors for that emergency situation. ( Thanks to my kind-hearted neighbors, I never forget their help! ) But at that very moment, I clearly understand how important savings and emergency funds are. If only my parents have knowledge about finance management then I am sure we are so prepared for that emergency.

Always have this thought, What if no one helped us at that time? What will happen then? The lesson learned here is you cannot take risks when life is at stake. We have to be prepared for any emergency situations in our life. Not all people know how to manage their finances. Why do you think poor people become poorer? And rich people become richer, there is one thing in common in majority of the people today and that is…..

“The lack of knowledge about financial literacy and mismanaging of their finances”

It is important for us to set our financial goals and managing our finances in the right way. Always remember this formula: INCOME – SAVINGS = EXPENSES meaning as soon as you get your salary set aside a portion for your savings before you use the remaining money to pay for your expenses. Here are the steps on how to help you manage your finances:


1. ELIMINATE DEBTIf you are the type of person who is fond of using credit cards I’m telling you to be wise in using it.  I am not against credit cards but to some people, they lost control of using it. they Just swipe here swipes there only to find out that they are overspending already.   A credit card can be a good tool only if we know to use it properly. Because if we don’t, better to just cut it off and stop using the card. Also please avoid borrowing money from a friend, from neighbors, from any lending company. Always remember the savings formula above. So won’t mess up your budget plan. 

Eliminate Debt

2. TRACKING EXPENSESWrite down every single peso that you spend. Make a list of your expenses or make a monthly budget plan. That way it is easy for you to track where did your money go. Stick to your budget and live within your means. 

Tracking of Expenses

3. PERSONAL SAVINGS AND INVESTMENTSThis is where you save for your future goals, like if you want to buy a house, buy a car, pay for your children’s education, and for your travel expenses.


4. BUILD AN EMERGENCY FUNDSave an amount equivalent to your salary for six months. should be enough to cover any emergency situations. Set aside that money and never touch it. I repeat only for emergency purposes. One good example of this is the crisis we are experiencing now. The COVID 19 outbreak. In just a snap too many people have lost their jobs, businesses are shut down, it is now a global crisis. Who would have thought this would come? Indeed it is unpredictable.  It is painful to see people are begging for help, for their food, for their everyday needs to the government just because they are literally out of money.  A situation like this your savings and emergency fund is a big help because you don’t need to wait or beg for help from the government. You can just take out your emergency fund and you’re all good for the next sixth months! No more worries. No more stress. Just sit back and relax!

Emergency Fund

5. SAVE FOR RETIREMENTGetting old is part of life and some of us often forget that. We were too busy working, too busy providing for our family, We tend to forget what kind of life is waiting for us ahead when we get old. We have been working hard all our life. We all deserve to have a comfortable life when we cannot work anymore. Your children are not your retirement fund. Time will come they will have their own family. They will have their own problems. Don’t be a burden to them. Be a responsible parent and start saving for your retirement fund now. 

Retirement Fund

6. TITHESNever forget to share your blessings and give it back by donating a small portion of your salary to your chosen Charities or Church. Be a blessing to others!

7. GET A LIFE INSURANCEGetting life insurance is a must. You may not see the value of it now but in times of health emergencies you can benefit it to cover up your medical expenses without passing the burden to your family member or in times of your sudden loss life insurance will protect your asset and your family. If you are the breadwinner I suggest you get one, we don’t want our loved ones to suffer . Make sure they can still continue to live with their lifestyle even after youre gone. 

Life insurance

Now you’re done reading those helpful tips from me! I hope it helps you manage your finances in the future. Cheers to our brighter future ahead!


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