Money can’t buy happiness, but it can buy peace of mind.
Managing finances begins with having a vision and action plan. A Filipino fintech company recommends adopting smart money management practices and taking advantage of digital credit solutions to help develop responsible financial management habits.
Here are three ways to being smarter with money.
Follow the 50/30/20 Budgeting Rule
Budgeting can sometimes be overwhelming, but the 50/30/20 Budgeting Rule makes things simple. The method works as follows: allocate 50 percent of income on basic needs like food, and utilities; 30 percent on hobbies, shopping, travel plans, and other things that add value to life; and 20 percent goes to savings.
This rule not only teaches discipline but also offers an easier way to map out budget plan, and ensures that monthly income is spent equally in terms of importance.
The Automatic Savings Plan
Saving money becomes much simpler and more natural when it becomes part of one’s life; you’re only half-aware that you’re actually doing it.
How does Automatic Savings Plan work? Go to your bank to set up an automated deposit that automatically transfers a fixed amount of money into your savings account at specified intervals.
This way keeps savings steadily flowing without having to manually deposit funds.
Take advantage of digital credit solutions
Big-ticket items such as appliances are sometimes hard to accommodate. This is where innovative customer-friendly digital credit solutions help by enabling mindful expenditure over time.
For example, Cashalo’s “Shop Now and Pay Later” is a digital consumer-financing product that allows consumers to shop for multiple items without having to worry about paying the total amount at the point of sale. They can buy these items on credit and settle the amount in easy, transparent monthly installments, depending on the most convenient payment schedule for each customer. Through the app, they can get pre-approved for a fixed amount to better plan purchases
Further, the company offers financial literacy program, CashAcademy (www.CashAcademy.ph), aimed at delivering a holistic and practical overview of sound financial management to help Filipinos become Pera Experts—financially aware and responsible.