The Money Mindset

What is your mindset when you think about your financial state? Do you view it positively or negatively?

Don’t be alarmed if thinking about finances leaves you frustrated, unhappy, and lost. One of the first things you can do is understand that by following a few basic principles of good financial management, you have the power to improve your situation. The way you think about your finances has a huge effect on how you plan for it.

Here are some simple principles you can apply to your money mindset that will allow you to unlock your potential:

Budgeting

Budgeting is very empowering since it gives you control of where your finances go. You can use it to monitor, maximize, classify, or cut down on expenses — putting your money to its best purpose. You can either budget through a manual list, your own spreadsheet, or do it digitally through apps such as “Mint” or Wally” where you can track your finances on-the-go.

Spend within your means

With a budget in place, it will be easier for you to live within your means. It’s all about being aware of your expenses and spending your money wisely. Take a look at your income and make sure you’re always spending less than what you earn.

Saving: Pay yourself first

Pay yourself first by paying yourself what “you’re worth”. Do this by saving at least 10-15% of your monthly income.

Plan Ahead

As the saying goes, “if you fail to plan, you plan to fail.” Make specific, measurable, achievable, realistic, time-bound (SMART) financial goals and divide it into three categories: short-term (1-2 years), medium term (3-5 years), and long term (5 years onwards). Calculate the amount you need to save on a monthly and yearly basis for you to achieve your goal. Lastly, it’s recommended you have a savings account!

Your money mindset plays a key role in effective financial management – so make sure to not be overwhelmed and take it one step at a time. It’s about discipline, dedication, and sticking to your goals because you deserve to get the most value from every peso you’ve earned.

Of course, not all situations are created ideal and there will be instances where your expenses go above what’s expected. When this happens be sure to borrow responsibly. Apps like Cashalo provide a convenient, safe, and affordable alternative when you need it most.

By understanding the basics, implementing these fundamental principles you can have more control over your financial future.