Life Hacks

How to Start Making the Most Out of Your Money

How to Start Making the Most Out of Your Money

cutout paper composition of human and money under dome

In a world where money rules, it can be difficult to get the ball rolling when it comes to saving and your expenses.

But good thing there’s the Internet; now we can get our tips and tricks online and with an easy click of the button. So without further ado, here are our suggestions for how to start making the most out of your money!

Establish different bank accounts for different things

Separation of funds is a good first step to being able to manage your money efficiently. A good suggestion for how to divide your funds is as follows: one bank for all incoming money, another for saving and investing, another for outgoing expenses such as loans and bills, and another for spending.

This makes it easy for you to track all incoming and outgoing funds, and helps you keep your money organized.

And just a quick tip: try and choose a bank with a high interest rate so you can earn the most from your savings bank (which is money you don’t touch anyways!)

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Set a budget and start tracking your expenses (ASAP)

For most working people, a good budget is necessary to keep up with living expenses. If we don’t know how much we’re making and how much we’re spending, we can never start our path to financial literacy.

Creating a budget and tracking your expenses can be as easy as setting up an Excel sheet or using convenient apps on our phones. One such app, Wally, not only tracks your income and expenses, but also builds charts that show you what you’ve spent on the most and when.

Invest, invest, invest!

They say not to work for money but to have money work for you. Investing does just that because it turns your sitting money into something profitable without you having to do anything.

Investments can be anything from stocks to Bitcoin and can easily be accessed online. A couple investments that are available here in the Philippines are Cropital and Pag-Ibig MP2.

Photo from Vulcan Post

While we already know about Pag-Ibig MP2, Cropital is a social enterprise that uses your investments to help farmers in the country. After the crops have been sold, you get your investment back with a certain interest rate that is dependent on the specific farm you chose to invest in.

Get a credit card

This might be a hot take, but credit cards can actually do you some good, if you know how to use it well. Credit cards are essentially for when you want to spend money that you don’t have now.

Read: Is owning a credit card in your early 20s a smart move? Yes, and here’s why

As you keep using and paying off your credit card, you build your credit score. The higher the score, the better the chance you can apply for loans for things like houses, cars, and other properties.

Photo from Adobo Tech

If you start early and build your score early, you won’t have a problem attaining these things in the future! Check out GCredit – it’s a good place to begin your credit journey.

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