RCBC Savings Bank


2018 Financial Learnings

December 28, 2018

It seems only yesterday when we were welcoming the year 2018. Now, we are about to close 2018 and ring in the new year.

Was it a financially rewarding year for you, or did you experience a challenging year when it comes to your finances?

Whatever it may be, there surely are personal financial lessons that you have learned this year, both good and bad. We are sharing some of them right here! 

Having a steady and stable cash flow is important.

You will never realize the value of money until you stop having it. You will never truly understand just how important it is until you lose it or until you stop getting paid!

When you’re used to having money like clockwork, it will cause you some degree of panic or pain when something unexpectedly happens, and your money is not in your bank account when you need it.

It’s always best to do away with debts.

There’s nothing wrong with having debts, as long as you pay them off in a responsible and timely manner.

You may think you can dodge calls from debt collectors or even friends you borrowed money from. But do you really want to exert all that precious time and energy avoiding people?

You also don’t want the added stress or embarrassment of having too many people stalking you just to get their money back. It’s simply not worth it!

Save while the sun shines so you are ready for unexpected rainy days.

In fact, don’t just save so that you will have money to spend for the unexpected. Cultivate the habit of saving just because you want to become financially independent anytime!  

Hope for the best but prepare for the worst.

You may fall sick and have to stay at the hospital for a long time. You may have a falling out with your boss and quit. Your roof may suddenly start to leak and flood your entire home.

There’s no guarantee that you will be not be facing a financially challenging time in the future.

Even if you can whip up something at the last minute and make a profit from it, it still pays to be prepared for the worst.

Being frugal with your money is not a crime.

When you purchase only what you need, you will realize that it’s also financially liberating.

Skipping evenings out, takeout food, designer coffee, or branded clothes and being as frugal as possible can help you achieve a better financial situation and instill a better attitude when it comes to money.

It will also help you sleep better at night knowing that you have no debts and you are living well within your means! 

Plan for your future.

Don’t just leave your finances to fate and take things as they come. The responsible thing to do is to have a financial plan not only for yourself but also for your family.

Plan what you want to achieve when it comes to your own money. It will help you stay on the right financial path and get you to your destination the quickest, easiest, and most efficient way possible. 

When you must buy something, choose quality over quantity.

Sure, you can buy an inexpensive TV from a company you’ve never even heard so you can save a few thousands.

But then, you may have to buy a new TV again after a few months when the sound becomes distorted and the image gets fuzzier and fuzzier.

You get what you pay for. When you spend your money on the more expensive but durable and high-quality items, you are actually saving more money!

It’s great to set clear financial goals for yourself.

It doesn’t matter if it’s paying off all your credit cards for this year, saving up for your online or home business, or setting up an emergency fund.

Every person’s financial goal is different, but the end goal should always be to achieve financial independence.

It’s not how small or big your financial goal is because the important thing is to work consistently towards it and achieve it! 

Have a realistic budget.

Allow a little wiggle room for a few luxuries to reward yourself and make you enjoy what you earn.

Try to live within your budget and then make the necessary adjustments. Eliminate anything pricey or unnecessary and go for the more affordable alternatives. 

Steer clear of emotional spending!

Do you make yourself feel better by buying things? When you feel bored, do you unconsciously open your shopping apps and start adding things to your cart?

Emotional spending is truly a trap, so make sure that you don’t have easy access to your money when you’re feeling strongly about something or someone. You will surely spend more than you should! 

Take these lessons to heart so that the coming year will be easier, happier, and more financially rewarding for you and your loved ones! 

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