You want to be a rich Filipino here in Philippines, don’t you? Everyone does. But before you can start amassing your fortune, you need to learn the basics of personal finance. That’s where this blog post come in.
In this blog post, you will be learning about the best financial tips for becoming rich in Philippines. You will be learning about budgeting, saving, investing, and more. So, whether you’re just starting out on your financial journey or you’re looking to take your wealth to the next level, read on for the advice you need to get ahead.
But always remember that, in order for you to become rich in Philippines, these following financial tips or advice will be useless, if you will do this actually or execute in the real life. Those financial tips below is nothing without execution.
Here are the best Financial Tips for every Filipino to become rich…
Prioritize Debt Repayment
The first step to becoming rich is to prioritize your debt repayment. You need to make sure that you’re knocking out your high-interest debts, until your entire debt free.
It may seem like a struggle in the short-term, but it will pay off in the long run. When you’re Debt-Free, you can feel now what is like to have an extra money, that can be use for something more useful.
Those extra money of yours will be gone, if you have still a debt. Debt is like a disease, if you will not end it quickly, it will spread like a wild-fire until, you realize that your income is not enough to pay your debt.
Once you end your debt, you can now begin the second priority if you want to become a wealthy Filipino in the future.
Save Some Money
The second priority in becoming rich in the future is save money from your income. Saving money alone cannot become you wealthy in the future. But it will provide you some buffer when times are difficult and it will you a capital when opportunities come in.
For me, I recommend that 30% of your monthly income should be save or allocated in a savings account. This account should be different, not be touch.
In order for you to save those amounts, you will need to sacrifice some of the luxury in your life, you must need to create a budget so that you can track your monthly spending.
Withing couple months, it will be very painful, because you will no longer experience those luxuries because you are saving for your future.
Invest in Multiple Income Streams
You’re probably thinking, “Multiple income streams? Isn’t that a little too risky?” Not at all. In fact, it’s one of the smartest things you can do to increase your chances of becoming a rich Filipino.
Think about it this way: If you have just one source of income and that source dries up or is cut off, you’re in trouble. But if you have several income streams, one can always pick up the slack if another fails.
That’s why it’s so important to invest in a variety of income-producing assets, including stocks, bonds, real estate and even cryptocurrencies.
This may seem like a daunting task, but it’s not as difficult as it seems. Start by evaluating your skills and talents and see where you could put them to use in the marketplace.
Are you a good writer? Start a freelance writing business. Are you good with numbers? Start a bookkeeping or accounting business. The possibilities are endless.
Make Sound Investments
Start making sound investments as soon as you can.
It might sound like common sense, but so many people make the mistake of waiting until they have more money to start investing.
The thing is, you can start small and work your way up. And if you start early, you’ll benefit from compound interest, which is when your earnings from investments are reinvested to earn more interest.
So, start saving now, and invest in a mix of stocks, bonds and mutual funds. You’ll be on your way to becoming rich in no time.
But before you start investing on something, try to conduct some research about it, whether it is worth the risk or not. There’s always risk in every opportunity for investment, so conducting research will provide you an information, to pursue it or not.
Understand Tax Benefits
Now, let’s talk about tax benefits and how you can use them to save money and become richer. The thing is, once you understand the tax benefits available, you can make informed decisions that could potentially save you a ton of money in the long-run.
For instance, if you’re an employee with an employer-sponsored retirement plan like in SSS (private sector) or GSIS (Government Employed), then you’ll be able to take advantage of certain tax advantages. Not only do contributions reduce your taxable income, but the growth of your investments won’t be taxed either!
But tax benefits don’t end there—you can also look into taking advantage of other tax credits or deductions like the Child Tax Credit or Earned Income Tax Credit (EITC) if applicable.
The bottom line is that understanding the different tax benefits available can help you save a lot over time and put more money in your pocket.
Automate Your Finances
Making sure you are building toward wealth is important, and automating your finances is a great way to do that. This can help you make sure your necessary bill payments and investments are taken care of every month, as well as ensure that you are saving for the future.
The more time goes on, the easier it becomes to automate. Nowadays, many banks offer various options for automated bill paying—you can set up mobile app notifications so that you know when bills are due and when payments are made.
You can even automate the process of transferring money from one account to another in a certain amount.
You may also want to consider setting up automatic transfers into an investment account or creating automatic deposits into a savings account or retirement funds.
Automation helps you stay disciplined and consistent with your financial goals so that you can start building towards a wealthier future right away.
Track and Review Your Financial Progress
If you want to become rich, it’s important to track and review your financial progress. This will help you identify what’s working and what isn’t so you can adjust your strategy accordingly.
One of the best ways to do this is by setting up a monthly budget. Set aside a certain amount of money each month for specific expenses, like rent and bills, and track where the rest of your money goes.
This will help you save more and identify breathing room in your spending that can be used to pay down debt or build your investments.
Another good tip is to review your progress periodically. Take some time each month or quarter to review how much you’ve saved, how much debt you’ve paid off, and any changes in your financial situation. This will help keep you on track and motivated to achieve your goals.
My Final Thoughts
There’s no one magic bullet when it comes to becoming a rich Filipino in the Philippines, but there are definitely some key things you can do to put yourself on the right track. By following these best financial tips, you’ll be well on your way to increasing your wealth and achieving your financial goals.
Only the tomorrow I can see now.