It’s only going to be only a week from now before the classes start. This would mean the start of another early morning routines with my kids: Early baths, early breakfast and not to mention some early sermons for my girls. Since my girls are now on their 5^th and 6^th grade, I told them to save some money while they are still on vacation. But how can they do this saving stuff? Well, I told my younger daughter to sell ice candy and some sweets to their playmates and cousins and also to our workers. And fortunately, they now have an income of 200 pesos. Isn’t it nice to see your little kids having concern on your monthly budget? Now, I don’t have to give them their “baon” for two weeks that also means a two week savings for me.

An ordinary employee or worker and other ordinary income earners  need not to hire a financial planner.  In the Philippines, financial planners are usually connected with financial institutions usually are accountants, lawyers, bankers and insurance agents.  A financial planner is someone who can help you in giving advice regarding your savings, where to invest your saved money, pay taxes, insurances, the right way to handle family’s finances, taking care of your assets and the preparation for your retirement.  A planner should be able to prepare your Statement of Assets and Liabilities for you to know your net worth ( total assets less your total liabilities) these planners also concentrate with individuals with high net worth.  Even if you already had a financial planner, it is still important to learn the basic  financial principles.  If you know someone who’s a financial planner it’s better to listen to their advice regarding your financial situation.

For those who are ordinary income earners, it is good to read books that talks about money.  There are a lot of ideas from the experts that can help you in your financial planning.

Here are some tips on how you can save your money:

1.  The best time to save is now!  You can start saving with a small amount.  Do this regularly and faithfully.  A little at a time, every time will help you achieve your financial goals over time.

2.  Income less savings equals expenses.  Set aside certain amount before spending.  Follow the rule of 20/80.  20% must be put in savings and you will only live in 80% of your monthly income.

3.  Cut your credit cards but be sure to have set aside an emergency fund first.  Plastic money is only good when used in emergencies.  Be your own lending agency, if you have to borrow funds from your savings be sure to pay it back as soon as possible.

4.  Plan for your household budget.  Shop wisely, make a list before shopping, stick to your list.  Compare prices.  It is always cheaper to buy per pack instead of per piece.

These tips would only work if  you’ll do it regularly.