4 Ways to Manage Your Money Better
Moms are the chief financial officers of their homes. That's why they are always looking for ways and means to manage their money better. Apart from exploring various income-generating opportunities, moms also want to make the most of what they have. At the latest session of Mompreneur Meet-up, mompreneurs discovered ways on how to manage their money better with the help of Rolly Robles, senior vice president at Pioneer Insurance.
A registered financial planner, Robles told moms that it is entirely possible to achieve their life goals and live their desired lifestyle by being more mindful and purposeful when it comes to their finances. Here are four ways that moms can take charge of their family's finances:
#1: When it comes to money, moms have to be both methodical and purposeful. An honest assessment of their current situation needs to be made. How much money is coming in? How much money is going out? How much money is left over to save?
Use financial planning tools to make heads and tails of your money situation, says Robles. Make an income statement which not only reflects your income but also your expenses, assets, and liabilities. Take a look at your liquidity ratio, which is current assets over current liabilities. This gives you an idea of your ability to meet payables. It is only after having a clear and concise idea of your current situation can you formulate your money goals and create an action plan to achieve those goals. Planning is essential, Robles says, because “when you know what to do next, life seems less overwhelming.” #2: Evaluate your essential (non-discretionary) and optional (discretionary) expenses, says Robles. A discretionary expense is a cost which is not essential for the everyday operation of your home or business. A non-discretionary expense is considered essential. Take a close look at your non-discretionary and discretionary expenses. Are they aligned with your values and beliefs? There might be some non-discretionary expenses in your list which you can make discretionary, says Robles. “Awareness is the key. You can't live your life unaware of where your money is going. Be more mindful.”
#3: Take charge of your spending habit. What you do with your money is entirely up to you, says Robles. Every day, moms are faced with spending decisions, and they should be more mindful of how those everyday bills can affect their overall financial health. Eliminate wasteful consumption, avoid unnecessary expenses, and replace expensive brands with equally good but more affordably priced ones. He emphasizes, “If you can't pay for it in cash, then you can't afford it.”
#4: Where are you in the equation? All too often, moms get too caught up in paying bill upon bill that they forget the bigger picture. Take a look at your income statement. Who's earning? Who's working? Who's saving? Who's being taken care of? Are you taking care of yourself? Are you saving something for yourself? Your income statement reflects your goals and dreams, and if those goals and dreams do not include setting aside something for yourself, then it's time to make a change. You must also prepare yourself for unexpected events like calamities, illnesses, and unemployment which may lead to financial loss. Robles says, “In life, when you know the answers to the questions, they will change the questions.”
Mompreneur Meet-up was held at the F1 Hotel Manila, the first hotel to open in Bonifacio Global City. Centrally located within walking distance to corporate offices, shopping centers, upscale boutique shops, and recreational facilities, F1 Hotel is at the center of where the action is and is a major hub and meeting place within dynamic Bonifacio Global City. F1 Hotel offers upscale accommodations complemented by the highest standards of services, facilities, and amenities.
This edition of the Mompreneur Meet-up entitled Manage the Flow was sponsored by Pioneer Insurance and Epson.
Main image courtesy of patpitchaya at FreeDigitalPhotos.net