Tag Archives: personal finance tips

Money Management Tips to Improve Your Finances

Managing the family budget is no mean feat if you rely on a single source of income. By learning and developing a thing or two about better money management, budgeting is less stressful. These simple money management habits will help you appreciate every centavo that you earn regularly.

There are three things to remember if you want to make the most of your hard-earned money. Moreover, this works whether you are planning for yourself or your family.

Photo by Karolina Grabowska from Pexels

Create a Budget

It is easier to plan your finances if you know how much you have in your budget. A well-thought-out budget will help you track your expenses and savings. 

List the amount of money you expect for the month minus the tax – be it coming from your regular job or sideline jobs. 

Take note of all of your spending. These include household bills, mortgages, credit cards, personal loans, groceries, personal effects, and other items. Be sure to pay your bills on time to avoid paying penalties. Paying up late fees would bust your budget list. Failing to pay your credit card would incur a higher interest rate and might damage your credit score. 

Collect the receipts if you must to get the exact amount for each expense. From here, you can be more specific in areas that need allocation adjustments. 

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Saving Goals

Once you identified your spending list, set aside a portion from your take-home pay. 

A budget rule called the 50-30-20  is a simple guide to help people reach their financial goals. 

Allocate 50 percent of your take-home pay to spend on your basic needs and paying your obligations. Allot 30 percent to your wants like shopping or traveling, and 20 percent for emergencies and retirement.  

While unexpected expenses happen beyond our control, the 50-30-20 rule will help you manage your hard-earned money, so you have funds on hand for emergencies.  

You can adopt this budget management rule if it suits you or create a plan that fits your need and lifestyle.

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Tackle Your Debts 

It is hard to achieve your financial goal if you are heavy with debts. It may seem difficult to pay off a loan diligently, but it’s the only way to control your finances. 

Pay on time. Never miss a payment. If you are dealing with multiple loans, pay the ones with the highest interest rates. You can also try paying the smallest loan to the biggest. Whichever strategy you apply, the important thing is you avoid paying compound interest.  

Reassess your budget plan after settling your debts. Check on areas where you overspend. Adjust your habits if necessary such as, dining out, watching a movie, or shop an expensive gadget.

Avoid owning several credit cards. Whenever possible, use cash in your transactions. 


Knowing your financial situation and having a direct hand in managing your own money will guide your spending habit. Your budget plan will show you how much money you have after paying your monthly bills and show you how much you can allocate for your savings.

Lastly, find more passive income ideas to improve your financial status. You can start by creating a blog or a YouTube channel, creating an app, or sell information products.

How We Cope with Our Credit Card Debt for Good

Paying our credit card debt was one of the financial burdens we thought we could not cope with eight years ago. 

The payment obligation was just too difficult to bear for a single-earning family like ours. 

Image by Clker-Free-Vector-Images from Pixabay

Useful Plastic Card

Initially, our credit card saved us from distress. It was beneficial to us during emergencies and when paying for our daughter’s tuition. If I remember correctly, it was the last transaction we have made using the credit card.

It was even easier to buy school supplies and grocery shopping anytime.

Our son’s hospitalization in 2004 drove us to use the credit card offered to us. It was a suitable time for us because we have spent all of our savings, including the ones saved in a time deposit account, to purchase the expensive medicine for our son to ensure his fast recovery.

With the existence of credit card(s), we felt at ease because we know we have something to fall back on in times of need.

Debt Woes  

The problem with our credit card began to affect us when we failed to pay the monthly bill in full. We have no problem paying at first because we know how to budget our finances.

But the credit card company knew nothing about your personal struggle; they would charge interest on your unpaid balance and adds that charge to your balance.

We live within our means and do not spend beyond our limit. However, the unexpected event at hubby’s company took a heavy toll on our finances. We make do with a budget enough to pay for groceries and utility bills. 

Although we have stopped using the credit card, it does not stop accumulating monthly interest. It reached a staggering amount, and there’s no way we can pay it in cash even if we apply for debt relief

Image by Augusto Ordóñez from Pixabay

Leap of Faith 

When the opportunity came, we tried our best to pay our credit card debt immediately. We wanted to start with a clean slate. We do not want this debt to be an added concern by the time our daughter enters college. 

We finally settled our credit card debt and bid goodbye to the plastic card for good. We have used it for nearly a decade. We have never applied for a new one since then. 

Simple Saving Tips

There is no guaranteed way to save money. Ours just happened out of necessity. When projects came one after another, we ensure to put our hard-earned money to good use. We purchased things based on what we need and not what we want (sometimes). 

Despite our minimum combined income, we see to it to save for the education of our son.

In two years, we hope to achieve something more secure, such as getting health and life insurance. And, eventually, save for our retirement.

Maintain Good Standing

I do not want to sound like I’m encouraging other people to get a credit card, but it might help you during an urgent situation. One thing to remember, though, is if you own a credit card, make sure to use it wisely and do not use it on impulse.