Start Your Journey Towards Financial Discipline

Start Your Journey Towards Financial Discipline
Effective Strategies to Develop Smart Money Habits

January 25, 2023 | by HC Mutual

Developing financial discipline is one of the best things you can do for yourself. It refers to the ability to take charge of your income and expenditures: understanding how much money you earn and spend and how much you should save and invest. It also involves veering away from bad spending habits and including mindful spending in your daily lives.

It might sound difficult to attain knowing that the economic impact of the pandemic is still experienced by everyone. However, you can start gradually by building up wise spending habits one by one until it becomes part of your daily life. The sacrifices are worth it in the long run—having financial discipline enables you to achieve your financial goals sooner. It also helps you acquire financial security that eventually empowers you to create the life you aspire to have.

To help you get a good start, here are effective ways in developing financial discipline:

1. Educate yourself.

Learn how to manage your finances from different resources. Read books or credible websites, watch informative videos, listen to podcasts, or talk to people you know who have mastered financial discipline. Choose the practices that you believe will work for your lifestyle and slowly integrate it into your habits. Avoid being too hard on yourself if you can’t get the hang of it immediately—building discipline requires utmost patience.

2. Eliminate unnecessary expenses.

Committing to financial discipline comes with delaying or letting go of expenses that you don’t need. Here are some tips:

Unsubscribe from paid applications or premium accounts that you don’t always use.
Reduce the number of online shopping apps on your phone.
Learn how to cook affordable and easy-to-prepare meals so you have other options aside from dining out or using food delivery apps.
Don’t feel obligated to buy something that’s on sale. Wait until you have the budget for it.
Avoid buying the latest clothes, shoes, or gadgets if you still have a lot to use and have no other reason for buying it aside from the fact that it’s on-trend.

Reducing your unnecessary expenses does not mean that you cannot have fun using your hard-earned money. Its main goal is for you to establish a balance between spending for fun and spending wisely.

3. Set specific and realistic financial goals.

Having specific and realistic goals are more motivating because they are more attainable, and could give you the confidence and feeling of achievement that is necessary for effectively changing your spending habits. You can start by categorizing your goals into short-term and long-term goals so you know which ones to prioritize. Take a look at this sample list:

Short-term goals

Create a weekly/monthly budget
Pay off existing debts and credit card bills
Set up an emergency fund

Long-term goals

Buy a property
Travel abroad
Seek sound investments

4. Protect and grow your savings.

Put up a savings plan that will help you achieve your financial goals and help you build the discipline of saving. You can set in your mind to not touch that fund, all while it earns interest. HC Mutual offers flexible and affordable plans that help you manage your finances effectively so you can start building the life you aspire to have. Choose the plan that works best for you and watch your savings grow.

Secure your future with

Flexible payment terms of 3, 5, or 7 years
3% earnings per annum
Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
5-year plan
5% per annum after 5 years and upon completion of the savings plan

Starting your journey towards developing financial discipline may be difficult at first but with the proper motivation and strategies to guide you, it will be easier to master and until it becomes second nature to apply it in your daily life.