Your Financial Fresh Start

Useful Tips on How to Take Better Control of Your Finances

January 03, 2024 | by HC Mutual

Now that the holiday season is over, it’s time for a fresh start this new year!

After a whirlwind of gift-giving, feasts, impulsive purchases, and other spending sprees, it is best to welcome the new year with a reality check — did the holiday spending hurt your budget?

If the answer is yes, it is perfectly fine. Getting caught up with the holiday cheer can affect even those with the most meticulous budgets. The first two to three months of the new year can be your chance to assess your financial health and chart a course towards greater control of your finances.

Why is this important to do?

Early self-assessment and planning helps you avoid future financial stress, redirect you into improving your strategy towards better money management, and eventually give you peace of mind.

Here are some tips to help you take better control of your finances this new year:

1. Track your spending more efficiently.

Gather all your receipts and bank statements to analyze where your money goes. Understanding your spending habits is the first step to optimizing them.

Use the method that works best for you. Whether it’s keeping an expense tracking spreadsheet or app, or even writing everything down in a notebook and keeping your receipts in an envelope. Go with what lets you monitor your everyday expenses with ease.

2. Develop a debt payment plan.

If you’re carrying credit card debt, don’t ignore it. Develop a plan to pay it down, whether it’s through the snowball method (focusing on the smallest debts first) or the avalanche method (tackling the highest interest rates first). Every little bit you pay off matters.

3. Budget strategically.

Create a budget that reflects your income and expenses. There are tons of budgeting apps and tools out there—or you can always go old-school with a spreadsheet. The key is to be realistic and flexible. Don’t set yourself up for failure with an overly restrictive budget.

4. Acquire a savings plan with good interest rates.

Even if a part of your monthly budget is still allotted for paying debts, it is still a smart move to automate your savings and pay yourself first. You do not have to save a large amount of money immediately. Choose a flexible savings plan that allows you to save an amount that you can afford. After a year or so, you can add to that monthly amount.

Having your savings automatically deducted from your salary or debited from your bank account is one of the best and easiest ways to save. This way, you will be able to save monthly without thinking about it. And little by little, your small automatic savings will add up over time. Remember that small steps lead to big goals so this practice will really be beneficial to you in the long run.

HC Mutual offers savings plans with competitive interest rates and effortless savings options that can further help you take control of your finances and acquire financial stability in the future.

Secure your future through saving.

Start saving for as low as PHP 101 per payday.
Flexible savings plan of 3, 5, or 7 years.
3% earnings from your savings per annum.

Build up and earn big from your savings.

Start saving for as low as PHP 1,212, PHP 2,424, or PHP 3,636 per payday.
Fixed 5-year savings plan.
5% per annum after 5 years upon completion of the plan.

Taking control of your finances isn’t about depriving yourself of all the fun and nice things that this world has to offer. It’s about building a healthier relationship with your money — one that inspires you to reach your goals and live life on your own terms.

So take the time to brush off the financial stress brought by the past holidays, embrace the energy of the new year, and empower yourself by practicing better money management skills.