Financial Tipid Tips

Tips that can help build a budget

1. opt of simplicity

2. Pay of debt

3. Anticipate Your expenses

4. Treat Math as your lifetime partner

5. Save as much as you can in an item you are trying to buy

6. Prioritize your needs not wants.

7. Do not spend more than what you earn

Use a budget that’s right for you.
Do not memorize; write it down.
First item in your budget should be for your savings; ideally 10-20% .

Set aside a fixed percentage of your income for savings.10% to 20%
Save the amount before spending money.
Members of the family contribute & save for their family goals.

Good to remember…

Avoiding Non-Repayment

•Understand the loan terms

•Commit to use the original purpose of the loan

•Prioritize loan payment

•In the event of miss payment, keep communication line with the lender

•Do not pay loans with another loan.

DO NOT BORROW MORE THAN YOU CAN AFFORD TO PAY!

What your small consistent savings can do for you?

Tips to Keep You Within the Family Budget

Maintain a LOGBOOK

Avoid going to the supermarket frequently

Buy your Groceries at one time

Before you BUY!

Good to remember…

First item in your budget should be for your savings; ideally 10-20% .
Set aside a monthly amount for periodic or irregular payments.

Set aside a fixed percentage of your income for savings.
Save the amount before spending money.

How do we start saving?

Take a Percentage

If you are earning Php 15,000 per month and you have to pay for communication expenses amounting to Php 1,500 a month, then that is 10% of your monthly earnings

Put Savings as Category

-This will be forced expenditures.

- Put it as first category in your expense items.

Budget Planning Example

Weekly Basis

The Common Approach on Savings

With this approach, you will usually end-up with
ZERO or NEGATIVE savings!

The Correct Approach

Try to save 10-20% of your income; if this is too high, start small!

PAY YOURSELF FIRST!

Other Factors that Hinders us from Saving

1. Many Debts to Pay

2. No permanent Job / Income Source

3. Improper Handling of Money or Being Luxurious

4. Vices

5. Do not know what the priorities are

Tips on Savings

Start Saving Early
If you can postpone spending, do it…
Save consistently until it becomes a habit.
Its never too late to save

Different Ways of Savings

Coin Bank

Cluster Savings

Micro-Finance Institutions

COOP/BANK SAVINGS ACCOUNT

Difference

Savings in a Bank

With TAX
No collection Officer
Low Interest Later .3% to .5%
High Minimum Deposit
High Maintaining Balance

Savings in a Cooperative

No TAX
Has collection officer
Competitive Interest 1.5% to 5% Per Annum
Low minimum deposit at least 100php
As low as 1000php to earn interest

The Benefits of Savings

Children's Education
Flexible Terms
Habit to save Regularly
Can be used in your future projects
Emergency Fund

Share Capital

Cooperative Investment
This is required as a cooperative owner
The minimum is P10,000 to earn a dividend
A regular member is given one year to complete the minimum share capital required
Share capital cannot be withdrawn until you have a balance of your borrowed investment and you are still a member of the cooperative