3 Ways on How to Budget to Invest

It is important for you at this time to be able to allocate properly your funds from your income so you will be able to create sustainable wealth.

1.       Spend on Your needs

Decide how much you want to allocate for your needs if you can minimize your urge to buy wants then start doing it.

Time to decide what are your important expenses. You can limit your expenses to things crucial for you like food, shelter, clothing, communication, transportation, health and life needs.

In this way you are able to create extra funds to build up a better future. 

It is practically important to save for the rainy or drought days because you do not know when it will come.

Avoid a lavish lifestyle because it is hard to maintain specially that you are still working to build up that extra money.

2.       Set up your Emergency Fund

This is the fund that will support you when untimely events come your way.

Most Filipinos get into trouble because they were not able to anticipate life’s uncertainties. No emergency fund was set up to rescue unplanned needs.  

This may include family related- sickness, disability, death of family member or even separation like divorce. 

It may also include material things like fire, car breakdown, flat tires and natural forces like earthquakes, floods and drought.

As a result people left with no choice and they tend to borrow money and get into debt. 

Interest rates may hurt you bad. Some will take advantage of your situation and may impost higher interest than normal.

Wordt, you may need to liquidate some of your hard earned stuff to cover unplanned expenses. That hurts!

3.       Only Use Extra funds to invest

The best way to prepare is to set a fund and do it today.  

It does not matter if it  as low as 100 pesos or as big as Php 100,000. Set a number which you can afford to place aside on your budget. 

What will set you apart later is creating that change in mind and act on it.

Remember if you make it a habit to save a fund on a regular basis it will become part of your system and it becomes automatic.

You will be surprised how it will eventually change your perception on money management. This is true specially if you get started investing and you can see your money actually growing.

This is important- invest only what is extra.

Do not mix it with your needs and your emergency funds. Creating so will defeat its purpose.  

Control your emotions and stick to your plan.

Hope this helps you well. Start planning today and allocate your budget properly.

 To your Financial Freedom-