Where do you see yourself in five years? Will you be buying your first car or building your dream house? Will you be traveling overseas and living the good life? While it may seem unattainable at this point, making smart money decisions will help you reach a stable and secure financial future.
It’s better to develop good money habits as early as now to keep your finances in check and to avoid getting into debt.
Here are five essential tips for a better financial lifestyle.
1. Go cashless
In today’s digital world, almost everything can be done through mobile phones. With just a few taps on the screen, you can book a ride, order food, or even deliver and receive packages.
Making financial transactions has also been made more hassle-free and secure with the emergence of e-wallets (electronic wallets). You can pay bills, buy prepaid load, purchase items, and send money without having to pull out your wallet for coins and bills.
GCash, one of the country’s leading e-wallet services, essentially turns your mobile phone into a virtual wallet. Through its app, users can skip the long queues and complete transactions from the comfort of their own homes, using only their smartphones.
2. Know where your money is going
When spending on basic necessities such as food, transportation, and load (on top of monthly bills, subscriptions, and rent), it’s vital to keep track of your expenses or else you might lose control of your budget and overspend.
To keep track of your expenses, you can either write down a list or download a personal finance app. GCash also allows its users to record their transactions through SMS. Once a transaction has been successfully processed, the user receives a text message as confirmation.
3. Start a savings plan
It might be difficult to save money especially when you’re only earning enough to get by. But setting aside a portion of your earnings and starting a savings plan will be rewarding in the long run.
Some people save up to build an emergency fund. Some, on the other hand, do it for future expenses and retirement. Whatever the reason, saving up can ultimately help you get financially ready for life’s uncertainties.
GCash recently launched GSave that lets users create a digital savings account. There’s no need to register for a bank account as GSave offers a savings account that is “convenient, safe, and high-earning.”
4. Invest at an early age
You have some money to spare, now what do you do with it? You can “make your money work for you” through investing. Instead of keeping your cash in the bank, you can put your money in investment accounts to let it grow over time. While it is not without risks, making early and smart investments can yield more profitable returns.
There are different investment categories to choose from, which include stocks, bonds, and mutual funds. GCash’s investment marketplace, Invest Money, offers a wide variety of funds for users to invest in. For as little as P50, app users can already make affordable and hassle-free investments.
5. Maintain good credit card balance
Using credit cards has its advantages and disadvantages. These little plastic cards provide convenience in the form of flexible payment options, rewards, and other perks. But it can also be a cause for overspending, which may only hurt your financial credibility and land you in debt.
It is important to check your credit card balance once in a while, and pay your bills ahead of time. This will help improve your credit score and secure better rates and benefits.
GCash’s in-app feature GCredit gives it users a revolving credit line that can be used for purchase and payment. GCredit utilizes GScore, a trust score or rating that assesses a user’s financial capabilities based on their app usage. With this, a better GScore means higher credit limit.
Build better financial habits with the help of an app that lets you do more with your money.
More information about GCash’s services can be found on their official website.
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