With the oldest among the Gen Z Filipinos turning 23 in 2020, many of them are starting to look for work or have been employed for a while. Joining the workforce has its perks, and for a lot of Gen Zers, earning their first paycheck is one they look forward to the most. Now that they’re financially independent, the working-age Gen Z Filipinos have the power to spend their hard-earned cash the way they see fit. However, this kind of thinking brings numerous pitfalls that can lead to early financial ruin.
Because of inflation, the cost of living continues to rise. And as a Gen Z Filipino, you should always keep this in mind. When you’re aware that the prices of goods and services fluctuate, you’ll be able to make the smart decisions on how you’ll spend your money. To help you manage your finances better, here are 7 financial tips you can keep in mind in order to make yourself financially sound today and in the future.
- Consider Opening Multiple Bank Accounts
Juggling more than one savings account might seem like a daunting task, but having multiple bank accounts has its benefits. For one thing, having your money spread out in different financial institutions will keep you financially secure if you’re concerned that one of your banks could fail. Owning multiple accounts will also encourage you to divide your funds, so you can save some money for saving, emergency, or spending purposes. Plus, some banks offer great interest rates when you open an account with them, giving you a head start when saving up for your future.
One of the best things about growing up in the internet and smartphone age is that opening a new bank account is easy. You no longer have to fill out a form and wait in line for hours. These days, it can be done through the internet, making the entire process faster and easier. For example, you can sign up for an RBank account online by simply downloading the app on your IOS or Android device. Once you’ve clicked on the app, all you have to do is follow these instructions:
- Take a selfie
- Take a photo of any of these accepted valid identification documents: SSS ID, UMID, Driver’s License, or Passport
- Fill out the online form
After that, you can easily fund your account anytime, anywhere as long as you have a reliable internet connection.
- Plan for Your Future Now
Everyone wants to live comfortably once they retire, and to reach this goal, you’ll need to start planning for your future now. Saving up early will allow you to acquire and grow capital, so by the time you reach retirement, you’re financially stable. It’s also a good idea to invest your funds in several assets to help keep the cash flowing even when you’re no longer working. It’ll also help you avoid having to pay things out of your own pocket should an unfavorable circumstance arise. Some assets young adult Filipinos should consider investing in include the following:
- Real estate
- Bonds
- Stocks
- Insurance
- Retirement fund
- Memorial plan
- Emergency fund
- Stick to a Budget
If your current financial status is making it difficult to place funds in separate bank accounts or an investment, sticking to a budget is a great place to start. Though the concept is simple, its execution can be challenging—especially if you have bad spending habits. Nevertheless, when you’re working with a budget, it keeps you disciplined and teaches you the fundamentals of saving money.
When you’re on a budget, you’ll realize that you can live on less than what you think. It also trains you to know the difference between the things you want and need, preparing you to make smart purchases in the future as a result. What’s more, you can include the money you saved through budgeting to help you start growing your wealth.
- Document and Organize Your Finances
To make budgeting much easier, you need to keep a close eye on your expenses. When you know where your money is going, you’ll get a bigger picture of how you’re spending it. Make it a habit to list down everything you’ve spent each day in a journal or on your phone, and tally up your monthly costs. If your expenses haven’t exceeded your income, then you’re doing a great job managing your finances. However, if you’re spending more than the amount of your monthly salary, then some changes need to be made.
These changes don’t have to be too drastic. You can find a balance between saving up and still being able to treat yourself every now and then. Starting with small, manageable financial goals can leave a big impact in your monthly expenses. For example, if you’re used to eating lunch out, why not plan for your weekly meals and pack lunch instead? If you love splurging on snacks, you can minimize the number of sweets, chips, and other food items you’re purchasing, or look for inexpensive alternatives.
- Pay Off Any Kind of Debt Early
Whether it’s money you borrowed from a friend or an unpaid tab from your nearby sari-sari store, you need to pay off all your debts early. Not only is having debt preventing you from saving more money for yourself, but forgetting to pay them can lead to developing bad financial habits. You might think that you can get away with small debts here and there. However, having this kind of mentality can harm your savings once you’re given a bigger financial responsibility like owning a credit card.
There’s no doubt that having a credit card has its advantages. It has tons of rewards, it’s universally accepted in almost every country, and it’s more convenient to shop in brick-and-mortar and online stores. Unfortunately, if you have a tendency of not paying back what you owe, your credit card bills are more likely to rack up. This is because of late fees and increased interest rates. Unpaid credit card debt can also damage your credit score. When you have bad credit, it’ll be more difficult for you to get loans approved. You’ll also have to pay higher insurance premiums since money lenders see you as a liability.
Handling any kind of debt early will relieve you from any financial stress in the future. It’ll also teach you to be more responsible in times when you need to borrow money.
- Improve Your Money Management Skills
If you’re having trouble managing your finances (even after going through the previous tips) don’t fret. As a Gen Zer, you have a variety of resources at your disposal to help you become smarter with your money. With one quick search online, you can find books, blog posts, and forums dedicated to sharing the different tips and tricks to improving your money management skills. You can even enroll in online courses or webinars held by reputable business icons, giving you a chance to learn from them.
The advantage of having access to numerous types of resources is that you’re exposed to the different ways on how the older and current generation manage their expenses. This can be quite useful because when you’re seeing diverse perspectives on how to handle your money, you can pick out which tips apply to you. From there, you can create a money saving plan that works in your present financial situation.
- Know Your Worth
Even though you’re the newest generation to enter the workforce, it doesn’t mean that you should be content with having a low salary. Times have changed and the cost of living has become more expensive. Because of these factors, you need to know what your job is worth to ensure that you can make ends meet and still be able to save up for your future.
If you’re looking for employment, it’s good to evaluate your skills and the tasks you’ll be handling to help determine a fair livable wage. If you’re eying for a promotion, you should include your contribution to the company, as well as your previous work experience, into account.
Managing your finances as a working-age Gen Z Filipino can be both terrifying and challenging. It’s not easy figuring out how to balance out your expenses to ensure that you’re paying for your utilities and saving up for your future. You might also be hesitant to treat yourself because of the fear of not having enough money in the bank and the risk of running into debt.
However, as part of the generation that grew up in the digital age, you have access to a lot of resources to help you improve your money managing skills. For one thing, you have the power of having a reliable internet connection at your side, so you can easily search for money saving tips online. Next, you have the opportunity to speak with frugal people from past generations to give you practical financial advice. Additionally, you are capable of developing good spending habits and saving up while you’re young. With these in mind, and with the help of the financial tips mentioned in the list, you’ll have the confidence to manage your expenses as a Gen Z Filipino.