3 wise borrowing, saving tips to achieve financial independence
MANILA, Philippines — Independence can mean a lot and apply to a lot of things, and that includes decisions about one's finances.
Financial independence can go a long way in preparing for the future, and all it takes is a few key choices and the right mindset.
From new members of the workforce and those opening up businesses to people starting a family, here are a few tips to aid in financial freedom.
Good savings plan
Financial independence starts with having enough savings, though not all savings accounts are the same.
An advisable way to go about this is looking at savings accounts that give you better returns with their interest rates.
Loans can be good
The term "borrowing money" has a negative connotation because people associate it with debt or "utang."
This can be the case when borrowing cash for non-essential lifestyle upgrades, leading to monthly overdue payments and decreasing the chances of financial freedom.
Some credit and loans, however, can be good in the long run, such as for education or business capital, so it's all a matter of where the borrowed money goes.
Track earnings
Set aside funds for emergencies and retirement as soon as the lastest paycheck comes in, as well as other monetary goals you have in mind.
Only then do you begin spending on non-essential items.
It helps to keep track of these savings and spendings, either on paper or more often these days on digital money management trackers.
Some of the latter have tabs for monetary goals so you can be reminded each time you are logging the latest changes in your cash.
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