Are you wondering how you can establish healthy financial boundaries with family and friends? Or perhaps, you are looking for ways to save money despite limited income?
If you are, then you’ve come to the right place.
You can set healthy financial boundaries but first, you need to establish those boundaries within yourself. You can save money but first, you need to be focused and disciplined in handling your finances.
Start your journey toward financial freedom!
Entrepreneur, investor, and Beyond Small Talk guest Marvin Germo shares 3 practical tips to create healthy financial boundaries and save money this new year:
Tip #1: Learn to budget your income
Simply put, financial boundaries are rules and limits you set for your money and between others or yourself.
And while Filipinos are known for their generosity and love for their families, we are not much known for setting financial boundaries. In the Filipino culture, it’s just normal for the highest earner in the family—also known as the breadwinner, to support the whole household.
However, this habit could create unjust burden and unhealthy financial dependency.
Setting financial boundaries does not make you a bad person. You are called to give, but you are also called to give wisely. Marvin emphasized the importance of budgeting your income and being firm on how much you would allot for your needs, your savings, and the needs of others.
“We are not required to give all that we have then we’d end up borrowing money to buy food or being buried in debt during emergencies. Whatever is in your heart that you decide to give, that’s very amazing already!” Marvin shared.
He adds, “No one will work hard for your dream more than you. No one will save for you. No one will invest for you. So, if you don’t set boundaries, you cannot accomplish your financial goals.”
Tip #2: Identify your needs and wants
The financial expert has a plain and simple tip for you: separate needs from wants in your budget.
How do you know if an expense is a need or want?
According to The Balance, it depends on how and why you use it. Do you use your Internet connection because you work from home? That’s a need. Do you use it for playing games or browsing social media? Then it’s a want.
Separating what you need and what you want takes a whole lot of self-honesty, discipline, and patience.
“If you really want to save money, remove your wants. I am not saying that you should not enjoy your earnings. What I am saying is, at this season of your life—if you think you need to fix your finances and the only way is to remove your wants—do it,” Marvin said.
Tip #3: Find extra sources of income
Do you feel like you’ve already removed all your wants, don’t spend too much, yet you’re still short of money and there’s nothing left to save?
Marvin explains that sometimes, the issue is not how much you save. Saving money on a tight budget is possible, but if you’re running out of money all the time, consider finding an extra source of income.
“Use your extra time after your job to find another source of income. We’re sitting on one of the greatest times to be alive because there’s many opportunities that can be found on the Internet. Find something that you can do online where you can make money,” Marvin suggests.
Are you experiencing financial problems this new year?
We have more financial tips for you!