Superstition and tradition are part of the Filipino way of life. And it seeps into how we spend, save, and manage our money. Some of these are harmless. For instance, we were taught not to sweep our floors at night as it would sweep the luck right out of your home. Some believe an itchy palm is a sign of an incoming windfall. Others say wearing tattered clothes invites bad luck.
Many of these beliefs are rooted in practices that can supposedly manifest money for you. Whether you believe these superstitions or not, it’s likely you have practiced them yourself, consciously or unconsciously, as a harmless exercise of your culture.
But other monetary beliefs are less grounded on reality and rooted on personal negative financial practices. Some people, for example, still believe that it is best to save money at home and not through a bank as having cash at home can invite luck. Others invest on paraphernalia like money trees and elephant statues, among others, as these are said to help with savings.
Of course, believing in tradition is not bad. But if you want to be truly financially responsible, it is best to assess which monetary practices serve an actual purpose. Then replace the “traditional” with techniques that are practical or recommended by experts to help your financial mentality and standing. With these, you can manifest financial freedom proactively—and responsibly!
To commemorate the spirit of personal freedom this Independence Day, here are financial techniques and saving methods to manage your money effectively and help you manifest financial freedom practically.
Zero-sum budgeting
Manifesting money into your life starts with properly managing the money you currently hold. There are many well-known saving and budgeting techniques that the modern financially-responsible person uses.
The most common is the 50/30/20 budget, a technique that sets a percentage guide on how to divide funds. Basically, 50 percent of your paycheck should go to living essentials like food and rent, 30 percent goes to personal expenses like clothing or occasional leisurely activities, and 20 percent goes to savings. It’s a simple metric ensuring ample savings while not neglecting financial responsibilities and personal life.
A stricter method is the zero-based or zero-sum budget. Here, you make sure that every peso of your paycheck is accounted for. With the 50/30/20 budget, there will be times when you will have some money left over (maybe your food bill is lower during a certain month, for instance). When this happens, you will be tempted to spend it on an impulse, personal purchase. With the zero-sum budget, you plan your budgeting based on a specific amount down to the last peso of your income. This is a good method as it removes guesswork. It is based on how you actually spend or allocate funds.
Having immediate visibility on your funds is also essential. That is why it’s wise to have a banking app like RCBC Pulz. It allows you to access and manage your account balance anytime, anywhere. Using the app, you can keep track of your spending and other transactions to help you stay on top of your finances.
Using cash or credit
Cash and credit cards have their place in a well-rounded financial strategy. That is why understanding the advantages and limitations of each can help you make informed decisions that will align with your financial goals and lifestyle. Find the balance that works for you.
Cash is best for small purchases and helps you stick to your budget. Physically handing over the money makes you more aware of how much you have actually spent and less likely to make impulsive purchases.
On the other hand, credit cards, like RCBC, are a great option for big or recurring purchases such as electricity bills, and monthly subscriptions to avoid late payment fees. When used responsibly, it can be beneficial as you can easily take advantage of rewards such as cash back, loyalty points, and airline miles, among others. You can also avail of exclusive discounts and in-store installment plans which can also help lower and manage your spend. And if the store does not offer installment, you can always convert your straight big-ticket purchases, even online and overseas, for up to 36 months of installment payments using RCBC Pulz! Keep in mind to only charge what you can afford.
Loud budgeting
A fairly new budgeting trend that gained mainstream relevance after becoming viral on TikTok is loud budgeting. As the name suggests, you declare and be more upfront about your financial limitations and boundaries. For instance, if a friend invites you to a night out, you should answer honestly if you cannot afford it—instead of saving yes due to social pressure. You can answer, “Sorry, I can’t go out tonight, money is tight lately” or “I can only spend P1,000 tonight.” While it is only now that the TikTok trend has promoted this tactic, many people have actually been using this method to manage both their financial journey and emotional management.
This method has many benefits. It makes you more financially responsible. Saying outright what you can or can’t afford allows you to be smarter with your money. It also removes peer pressure when spending money is part of a social activity as you should not be stigmatized for being honest about your financial situation, especially when you are working towards improving it.
When budgeting and saving money, it is always best to have a financial partner—especially when you are working your way towards financial freedom. RCBC Pulz can further empower you to manage your funds more efficiently with its many convenient features and tools.
Financial freedom starts with opening an account through the RCBC Pulz app. Download the app now. Visit https://www.rcbc.com/online-banking for more information.
