The Way to Financial Security

When I was diagnosed as hypertensive last August, I realized the importance of having money saved for emergency purposes. Since it was unexpected, I was able to do a series of laboratory procedures as requested by my doctor without worrying where to get the money for it. For years I have money saved in the bank that I got from my retirement benefits in my service from the government office I worked for. I never use the money for other purpose but solely for health emergency reasons.

It is essential to maintain savings for unexpected expenses while also striving for financial freedom. Below are some strategies to help you achieve both goals, as outlined in my Mercury Suki 2021 Daybook.

SAME BANK DIFFERENT ACCOUNTS

I have done this, aside from the bank account where I get my pension, I opened another savings account in the same bank where I can immediately move money before I even have the chance to spend it. You can also do this with your salary.

CALCULATE YOUR MONTHLY COST OF LIVING

It’s important to note down how much it actually costs to support yourself minus the non-essential expenses.

FIND MULTIPLE SOURCES OF INCOME

Turn a small hobby into an enjoyable way to earn money on the side. This allows for greater financial stability and safety in the long run.

KEEP A RECORD OF YOUR EXPENSES

Having a visual reference of where your money is going can help you rein in your money spending habits. Use a budgeting app to help you out also. Or simply use a notebook and pen.

SET UP 6 MONTHS WORTH OF EMERGENCY FUND

Having emergency funds that can tide you over for half a year on the assumption that you won’t always have a job is crucial!

DIVIDE YOUR INCOME USING THE 50/30/20 RULE

20% for savings, 50% for basic needs, 30% for your personal wants. Don’t be afraid to treat yourself occasionally to something that brings joy.

Hope the above tips may help you achieve financial security.

Lord, please help us to be a good steward of the financial blessings you have bestowed upon us. May we use it to be a blessing not only to our family but to others who are also in need. Amen.

“Wise people live in wealth and luxury, but stupid people spend their money as fast as they get it.” – Proverbs 21:20