Ipon journey is all about intentionality and starting small. Since the new normal, travels and splurging on leisure items are minimized, but that doesn’t mean that other expenses are completely cut off.
Nowadays, people like to order and deliver food packages, and I am guilty of that. I like ordering pastries online, and when I was able to review my finances, I realized that these expenses can be reduced, and that amount can be saved and invested elsewhere.
Just like in any business, you increase the net income by increasing the inflow and reducing the outflow. The same goes with savings; and how do I cut back on some expenses? It’s to always ask – “is this needed?” and “can I get a source at a much lower price?” Me purchasing pastries, for instance. If I can buy the raw materials and just bake at home, I would be able to save more than 50%, and that 50% can then be saved!
Another method that I’ve been using to help save is to track expenses, and having a budget on hand. It is much similar to handling the finances of a business. You keep track of the inflows, outflows, and allot a buffer. Since I am knowledgeable in business finance and operations, such skill can be applied when doing personal tracking of expenses. I guess, what is most important is to apply learnings and experiences from work – to further stabilize your own financial health.
These savings are then invested in stocks, mutual funds, insurance, and sideline business. Although it may be challenging to allot a certain percentage every month, allowing the savings to grow overtime will eventually lead to financial freedom that we all eye for. After all, we want to be able to provide a good future for our families and for the future generations to come.