A lot of people still see financial freedom as a distant dream, something that’s only attainable if they win the lottery or magically unearth a chest filled with treasure, but that shouldn’t be the case. Being smart about how you handle your money can turn your aspirations into reality, allowing you to live life the way you want it.
For Michelle, a single mother of two who used to dream of becoming a homeowner, a reliable financial partner like Tala helped her manage her finances better to save up for a house.
“Nagamit ko si Tala noong bago palang kami nangungupahan. Naging partner ko na siya sa pagbabayad ng bills. Pangarap ko talaga magkaroon ng sariling bahay. Kaya lang, maliit pa yung sahod ko noon,” Michelle recalled.
As the world’s first fintech company for the Global Majority, Tala provides its customers with flexible and convenient credit that can support their journey towards financial freedom.
“Dumating yung panahon na talagang ready na ako na kumuha ng bahay, kaya lang, medyo maliit lang yung dala kong cash on hand. Maigi talaga na na-build ko yung credit standing ko kay Tala,” Michelle said. “At ito na nga, nagkaroon na nga ako ng sariling bahay dahil sa tulong ni Tala.”
Using her hard-earned money and financial savvy, and with the help of Tala, Michelle was able to buy her dream home after years and years of renting, providing a comfortable place for her and her children to call their own. Here are some ways you can follow to also start building your path towards financial freedom.
Through her determination and patience and after years of renting, Michelle, a single mother of two, finally became a homeowner. She shares that the TALA app has been her partner for managing her finances.
Track your expenses
Take note of where all your money goes. By meticulously keeping track of your spending, you can identify areas where you can cut back and allocate funds toward things with a more significant rate of return such as investments and savings.
Outline your budget
Now that you have a good grasp of your spending habits, you can personalise your budget according to your goals and needs. Try out different ways of budgeting, such as the envelope method or the 50-20-30 method, to determine which suits you best. A well-crafted budget allows you to make informed financial decisions, reduce stress, and ultimately achieve your long-term financial aspirations.
Make it a habit to track your expenses on a daily, weekly or monthly basis to monitor what expenses you can cut-down on and what payments to prioritise.
Manage your debts
Being debt-free puts a person one step closer towards the dream of financial freedom. A good repayment strategy will manage debts, especially those that have long periods and strict conditions for repayment. You can try the debt avalanche and debt snowball methods, whichever fits your situation best.
The avalanche method involves settling debts with higher interest rates first, leading to less money owed in the long-run. The snowball method focuses on tackling the smallest debt first before paying your larger debts, which can help motivate you to clear your remaining balances faster.
In any case, time your repayment dates with your income cycle so it will be easier for you to make payments when they’re due. For Tala users, there is a feature on the app that lets you add reminders of your repayment dates to your calendar to encourage on time repayments.
Look into investing
Investing allows you to generate passive income over time. The earlier you start investing, the better. Small, consistent investments can yield significant returns. However, note that investing involves risks arising from macro- and micro-economic conditions, so it’s important to do your research or consult with a financial advisor when investing a significant amount of money.
ADVT.
This article is brought to you by TALA.