Power of basic cashflow

I know most people at least in the Philippines do their own CashFlows to know how to spend and how much they are earning. But i found most people especially employees are not practicing these simple self money improvement strategies. I am not an accountant myself, and i hated my accounting class, i never liked it just as i hated my mathematics class. But as time passes i become more interested on knowing how to spend the money i have, where to spend it, or let’s say when is the proper time to spend.

learning how to manage your cashflows would really help a lot. I still remember when i was employed in private sector, i often kept on finding ways to fit the monthly salary i recieved to my budget, but to no avail it really didn’t worked out no matter what. I tried recording all my daily expenses to a piece of paper to know what i’ve been spending, and where my money is going. It made me realize that i’ve been spending much on some things that aren’t really necessary for me, that includes vices of course. i tried it for month. it went well, but still did not fit well. I tried reducing my expenses on the not so important things like beer drinking, going out to the bars and instead had it  scheduled on a 2 weeks basis. for the second month i am surprised that i saved some. That at least i was able to fit a little. But still realizing i’m not making much cause i have to sacrifice some things just to fit my budget. but the art is there.

Time came when i wanted to buy something (a new mobile phone from nokia), so i alloted a certain budget for it. I considered it like a loan that i really need to pay badly, and deposited the chip of money to my savings account. i’ve used an online money transfer service so to make the deposit process free. it took me few months but it really worth trying. by the time i was able to put up the sum of money, i already realized i didn’t actually like the phone. but something better. but again it’s a lot expensive so again i saved a few. until the time i was able to save an amount of money for me to buy a notebook instead. ๐Ÿ™‚

buying a notebook enabled me to work anywhere and do some work on my own. I never stopped doing the process since i think it was great. Now i was able to categorize items into several groups. I am thinking that these are basic accounting, but can be practiced unknowingly. I am going to hire a local accountant to help me.

I tried reading some articles regarding the same topic, and found the same process is being used, although with some advanced manipulations. The interesting idea I learned from other authors (though i didn’t remember where i read it) it says something like “save now spend later”. It’s true! if you can save the spending for later. why wouldn’t you? besides there are really things that aren’t very important that we think we needed. delaying these expenses sometimes make our savings better. and the way we percieve things better. It even allows us to research and find what is best suited for our needs.

well that’s it for the day, i hope you found the article useful.  uhmnn maybe i’ll post the actual process later. watch out. ๐Ÿ™‚

 

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One Response to “Power of basic cashflow”

  1. psyche hipe says:

    hi..
    i read your article and learned something good from it.. ๐Ÿ™‚
    hope to hear something from u soon:D
    keep it up!

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