Common mistakes of employees during payday



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I am an employee for the last 6 yrs in my life and I notice that these are the bad habits that makes an employee have a weak savings account. Seeing the pattern is like getting out from the rat race.

1.Not paying yourself  first regardless of the SALARY amount.

- Every cut off I made sure that I put money to my savings and mutual funds. Why, because I want to afford the future. Paying myself first will give me a satisfaction. It is hard to build that in the first place specially if you don't have discipline. But knowing that I can help the needy with my extra cash, use the excess funds to support my friends Mission trips abroad in spreading the gospel and lastly afford the future of my daughter will give me a lovely future. The question is can you afford the future?

2.Thinking about what to spend immediately.

- In our culture as Filipino we are so hyped up with the idea of consumerism. All super malls and well known boutiques or brands are here in the Philippines. They know how to feed our eyes! Marketing strategist were able to identify the behavior of every consumers that's why massive sale also happens during the 15th and 30th of every month. You know why? Because they are aware when your money is available. Sad to say we keep on getting to their bait and most of the time we are experiencing the pecha de peligro.

3.Giving TOO MUCH to your parents/relative.

- There's nothing wrong in giving but in reality most of us are in a sandwich generation. The reason behind it were very simple. You have an aging parents but since they don't have sufficient amount of money at their age right now you need to support almost all the things they need now so that they can live while you are starting a family. Leaving you CASHLESS and savings less. Fast forward during your retirement age your kids will also suffer since you weren't able to work on your finances while you are still working. Simple but it makes a lot of sense.

4.Not having a clear goal or visions.

- You are a restless  wanderer if you don't have directions in life. You got goals in your health and your career but you don't have any clear visions what to do with your money? I find that very odd. You need to go back to basics such as asking yourself. When do I want to be a millionaire? Where to invest in stocks?Where to retire at the age of 45? Can I afford the tuition fee of my son/daughter with my current salary now? Developing that kind of system will surely answer your current problem. I recommend you to take time to know where you at now.

5.Don't have a good budget structure.

We normally do mental accounting upon receiving our salary and it is really fascinating  we just spend as much as possible. After 2-3 days some of us already feel that they need to file bankruptcy due to poor spending habits. Once you feel that pain in spending, have you ever tell yourself that
you won't do it again then after the next cut off you see yourself doing the same bad habits? Once you study yourself start making small changes. Soon you will see the difference.

David Isaiah Angway is a Financial Evangelist