24 Sep 2024
Germany has become a popular destination for Filipinos seeking better opportunities and a higher standard of living. Proper management of your finances matters is important if you are to live a comfortable financially secure life in a foreign country. This guide will arm you with useful suggestions and approaches that will assist you to set the right budget plan to meet your objectives financially, helping you quickly send money to Philippines from Germany.
The first process of budgeting includes evaluating an individual’s financial status. It is, however, advisable to save your income and expenditure record for several months to quickly analyze your expenditure patterns. Things that you should take into consideration include your salary, rent, utilities, transportation expenses, and all the other essential expenses.
It will assist you in figuring out the places within your operating environment where you can probably cut expenditures.
Having designed the sources of income and expenditure picture, it is now about time to assume realistic financial targets. Find out what you want to accomplish in your budget; it could be saving for a down payment on a home, an emergency fund, or paying bills, among others. It will also make one stick to their budget and make informed decisions since one has goals for what they want to achieve.
Prepare the expense/budget plan which will state your sources of income and your expenditure. When creating your expenditure list, divide it into ‘Basic Necessities’ and the rest of the less necessary spending. Necessary expenses consist of such costs as rent, food, electricity, and transportation while other costs that are not necessarily required include events such as eating out, movies, and shopping. Determine a certain portion or proportion of the fund for each category following the priority and the financial objectives set.
Another good way to ensure you are disciplined enough to follow the set budget is through budget tracking. It is helpful in tracking a person’s spending activity and noticing areas in which one may need to cut down on his/her spending. There are multiple methods for tracking your expenditure:
Use an application to record your income and expenditures, which categorizes expenses and keeps track of the financial planning. Most of these apps include other features like alerts on expenses, setting up of saving goals, and debt management.
Set up an excel sheet and then manually input all your income and expenditure. This method offers convenience and you have a freedom of choosing the categories that you want to track and your analysis.
A small notebook might be used as a record of the daily expenses. This is significantly less complex than using apps or spreadsheets but might be of a better appeal to those that have a more fundamental outlook.
After you have been able to understand your spending behavior, the next step is to analyze where you can cut down your spending. This can be a tiresome process, but it is very much advisable as it is known to produce quite a positive impact on the amount of savings that one is able to make. Some strategies to consider:
There are several disadvantages of taking a meal from the restaurant most of the time being that it is costly. Cook more meals at home so as to reduce the amount of money spent on food. You may wish to grab some meal prepping or batch cooking, so it would not be challenging for you to ration your income as well as your expenditure.
Bargain hunting is another sure way to make a shopping spree end up emptying one’s wallet within a short span of time. It’s better to make a list of the things to be bought beforehand and avoid buying things not mentioned in the list. Do not go shopping when you don’t intend to buy anything.
Search for some less expensive ways to engage in your favorite activities. Instead of going for a movie choose to watch a movie on television or any other electronic device at home. One of the best ideas is to look for events that are free to enter in your area. Find apps that have the lowest fee for making a money transfer from Germany to Philippines.
Buy groceries in places with low prices, purchase things with no brands and look for items on sale or those with coupons. Be sure that you have planned your meals so that it would not go bad before you get to consume it.
As much as possible avoid hiring a car, get a car pool, take a bus, walk or cycle if you have to move around. Think about reducing monthly bills including the cellular or internet.
Emergency fund is also important as it helps one cater for other incidental expenses. Ideally, one ought to have an emergency fund of between three hundred and six hundred weeks of live expenses in an easily retrievable account. This fund will help in meeting certain expenses like in the event the moneymaker loses his or her job or in instances where someone is seriously ill.
If you use a portion of your income to become an investor whose capital increases over time, it is recommended to do so. Invest in stock, bonds, mutual funds, and real estate so that you are able to get the best out of your investment. Speak with a financial planner and work out the degree of risk that you will be able to take so as to test your waters in investment.
When you are remitting money to the Philippines, then you have to ensure that the method is affordable and reputable. Think of digital solutions for making an online money transfer from Germany to Philippines. Check various providers available so that you can compare their charges, rates, and time taken before completing a transfer.
ACE Money Transfer is one of the preferred ways to make money transfers through the internet for Filipinos from Germany. ACE also gives a fair exchange rate, a cheap fee, and a fast and easy transfer. Through ACE Money Transfer, you can also save your hard-earned money and guarantee that your money gets to your loved ones in different parts of the Philippines using the preferred payout method without delay and safely.
It is therefore extremely important to make a budget and, as much as possible, to make sure that the Filipino living in Germany would not go beyond these allocations that he or she has set.
This guide has provided strategies and methods that should be followed in order to control your finances, budget and save money to meet your goals. All in all, it is important to maintain a periodic check of one’s budget in regard to its flexibility in accommodating the change.
Finally, download the ACE Money Transfer app and leverage its efficient service to send money online to Philippines from Germany.
When selecting a money transfer service provider, some of the aspects that should be considered include fees, exchange rates, transfer duration and customer experiences. It would be wise to compare different providers to have a good option in terms of the chosen specialization.
Comparing the tax law, it is found that these two countries have different laws. Seek the service of a tax consultant to ascertain the exact effects of the policy especially, concerning the taxation laws of the two countries.
Some possible areas of cut-off expenses for a living are food, transportation, DVDs/entertainment, searching for special offers, etc. It is imperative to reduce your accommodation expenses, and one way to do this is to either get a roommate or downsize the house you rent.
To venture into Philippine stocks, this is a good one but always remember, pound sense while investing because there are usually associated risks. It may be wise for an individual to seek advice from a financial planner for an opinion on the appropriateness of this investment.
References:
https://www.seniorlada.com/saving-tips-for-seniors-securing-financial-wellness-in-your-golden-years/
https://chasingsomedreams.com/basics-of-budgeting-for-beginners/
