Kaperang Goat | A Filipino Podcast

We often hear 80-20 rule when it comes to savings, and a lot of 'experts' in the field confer to it. However, in this article, we'll try to understand if 80-20 really works for you .  What is the 80-20 savings rule? As a refresher, this rule or principle tells us that once we receive any particular inflow (i.e. salary or business income), we immediately carve out the 20% and keep it in your savings account. This way, you are forced to spend only 80% for your needs (even wants).  To whom does the 80-20 savings rule apply? The 80-20 savings rule only works for those with excesses which we define as the surplus from income once you take out your non-discretionary expenses . In here, we define non-discretionary expenses as your strict needs , spending that you cannot or very difficult to avoid within a short time frame. Examples include utility bills, rent, tuition fees and etc. Hence, you may want to analyze your expenses first and identify which are discretionary (commonly

If you are trying get a better hold of your personal finance, but you don't know where to start, you have stumbled upon the right article.  Defining 'Financial Awareness'  The first step to beefing up your finances is to have better financial awareness. However, most of us might get confused hearing the term, so let's give it a bit of definition. Financial awareness is having knowledge of various aspects of your finances which include two of the starters: (1) inflows and (2) outflows . Hence, having awareness allows you to answer the question, "Where is your money going?". Levels of Financial Awareness Level 0 - You typically struggle to get hold of your expenses. You often get surprised finding your savings and wallet emptied without enough knowledge of where you spent them.  Level 1 - You have awareness as to your savings, and how much they are growing. However, you still don't have much idea of where your money is going. Level 2 - You have a grasp of