5 Steps to Financial Fitness in Tough Times

Reprinted from Cosmopolitan Philippines, March 1998


Email to a Friend

See reader Comments







1. Pay off your credit card bills. This may seem obvious, and yet, it’s so easy to leave a balance.
2. Find a high-yielding savings or money-market account.
Transfer your funds to an account that earns higher interest, and keep
saving. Keep in mind the stability of the bank you choose as some of
the newer (but less established) banks will guarantee higher yields
just to bring in business. Make it a habit to set aside a certain
amount of your paycheck every payday for this.
3. Pay off any loans.
In these times of high interest, it pays to be a lender and not a
borrower. So pay off any loans you have and live, interest-free.
4. Stay liquid.
Since financial markets are very unstable, this is not a time to make
any bets on the stock market, unless you are advised by a professional.
5. Live simply.
Refrain from major purchases and determine your real and perceived
needs. Now is a time to save for a rainy day, to save and not to
squander.