How to handle your finances wisely

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Metro Manila (CNN Philippines, September 1) --- Money will always be part of our daily lives and managing it wisely is a must, a registered financial planner said.

“Money is present in all our life. From the moment that you were born up until you die, you will use money," said Wealth Arki Consultancy founder Fitz Gerard Villafuerte in an interview with CNN Philippines’ The Exchange.

"So it makes sense to learn how to properly use or manage our money as early as we can,” he added.

Villafuerte noted that financial success is all about developing good money habits.

He said saving money should be a normal habit regardless of the amount.

“Making saving a habit is not really about the amount you save, but making it part of your life that it becomes automatic for you,” the financial expert explained.

He noted, however, that saving does not need to compromise spending.

“Don’t focus too much on saving a large amount of money, that you are already compromising your spending,” said Villafuerte. “What we tell people is how much can you comfortably save and write down all expected expenses for the holidays.”

He also stressed that one must stop worrying about debt as long as it is properly handled.

“I compare it to a knife," he said. "If you don't know how to use a knife, you'll cut yourself.”

Meanwhile, Villafuerte said everyone should learn how to make their hard-earned money grow.

“Because of course, we cannot just work all our lives," he said. "We have to put our money where it can grow on its own."

When investing, Villafuerte said financial goals must always be put into consideration.

“What do you want to do in the future?" he said. "What are your dreams? What do you want to buy? What do you want to do with your family? You have to align your investment along your financial goals."

Villafuerte's advise to the public is to “always have financial protection first before you even grow your money.”

Financial protection includes having an emergency fund or insurance, he added.