8 steps to taking control of your finances in 2025

Money conversations can be overwhelming, especially when you're just trying to make ends meet. But understanding your finances is the very first step to financial literacy and security.

The good thing is, taking control of your finances isn't about becoming instantly wealthy. It's about making informed decisions with whatever resources you have right now. So let's break this process down into manageable steps:

1. Actually have access to all your financial accounts

   Your money = your responsibility. Start by gathering all your account information - savings, checking, payroll, everything. Create a simple spreadsheet or notebook listing your account numbers, banks, and current balances. If you've let someone else handle this before, it's time to take the wheel. Don't worry if the numbers aren't what you'd like them to be. Knowing where you stand is the first step to improving.

2. Note down categories of spending

   Sit down and reflect on where you think your money is going. List down all categories that you think exist and are relevant to your situation: utilities, groceries, transportation, medicine, rent, etc. You can also include a “miscellaneous” category for smaller (but frequent) expenses like load/data, pet care, or allowances. Don't forget occasional expenses like clothes or gadget repairs too. For this step, the goal is to simply build a better awareness of where your money has been going.

3. List all recurring payments

   From understanding your spending categories, it’s time to actually take note of the recurring payments that you have. Here, make sure you can list each specific expense that you pay regularly - from the name of the merchant/biller, to the amount needed to be paid, the frequency it’s needed (monthly, quarterly, annually), and the exact due date for each.
   
   List everything that automatically comes out of your pocket: utilities, rent, insurance premium, loan payments, online subscriptions, tuition fees, etc. If you want to take it a step further, create reminders for each payment on your phone or your physical/digital calendar. Ideally, each reminder should be set to 2 business days before the due date. This helps avoid those “ay, may bayarin pala!” moments that can wreck your budget.

4. List all existing debts

   Face them head-on: credit cards, loans, money borrowed from family, everything. Write down how much you owe, to whom, and the interest rates. It might feel scary, but you need to know what you're dealing with and how much you owe first to create a plan to paying everything off.

5. Track every expense for one month

   Yes, every single peso. From your morning 3-in-1 coffee to jeepney fares, from load to lunch. Use your phone's notes app or a small notebook. The most important part here is to not judge your spending habits. Just observe and be 100% honest/transparent with yourself. Tracking your expenses will help you understand your existing spending patterns, which will then help you make better choices later on.

6. Develop a feasible budget

   Now that you know your spending patterns, create a realistic budget. Key word: realistic. If you spend ₱100 daily on food, don't suddenly budget ₱50. You'll just get frustrated. Start with small adjustments because these small changes can add up. One crucial part here is to develop the habit of creating a budget / alloting money for savings, which we’ll talk about in the next point.

7. Learn to pay yourself first

   A good and empowering money practice is to set aside something for savings - kahit ₱500 kada sahod. Before spending on anything else, “pay yourself” first. Think of it as sending future-you some support. Start small, but start. These simple savings can be the start of your emergency fund. And no matter how modest, this can already help prevent small setbacks from becoming major crises.

8. Set financial boundaries

   Financial boundaries work both ways: with yourself and with others.

   With yourself:

   • Be honest about what's a "need" versus a "want"

   • Stop justifying unnecessary purchases with "deserve ko 'to"

   • Unfollow social media accounts that trigger impulse buying

   • Delete shopping apps that make it too easy to spend

   • Wait 24-48 hours before making any non-essential purchase

   With others:

   • Hindi ka ATM. Learn to say “no, di ko kayang magbigay ngayon” to family and friends. You’re not obligated to lend money just because you have some saved.

     • And if you choose to lend at all, set clear payment terms

   • Don’t feel bad for admitting “di ko afford gumastos para diyan ngayon”

   • Don't co-sign loans or be a guarantor if you're not 100% comfortable

   Your financial stability matters. People who truly care about you will respect your financial boundaries. You're not being selfish, you're being responsible. Sometimes, the best way to protect and grow your money is to learn when and how to say "no."

Financial freedom isn't built overnight, and it's okay to start small. What matters is that you're taking steps to improve your situation. Every peso saved, every smart decision made, every boundary set…they all count. It might look like a long way to go, but I’m proud of you for starting your personal finance journey. You’ve got this!!!