Money management is a skill that everyone needs, but few are taught. Whether you're just starting your financial journey or you're tired of living paycheck to paycheck, it’s never too late to take control. Alvin Ubaldo, a financial literacy advocate and life coach, breaks down practical, real-world advice on how to start managing your money wisely.

Start With Self-Awareness, Not a Spreadsheet

Before you dive into budgeting apps or financial calculators, Alvin suggests something simpler: understand your relationship with money.

“Your money habits are a reflection of your mindset. If you avoid your bank balance or spend impulsively, it's not just numbers—it's emotions,” Alvin says.

Ask yourself:

Are you a saver or a spender?
Do you shop when you’re stressed or bored?
Do you fear looking at your expenses?

Recognizing these patterns is the first step to changing them.

Track Every Peso (or Dollar) Manually

Alvin recommends tracking expenses the old-school way—at least for 30 days. Use a notebook or phone notes app and write down every single thing you spend money on.

Why manual?

“When you write it down, you feel it more,” Alvin explains. “You become aware of how small purchases add up and where your blind spots are.”

After a month, categorize your expenses: needs, wants, and waste. You’ll be surprised how much is going into the last two categories.

Create a Simple Budget You Can Actually Follow

A budget doesn’t need to be complicated. Alvin advocates for the 50/30/20 rule as a starting point:

50% for needs (rent, food, bills)
30% for wants (dining out, shopping, entertainment)
20% for savings and debt repayment

If your numbers don’t align, adjust. The key is consistency, not perfection.

“If your budget feels like a punishment, you won’t stick to it,” Alvin warns. “Build in flexibility.”

Build an Emergency Fund First

Forget investing for now. According to Alvin Ubaldo, your first goal should be building an emergency fund—ideally 3 to 6 months’ worth of essential expenses.

Start small. Set aside ₱50 or $5 a day if that’s all you can manage. Open a separate account for this fund so you’re not tempted to touch it.

This cushion gives you freedom and peace of mind.

Use Cash for Daily Spending

Alvin encourages going “cash-only” for daily expenses like food, transportation, or coffee.

Why?

“You feel the weight of money when you hand over cash,” he says. “Swiping a card makes spending too easy and disconnected.”

Withdraw your weekly budget in cash and spend only what you’ve set aside. It’s a physical reminder of your financial limits.

Cut Lifestyle Inflation Before It Starts

As your income grows, so does the temptation to upgrade everything—your phone, your clothes, your meals.

Alvin calls this lifestyle inflation and says it's one of the biggest money traps.

“Don’t spend just because you earn more. Increase your savings rate as your income increases.”

Keep your core lifestyle stable, and save or invest the extra. That’s how you build long-term wealth.

Learn Before You Invest

Many people rush into stocks or crypto hoping to “make quick money.” Alvin urges patience.

“If you don’t understand it, don’t put your money in it,” he advises.

Read personal finance books, listen to trusted podcasts, and understand how investments work before risking your hard-earned money.

Surround Yourself With People Who Respect Money

Finally, Alvin emphasizes the power of environment.

“If you hang around people who spend recklessly, you’ll pick up the same habits.”

Choose friends and mentors who encourage financial responsibility. Join online communities or attend free seminars. Financial wisdom is contagious.

Conclusion

Managing your money wisely isn’t about being perfect—it’s about being intentional. As Alvin Ubaldo reminds us, it starts with awareness, continues with habits, and grows with consistency.

You don’t need a finance degree. You need a clear reason why you want to take control of your money. Whether it's to support your family, travel the world, or just sleep better at night—let that “why” guide your daily choices.

Alvin Ubaldo Tells How to Start Managing Your Money Wisely