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The bad thing about being employed is DEPENDING on the fact that you have something to look forward to every pay day. There's nothing sadder than that, I tell you.
What happens when your source of income just disappears? Unless you are an heir to a great fortune or you won the lottery, then chances are, it would be very difficult for one to get by without a major source of income.
So, what we’re trying to say is, appreciate the job that you have now and the fact that you do have a job compared to others who are suffering the wrath of unemployment. And while you’re at it, it pays to save money.
It's better when we were young and we're given those piggy banks for savings. It was a great feeling that when that piggy bank is full, we can get something out of it. But now that we're adults, we need more than piggy banks and we need savings that cannot easily be broken.
A lot of people do encouragement to save money, we all know it’s important. But knowing is different from ACTUALLY doing it. Some are very good at the start but lose motivation in the long run. It’s just like dieting. So for those who have a hard time in saving money, here are some money saving tips from us:
Set a percentage of your income, and spend the rest!
Say you have an income of P12,000 nett monthly, Set aside a percentage to that monthly income, say 10% which is P1,200.00 per month. This will be the portion that you will immediately set aside to put in your savings account. All the rest, you can spend without guilt. It’s like paying yourself first, which is better than scrimping on your expenses until the next payday. If you feel that 10% is low and you can actually save more, then you can also increase your percentage.
Make money saving automatic.
Automatic money saving will give you no choice but to really save. Without automatic money saving, one has the tendency to say, “I can always save next payday.” And obviously, this will become a cycle when the next time you plan to save, you will plan again to save the next payday, leaving you zero savings in the end.
There are several ways to do so. One is to ask your company if they do automatic savings deduction. When I was employed, I asked our Payroll to deduct automatically my set percentage and direct it to our cooperative (where I will also get dividends, benefits, etc.). If your company doesn’t have anything like this, you can go to the bank that handles your payroll account and arrange for an automatic savings plan. Some banks can automatically deduct a fixed amount from your salary and deposit it to a separate savings account. I believe BPI does this as BPI was the one who handles our payroll before. I am not sure with other banks.
Savings should not be accessible.
When money is easily in your hands, it’s easier to spend. We recommend that you make your savings account as inconvenient to get cash as possible. A good start would be to get a passbook bank account instead of the usual ATM savings. All banks have this where you can do over the counter cash withdrawals and some saving programs allow you to have limited withdrawal transactions but unlimited deposit transactions (BDO Optimum Personal Savings Account allows this).
Actually, there are a lot of banks that can give you several options. It’s better to weigh what’s for you. The point is you are FORCED to save money.
Avoid paying with credit card.
Credit card can sometimes be addictive with its accessibility. It feels so good to be able to swipe but it’s a different thing when you get your statements.
When you use cash or on debit (debit card), you’ll be more aware of your budget. Paying with cash will help you avoid accumulate debts and encourage you to live just within your means. Simply put, save first then pay in cash.
If you are vigilant with this, you’ll end up with zero credit and a savings account that you don’t have to use to pay accumulating debts.
And while we are at the topic of credit cards—it would be beneficial to just have one and not more than that. As online payments are very rampant and you might need credit cards for transactions, you can just have one. Having more than one will tie you up with a lot of payables monthly.
Be aware of small expenses.
Have you ever felt like asking, "Where did all my money go?" And the next thing you know, you're scrimping on what's left of your salary and wait for the next payday.
Back in the days, I used to write down everything I spend. It makes me aware of those small daily expenses that we do not mind at all upon spending but when added up, these are the things that drain your savings. Like for example, those little cigarettes or the taxi fares or those junkfood and chocolates that you include in your grocery list. You may also want to be aware that those cups of coffee at coffee shops takes a big chunk off your income, without knowing it. I am not saying that you have to cut out all those guilty pleasures totally but it helps that you make yourself aware of their impact on your savings.
Right now, there are a lot of free phone apps that you can download for monitoring your expenses.
Reward yourself for saving money.
All work and no play is no good. So set a benchmark and reward yourself for saving money once you reach that benchmark. Say, if you have saved P10,000.00, reward yourself with that blouse you’ve been eyeing at the mall (set a reward cost as well, that it won’t cripple you or your savings). Or, you might give yourself a fancy dinner or a movie after every five No Spending Days.
As a summary, force yourself to save money, be aware of your expenses and reward yourself from time to time. In tough times like these, it is good that you have something hidden for the rainy days. (Other Sources: www.fitzvillafuerte.com)
iSTORYA Ta (Let's talk!)- How about you? What are your thoughts? What are your money saving tips? Share them.
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