It’s been a year since I graduated from college. It’s been a year since I started working and receiving my salary. But after a year of being an employee, I just realized something. It’s really hard to earn money. But it’s harder to save money. 😦
Since this is the month of my annualization, I did some review of my finances from the past year, I am blown away by the amount I spend over the last 12 months! And my savings? Yes I do have, but it doesn’t equate even my half month paycheck. That’s soooooo alarming! Thinking of the paychecks that I had twice a month compared to my savings today. It really makes me think twice about my spending habits.
Because of that I browse the internet for some tips on How to Save Money. There are many ways and steps to do so, therefore I sum it up to 7 Easy Steps on How to Save Money:
(Note: this is all based on my opinion. It may differ to or from any people that may read this blog. But I hope it can help you in anyway possible 🙂 )
We probably heard ourselves “Ang hirap mag-ipon” or “Hindi ako makaipon” . Many Filipinos consider saving money as one of the toughest things to do, so when emergency comes on our way we have no other option but to engage ourselves into a very risky deals.
Saving money has never been easy, but through correct knowledge and careful planning we can find our way to financial freedom. Read these 7 Easy Steps to Save Money (created by truly yours) and start to find your way to financial success.
1. Pay your debts
First things first, if you have any debt, you should pay it. Big or small debt is still debt. And it will stop you from achieving your goals. If you have a huge amount of debt, you can start by paying it on small portions payday-by-payday or in a monthly basis. By doing so your debt will gradually decrease and in no time you will be debt free! Sounds good right?
2. Pay yourself first
Just think of having a savings as pay to yourself. Everytime you put something into savings it will be your pay to your own hardwork. Many Filipinos mistakenly define what savings is. It usually equates to:
Salary – Expenses = Savings
But it should be like this:
Salary – Savings = Expenses
Living in our country it is understood that we have to pay our rent or house mortgage, transportation or car mortgage, many bills including electricity, water, cable, postpaid lines and internet connections plus since we are Filipinos most of us (if not all) should give money to our family. But at the end of the day you should still ask yourself “what is left to me?”. Not so big right? So here’s a tip, whenever your money gets in, save atleast 20% of it. It will not only help you start your savings but also your investments too. You will have enough money to cover up for any emergencies in the future.
3. Plan your meals
This one will give you many benefits. First, you will not have to buy on fastfood chains or expensive restaurants for your meals. Second, you are sure that you are giving your body fresh, clean and nutritious food. That’s hitting two birds in one stone!
4. Cut down unused subscriptions
First, Identify all your current subscriptions like cable, telephone line, internet line, postpaid plans. Then ask yourself, “How often do I use it?” or something like “Do I really need it?”. That way you will find out what you really need and what is not. For those you don’t need or you are not using anymore, call the authorized person to talk about unsubscribing or disconnecting your line. That way your expenses is already decrease by a certain amount.
5. Buy Local
Some Filipinos have a way of thinking that goes like this “hindi yan maganda, lokal naman yan!” or “ay fake yan! lokal e”. Buying local brand and products isn’t bad. Actually it’s good for our economy and for our country. Since we are enthusiast of what we call “imported brands“, we think that local brands are no good. But we are wrong! Definitely we are. Local brands are big help to each and everyone of us. Aside from it is cheaper, it also promotes our country and by buying local brand we are supporting our own kababayans.
6. Save your change
Change or sukli are often ignored by many. But did you know that we can also save money by putting our changes in a simple jar? Here’s how: Get a jar. It can be small or medium sized jar, and make sure it is clean. Then put some note or label on that jar that says it is for change or any sort like that. And last but not the least, put it in a place where you can easily reach it when you go home so that you will be reminded that if you have some change there’s a jar for it 🙂
7. Open a Savings Account
The last but not the least, Open a Savings Account. We must put our hard earned money in a safe and secured place. Nowadays many banks offer low initial deposits and maintaining balance. That way we can easily open one savings account where we can deposit our money and sleep well at night. There are different banks that offer different solutions for our different needs. You must know your considerations and priorities upon choosing your bank of choice. And there you go. You are now starting your way to financial freedom!
So, come and join me as I start my way to healthy financial future! 🙂 Let’s do it!