Saving money properly is a good way to prepare for the future. It’s hard to act and make decisions in life when you’re always short and don’t have enough money. In almost every decision we make in life, money is always the counterpart, from waking up in the morning to going to bed at night. In other words, as long as we live, we need money.
It’s hard to make money now. right? So there is a saying, “It’s hard to be poor.” If you don’t have money, you’re dumb. Just be patient. If there is money, give, pay, and spend. If not, be patient. So, it’s important to be hard at work and prudent in handling income so as not to run out of money and fulfill your dreams in life, including getting out of poverty.
When we were children, our parents taught us to save money through a piggy bank. This is where we put the money to be used in the future. When the piggy bank is full, it will be counted so that we can buy things we want, pay for things we need, like a school project, or take it to the bank to deposit.
It can also be used if money is tight, or when someone in the family gets sick. By saving regularly, we learn to save, fit the pocket or income until the next day, week, or month, and be resourceful with equipment. Not because it’s old; I’ll buy it right away. We don’t want to waste money. right? Let’s be careful not to break it right away so that our hard-earned money doesn’t go to waste.
When you learn this and get used to saving and hoarding things every day, you will definitely be promoted, not stressed, and not miserable in your growth. Your time will be wasted waiting for nothing, such as dropping out of college because your parents couldn’t afford the huge cost of tuition fees, pocket money, uniforms, school supplies, etc.
How to overcome a small income? How to budget?
In order to have certain savings, savings should always be first in our budget. Not less than 20% of the total salary, income, or allowance is reserved for savings. For example, if your income is PHP 15k per month, you should not spend more than PHP 12k per month.
To young people who like to make jokes: “Think to yourself, my salary is only Php 12k, not Php 15k, so you can definitely save something every payday.” You can do that if you go home first after receiving your salary.
In this way, you can give yourself enough time to think correctly about where to spend or allocate the money you earn, and you can first talk to your parents or spouse about adjusting the budget for the whole family.
You can also avoid impulse buying if you need to buy something at the mall or grocery store, and you can spend more on things that are more important to you. That way you can avoid excessive debt, stick to the budget even if the next paycheck hasn’t arrived yet, and have certain savings for a good future for you and the whole family.
Budgeting is stress-free, you know. You will be happier every day you work. You will go home with good memories of work instead of problems with your family.
What is the garden formula for saving?
The formula for Savings
Salary (Gross Pay) x 80%. Example: Php 20k per month × 80% = Php 16k. You will think that your salary is only 16k, so you can save 4k every month. It can be less than Php 16k but you can’t spend more than this in a month. If there is something to be bought that exceeds or is not in the allocated budget, save up first, do not borrow or use the allocated 20% savings. The savings rate can be raised if possible so that your savings can grow even more.
Especially if you are single now.
If it is necessary to spend on the day of the salary, first use the salary of the past (weekend or last) to avoid impulse buying and excessive spending of money.
If you are young, without a spouse or children, and relatives close to you do not ask or depend on you, it can also be raised to 35-50% of the total salary so that the money grows more while you are working.
Here are tips to save more while you work:
- While still young, you should start long-term investing. There are time deposits, bonds, mutual funds, stocks, and others. Only contact the bank you trust.
- Look for other income besides your job so that you have extra income to support the family or send to your parents and younger siblings. You can’t be the only source of your livelihood, especially if you already have your own family. This is where the money crunch begins, fear of what will happen tomorrow, being buried in debt, and at the same time anxiety (stress).
- Avoid bad habits such as cigarettes, alcohol, gambling, as well as indulgence so that the money spent on it can be allocated to saving and investing. You’ll be able to take better care of your health so you’ll save more on your medical expenses, and you’ll avoid being absent from work so your salary will be bigger.
- Try to set aside enough funds for a cash reserve or emergency fund to avoid debt and move your investment. The reduction in the total investment amount will be greater when there is an early redemption or not in the maturity period.
- Learn to save and adjust your income so that it does not end up in poverty and excessive debt, and fulfill your realistic investment goals.
When should you start saving?
You should start saving when you are working and earning money. Why? It is more likely to grow larger. This is with the help of time, compound interest, and a high return rate, so you can fulfill your dreams in life without fear, with your family.
These are just some of the things you should do to save money now, but what else do you think we can add to it? comments below.
You should only spend 80% of your income or salary each month so that you can save 20% of your income each month. Click Here To Watch Video