It’s that time of the year again to make resolutions and topmost among these yearly goals is saving money. Year after year, many of us write that we want to save money but the year ends with us having saved nothing at all.
But this year might be the best time to start all over again and try harder to save money.
Experts suggest that the best amount to save each month is 20% of your salary and that you need to build up emergency savings of at least three months’ worth of your salary. Well, who has that kind of money to spare, anyway?
Take the First Step
The trick here is that you might not be able to save that much money yet but taking the first step is very important. Aim for the 20% savings but if you can’t do it yet, set aside a certain amount each month. Even Php100 would already mean a savings of Php1,200 at the end of the year!
If you can, aim for a bigger amount. Try to save Php1,000 each month; although it would be better if you can save a bigger amount but we’re taking the first steps here.
There’s just something about a challenge that keeps a person going. So, it would be a good idea to challenge yourself. While the usual 52-week challenge is difficult for many to attain because of the increasing amounts you have to save, you can vary the challenge so you just have to save based on your salary schedule.
If you plan on Php1,000 a month, you can split it up at Php500 per pay day.
Change Your Mindset
It is easier to save if you really set your mind to do it. Yes, it can be difficult but if you always find an excuse not to do it, then you will never be able to save anything at all.
Cut Your Spending
Cut on your spending, especially if you really can’t afford to splurge on things. When going to the mall to buy groceries, keep a list and stick to it.
Make a budget and try to see which ones you don’t really need. For instance, if you’re paying Php2,500 or more for a phone plan because you’re paying extra for the gadget, why not just get the phone that comes free with the plan or even downgrade to the plan you need? That could save you Php24,000 or more (depending on the cashout price of the unit)!
Grow Your Money
While putting your money in an alkansiya (piggy bank) at home is a nice way of easily saving money, it is also easier to get the cash if you’re short on your budget. Make it harder for you to get the money by putting it in the bank, preferably in a passbook account so you can’t just withdraw the cash if you want to. The more hassle it is for you to get the money, the easier it will be for you to just keep it there.
Also, as you can see your money grow, you will be more encouraged to add to your savings.
There are also other ways to grow your money, like investing or putting up a business but for now, let’s first aim on the savings worth about three months of your salary. Perhaps next year we can go to step two.