Saving money does not come naturally to all of us. When we are younger, it is hard to grasp the real value of money, especially if it is your first time to earn it. You might remember yourself blowing lots of cash on new clothes, new gadgets or new toys or living beyond your means. When we’re younger, we feel little reason to save because all of our needs are being met.
Once you spent five to ten years of working, you will start to understand how hard it is to earn money. You’ll start to learn how unpredictable life can be: jobs disappear, your health fluctuates, and happy moments may come to an end. Without savings, it is hard to live a stable life as you get older.
People who start saving while they are younger put themselves in a better advantage as life goes on. This is what a netizen wants many working millennials like her to learn: how to allocate their salary properly.
Smart Handling of Finances
Recently, Xopau Mendoza shared her own experience in dealing with life and with her finances. According to her, she made a deal with herself to upgrade her ways of smart allocation of her finances so she knows where exactly her money is going.
Other than an Excel file and mobile app she uses for monitoring, she also learned that it’s easier to monitor her money by using a specific file folder, depending on her needs.
How She’s Doing It
Since she’s single and still living with her parents, she only has nine different kinds of expenses. Once she receives her salary, she’s immediately giving her mother some funds for family expenses. The remaining money that she has is divided into different parts: Expenses, Investment, and Savings.
This thrifty netizen has two kinds of savings: normal savings and invisible savings. As the name goes, she treats the invisible savings as non-existing money that she can use in the future.
For her daily allowance going to work, she makes sure that she always has 100-peso bills. Xopau uses her allowance for transportation, lunch, and prepaid load. She always makes sure that she’s only spending P200 every day, even if it means she cannot go out with her friends.
She also keeps an emergency fund for unexpected situations. When there’s an unexpected trip or outing with family and friends, she uses the money in her emergency funds.
Invest While Younger
Xopau also makes sure that she has investments for early retirement or unfortunate situations. She pays for her Health and Life Insurance with a reputable company and purchased stocks and mutual funds.
Lastly, she also has an “extra money” allotment for her other needs and wants. Whatever is left, she allots it in the extra money slot. This is the only money she can use for anything that she wants, whether it is for drinking or going out with friends, watching movies or buying books and DVDs.
There is a deeper meaning as to why she starts to save. Xopau shares that when she was still working as an OFW, she is giving 70% of her salary to her mother. From the remittances that she’s sending, her mother was able to buy a house for their family. She wants to be as thrifty and as strict as her mother when it comes to handling her finances.
Muli, napakahalaga ng NEEDS VS. WANTS. Actually, wala naman talaga sa kung malaki o maliit ang sahod. Kasi higit sa lahat, ang kailangan lang ay matinding discipline, motivation at GOALS para magawa ito ng tama at magpatuloy.
Read the inspiring story here:
How about you? Do you also have your own way to save money or to handle your own finances?