Cyrelle L. Bello
Spending is a temptation only a few can resist. We all have the desire to spoil ourselves and our love ones after receiving our hard-earned money. But if you to change your bad spending habits, start by making your 2017 more savings-friendly with these tips:
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Set a Goal
Our goal should be SMART. It should be specific, measurable, achievable, realistic and timely. Don’t set high expectation for yourself to avoid disappointments.
Upon deciding on a Saving Goal, consider a benchmark that is realistic for a span of time. For example, the goal should be for 2017. By the end of the year, you should have achieved the said goal. Consider your available income sources, current lifestyle and be ready for the sacrifices you might need to do accomplish your goals.
To make it more effective, tell a friend or a family member about it. They will help remind you to be committed all throughout the year to your goal.
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Open a Saving Account
Do some research on where to keep your savings. Terms, policies, interest rates, fees and minimum balances vary from bank to bank. So make sure you pick the most suitable Savings Bank Partner.
If you want to try the 52-week money challenge, make it a habit to deposit your savings on a monthly basis to avoid making excuses for using it. Print out a copy of this money challenge and mark the amounts you have saved so far. There is a marginal feeling of accomplishment seeing how much you’ve saved up.
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Make Saving a Habit
We don’t just save only when we’re on the mood. It doesn’t work that way. It is important to develop a habit of saving to help you weather the storm during emergencies or give you a little extra to start investing to multiply your savings.
One thing very crucial to remember. Don’t only save what’s left after spending instead remember this basic formula:
INCOME – SAVINGS = FOR EXPENSES
Your savings should be at least 30% of what you are earning. Never ever touch your savings if you’re running low on cash unless it’s for a “real emergency”. As long as you think you have enough left for your meals, fare, and other basic necessities, you can hold off until the next pay day.
You can also ask your Accounting Department if it’s possible to deposit a percentage of your paycheck every month into a savings account, so it’ll be easier on your part to comply and commit to your goals..
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Start an Emergency Fund
An emergency fund is different from your Savings. So what is an emergency fund?
Your savings account is your goal – intended for things such as a down payment for a car, house or to finance a long-planned travel. On the other hand, an emergency fund is a backup plan for when you lose your job or when one of your family needs medical assistance.
Typically, it should be enough to cover four to five months of your expenses in case you suddenly become unemployed. Personally, I am allotting P 300.00 every payday for it. However, experts recommend a minimum of P 1,000.00 per month.
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Monitor Your Expenses Smarter
Be as money savvy as you can. Compare prices from stores so you get the better deal. Buy in bulk to take advantage of wholesale prices. Plan your meals for a week to avoid eating at fast food restaurants. And oh, another golden tip, don’t shop when you’re hungry! Yes. Smelling the aroma of the food is mouthwatering enough when you’re not hungry, it’s all the more irresistible when you’re hungry, so make sure to feed yourself prior to shopping.
Avoid downloading shopping apps such as Lazada, Shopee and Zalora instead, take advantage of budgeting apps. Shopping online is easier and more comfortable. With a few clicks, you can have a new pair of stilettos. However, the main problem is the fact that most of these purchases are on credit or a cash on delivery, which means you still have to cash out. Worse is when you don’t have the money to settle your payments for these online purchases. So think thrice or more times if necessary before buying anything online. Ask yourself, do I need it? Do I really need it? Why do I need it? Is it reasonable to buy it?
I always ask myself the same questions before buying anything especially when they’re branded items which are more expensive. Try asking yourself too. Is an P800.00 mascara worth buying when you are earning P500.00 a day? Are you willing to buy that P2500.00 shoes that are actually worth your five-day work? Is it fairly worth your time, sweat and effort? Think thrice and be wise.
Here you go, dear. These are the basics of saving. Learn more steps and money saving hacks by visiting my facebook page, SELA and my blog at https://saiseek.wordpress.com
Let us achieve financial freedom. We can do it together.
