Ever heard of Charles Darwin’s Theory of Evolution? Well, I have my own version… Financially! But, it’s not a theory. It’s based on my perspective on actual means of innovation and new discoveries during a span of time. Curious? Okay, let’s cut to the chase.

Evolution of Saving

Saving, which is an act of putting money aside for future use, has been practiced for a lot of years now. As time goes by, people would actually think of new and effective methods of saving. Just like the Theory of Evolution, where species are developed due to the change in physical and behavioral traits, saving has evolved by considering the changes in industry status, money-handling behaviors, and the like. 

As a child, I’ve been very keen about the idea of business and saving that I still practice it until today. From there, I would like to illustrate how methods of saving (that I know of) changed over time.

Although new methods have been introduced, each one of them is still being followed in today’s society. The use of such methods depends on who and what type of “saver” you are. 

Coin Bank

I think this is, by far, the most used method of saving. Everyone, even a child, can use this. I started saving using coin banks when I was a kid. I saved what’s left from my allowance, even if it’s just a peso or two. Coin banks are sold everywhere that’s why people who plan to save for just a specific type of goal opt to use this method. For example, if you are planning to buy a gadget, the easiest way is to save via coin bank. No hustle and bustle.

It’s like the “traditional” way of saving.

Vault or Safe

This is not necessarily a method, but more on a space where you store your savings or your valuable properties. 

Usually, the upper class people use this. I picture classic Filipino movies where rich people often keep their riches in a safe. 

Of course, they are made to protect these valuables from robbery/theft, fortuitous events like flood or fire, etc.

Banks or Financial Institutions

The Financial sector has been around for several years. As more and more banks  and financial institutions emerge, financial services emerge simultaneously as well. 

Banks hold savings account for people who are interested in saving and earning interest at the same time. However, interests in banks aren’t really high enough to make your money grow in a short period of time. 

It’s advantageous to open a savings account if you plan to keep a really huge amount of money. It’s also okay if you don’t mind your funds being idle.

On the other hand, if you don’t want your funds to be idle, Financial Institutions or Lending companies like Loansolutions.ph, could be an inspiration. They offer a wide variety of lending services like Personal Loan, Car Loan, OFW Loan, Business Loan, Home Loan, and many more.

You can make use of your savings and start circulating your cash flow by having even just a small-time lending service. This is very common to Filipinos and it’s been a means of living for most. This will earn a higher interest compared to banks. You could earn and help at the same time. Just remember to make it legal!

Investments

Although saving and investing are technically not the same thing, most people tend to invest, not just to save, but also to get returns. People think that investing their money will get them higher returns compared to when they keep their money in savings accounts. 

Investing is used when you think of your long-term goals. When I say long-term, I mean at least 5 years. Investment securities like stocks, bonds, and mutual funds help you with your goal. However, investing is risky especially when market indicators become volatile. 

Usually, only people who have financial or business backgrounds use this method. Using this method without any idea may lead to your loss. 

Money-saving Challenges

This is the most trendy method of saving. If you plan to earn a huge amount of money but want to exclude yourself from the application process of banks and investment institutions, you could try these challenges. Are you familiar with the 52-week challenge? If not, here’s a quick guide.

You can choose whatever amount you want to begin with. So how does it work? Every week, you have to keep adding the amount you chose (in this case P50) to the previous week’s amount.

Example: For the first week, you’ll have to save P50 (because that’s the initial amount). For the second, you’ll now have to save P100 (P50 previous week + P50 additional). Then the list goes on, continue until the 52nd week. This is basically a whole year of saving. 

For the P50 increment, you’ll get P68,900 at the end of the challenge. 

There are still other ways of saving that most people practice. Those may not be mentioned in this blog but I’m sure they are also effective. Who knows, we might see new and improved methods in the future.