According to statistics, only 4 out of 10 Filipinos have savings. One reason is most Filipinos are not aware how banks works or they just don’t know how to save.
Adulting is hard. Really hard. I realized it when I decided to live in Cebu alone (not really, I’m with my brother but technically due to work schedules, we rarely meet) From eating, cooking, commuting, doing laundry, cleaning all by yourself, the hardest part is the budgeting. But to tell you honestly, budgeting is the most fun for me. I get to manage my own money unlike before, whenever I ran out of allowance I could just easily ask my Mom or Dad to give me even if I’m already a working young adult. Such shameless days.
Why am I writing this and why you should trust me?
I decided to write this because I notice people my age don’t seem to know what budgeting or savings is. I feel bad when they say, “oh, tingbits na” even if it’s only 3 days after pay day. I feel bad whenever someone comes to me to borrow money because they spent it all already for God knows what and here I am, enjoying my 3in1 coffee which is also free in our office.
Anyhow, you should trust me with this post not because I’m a Finance graduate or because everyone who personally knows me, know how a cheapskate that I afraid of debts BUT simply because the tips below worked for me.
I have two types of savings. One is for emergency or short term like what I call enjoy money, the other one is for long term (where investment, retirement and such) falls.
YOLO, you only live once, life is short, why save? IT’S FOR YOUR OWN SAKE MY FRIEND. What if while YOLOing, something happened, you lost something, accident, worst death. Where would you get funds if you don’t have any savings at all? Let friends or family pay for you? Loan?
If money is not an issue to you then I encourage you to share this post to those in need. If you are those who struggle in saving up, this post is for you. This serves as a friendly advice to fellow a young adult struggling in adulting.
MY 5 SAVING TIPS
- Control Yourself from Impulse Buying
I struggled at this one because whenever I go to Colon or Carbon, I saw lots of stuff that are very cheap, very very cheap that I just want to buy them all. Even going to malls or bookstore, I just feel like they are talking to me, begging me to buy them.
How did I overcome it, I avoid malls and if I go, I make sure that I only but what I really NEED. Buy only what’s on your NEED TO BUY LIST. Resist temptation and prayers, besh.
The only thing I impulsively buy all time up to now are food. Food is lifer.
- Always follow the saving equation: Income – savings = expenses
I know expenses are important, paying bills, rent, allowances and food. My best tip for starters is to set a certain percentage for savings on your income and increase it from time to time. You are not born just to pay bills, friend. Please save, savings will help you invest.
SALE, this seems to be the favorite word of my officemates. “Guys, sale sa SM? 50%”. I know the feeling because I was also a sucker of SALES, discount coupons and all. There’s nothing wrong in taking advantage of sale but be sure that the items on sale that you are planning to buy are on your NEED and PRIORITY list. Ask these question when there’s a sale. Do I need this now? Will I used it everyday? Do I have money to buy it?
Please ask your inner self!
- Always Follow Your Money
So, let us say, you already bought something that is out of the budget, my friend, that’s okay, as long as you are happy, it’s really okay. Just keep in mind that you are keeping track where your money has gone to. Short-term memory loss lang? Amnesia? I’m shocked every time a colleague would say, “I don’t know where my money went to. I forgot where I spent it”
For starters, list it down. I wish I could show you my EXPENSES TRACKER but I ashamed how most of it goes to food. Yes, I have expenses tracker on my journal. You can do it too.
- Be Financially Literate
To be honest, I was only aware about financial literacy during college days. I remember my professor before our formal lessons start, he would always let us see ‘KaPiso’ videos. I wish we were taught about it sooner. I hope now that we have K12, they will incorporate Financial Literacy.
So how to be financially literate these days? Easiy, do your research. Google is a friend. There are a lot of blogs who focuses on Personal Finance. You can also invest on books, the first ever book I read and my favorite to this date is Rich Dad Poor Dad by Robert Kiyosaki. It’s never too late to start.
I know how hard it feels to save at first. The tips above are doable and I hope you are motivated right now. It takes a bunch of willpower to not spend but as the saying goes, “SAVE MONEY AND MONEY WILL SAVE YOU.”