I read countless of blogs, articles and financial related topics about proper savings. Each has different formula. This articles is not different from others but I'm just going to point out some not so hard way to save.
Before going to some list of concerns about saving. There are some psychological mindset to wire first. Why other people are frugal and some are not when both are in the same financial status? Let say they are both rich or poor but they have different money mindset.
That I believe is based on their psychological thinking about money. Values and principles may also add a big factor about it.
These are the list I often heard nowadays when it comes to saving.
1. Too much expenses at home and children to support. So it's very difficult to save. I can agree that there are bunch of expenses at home and when it comes to taking care of children.
2. I do save but the problem is I can't help myself spending those what I save specially when I wanted to buy stuff. In some cases some friends likes to borrow from me.
3. I don't earn too much why bother saving. I might as well go party or buy what is left from it.
Above are the most common reason why we can't start saving. If you already kept something I congratulate you just keep it up.
These are the helpful tips on how one can save given the list above. It's your discernment on how can this relates to you. I'm stating this on my point of view.
Too much expenses at home and children.
Let's try to address the first concern; That I have more payable and children to support. This is very remarkable if one is a single parent. I feel the burden of not having a partner shouldering those expenses. But given the circumstance in life that the Lord gave us. I know he doesn't gave it to you by chance but by a purpose.
Some saving technique requires a proper mindset. If you're not aware of that mindset let me sight you some example so we can do this saving with a right thinking.
Living frugally doesn't mean you need to sacrifice everything. Instead you can still have a living by operating your daily expenses at a minimum range.
Probably you had debt by then to pay. Instead of making it a reason for not saving something. Try assessing some current expenses; then re-evaluate if you can cut off those expenses until it's manageable.
Did you ever heard "If the bed sheet is short learn to curl". It's a nice analogy but I'm not advising you to do this. As Robert Kiyosaki said "Living below your means is killing your spirit". For me it's difficult. One thing I can probably do is to expand what I know for when the right time comes I can weave longer the bed sheet so that I don't have to curl.
If promotion is not within reach learning how to do business or sideline, put money in an investment that has interest return are the one that you need to know about. Take some time to read books on finance or go find a friend who do good in business ask few question how he did manage it. Watch financial topics and go at seminar there are free and paid seminar out there.
If we are working for years now and still we're not able to kept something. Take sometime to reflect what should be I doing right now and why?
If you answer the question let's start walking and eventually run toward your goal.
You ever heard the formula INCOME - SAVINGS = EXPENSES. If you can automatically separate the savings and live from what is left. This would need discipline and clear idea of your monthly expenses.
If you have more expenses than earning. Review again what you usually spend. Is it necessary or not. If it is justifiable that you have small earning. Go for extra income but be sure it fits you.
I do save but the problem is I can't help myself spending those what I save.
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It's very hard to save specially when you're walking in a mall or went by in a food stall. Sometimes you just need to lock yourself at home if you really can. Having bunch of friends who loves going out would also cause you additional expenses. It's not bad to hangout with friend as long as you know your limit.
Why not try opening an extra bank account. Any bank would do as long as you can access it online. Passbook or ATM card. ATM could be easily withdrawn you need to be discipline and sometimes you need to forget that you have money.
I used to keep what I save in a hidden drawer I wrap it up with papers so nobody could able to find it. Fortunately I woke up one day it was gone. Said wew! I need to do better hiding next time. I really felt it's difficult given that I was working below minimum.
Placing all your cash in your wallet or under your pillow isn't advisable. Probably you might feel the guilt if someone ask you to lend him and you won't able to give something. It's always not very comfortable feeling. But in some cases we can't help ourselves lending them or giving.
Placing all your cash inside your wallet is very prone from being stolen.
What you can do is opening several basket (bank account) and investment instrument so the money could grow and you cannot easily touch it.
Having many basket helps. If one basket has been drop you have other basket to count on. This will take as a home work research and being intentional to learn will helps a lot.
I don't earn too much why bother saving. I might as well enjoy what is left from it.
There's a point why bother saving if you don't earn too much. We might not appreciate saving a little but can I ask you? can you spare 50 peso per day?
I illustrated 50 peso because as a minimum as this I believe most Filipino who has a minimum salary could spare this per day. If you still can't do it just simply look for another job that's it. I'll give you the illustration below.
As you can see 50 peso a day is not a lot if you look it on a daily basis. But If you can really see the big picture 18,000 saving annually might give you somehow a decent amount of money in long term.
Let me ask you why bother saving money? Do you have something in mind tomorrow that would start you bother doing this. The point is you should have an objective why do you want to do it in the first place.
Some people might have bigger salary than you have that can afford to spend anywhere. As you can see if you keep comparing yourself to them chances are you may look at yourself too small. That won't get you start right away.
There is an idea that when you start earning big it also increases your spending and expenses. That saves you nothing in the end.
The illustration below gives you an idea what is a 50 peso in the next 5 to 20 years given that you just saving. Investing it in an instrument with an interest is a different story.
I don't love math back on school, actually I really hate computing. When I started to realize we really need to compute small stuff specially if you're planning something in the future or budgeting at home. If you can find a lot of excuses. Validate if there is really a reason why you can't. Cutting weekly gimiks and expensive meal could help.
What I did personally is invested on stocks every month from portion of my income or salary just after I learned the habits of saving. You can still explore many things afterwards.
Simple application
- Compute monthly expenses and income
- Once computed try to see the margin if there is a net income
- If there's no net income validate all the list in the expenses if justifiable
- Cut every expenses you can remove on the list to have more net income
- Once you had improve your net income, it's either you bank it or invest it somewhere it can grow.
- To increase the net income, do learn more ways to earn by trying downloading these e-books click here >>>
Learning to put the knowledge will be the start of result. The application will be the challenging part.
Read also
How to Invest Online in Stock Market
Best Passive Income that Fits You
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