Everyone wants to get rich but some of the key components in having generational wealth are investing and working smart. However, one of the most overlooked and underrated aspects of financial stability nowadays is saving. Many influencers tell that saving is just keeping money in a bank account and letting it sit there.
The reason why experts are telling this is that inflation weakens purchasing power every year. While this is true, saving can also help you in preparing for the worse. Other people also have a savings account for emergencies and the occasional vacations with their family. In some cases, people save for capital.
Whatever your reason is, saving is a good way to have more money in the future and this should be considered not a habit, but a skill. Some people save money better than others but you can develop this skill too by following these steps.
Have a Record of your Expenses
One of the ways to save money is to, of course, record everything you spend in a month. This means that you have to keep track of every household or personal item that you purchase outside of other expenses. The old-school method of recording your expenses is listing them on a piece of paper. But now, some apps can help you.
If you have bad spending habits, you might want to spend using cash and not a card. This way, you’ll have a more tangible item that you can see instead of just swiping for every purchase. And after every purchase, keep the receipts so you can track all your expenses. This might make you look like an accountant, but it works.
Have a Budget for Savings
You have a budget for clothes, food, bills, and miscellaneous expenses. What you should include in your list is a mandatory budget for your savings. Some people even try to save by the traditional means of a piggy bank. There is even a so-called “Ipon Challenge” where you have to save a minimum amount of 20 pesos every day for a year.
When doing the ipon challenge, you should consistently save the desired amount that you can without missing any day. If you look online, there are even the total values of what you’re going to get per year. Even one peso a day can guarantee you 365 Php by the end of the year. What’s great about this challenge is it won’t be a burden once you stayed consistent.
Find Alternative Means to Spending
Cutting all your expenses is essential when it comes to saving money. One of the good ways to save money is to find alternative means on the things you spend on. For example, if you can find a cheaper brand of a food item, you should purchase it instead of the regular ones you buy if they have the same taste.
Another way to cut your spending is to cancel subscriptions that you don’t use often. Most of the time, these are gym memberships and cable TV which no one uses due to online streaming platforms. Unfortunately, eating out is one of the things that you should limit yourself to. But if you can’t, you should have a budget for it.
Ask Yourself Why You are Saving
Saving is a great way to have more money. But before planning to save, you should ask yourself why you are cutting your expenses and where the money is going. As the saying goes, your money is not yours unless you spend it. So before spending, determine what your short-term and long-term goals are.
If you are saving money for long-term goals such as retirement or a house and lot in the Philippines, it is best if your money goes to an investment plan. Licensed financial advisors will help you in achieving this goal. Some people save for the sake of saving and this is not a good idea because of inflation.
Are You Saving for your Dream Vacation?
Watch your Savings Grow
Some people save for the sake of seeing their money grow and nothing more. You shouldn’t be saving for the reason of seeing a higher number every time. However, you should consider checking your savings account every month. Knowing that your savings are growing feels good and is a reward itself.
This can give you the inspiration to save more and make you feel that you’ll get whatever you are saving for as soon as possible. You can also review your progress every month when it comes to budgeting so you can see if you ever have problems. You can watch your savings by simply installing the app of your chosen bank.
Keep a Separate Debit Card
One of the best ways to save is to have another debit card and have your savings there. But instead of keeping it, you should have a trusted friend or family member keep the card. Then, you would want them to install the bank’s app so you can have an update on how much money is being added to your account.
If you’re worried about safety, you should trust your debit card to someone that would not think of using your card. On the other hand, your card’s PIN is there to make your card more secure. Your bank can also notify you whenever you’re making a transaction via text message or email.
Invest in Real Estate
Another way of saving money is living in a house and lot in the Philippines with a competitive monthly amortization and can provide the highest quality of living. If you are looking for a house and lot for sale, Camella is one of the leading real estate developers in the Philippines. With 45 years of experience, Camella provides a secure and serene way of living.
Saving money is indeed difficult, but you should also know that spending money for yourself is not so bad either. Saving is different from hoarding because when saving money, it goes somewhere. If you’re a millennial or Gen Z that has no responsibilities, you should not be pressured in saving that much. Yes, it’s good to have money for the future, but you shouldn’t cut yourself off buying the stuff you love.
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