What are the practical ways to save?

A Facebook user named Kristina reached out to us through our Facebook page asking for help on how to have a good savings habit. Here’s her concern.

“Gud pm po. Tanung ko lng po kung anu yung practikal na paraan para makaipon?? Nagtatrabaho na po ako ng higit 5 taon pero wala pa din po ako naiipon. Anu po ang inyong mapapayo? Salamat po!! – Kristina” (Good pm. May I ask on what are the practical ways to save? I have been working for more than 5 years but still haven’t saved enough money. What are your suggestions? Thank you! -Kristina)

Hi Kristina!

Thanks for dropping by!

To help you with your concern, here are practical ways we can recommend in order for you to get started on saving.

Identify your financial goals. What are your reasons for saving money? Is it for retirement, for emergency or for your dream business? The first step is to identify your financial goals. Once you have identified it, the next step is to know how much money do you need and how long will you save for each of them. Start small and be patient.

Pay yourself first. Each time you receive your paycheck, make sure you set aside a portion of money onto your savings and the remaining money will cover the expenses. Always remember this formula: Income – Savings = Expenses. Immediately deposit your savings into your bank account so you will avoid touching them.

Make saving fun and challenging. Ever heard of 52-week ‘ipon challenge’? This strategy entails setting aside an amount of money per week for the entire year. The amount of money gradually increases as the weeks pass by so it will definitely challenge you to save more.

Live below your means. Living below your means is to spend less than what you earn. In doing so, you have to identify your needs vs your wants and have a discipline to yourself not to spend beyond what you earn.

Monitor your expenses. Keeping track of all your expenses will give you an idea of how much you spend every day. Doing this will help you know where to cut down in order for you to save money.

Hope the above tips will help you in having a better financial life. Start small, be patient and believe in yourself that you can do it. May God bless you on your financial journey! 🙂