No matter how little you earn or how much you spend, it’s definitely possible to turn your financial life around and save money. All it takes is that first step towards the right direction to get things done. Though it feels like there isn’t any money to save, if you establish a good intention, you will be able to do so unknowingly.
At a young age, all you could probably dream of buying is a new cellphone or the latest pair of sneakers from Nike. At this point, you may not be bothered about buying your own house or saving for old age, but you have to realize that these little thoughts are actually the “fuel” in spending money wisely as you age. Without a goal or purpose, it would seem impossible to turn your dreams to reality.
Here at SHY Philippines, we rounded up a few tips to help you boost your financial life one step at a time. These pointers aren’t really secrets – they are habits that one should learn to develop and practice regularly. Although some “saving tips” aren’t applicable to everybody, I’m sure you will be able to pick up a thing or two from the list that we prepared for you.
1. Get to know your expenses by writing them down
If you’ve figured out how much you spend in let’s say, a week or a month, you will be able to keep track of your outgoings and save the rest for whatever you want to get yourself in the future.
2. Work on a budget.
After having known the amount you spend in a week or a month, start organizing your list by allotting a certain budget on each category (eg. food, commute, miscellaneous). This way, you will be able to plan your spending and limit overspending.
3. Create an “emergency fund”.
If you have already allotted a certain amount to your workable budget, start creating an emergency fund. This is the money that should not be touched by all means unless necessary. An emergency fund should be strictly used solely for emergencies such as during an unexpected illness or when certain calamities strike.
4. Set your financial goals.
As mentioned above, it would seem pointless to save if you have no purpose behind it. Setting a goal is just as important as limiting the amount you spend. Start by thinking what you really need before what you want. Save for your dream wedding or for a brand new car. You could also categorize your goals as either short or long term. It doesn’t matter if you’re still in school or just graduated and started working. These goals will constantly remind you why you shouldn’t purchase this or that at the moment.