Saving Money

One of the hardest thing a Filipino can do is saving money. It became hard for them because most of the time their expenses is more than what they are earning.

For example: Most of the Filipinos are earning less than 5,000 a month, yet they are spending more than 5,000 a month. In this case, they couldn't really save money, instead they're always short of money through debts and credit.

So, as the time passes by, most of the Filipinos have an increasing debts while having a hard time finding for their living.

Based on my experience, learning to save money is best if it started when they are still young. Parents should teach their children how to save money by keeping it in a piggy bank. While a child learns to keep money in a piggy bank, he also learns to value a money by not spending it in a not useful things.

Then while the children grow, parents should teach them how to set a side a money from their allowances or incomes. For example, if they are receiving 3,000 Pesos as their allowance in a month, then tell them to keep a portion of it as their emergency funds in which they can use it when they are in trouble.

Well, at first, it's hard to save money. But trying to do it everyday will lead them to a well-discipline life wherein they can control themselves in spending.

Experts always advise people by saying that to save money, you must avoid any spending which are not actually needed. In other words, you must spend you money just for your needs not for your wants.

For example, your mind told you to buy a dress. Now, think first and ask your self these questions:

1. Am I going to buy this dress because I need this?
2. When should I use this dress?
3. Is it for the church or just for casual activities?
4. Is there no other dress that I can use?

After examining yourself, and you found out that it is not really necessary to buy a dress as you wanted to, then just control yourself and don't ever spend money for it.

However, for example, you found out that you really need to buy a new dress that you can use in attending for a worship service because your old ones do not fit already then do it.

I have a friend who told me that he lost budget because of he forgot to include in his budget the payment for the gas, water and power.

Now, these three things are actually necessary in life. You really need to spend your money for it. Just imagine if you failed to pay for this, and these services will be cut off... Your life will become at mess.

So, to avoid any failure in budgeting, you need to consider saving money for these from your weekly income or monthly income. But you need not forget that you also need to save money for your emergency fund.

This emergency fund will be used for your emergency needs that includes, hospitalization and other similar spending.

So, if you are receiving monthly compensation. The first thing you do is save money for the emergency fund and for the necessary services and goods like the gas, water and power. After that, that will be the time you divide your money for the weeks of the month.

Now, let's take an example: Your monthly compensation is 6,000 Pesos. You can save 500 Pesos for your emergency fund.

If a tank of gas is usually emptied in three months. Then just divide the price of a tank of gas by three. For example, if your tank is 7kg and its price is 600 Pesos. So in a month, you need to save 200 Pesos for it.

For the water, you can save the amount a little more than the due before. For example, if last month you paid for the water services 200 Pesos, then save 250 Pesos.

The same is true in the power service. If your last month's due is 1,000 Pesos, then save 1,100 Pesos.

All in all, you need to save 2,050 or say just 2,000 Pesos out of your monthly income.

But since your monthly income is just 6,000 Pesos minus the saving which is 2,000 then you only have 4,000 Pesos for other needs. You divide it into four weeks so you'll only have 1,000 Pesos to be spend for every week.

Your spending must fit to only 1,000 in a week. You need to be tight in your spending. If possible you can still save few from it.

In that way, your family is safe from any emergency spending.

By the way, if you want to earn extra income, then why not try the way the Filipino Professional Tambay are doing.

Do it and see what will happen.