Last time, I published the first principle of FMB blog about spending money less than what you are earning. I discussed in that posts that spending less than what you earn is the basic and fundamental lesson of personal finance that this blog is teaching. The second principle that I would like to give you this time is about saving money.
There are many people who don’t know the important of saving money until they realize its value when something happens to them such as loss of job and other emergency situations. I admit that before me too doesn’t give priority in saving money until I almost loss my job. Since that time, I strive to save even a small amount of my salary. Maybe you’re asking when is the best time to save? Is it when you get a high salary?
The advocacy of this blog is to save money now! Don’t procrastinate, no other time is the best moment to save than NOW! You don’t know what will happen tomorrow or in the future to come so it will be better to start today.
How can You Save Money Now?
The first act is the hardest part. However, once you started saving even in small amount, it will be easier the next time around as you build the habit of saving money.
1. Decide and act now
It is important to make decision now whether will you save or not. Once you’ve decided to save, you should act immediately, don’t procrastinate or delay. Remember the best time to save is now especially this Christmas season when you have more money than any other time of the year.
The act of saving should start in your mind and then from the firm decision to save. Many finance bloggers and gurus suggest to save at least 10% of your income. I agree with them, however,if you find it difficult to save at that percentage, you could start at 5% of your salary or less and then increase it after two or three months by 1%. It should be the one that you are comfortable to work with.
2. Make a piggy bank or Open a Savings Account
Piggy bank is a good starting point to save money especially if you have left over coins every time you went home from work or your business. It’s only a training ground, you should open a savings account once you want to save bigger amount of money.
Some banks like BPI offer an automatic savings account that automatically withdraws money from your payroll account each month and then deposit it to your other SA automatically. The principle here is to schedule the transfer from your payroll to your automatic savings after one day you receive your salary so there’s still money on your payroll account.
3. Start to monitor your saving plan
It is good to have a saving plan and constantly monitor you progress. If you have a automatic savings account, this will be very easy because you can get a statement of account instantly via Internet banking. So you should apply an auto-savings account plus Internet banking to view and monitor your account from any where at anytime you want. Actually, if you are saving automatically, monitoring is not needed because you can regularly see it once you log in to your online banking account.
Saving money shouldn’t be ignored because it is important part of your life and your family. It can be hard at the beginning but as you go on with the habit of saving, it will become easy as the time goes by.