(Photo from AFP)
INQUIRER.net’s personal finance offering for the day has a quote that needs to be given the limelight as often as possible:
Some people reason out that with their meager income, they can’t afford to save. But the reality is, no one can afford not to save.
I realize that there are different successful strokes for different folks when it comes to savings. I am not anal with tracking expenses (just like All Financial Matters and he said it so nicely hehe) so jotting down each expense in a worksheet doesn’t work for me also. For others, that’s the only way they can save regularly.
The single most important tip I have heard so far on saving wisely is automating your savings. I was interviewing a newly wed couple last weekend and their eyes just lit up when I told them about automating savings.
It’s no big surprise why people like this tip. Budgeting is such a painful experience. Shopping on the other hand is bliss! So, the best way to save is not to let that money pass through your fingers. Automate your savings, and spend what remains the way you want to spend it! Simple, quick and easy.
How do you automate your savings? Let me count the ways.
- 1. Set up a separate bank account (passbook only) and write yourself a check for 12 months to the tune of whatever amount of savings you target monthly. Every payday works too. Treat this check as your most important “billing” for the month, second to tithes.2. Set up a separate bank account and program your payroll account to transfer a set amount to that separate bank account regularly, monthly. My checking account with Philippine Savings Bank has this feature. Many other banks already have this service also. If your bank doesn’t, maybe it’s time to switch!
3. Some mutual funds, unit investment trust funds, and variable unit-linked products also allow payroll deductions. This is another option.
For this to work, however, credit card debt and other high interest debt should be at a minimum. No use saving when you’re paying high interest on consumer debt.
Say this with me: no one can afford NOT to save.
Saving automatically will allow you to enjoy what you have. Shop, spend, eat with gusto, because you have already taken care of saving for tomorrow. Compare that with trying to track each little expense and scraping savings from the bottom. Nope, not for me. I like my steak eaten with a smile ☺
May 28th, 2008 at 5:54 pm
[...] up this tip by automating your savings. If your bank can’t do this for you, transfer to another [...]
February 2nd, 2008 at 5:51 pm
Salina, I was just reporting on the GNP figure. I wasn’t trying to make people believe in it or disbelieve it. And I haven’t deleted any of your comments, FYI. If there are any that have not made it to the comment section, they were probably caught up in the spam moderated list. When I am in meetings, comments will not appear because I have to approve each one of them, so there may be some delays on some days.
This is a blog that wants to deepen discussions on money matters so that we can all help each other to become financially independent. We encourage everybody to join the discussion. That means there is space for everyone with different opinions. But we all have to respect each other’s points of view — that’s the only way for humankind to move forward. Participating in a blog or forum means we have the maturity to handle diversity of opinions — and should not expect everyone to think the way we do. Regards.
February 2nd, 2008 at 5:45 pm
Jersey Girl, sorry to hear about your lactation problem. It seems you did your best to develop your milk supply — you even went to a lactation consultant. Problem with most mothers especially here in the Philippines is we don’t even try and just accept that the bottle is the best way to breastfeed. You belong to a very small percentage of the population of women who cannot produce enough milk, but you were smart enough to find ways to reduce the cost of formula. Way to go girl! Thanks for sharing!
On another matter, while I was reading your comments, I realize that a lot of people don’t realize the cost of migrating to another country. My mom and sister has been going after me to migrate saying it would be better for finances and stuff like that, but I have a feeling it’s not as easy as that. Do you think it would be a good idea to start a discussion on the costs of migrating? Some people I interviewed, for example, said if they were given the chance to decide all over again, they wouldn’t have gone to the US to live. Some naman said it’s still way better than the Philippines. I want to poll people on this. What do you think?
February 2nd, 2008 at 8:39 am
It’s my pleasure to share my experiences esp if it will help others….Thank you Salve for the breasfeeding tip to save but I have lactation problem - I don’t produce enough breastmilk. I tried on my first child and even with the help of a lactation consultant but I failed to produce enough to make him grow because he was almost 1 month old then but he wasn’t back to his birth weight yet and I got so scared for my baby that’s why I switched to formula -and voila, in a few days, he gained weight immediately…. In my case, it’s a myth that babies become sickly when they are fed formula… not my 3 babies, ages 3, 2, 1! They are all healthy, didn’t get seriously sick at all except for the usual cough and colds due to weather conditions and the only visits they had with their pediatrician are during their well visits when they get their immunizations as required for all infants here in the US. Although I don’t produce enough breastmilk, it’s a consolation that they got the initial most important breastmilk, the colostrum which they got during the first 2 weeks of feeding… So I have the conclusion that not all women are naturally equipped with enough lactation abilities…. anyway, to save on formula, we signed up online with the formula company and they send coupons for us in the mail.
February 1st, 2008 at 8:55 pm
Salva: Now, You know why there is hardly anybody posting in your blog. You’re bias! You keep deleting my posting I guess you don’t like what I post. Oh, well. Since this is your blog you have every right to delete any posting you don’t like. You sounded just like Gloria Arroyo, The FAKE PRESIDENT OF CEBU. Anybody who speak against her bogus regime either they’re missing, Rot in jail or get kill. I got the message.