I’m intrigued by the phrase “scrimp and save.” It sounds so crunchy and delicious when it actually connotes discipline and sacrifice. :-p
It made me think of how far people will go to save money. The genetic footprint, as well as cultural background, can impact this tendency greatly. For example, some people can skip lunch to save for something. Some can’t.
While interviewing Jocelyn Sta. Ana, Bank of the Philippine Island’s vice-president for retail mortgage division, for my article “Goodbye easy home loan terms?” published in the Philippine Daily Inquirer today, she shared this amazing story about a friend and gave me permission to share it with you.
Celyn says that her friend, who works for a well-known multilateral agency, decided with her musician husband to buy their own home. They were eligible for a loan, but their money-smarts told them to pay off everything in two years rather than opting for what most Filipinos go for –- the 10 to 15-year term.
Some people might describe their strategy as “extreme personal finance.” For two years, Jollibee meals were luxuries. They consciously kept their Meralco bill at P800 per month. I’m guessing that means no airconditioning and lots of 10-watt-bulbs. “Our joke was that they used Christmas lights in their bathrooms,” Celyn said.
The husband who did the grocery always had a plan before entering any store and he spends plenty of time comparison shopping. The wife didn’t buy make-up until the loan was fully paid.
They were the brunt of all jokes, Celyn said. And yet the last laugh belonged to them. In two years, they paid off the loan and since then, they’ve been to at least one vacation overseas to celebrate.
Do you think that’s too extreme? Or just a millionaire mindset?
My eyes have been glued to my blog post on “How did you make your first million” since I uploaded it last week and the comments that it sparked from readers! Sixty comments so far and counting! Thank you so much for sharing your stories. You inspire and make people believe that crossing that one-million mark is possible even for ordinary people. And the great thing is it doesn’t have to be the final mark.
Go, go millionaires!
September 18th, 2008 at 2:39 pm
I’m turning 24 this October 30. I’ve heard and read all this kind of saving. Nevertheless, I hadn’t plan it right away three years ago. So for my birthday wish to do, I’m going to save for my savings in a cooperative bank, and also in our province coop bank which after you make a 2T shares, your money raise. And if someone wanted to sell his/her shares, I’m going to buy their shares. It’s my future after all.
save and invest in a mutual fund. Still finding and discerning the right prospect to trust.
August 27th, 2008 at 2:09 pm
I’m 22 and I have never been conscious all my life to save until just now. My # tip in saving is to buy the uber big bulk of an item (let’s say a laundry powder, shampoo) because that costs way lower than the small one.
August 25th, 2008 at 2:58 pm
It hurts if we simply save money. We should invest instead.
August 20th, 2008 at 6:56 pm
Just recently, I was very disappointed with myself when I audited my bank savings for 2 years. I found out that my supposed to be 60% per month savings just turned out only an average of a little less than 50%.
Maybe I need to shed alittle bit more of my spending whenever I go home for vacation twice a year.
August 20th, 2008 at 12:07 pm
You might be surprised but there are actually very rich people who live simply and not just to pay off for something but as a general way of life.
I know someone who doesn’t have much furniture at home except the necessary ones (they turn on their aircon when its really, really hot), buying only second hand cars BUT, he flies once a month to HK and Europe to sign papers for his multi-currency investments.
He even goes to Divisoria to shop.