I’m sure you have heard of the fable “The Ant and the Grasshopper” which tells us the lesson that it’s best to prepare for the days of need. And we know that the hero of the story is the ant.

However, why is it that most of the people still have no or little savings?

I know everyone will agree with me to say that saving is not simple to do. But, spending is.

How much should you save up?

There is a 50/30/20 rule which states that one must save 20 percent of his monthly income for savings. 50 % will be for the essentials like food and rent while 30 % for lifestyle choices like cable or fast internet service.

So, let’s say that your monthly salary is P 20,000 per month. 20% of it will be P 4,000.

That will be the amount you will set aside for your savings fund. Do you think you can do it?

The common mistake of most people is when they receive their salary, they spend the money first and the remaining money will be put to their savings. But, I am certain that most often than not, there is nothing left.

SALARY- EXPENSES = SAVINGS

“Oh! Meron akong extra P 1,500. E-save ko to pero sale sa mall ngayon. Check ko muna!”. Ending of the story: SAVINGS = 0.

Change Your Habit and Start Small

Study your habits about money and savings. Do you follow a rule you find effective in helping you save or are you one those whose savings are most likely inexistent?

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If you think you need to change, then CHANGE. Don’t feel the need to be like everyone else who has new gadgets, new clothes, and cars. Maybe they really have the means to spend. Know yourself better because it’s all about you and not them.

Think about your inspiration and what you want to achieve. Do you want a new computer? Do you want to retire early? Every time you receive your salary, just stop and think for a moment of your priorities in life.

There is nothing wrong with starting small as P 500 per month. Keep on doing that for a few months until you have better control of your income and expenses. Eventually, you’ll find yourself doing it regularly and later on, you might want to increase your savings per month.

I hope this article will help you start up your savings. Happy savings!

How do you handle your money?

Do you follow any rules in terms of saving up?

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