by Evie Francisco
We all agree! It’s wise to save money. The great challenge, however, is how to start and how to sustain the habit of saving.
Many years ago, I heard a testimony at a financial seminar. Someone started a business from her small savings. I was challenged to take the first step of saving for initial capital to start my first business. From my small salary, I started to set aside Php200 every payday until I was able to save Php2,000. I used that to buy an initial stock of apparel that I sold to friends and contacts. I ventured into T-shirt printing as well, using the income I had earned from the apparel business. This was possible by taking baby steps in savings. You can do it, too!
S–Start small.
Regardless of your current financial status it is important to start saving and keep saving. Open a separate savings account where you religiously put the amount you set aside to save. Continue saving this amount until you can increase it. How much should you start with? That is up to you–maybe as little as Php100, Php500 or Php1,000. Never mind if it seems insignificant at first. Just start…and continue!
A-Adopt a budget.
A budget is a plan. It forces you to operate within an orderly structure. Stability happens when there is order. Budget your expenditures within your income, not within your needs or wants. Determine how much total income you are generating monthly. Then, list your basic needs and assign an amount to each. From that budget, set aside a small amount and put that into your savings account; do not even consider spending it, no matter what.
V-Validate every expense item, all offers, sales or investments.
Impulsive buying has no place in achieving financial stability. Department stores, malls and credit card companies are all experts at enticing people to make impulsive decisions to buy now. Always ask first, why now? When someone approaches me to buy or invest in something, I discuss it first with my closest friends and allow them to show me the pros and cons of the offer. I always postpone any financial decision that will impact future commitment. Remember your budget should be able to handle all your financial decisions, including emergencies. Review your past expenditures to improve your ability to make better financial decisions.
I-Increase your sources of income.
There are only two ways to increase your savings. Cut down on your expenses or increase your income. Increasing one`s income could take the form of a promotion with salary increase, an additional job, entrepreneurial endeavors, or adding an income earner in the family. I believe there must be a family discussion about finances so that everyone is aware of the need to operate within the budget. All family members can contribute to meet the budget; those old enough to work can find job opportunities to earn an income that they can share to cover some budgetary items. In my own experience, to increase my savings in a shorter time, I engaged in buy and sell business. Even though I experienced rejections and being swindled, I still managed to increase my income.
N-`NO`
Say no when you need to. You just need to say it with grace and courtesy. Choose to stick with your financial plan and avoid buying things on impulse.
G-Give according to a plan.
You cannot avoid giving assistance to loved ones or others with needs. Set aside a certain amount for this purpose monthly. If you have available funds it is easier to decide when and how much to give. It is unwise to borrow in order to help. If you do, you will end up being the needy person. I implemented a personal system of designating Php500 every month for this purpose. The only time I draw from this fund is when someone with valid reasons asks for my help. Beyond the amount accumulated for this purpose, I honestly and regrettably decline any request since I cannot afford it.
S-Strive to be self-reliant.
If you are too dependent on your family, partner, company, friends or community, you will not maximize your own growth potential. Being self-reliant will help you achieve personal success and empower you to lift up others. You will not be afraid because you have learned to depend on yourself and on God.
