Today, I'd like to share the 3 steps I've taken to start saving money.
I'm not a finance guru. Let's just put that out there. I don't have a degree in finance, nor have I attended many finance workshops.
I am a Mom of two and a wife who has to budget the finance daily. I have a son who is in Grade 11 and another one about to start school. I have made mistakes in the past when it comes to money, and I am learning how to handle it better.
So, I introduce the SPS process to people like me who still have a hard time understanding the whole investment thing and just want to start saving a little (gotta begin somewhere).
Mind you, this is nothing fancy, and you've heard it before. I just wanted to call it SPS because it's easier to remember this way.
S - SAVE a portion of your earnings. Ideally, they said it should be 20%, but if we are being honest, sometimes, you just can't do 20%, so I would suggest allocating what is doable. Pick a fixed amount, set that aside IMMEDIATELY, and then forget about it.
You can also SAVE coins that you encounter on a daily basis. You can do a Php20 COIN challenge, and since that's still not common, every time you meet one, you put it aside and save it for the year. End of the year, whatever you accumulate, you put in the bank.
Speaking of banks (which is not sponsored at all), I recommend putting money in SEABank. I have no idea who owns it, but they offer 6% PA interest, and come October, it's 5% PA which is still way more significant than other banks.
The money I've put earns interest on a DAILY basis. I kid you not. Right now, in less than a month, I have put money, and I've already made Php13. Some of you might say huh? You're boasting about Php13. Dear, no other bank has ever given me Php13 in a month.
Again, this is for people like me who make just enough and just wants to have a little set-aside. The more significant the amount you put in SEABank, the more interest.
P - PAY all your bills and dues. This is the next thing you need to do with the money you've earned. Pay all the fees, rent, and maintenance, and buy all your needs for the month or until your next payday. If you can stock up a little bit on things that you regularly consume, well and good.
The most important part of this process is that you are paying what needs to be paid for you to live a comfortable life or, at the very least, not end up in debt or on the streets.
This part also includes paying off debt that you have or parts of it at the very least. Remember that the goal is for you to be able to have a small nest egg.
S - SPEND on your wants. Now that you have SAVED and PAID allot a small amount for your wants.
What? Shouldn't we save everything?
Ideally, this is the case, but realistically, this is not right. We work hard, and we work to live, not live to work, so spending a little bit on things that just make you happy is okay.
We must feed our souls and heart because this will inspire us to do better at work and recharge us to be happier. When we deprive ourselves too much, it can cause adverse effects and will make us feel less inclined to achieve our goals. Think of this as a reward because you adulted.
I hope this simple article helped you in your savings journey. I know that I felt happier once I started implementing the SPS process in my life. I don't feel deprived anymore, and I feel more motivated to save and work at the same time.