Q: I know I should be saving money for my future, but I never get to do so. It's not because I don't want to. I want to save but can't seem to do it. How can I turn a new leaf this year and save money? I know this will be good for me in the long run. - Glenn
A: Being aware of the need to save money for the future is a good start. We all need to set aside money for future needs, especially for the time when we enter retirement and cannot work anymore. Those who have put up a business may continue to enjoy the profits from that business even in old age. But what about those who work by rendering a
service to a company as an employee, or to many entities as a professional or consultant? This is just one of the reasons why we need to save.
We also need to have a ready pot of money for those times when a family member gets sick or loses a job, or when calamity strikes and you need to have repairs done to your home, much like what many people realized after typhoons Ondoy and Pepeng flooded many areas of our country in 2009.
Saving for the future consists of two parts: setting aside money and limiting spending to give room for more money to be set aside.
We agree with you that saving is hard to do. It takes discipline to do so. However, that does not mean that it is impossible to do. Take little steps by tricking yourself into saving. Here are some ways you can do it:
1. Open a new bank account for your savings. This should be separate from your payroll account or from your checking account where you draw funds to finance your normal day-to-day expenses. Then as soon as you have a new account, link this up with your payroll account via Internet, mobile and phone banking. The new accounts clerk at your bank can help you with this step.
2. Set up an automatic transfer of funds every pay day from your payroll account to your savings account if your bank has this facility. If not, do the money transfer yourself via Internet, phone or mobile banking. Remember to do this on your pay day so that before you even withdraw any money from your paycheck for your monthly expenses, you have already set aside some money (ideally 10 percent or more) for savings.
3. Open an investment account. This may be a time deposit account or a share in mutual fund or unit investment trust fund or even an account with a stock brokerage. Whenever you have enough money in your savings account, transfer some money to an investment account of your choice so it will have the opportunity to earn more money for you. Bear in mind that some investments come with some risk (example: stocks or equities) so be sure to read and understand all the relevant issuer's or fund information sheet, risk disclaimer and disclosure statement and discuss the particulars of the said investment with the sales intermediary. Do not invest in the investment instrument unless you fully understand and are willing to assume the risks associated with it.
4. At the end of each day, collect all loose change from your wallet and pockets and put them in a piggy bank. This old technique still works. Don't spend this amount; instead, when the piggy bank is full, break it and deposit all the cash in your savings account. You may be surprised that a little money set aside each day can become a big amount come year end.
5. Get all those freebies available. Some stores give rebates or discounts on your next purchase. Keep those coupons and use them on your next store visit. A number of credit cards also offer rewards points for purchases. You may exchange your points for an item you need in the rewards catalog, or opt to use your points to pay for up to half of the purchase price-for a limited time, Citibank has this facility open to cardholders when shopping at stores or eating at restaurants.
6. Annualize small regular expenses. If you are a coffee addict and pick up a cup of java at a coffee shop every working day, multiply your coffee expense by 5 to get the weekly amount, then multiply this by 52 to get the annual amount. This is how much you spend on coffee every year. Then multiply this amount by at least 2 percent (conservative time deposit rate) and see how much you could have saved and earned over the same period if you gave up coffee this way. Those with a cigarette habit may also want to do this. Once you know your annual expense for these items, commit to save this money instead-good for your health and good for your pocket!
7. Pay your bills online or via mobile or phone banking. Save on money for parking, and save on time too. An added plus: chances are you will not be late anymore in paying your bills, thus saving you late payment fees and extra finance charges.
Saving money takes discipline. Keep your eye on your goal and take these little steps to grow your savings.
Source:business.inquirer.net
A: Being aware of the need to save money for the future is a good start. We all need to set aside money for future needs, especially for the time when we enter retirement and cannot work anymore. Those who have put up a business may continue to enjoy the profits from that business even in old age. But what about those who work by rendering a
service to a company as an employee, or to many entities as a professional or consultant? This is just one of the reasons why we need to save.
We also need to have a ready pot of money for those times when a family member gets sick or loses a job, or when calamity strikes and you need to have repairs done to your home, much like what many people realized after typhoons Ondoy and Pepeng flooded many areas of our country in 2009.
Saving for the future consists of two parts: setting aside money and limiting spending to give room for more money to be set aside.
We agree with you that saving is hard to do. It takes discipline to do so. However, that does not mean that it is impossible to do. Take little steps by tricking yourself into saving. Here are some ways you can do it:
1. Open a new bank account for your savings. This should be separate from your payroll account or from your checking account where you draw funds to finance your normal day-to-day expenses. Then as soon as you have a new account, link this up with your payroll account via Internet, mobile and phone banking. The new accounts clerk at your bank can help you with this step.
2. Set up an automatic transfer of funds every pay day from your payroll account to your savings account if your bank has this facility. If not, do the money transfer yourself via Internet, phone or mobile banking. Remember to do this on your pay day so that before you even withdraw any money from your paycheck for your monthly expenses, you have already set aside some money (ideally 10 percent or more) for savings.
3. Open an investment account. This may be a time deposit account or a share in mutual fund or unit investment trust fund or even an account with a stock brokerage. Whenever you have enough money in your savings account, transfer some money to an investment account of your choice so it will have the opportunity to earn more money for you. Bear in mind that some investments come with some risk (example: stocks or equities) so be sure to read and understand all the relevant issuer's or fund information sheet, risk disclaimer and disclosure statement and discuss the particulars of the said investment with the sales intermediary. Do not invest in the investment instrument unless you fully understand and are willing to assume the risks associated with it.
4. At the end of each day, collect all loose change from your wallet and pockets and put them in a piggy bank. This old technique still works. Don't spend this amount; instead, when the piggy bank is full, break it and deposit all the cash in your savings account. You may be surprised that a little money set aside each day can become a big amount come year end.
5. Get all those freebies available. Some stores give rebates or discounts on your next purchase. Keep those coupons and use them on your next store visit. A number of credit cards also offer rewards points for purchases. You may exchange your points for an item you need in the rewards catalog, or opt to use your points to pay for up to half of the purchase price-for a limited time, Citibank has this facility open to cardholders when shopping at stores or eating at restaurants.
6. Annualize small regular expenses. If you are a coffee addict and pick up a cup of java at a coffee shop every working day, multiply your coffee expense by 5 to get the weekly amount, then multiply this by 52 to get the annual amount. This is how much you spend on coffee every year. Then multiply this amount by at least 2 percent (conservative time deposit rate) and see how much you could have saved and earned over the same period if you gave up coffee this way. Those with a cigarette habit may also want to do this. Once you know your annual expense for these items, commit to save this money instead-good for your health and good for your pocket!
7. Pay your bills online or via mobile or phone banking. Save on money for parking, and save on time too. An added plus: chances are you will not be late anymore in paying your bills, thus saving you late payment fees and extra finance charges.
Saving money takes discipline. Keep your eye on your goal and take these little steps to grow your savings.
Source:business.inquirer.net
These are really great tips to save money for the future. Saving money is really vital and these tips will definitely help.
ReplyDeleteRegards,
Online UK Corporation Tax
That is fantastic article, you have written here, I believe if someone will apply above mentioned tips in his daily life he will definitely save a bunch of money.
ReplyDeleteThanks !!
Adverse Credit Bank Account
Also one more thing you can do is to use wisely your credit cards. As credit cards can really make your head go passionate by reckless spending.
ReplyDeleteThanks,
Professional Court Reporter