Thursday

Project 104: A Guide to Proper Saving

I am not broke, but not rich either. But I can say that I am financially free. I do not have debts, though I use my credit card, I use it to earn points and grab rewards. My friends say it is because I have a good paying job. But I have started this scheme six years ago, when I was still earning a mere Php 8000 in a month.

Since it is January, this is a good time to do this project. I call this Project 104 because most of us, has 104 paydays in a year. What I do is when it is the 15th and 30th of the month, I immediately deduct and transfer to another account 30% of my GROSS salary, set aside 10% for church and charity and the remaining 60%, less the statutory contributions, will be budgeted to be spent for the days until the next payday. List your savings, the more you glance at it and see that it is growing fast, you will be inspired to save more!

The first time I tried this, I thought it is impossible. But then, by doing this, you learn to budget and live within your means. Another helpful tip is that, I know when to buy things I need. For example, the cosmetics (lotion, shampoo, conditioner, etc.) , there is a brand I regularly. I seldom try new brands, and I have a list of the prices of each. On the day I open and use the product, I write the date so that I could monitor how long it will last and when is the payday that I would buy the next quantity. And for these consumable and non-perishable items, when they are on sale, I buy in bulk or in large quantities, as long as I can use it before it expires. 
   
For clothes, it is all scheduled and planned. Since the industry I am working for provides us clothes from head to foot (except undergarments), I do not have any problem with clothing. This is also why I choose to work in this industry because of the so much freebies hehehe. I am also the white-shirt-and-jeans type of girl so my wardrobe really is inexpensive. I have a budget for one blouse per month and I buy a pair of Levi’s only every January when there is a clearance sale.

To keep track on my expenses, I list expense I made, so that I can analyze where I bought impulsively. Remember, do not buy what you do not need! Do not be pressured because the people around you are having so much. Do not be ashamed to say that you cannot afford and that you do not have the budget for the luxury someone is tempting you with. Share. I guess this is one of the reasons I am blessed financially (meaning I am not broke but not rich either). My brother would always tell me that my tithing is very effective. Share with an open heart and not just because you are forced to, are obliged or are expecting something in return.  If there are opportunities for earning, do it. Sell cellphone loads, book airline tickets for a fee, do research for a fee, sell anything as long as it would not hinder with your time, you can also invest at the stock market and treat this as your retirement savings.

What I suggest to my friends who ask me is this formula:

Gross income – Tithe/Donations/Charity – Savings = Expenses

Believe me, it works!

Meet the World, 

S

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