This is especially for you who started earning your first few pesos (or dollars, or Euros!); and probably have zeroed out your bank accounts!
Now, now, it’s very easy to say, “I’ll start saving once I got my promotion,” or “I’ll start saving once I got my increase,” and so on. Trust me that the increase and the promotion might happen, I’m not too sure about the other.
So, if you find yourself in this situation, this article is for you.
Celebrate in Moderation
First job, yehey! Ok, yes, we get the point and the need to celebrate!
However, please celebrate in moderation. It is the spirit that matters so keep your spending low at this point. If you have partied the night away and blown your entire first pay on festivities, treats, air fare tickets or what have you, ok, then. So be it. You had fun and now with an empty pocket. Move on and start acting for your financial future.
When it comes to money, it’s never too early, you know.
Pay Yourself First
Identify your percentages
Define for yourself how much you want to save, how much you want to spend and how much you want to give – think church or charity!
For some it is 20%-70%-10% or save-spend-donate. Others stretch the save portion to 40% minimizing spend to 50% and keeping the give portion at 10%. You do your own math at every stage of your money making career. Find out what’s comfortable for you that will help you meet your financial goals.
Maximize Your Bank’s Capabilities
Many banks today have an auto-save or auto-debit feature. This means connecting your payroll account to a savings account, electing an amount to auto transfer and deciding on frequency of this auto transaction. This makes it so much simpler and easier. Just visit your bank to inquire.
Have a Financial Goal
As mentioned earlier – financial goal. It is tempting to leave it hanging at “I will save.”
Have you ever set out on the road without a destination in mind? It’s like that. Fun anf thrilling at first until you realized you’re lost or tired and nowhere to rest.
But unless you define a goal – an amount of money you want and by when – it is quite difficult to know whether you’ve reached it or not, isn’t it?
For example, your goal could be to raise 1M in the next three years. Then you can plan your spending around the amount. You can have side jobs as well.
For side job ideas, read this article – Tips and Ideas From 7 Inspiring Individuals on Secondary Source of Income for the People in the Workplace
This is something that I learned from my husband. It is very challenging but it does make sense! To be honest, this is something that’s still relatively new for me and still finding my way to it. The earlier you start, the better.
You are Not Your Brand of Clothes, Shoes, Bags
While many expensive clothes, bags, shoes, etc. are worth the purchase because of their durability, value for money and timeless appeal, it may not be worth buying such if you’ve only just started. There are other good quality products out there that are not as expensive.
You don’t need to define yourself by who you wear. Define your own brand and your own personality by being yourself!
Think Paying Capability BEFORE ANY Purchase, ESPECIALLY the BIG ones
I have seen people buying cars and condo units only to sell them after a year or two. That’s a lot of money wasted + the emotionality of having to let go of something you truly wanted.
Why? Because while they did the short term computation, they missed calculating the cost impact over time – the maintenance fees, gasoline, parking fee, etc.
So before committing to any purchase that you will have to shoulder over a period of five years or more, be sure to calculate all costs associated with it and factor in your paying capability as well.
Do NOT Compare Yourself with Others
“If you compare yourself with others,
you may become vain and bitter;
for always there will be greater and lesser persons than yourself.”
Other people might make more money, more cars, bigger houses than you, it’s ok. Work hard, work smart and you’ll get there. Always pray, too, so you are properly guided along your journey.
The other point is, it’s rarely all about how much you make but more about what you do with what you make. People who make 30K a month and those who make 130K a month are both broke before the next pay period. Yet, there are those who only earn 30K a month who were able to purchase their own house and car, and there are those who earn 130K a month who own neither.
Instead of obsessing over what others have that you don’t, focus your energy on what you can do with what you have which will make you full, happy and content.
Check Your Payslips and All Billing StatementsWell, truthfully, Payroll and Bank employees all want perfection. However, this is not always the case, right? Just be sure to check when you received your payslip or bank statement. Ask if something’s not right and ask for a refund or a correction. These documents can be overly complicated, too. Don’t be shy to ask how these are read if you find yourself confused or lost in the paper.
Be Mindful of Your Day-to-Day SpendingThere is an idiom that goes “the devil is in the detail,” well, in this case, I would say, “the devil is in the daily spending.” It’s true! Try to track your daily spending – everything you paid for – and review after a week. You will be surprised how much ‘mindless spending‘ was there. Milk tea which costs around Php100 is Php500 for a week, if you only drink once a day, that is. Brewed coffee, let’s say at Php135 per cup is Php675 for the week, again if you only had one cup per day. That’s over a thousand pesos. And there’s so much more you could probably think of… Are these necessary spending? May not even be good for the health. Are you also guilty of mindless spending?
ShareBeing able to save for the future should not make us greedy either. I think there should still be room for generosity in our hearts, especially for those in need. I was talking to a friend last night on the topic of sharing and she pointed out how over doing this might be bad, too. For example, helping those who have become overly dependent, or helping those who do not save for their own future needs – live a luxurious life with lots of travel, etc. and will “borrow” at the time of need. It’s your money, decide well where you put it. Help when you can, but do not overdo it.
InvestInvestment might be a good place to put your money in. It can take many forms – the stock market shares, money market, pre-need companies, real estate, jewelry, invest in yourself in the form of further studies and certifications, put up a business. Any place where your money has the potential to grow. If you are new to investing, go with low risk first, until you are fully aware how it works. Remember that while we are discussing money matters, it should NOT be your purpose. It is just a means to a happy, fulfilling life. Keep it at that!
There you go. What do you think of the tips? Any particular one you’ve started or wanted to start doing?
Til next and may you live a full and blessed life!