Saving

Saving money is important. Aging helps to prepare yourself for whatever happens. It is also important to have savings in case you get sick, or lose the opportunity to work.

But did you know that most Filipinos do not have savings? And most Filipinos who have savings save very little on the bank?

Why is aging so important?

saving

Having savings is a great way to prepare for your future. It is important to always have money in reserve because it can be used for emergencies, or for your retirement.

Saving is also good when you plan to buy a house, car, or any other big expense.

But for other Filipinos, aging is not important to them. Not because they do not want to save, but often their income is small, and expenses are also very expensive.

There are other people who are used to not saving money per salary. They usually run out of money when the end of the month is approaching.

According to a survey conducted by the Central Bank of the Philippines, only 48% of Filipinos have savings. And of these 48%, only 9% save in the bank.

This means that most of them have only saved money at home. Although it is good to save, it is not right to just keep it at home. First, there is a high probability that it will be stolen or lost. Second, it is also easier to waste if only at home.

So in addition to aging, the right way to save is also important.

What is the proper method of aging?

saving

Follow these tips to make sure you are aging properly:

1. Budget

Having a budget is important because it helps you to know how much you can spend each month. It is best to follow the "50-30-20 rule." Here, you save 50% of your salary for daily needs, 30% for personal expenses, and 20% for savings.

2. Save on the bank

It is also important to save money in the bank and not just in the piggy bank or at home. This is because you are more confident that you will not lose your money in the bank, and other banks will have interest that will grow your money.

3. Invest

Another way of saving is investing. You can invest in business, in stocks, as well as in personal insurance. It is good to have an investment because it is available to you when you retire.

4. Reduce expenses

It is also important to cut down on expenses to save. Often, we have a lot of expenses that are not really necessary. If possible, we should avoid them and just set aside money to not be wasted.

5. Do not consume savings

Most important of all, do not waste your savings. There should always be a savings account that you can use in times of need. Remember, even though it is important to spend the money, it is not necessary to spend it immediately and not leave it for another day.

Many of us live well but do not save any money - the type of salary is just right (sometimes even less!) On things to buy until the next wage.

Not everyone can afford it and have time to budget. Here are tips to budget easily and save.

Calculate exactly how much you can save from your salary. The correct formula for spending money is as follows:

WAGE - SAVINGS = COSTS

Often, what we do wrong is the formula we use:

WAGE - COST = SAVINGS

then there is no money left after expenses so there is also no savings.

Whenever possible you should have all four of these components in place for launch to maximize profits. Make a budget there for the remaining 80% of your salary. Make a list of all your expenses, including small things like gasoline or fares every day.

If the total costs are too high, look at your list of things you can remove - such as soft drinks and desserts after meals or slow down when buying loads. It may be that you are running out of money.

The full 20% is deposited in the bank or in a cooperative. Even if you do not make a lot of money, it is still important that you save.

You also need to find out what you are saving for. Where will you use it or is that for your retirement? That will be your motivation to save more.

It is best if you deposit funds in a separate bank account so that you will not be mistaken for budget money.

For every salary, just repeat the steps mentioned to grow your money.