accumulate while young
Properly saving money is a good step towards preparing for the future. It is difficult to act and decide in life when you are always short and do not have enough money. Almost all of our decisions in life, money is always worth it, from waking up in the morning to sleeping at night. In other words, as long as we live. It is also difficult to earn money, to depend on others, especially to ask or borrow from someone. So there is a saying, it is hard to be poor. If you don't have money, gape. You just have to be patient. If there is money, give, pay, cost. If not, suffer first. Therefore, it is important to be diligent in work and prudent in handling income so as not to fall short of money and fulfill dreams in life, including getting out of poverty.
When we were kids, we were taught to save money through a piggy bank. Here we deposit the money for future use. When the piggy bank is full, it will be counted so that we can buy the things we want, pay for what we need, such as a school project, or take it to the bank to deposit. It can also be used in case of financial constraints, such as during the holidays (no new money is given by the parent) or when someone in the family becomes ill. With regular aging we learn to save, fit our allowances or income until the next day, week, or month, we become resourceful with equipment. Not porke old that will buy right away. Otherwise, it is a waste of money. We will be careful not to waste money immediately and our hard-earned money will be wasted.
When you learn this and practice saving and maintaining the equipment on a daily basis, you will surely be promoted, will not be pressured, and will not be miserable as you grow. You will not waste your time waiting for nothing, such as dropping out of college because your parents did not prepare for the huge cost of tuition fees, allowances, uniforms, school supplies, etc.
In order to have a definite savings, savings must always be first in our budget. Must not be less than 20% of total salary, income or allowance set aside for savings. For example, if your income is Php 15k per month, you should not spend more than Php 12k per month. To young people who like to gossip: "Think to yourself, my salary is only Php 12k, not Php 15k so you can definitely save something every pay day". You can do that if you go home first after receiving your salary. This way, you can give yourself enough rest to think correctly about where to spend or allocate the money you earn, and you will first be able to talk to your parents or spouse about adjusting the budget for the whole family. Also avoid impulse buying if you have to buy something at the mall or grocery, and you can provide more things that are more important to you. That way you can avoid excessive debt, squeeze into the budget even before the next paycheck arrives, and have a definite savings for you and your whole family. Stress-free budgeting, that is. You will be happier with each day of your work. You go home full of good memories at work instead of having problems with your family.
Formula for specific savings: Salary (Gross Pay) x 80%. Example: Php 20k per month × 80% = Php 16k. It can be less than Php 16k but it should not exceed the amount you can spend for a month. If you buy something that goes beyond or not within the allotted budget, save first, do not borrow or use the allotted 20% savings. The savings rate can be increased if you can afford to grow your money more.
If it is necessary to spend on the pay day itself, first use the salary of the past (kinsenas or end) to avoid impulse buying and overspending.
If you are young, do not have a spouse or children, and your relatives do not ask for or depend on you, you can also raise 35-50% of the total salary to grow money while you are working.
Here are tips to accumulate more as you work:
1. While still young, you should start long term investing. There are time deposits, bonds, mutual funds, stocks, or UITF. Just contact the bank you trust.
2. Find other sources of income in addition to your work so that you can earn extra family income or send it to your parents and younger siblings. You can't have a single source of livelihood, especially for people who already have a family of their own. This is where the financial crisis begins, the fear of what will happen tomorrow, the deepening of debt, and at the same time the stress.
3. Avoid bad habits such as cigarettes, alcohol, gambling, as well as entertainment so that you can spend the money on it to save and invest. You can take better care of your health so you can save on your medical expenses, and avoid being absent from work so the salary is higher.
4. Try to allocate sufficient funds for the cash reserve or emergency fund to avoid debt and move your investment. There will be a greater reduction in the total investment amount when there is an early redemption (not in the maturity period).
5. Learn to save and balance your income so that it does not lead to scarcity and excessive debt, and fulfill your realistic investment goals.
When should aging begin?
You should start saving as soon as you are working and earning money. Why? It is more likely to grow so much that it is unlikely to happen. It is with the help of time, compounded interest and high return rate, so you can fulfill your dreams in life without fear, with your family.
WORKING LIFE STAGES:
Age 20-29: You are a college graduate. You have finally found a good and stable job. You do not have a family of your own, so enjoy life with your friends and family. Your disposable income is high, buy here, buy there, travel everywhere even if you don't really need it.
Age 30-59: You already have a wife and 1 or 2 children. Household expenses increase. Including owning a home, adequate food, quality private school education, good health, etc. Sometimes the savings are still moving and the worse, borrowing in the event of an emergency or with a large amount to be allocated or spent.
Age 60-64: You are about to retire. You need to prepare for your old age. The pain and feelings in the body are coming out. It is expensive to treat, your capacity to work decreases, while household expenses continue to increase. You would like to invest. The case is, you do not have enough time to grow your hard work.
Age 65+: All your children may have finished school but you do not have a company salary because you are retired. No one will hire you at this age. You just have to rely on a pension from SSS or GSIS which is much smaller than your usual salary or income. When you are in need or in need of hospital treatment, you will definitely expect your children, they will also have a hard time especially when they have a life and a family.
So for young people today, instead of spending your income on luxury, sightseeing, bad habits, trivial things, pleasure, etc., it is better to set aside a large portion of salary or income in long term investment and in buying real estate properties, such as owning a home and land. This will ensure that your family's basic needs are met, no matter what happens, and that financial problems can be exacerbated.
Once you have a family, it will be difficult for you to set your target investment goals, because a large part of your salary or income will go to the household expenses of the family that you almost borrowed when the time comes when you are in dire financial straits, especially if someone falls ill your family or you lose your job, and worse, you have lost a child or spouse due to illness, accident or victim of tragedy or disaster. As a result, you can be single or single parent.
When you are a single parent, you have nothing to look forward to but your own abilities. All your children's needs will be met by you. It is even more difficult if you do not receive enough financial assistance, especially if your children are still young or you have a child (s) attending college or senior high school, so it is better to save while young and plan the family so that you and your children will not be miserable.
