It can get pretty boring reading on the theory and techniques of saving. The only way to achieve financial independence is to do it the old fashioned way, which are mainly the following:
* Define your needs and wants.
* Keep track of your expenses.
* You can’t share what you don’t have.
I think the list above is self-explanatory. Any working employee knows the feeling of scrimping like crazy when out of budget and it gets pretty frustrating. I don’t want to delve into expenses tracking procedures or understanding financial tips (like stocks, forex, mutual funds, etc.) Rather, let us discuss what we can do with our our cash-on-hand and simple day to day tricks you can use to save money.
Invest in your Future.
Saving money is not fun at first but once you start on the habit and see the results, you want to do more. Simplest way to save is have it done automatically. Set aside, let’s say 15% of your salary right away. When you have reached a desired amount, you can decide to invest the money or put it in a time deposit account.
Save for a Rainy Day
Everyone should have an emergency fund. This will be very helpful when you suddenly lose your job, transmission went haywire, or you have a fine wedding to attend to. Aim to at least have a minimum of three months worth of living expenses.
Go Wild!
Just because I said you should save doesn’t mean you sacrifice the things you want to buy. That can be crazy! We are likely to blow up if we don’t treat ourselves with something for all the hard work we are doing. So along with your other saving endeavours, you can also set aside for a gadget, a dress or another item you’ve been wanting for a long time. Consider it a reward for job well done.
Cash Reward for Chores
Let’s say, for every time you wash the dishes, you’ll push 20 bucks into your coin bank. You can do the same for other chores. For chores you especially don’t like, push in a higher amount. :D
Be Creative
You can get an empty shoebox, decorate its sides, and randomly put in 20 bucks every time you feel like it. Or you can schedule yourself to put in money every other day or so or on a specific time of the week with a minimum amount in mind.
If you are an avid book reader, randomly insert bills into pages. At the end of the year, open your books and count the bills.
Use cute cookie jars and label them according to your expenses. Gas, food, utilities, gadget, etc. You may feel like a kid playing house using cute containers.
Do it with friends
In my country, Philippines, we have this thing called “paluwagan”. Taking a definition from an online local magazine, here is its definition:
The paluwagan is an informal pooled fund practiced for decades in the Philippines in neighborhoods and offices. Any one can put up a paluwagan, inviting people to come in as members. Each member will contribute a set amount on an agreed date, and frequency of contributions can be daily, weekly, or monthly. One of the members is the designated collector.
On a specified date, monthly for instance, one member will receive all the contributed money. The next month, another member will receive the pot, and it goes on monthly until all the members have taken their turn to receive the entire funds contributed for the month.
The purposes of the paluwagan are to help members save, and to enable them to receive a bigger amount of money in one lump sum.
So the issue of trust will be very important here. Do not join into such if you don’t fully trust your companions.
There are many ways to trick yourself into saving. Of course, do not forget to financially educate yourself too as to provide options to what you can do with your hard-earned savings.
There is one particular financial knowledge site I love going to. The graphics help in understanding the MUST known theories of financial stability. Click on the image below to view the said site. :3
Happy saving!
