Filipinos were not taught the basics of savings. Many parents have been preaching their children to save but only verbatim. Lucky are those who sees examples and follow it unnoticeably.
My personal experience in learning how to save was a lesson hard learnt, cowardly done, and not religiously practiced. Yes I was told to save but not carefully guided. When I received my first paycheck, I didn’t have a goal in mind. I just have the money and I will spend it when situation arise until I am left with nothing and I will be impatiently waiting for my next payday. That happened for years and did not feel any worry about my finances. I thought everything would be OK as long as I have a job.
It was only when I have my family and experiencing financial difficulties when I realized that I should have savings. Searching for resolution on my financial difficulties I came across the 80/20 Saving Rule.
The 80/20 Saving Rule is a guide we can follow to allow to save and enjoy our earnings at the same time. 80 percent of our income goes to our financial need, anything we need to spend on and anything we need to buy. 20 percent of the income goes automatically in savings. It doesn’t matter where you put the savings, be it in a shoe box, in a jar or in the bank, as long as it’s safe you are good.
The savings can also be for a short term or a long term goal. It will depend on your need and goal. But it is important that you strictly follow your rule.
Don’t trust me, don’t believe me. Just try this one and see it for yourself. Try to cut on your snack expenses for one week, instead pack your snack from home. An estimate of P50 savings per day or P250 savings per week if you do this on a workday basis. A saving of P1000 would be effortlessly achieved. Think of what you can do with your P1000 bucks. Should you continue the program, you can have this to start opening an account is a small bank that does not require big amount to start up an account.
Try this with something that would excite you. You can plan your out of town trip and see what you can sacrifice from your unnecessary expenses to save up for your out of town trip.
After trying the savings out of sacrificing some unnecessary purchases, you could be ready for your 80/20 Saving Rule which would be a direct cut out of your earning.