A lot of Filipinos felt the effects of not having a readily available emergency fund during the world health crisis that started 2 years ago. Instead of going up the ladder on the status quo in society, many leveled down. Lessons were learned and hopefully all those were for the better. According to the multilateral bank's Global Findex 2021 database of the World Bank, 51% of Filipinos now have bank accounts; that means more than half of the Filipinos have bank accounts compared to a where it was at 37% back in 2017. But that does not mean those people have savings as most Filipinos are living day to day, especially with the issue of inflammation after the pandemic.
The reason to save differ from person to person: it may be for a purchase of a vehicle or a house, for retirement, for a business you have been wanting to put up, to pay some debts or just an emergency fund for unforeseen event. But for a lot of people, it is a hard mission to save up; yet I believe people want to save and they plan to do so. The thing is that it is hard to follow up on a savings project even though the desire is there.
If you’re one of those who want to successfully save up for whatever your objective is, here are a few tips to get you started and stay on your goal on the road to saving up:
Ponder On What is Your Goal
Goal setting using a S.M.A.R.T. plan helps trigger new behaviors as it helps you to align your focus and kickstart your saving journey. Sit down and think about it really hard. Why do you want to start saving? Are you saving for something? Once you figured that out you can now start to allocate a portion of your income to your savings.
If you are lost on how much you should need to set aside weekly, bi-monthly, or monthly (depending on when you receive your income), there are resources online which can help you figure your finances, specifically your savings, that you can use like Savings Goal Calculatorsby SavingsCalculator. This site will help you to gain knowledge of how long it will take you to reach your goal presuming you know how much you are going to save each month. The same site will also assist you to learn how much you will need to save so that you can reach your goal – presuming you know when you need to have money saved up.
Write It Down
I am one of those who believe in the power of visualization. Write down your savings goal, on a journal, on a planner, on sticky note and post it somewhere where you can always see it. You can even write it down on your phone’s note, screenshot it and make it as your wallpaper if you’re not a fan of using a pen and a paper. Heck, you can even tattoo it on your wrist if you want! Ok, that may be a little going too far but you get what I mean. Since I was young, I always write down the things that I want. For example, I write down on my journal or planner the things that I want to buy (sort of like a wish list) and then whenever I flip through my notes and I see them, slowly, I am able to cross out one by one.
Put your savings somewhere else and forget about it
If you are trying to save money, you must not put it in the same place where our payroll or cashflow is; this is because it will make it hard for you to track and there’s a chance you might spend it. Put it where it will be a little harder for you to access – this is the ideal way like an account where you need to go to the bank just to withdraw the money – like an account that only uses a passbook. The hassle to get a hold of that money will discourage you to make unnecessary access that might lead you to spend your savings.
Amped up your savings by doing side jobs
Well, this is not really a strategy on how you can effectively stick to saving money but to increase the money you set aside for your goal or for rainy days. Actually, this is what I do to help me increase my savings and what you can do too to help you get closer to the goal behind what you are saving for. Find something that you are good at or a hobby that you can monetize; or a task/service that you can offer to people you know. The earnings that you get from there put it straight away to your savings account.
Find a bank that offers great interest
I know it’s tempting to put your money on investment or stocks, but if you really want to save, this is not the path you should take and it’s very risky. Depending on how many years you want to save, banks offer interests. Inquire and read the fine prints and see which bank will suit your needs the best. Make your money work for you a little.
This is the time to bring back the practice of saving, not only for big money purchases but for when unexpected events that might happen. The pandemic that happened should be one of the great lessons to us all of the uncertainty of the times and having a saving or emergency fund comes handy.
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