How do you save, really? From a mindset of a Young working class professional.

I’ve been working for more than a year now and i really don’t take savings seriously. I think my friends’ worth more than me as of the time of this writing. Money flows on me, literally. I receive money from where i work every 15th and 30th of the month and buy things that wouldn’t matter in time. It’s true. I’m always looking forward to buy something everytime the payday comes. Let’s say, i’ll buy a cheap smartphone for no reason, just because i have the money. Or eat outside wherever i want, just because i want it. Or treat a friend, just to show off that i can.

If it sounds like you, that’s okay. REALLY. You have to give in after years of studying in college. But something came before me one day.

“Money Wisdom”

I think it’s part of life as a human being to stop and think for a while. Your life is becoming a routine. And what you are today may not be the person in the next 20–30 years. Our expenses grows with us and our salary usually have a peak, so there might be a time that our expense outgrows our salaries and end us with a huge debt.

We can’t stop emergency situations either. Right now, life is easy because money is flowing as a young professional. It’s there. But what if it’s not and the world turned against you? *Knock on wood* But think about it.

So how do you solve this?

“Open a Savings Account”

Really. Open a Savings Account. If you already have one, congrats! But if not, then wait until the year end bonuses. This post is timely as you may have already received your year end bonus.

I suggest to use your bonuses to open up a savings account. So why wait? Well, first of all. The hardest part of savings is where to keep it? Sure you can put in a piggy bank, under your pillow, or somewhere that no one will find out. Sure, that would work but it’s hard and you’ll think of it everyday. Unlike when you get your bonuses, you’ll go to a nearest bank of your choice, bring documents, open a savings, withdraw and save in. Done. No more keeping the money somewhere and have the risk of losing it.

Don’t jump to bigger investments like the stock market, networking, etc. just yet. Create your foundation. And when you have enough savings, withdraw and start to invest somewhere and invest smartly.

So let’s say you recently opened one, what now?

“What is your value? — It changes you”

For example, you opened a bank account with 10,000 pesos worth of value. Now let’s take a look at the market for the same value.

Let’s say there’s a phone worth 10,000. Now ask this question:

“Am i ONLY worth the price of this device?”

Think about it. Your net worth is the equal value of that phone or gadget. Now ask yourself, am i happy about it?

“Money Saving Tips that is good for the heart and pocket”

Cut the expense. But treat yourself from time to time. Create a budget and follow that. If you can’t follow your budget plans and start thinking about your value again.

How much do i need to save now that i have a savings account? Good question!

“The power of small”

Let’s say you’re earning 10,000 pesos per payday. Just get 10% of it. That’s 1,000 pesos already. So if you’re getting paid twice a month, you’ll end a month with extra 2,000 in savings. In a year, you’ll get 24,000! Now, add 24,000 to the 10,000 pesos savings we invested, add it up and your value climbs to 34,000 pesos! And since our example is at year end, we’ll expect the bonuses and your savings will grow, IF you save up.

“Start now”

Just like you, i’m still learning about the very basics of saving money. I’m not perfect at it either and i know some of you my readers may have already have a good technique on how to save money.

Feel free to drop your responses. I’m interested on how you manage your savings.

Thanks for reading! Happy saving!

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