Do you need to save up for an upcoming event or trip? Or maybe you’d just like to jumpstart your savings but you’re not exactly sure how to go about it? With a realistic timeline and a well-planned, feasible strategy, you’d realize that saving as much as P5,000 a month is actually pretty easy—we’ve even got five tips for you right here.
1. Auto-Debit from Your Payroll Account
This is just about the easiest thing you can do to reach your monthly savings goal. If you’re a regular income earner getting payouts on the 15th and 30th of every month, you can simply tell your company’s bank to automatically set aside P2,500 and deposit it into your personal savings account, as soon as your money comes in. This helps you avoid the problem of not leaving enough money for your savings because you prioritized spending for other things, or paying for your bills.
With this auto-debit system, you won’t have to think about saving that P2,500 because it’s already done. By the time you access your account, it would have already been debited and whatever is in your ATM is what’s available for you to spend.
2. Break It Down Daily
Did you know that you’ll only need P166.66 daily for you to save 5,000 in 30 days? If the P2,500 auto-debit per payout is a bit too much for you, you can psyche yourself up another way and put away some cash daily instead.
This amount roughly equates to one cup of your fancy latte drink or an upsized version of what is supposedly a “Value Meal.” Make your choice and prioritize. Everyone needs to cut back on sugar and fast food anyway.
3. Go Cash or Go Home
Remember that time when you were still a student relying on your parents for allowance? You were given your baon either daily or weekly and you had to make it last the entire day or week. You probably didn’t realize it then but that was your Intro to Budgeting 101. Fast forward to today and you can go back to applying the same methodology, only now, you’re giving yourself baon.
By having with you only the cash that you need, you are compelled to strictly follow your budget. It’s an effective exercise because you are made very aware of every choice you make. You have the money physically in your hands. You know how many times you’ve pulled out your wallet from your bag or back pocket, how your peso bills have been broken down and how much change you got back. You feel each expense every time money exchanges hands. You don’t get this kind of awareness with a credit or debit card, that’s why the tendency is for you to just keep swiping away. Build your spending consciousness and you’ll be able to save that P5,000.
4. Skip Lunches Outside
Sure, it’s a great way to bond with your colleagues and it’s a good breather from the monotony inside the office. However, if you’re set on saving P5,000 a month, preparing your own meals is just about one of the most surefire ways to go about it. Remember the P166 daily savings you can have if you skip a fast food meal? Replace that with your own healthy lunch.
Prepare a simple lunch before you go to bed, or better yet first thing in the morning, if you’re an early bird, and save your cash.
5. ‘Auto-Invest’ Your Funds
Like auto-debit, this puts your savings in the hands of a financial institution. In this case, you can give your P5,000 per month automatically to an investment portfolio, like insurance. Most insurance providers nowadays like FWD Life Philippines already offer an investment component in their products. Not only do you get to save up a significant amount every month, but you’re also making strides in keeping yourself financially secure and protected.
It may need some lifestyle changes on your part, and it’s going to be challenging for sure especially at the start. But with enough consistency and determination, there’s no doubt you’ll be able to reach this goal. Good luck!