How to Make ‘Savings’ a Habit?

The good thing about Saving is that, it is indirectly related to how big a person is earning to do it. Meaning, you don’t have to earn a certain amount of money to Save. Small earner, big earner, medium earner, we’re all on the same category. Just like the saying goes, “It’s not how much you earn, it’s how much you can save that matters”. Even if you earn like a 100,000.00 a month but you’re spending 110,000 it’s no use compared to a minimum wage earner of 6,000.00 that regularly save like 600.00 per month (10%). That person is far better than the first.

Saving just like Spending is a habit. It can be taught and can be easily learned. According to what I read, it takes 16 to 21 times of repeating a task to make it a habit. Some people say it will take over a month to solidify it and make it something you will do without having to think about it. I tend to agree with the last statement. Two to three weeks will help you to remember, but thirty days or more will make it a part of your every day routine, something you won’t necessarily have to think about before you do it.

The easiest way to save is to set aside a portion of your salary or earnings regularly. Check with your HR or bank if they can set up your payroll account so that your savings will be deducted every payday. That way saving becomes automatic for you. Or if not, try using the old fashion way of ‘Alkansiya’. Just make sure that you won’t be able to make ‘kupit’ from it, hehe.

Start Small. Start by saving an amount that you’re comfortable with, say 5% to 10%. If you can still tolerate, do it up to 20%. That should be the maximum, otherwise, you might not be able to do it effectively.

[ad#content336]Don’t be over eager by setting aside half or more than half of your pay immediately; saving is a skill that you have to develop over time. You would have to unlearn a lot of wasteful spending habits first before your nest egg can truly grow.

Remember the old adage: “You have to learn to walk before you can run.”

Think Long-term. To sustain your progress, your savings program should have a purpose. Your mindset should be that the money you save now will be used for your expenses in the future: your child’s college tuition, your safety net should you become sick, or your retirement fund when you’re no longer working.

Knowing that the money you are saving will be used for your family’s well-being will keep you on track and motivated.

excerpts taken from Financial Smarts of Bank of the Philippine Islands

The following two tabs change content below.
Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), blogger, IT practitioner, husband to Aileen and a dad to Jacob and JohnD. He started Financial Planning Philippines in 2008 just to share his financial learning to friends, relatives and anyone who wishes to be financially independent.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.