Article by Tyrone Solee | Original Source: MillionaireActs.com
Most students enter the real world when they reached the age of 20 or 21. That is when they enter the corporate race. This is also where the real challenge happens when it comes to saving money.
You’re not dependent anymore on your allowance from your parents. You now earn your own money. With that come different challenges to lure you not to save money. Social pressure from your friends to buy the latest gadgets just to be ‘in’ comes along your way. Officemates will be there to invite you too for gimmicks and parties.
You say to yourself that you earned that money and that you’re entitled to spend it in anyway you want. Some say they are entitled to reward themselves because they worked hard for it. Before you knew it, your salary goes directly to expenses leaving you with zero savings and perhaps credit card debts if you really cannot discipline yourself when it comes to saving money.
What should you do then in order to fight the urgency to spend? Here are some useful tips to resist spending away your hard-earned money.
Know your hourly rate in your job. Before you spend that hard-earned money from your job, calculate first how much you make on a per hour basis. Suppose you earn 18,000 a month as a fresh graduate and you work 8 hours a day, five times a week. In a week, you’re working for 40 hours and in one month, you’re working for 160 hours.
So your hourly rate from your job would be 18,000 divided by 160 leaving you Php 112.5 per hour.
Now before you buy stuffs, calculate first how many hours you worked for that money you’re going to spend. Are you thinking of buying a pair of shoes worth Php 3,000? Ask yourself first: Do you really want to work 26 hours just for that pair of shoes? Do you want to repeat the 26 hours of tiring labor, 26 hours of your boss shouting and bullying you, 26 hours of your back hurting sitting in front of that computer, and 26 hours talking to annoying colleagues for just one pair of shoes? Think about it carefully. Think twice, thrice or even four times.
Force your savings. True enough, it’s hard to save money especially if your will to do it is weak. Leave it to automation so you’ll be motivated to save!
Nowadays, you can now automate your savings by setting up a fixed amount to be deducted on your payroll account on a particular date every month. With the availability of UITF investments as the new form of trust funds of banks, you can enroll to their Regular Subscription Plan (RSP) for as little as Php 1,000 every month so that you are not only saving but also investing in your chosen UITF fund.
Make a savings goal and track it. Make a savings goal for yourself. Do you want to have 1M in savings before you reach 30? Then list down that savings goal! Listed goals are more achievable than unlisted ones.
Make an excel sheet tracking your savings developments on a monthly basis. Update it at the end of every month. You’ll get excited as you see the amounts increase every time you save especially as you get closer and closer to your savings goal.
Look for more ways to earn money for you. Do you have that unused item on your house? Then sell it by setting up a garage sale or post it on online classifieds like Sulit. Sell your services to your friends and colleagues. Think of more ways to earn and don’t forget to add the earnings of these to your savings goal. Your excitement grows more and more as you become closer to your goal.
Think of your health. Are you the type of person who needs exercise because you’re fat or are you worried about your health? Then try to save transportation costs by walking short distances. Instead of drinking sodas and juices in restaurants, drink water. Aside from additional sugar that will be added in to your body, you will just excrete it anyway through urine few hours after you leave the restaurant.
Don’t buy too much junk food in grocery stores. They are called such because they don’t provide much nutrients to your body. Avoid smoking, it won’t make you any good. It will just destroy your lungs and will cause you bad breath. Instead of thinking ways to spend your money, engage yourself in physical activities such as sports or your favorite hobby such as cooking or crafting.
There are many ways on how to save money by just thinking of your health. These little savings can pile up to make thousands when saved for a long time. A penny saved is always a penny earned. Truly, health is wealth.
Let the ‘Law of Attraction’ works. Do you have a goal of building your own dream house in the future? How about traveling to another country for vacation? Or perhaps buying your own car?
Place a picture of how you visualize these things in your wallet with the motivational words such as “I will achieve this” or “I will have this”. You can have the option to make it more specific by placing a time to it – “I will go to this place by December” or “I will achieve this by age 35”
Every time you spend money either by cash or credit cards, you’ll be reminded about these goals which will make you think twice before spending especially if it’s only a want.
Put a name on your bank accounts. Put a name on your bank accounts according to your specific goals. If you’re saving for a car, try to name it “Ride To a Brand New Vios” or if you’re planning to go abroad, try to name it “Enjoy Singapore Trip”. You’ll get more motivated to save for these savings goals.
It’s important to treat yourself occasionally to avoid getting frustrated and spending all your savings at once, so make sure you include a little “happy time” money in your budget to treat yourself every now and then.
Nowadays, with the influence of TV and media, everyone is encouraged to spend which makes saving more difficult. Saving money is hard and for some, it’s boring.
However, if you have that will and determination towards your goals in life, you will surely possess that self-discipline to save your hard-earned money and stick with your plans.
Photo Credits: Brianna
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