Savings 101

Savings 101

Submitted by administrator on 22 March, 2019

Good day! I am Phoebe. Today, I am starting my blog by writing about helpful financial tips, specifically focusing on saving.

Why is it important to save?

We save because we plan for the future (or the uncertainty of it). We save because we want to buy something a bit more expensive compared to what we earn. We save because we might need more cash when something unexpected happens. It even helps us worry less knowing that we minimize everyday risks without taking unnecessary loans.

How can you save?

Budget is the first you have to put in place when we talk about saving. Doing this makes you even aware of how much money you actually take home after taxes and deductions. 

We recommend that after you identify how much money you actually earn in a period, you use the 50-30-20 rule: you should allocate 50% of what you earn to your essential needs like utilities, loan payments, food, tuition fee, and the like, while allocating 30% to your wants, like travel, entertainment, and shopping, and 20% to saving. Further, you can even think about reducing or eliminating some of your “essential” needs.

Try the following tips to save more:

  • Don’t use unexpected incomes like income tax return money. You were not even aware of this money to start with.
  • Collect loose change and save old school by putting it in a piggy bank. Once your piggy bank is full, deposit it to the bank.
  • Be frugal. You can buy the cheaper option. Just make sure that you have already researched on the advantages and disadvantages of the cheaper option.
  • Try not buying some of your wants and save them instead. You will feel good afterwards.
  • Lessen eating out.
  • Try not buying anything in a week.
  • Coupons are really a great way to save.