The cost of daily living is quite expensive. We work so we can afford to live. It would be helpful if we could distinguish one’s needs from wants. What exactly does it mean to know the difference between needs and wants? Here are 10 tips on savings:
- Live within your means. First, remember that if you already know you cannot afford to buy things you like, then do NOT buy them. An excellent example of living within your means: Your peers have the latest mobile phone model. Would you give in to peer pressure to buy the same thing? Don’t! Control yourself, especially if you already know you lack money.
- Set aside an amount each salary day. Save it. Do NOT spend it. Back in the Millennium time, I always made it a point only to spend 500 for my monthly wants. And what would that be? CDs. I love music. At the workplace, I brought with me food as baon. Then, on salary day, that was the only time my officemates and I would treat ourselves to a good dinner. Thankfully, I come from a family that contributes to the utilities at home. We share. So most of my salary went to savings. I don’t touch much of it so that I can save it instead. Deposit first. Do you know why? If you have a dream vacation and would love to treat yourself that way, save up for it.
- Invest, but do NOT put all your eggs in one basket. This would be a good decision when making different kinds of investments. So, if you invested in a company but it did not work out, it would not be a big loss. This would be where the wise saying came from: “Let your money work for you.”
- Compute your day-to-day expenditures so that you can estimate a monthly budget for your spending. Know where your money goes. For example, list your daily expenses, which mainly include food, commuting, and other daily needs. Then, consider your regular utility bills. If you still cannot make ends meet, find out where you can save. Lately, our electricity bill has skyrocketed because of our daily consumption. Rather than keeping the air conditioner on for a long time, I turn it off after a short period. It’s not much, but it helps reduce the electricity bill by reducing daily usage.
- Before buying an item, check if you have funds for it. If not, ask yourself if you really need it or not. When you grocery shop, list only what you need to buy. It helps keep it within the budget. Here’s another tip. I was spending money using credit cards. Until I was able to do away without it. Instead, I applied for a debit card. It is a savings card. That way, I only spend if I have money. If not, then I don’t buy things randomly.
- Determine and prioritize needs over wants. This would be a good factor to consider when buying stuff. Buying food is a necessity, but buying clothes and luxury bags is more of a want. This is where prioritizing needs is more important than satisfying your wants
- If you want to have bigger savings, find ways to make sideline earnings. In the Philippines, this is called the market, wherein you make sideline earnings aside from your daytime job. Even when I already had good work in the Millennium, I still found myself selling all sorts of items to my office mates and friends. Because of my sideline earnings, I was able to buy more of my wants and still keep my huge savings.
- Before buying new clothes, see if you can recycle old clothes to make them fashionable. Let your creative side come up with new styles when you dress. This way, you get to save a big bundle of what you earn rather than having the mindset of wanting to buy all the time.
- If you can do without spending on expensive brand items, be kind to yourself and not be in the “IN” or what is popular. Would you believe I got my first Reebok shoes when I was already in my 40s? It might have taken me a long time to buy an expensive brand, but it worked well for me to have savings back in my younger years.
- Gadgets. People are mainly addicted to technology. If you can buy an Android, do so. You can make the most out of it because it can still meet your needs with communication and school or work activities. The amount you save with Androids can be spent instead on your other needs or saving up for that dream car.
The next time you think of buying something, consider saving first. Save to attain your dreams!
