Tuesday, July 17, 2007

Saving for the rainy days

I'm back :) Joni's post made me think of blogging about it too. I want to share my way of saving for the rainy days. Last year, I've managed to allocate at least 10-20% of my salary every payday. I've accumulated a not so small yet not so large amount by the December 2006 but came January, I have to go home to attend the burial of our Lola Puring, my Lola's older sister. And when I went back here, I was shock to discover that all my savings vanished in thin air. Teeehee :D How did it happen? Just like Tina, I'm also wondering why money go away so fast? One would take at least 15 days of hard work to earn it and then in just one day, swoosh... hahaha :) Wala na! :/
So here I am now, back to scratch. I actually asked a friend to help me with my savings. I know I just need to have discipline and a basic knowledge in budgeting but I really think that having someone to constantly remind me that tomorrow might be a disaster day will make me achieve my financial goals smoothly. I once again opened a savings account with BPI since it's also the same bank where our salary is being onlined. I enrolled my savings account online so that I can schedule a monthly transfer from my payroll account to my savings account. My friend back in Bacolod is the keeper of my ATM Card. She volunteered keep it for me so that I will not be tempted to use make withdrawals ans she will also check my account every payday, to see to it that I am paying myself atleast 10% of my salary.
From January until May, kakarampot lang ang savings ko. But I've partnered with a friend and invested my little savings in a small business. Now, my invested money earns atleast 5% a month. Not bad at all. :)
It's really important to pay ourselves first before others every payday. It's one way of making our future secure. You can never tell what will happen tomorrow. It's a good thing if you've got lots of friends who are all willing to lend you moolah when you're sick if you don't have enough cash to pay for all your medical expenses, but one can never tell. What if all of your friends and even your family are also having financial difficulties? What would you do? You see, it really pays to save. Just like Tina, she was able to make use of what she had saved.
I recommend Francisco Colayco's book to those who want to learn more about the importance of savings. Mr. Colayco suggests the 80-20 rule or also known as the Pareto Principle. Save 20% of your active income (income from regular job) and budget the 80% for your daily expenses and other needs or maybe wants. It's a must-read book for all yuppies out there :) Let's make it a habit to save. :)

4 comments:

Joni said...

Great money saving tips, Ji! 20% is a generous percentage, I *should* do that. And I should check out that book you mentioned. :)

May savings mn ko actually, but they all come from my rakets and online earnings. Maybe that's why confident ko nga mskan wala ko may na-save from my salary, ok lang, may rakets pa mn. Which is wrong. hehe..

Gudlak sa 'ton haha

jireh said...

@ Joni - actually Jons, grabe gid akon palibog last month kung panu ko makasave sang tsakto.. now, im doing my best gid to set aside for emergency purposes... :) contingency fund! hahaha :) Good luck gid saton! AJA! ;)

tina said...

my mom always reminds me

"anak... enjoy saving as much as you enjoy spending it."

dapat kasi lahat may savings eh.. hindi yung walang wala talaga. :P

jeffrey said...

ur right! i just watched this morning show in chan 2. and the guest was mr colayco. i've heard a lot about how great mr. colayco give advices especially about money and budgeting and everything in between...

we really need to save something for ourselves... ika nga ano man mangyari kinabukasan meron tayong mahuhugot... ^_^

hey... paki post naman ung tittle nung book ni mr. colayco... im planning to buy one...