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Wednesday, April 2, 2008

How To Save Money Effectively



Friday--I have been thinking of writing this article since last week but the ideas weren’t flowing. Even I have fever now, I need to write this one or else it would be gone. Anyway, I’m not an expert with money matters but I feel that I am somewhat above average when it comes in handling my finances especially the saving part.

Here are my effective strategies that helped me save money:

1. Every payday, save at least 30 to 40% of your earning to your bank account. It is even better to save it all in your bank account and just allot your weekly budget and withdraw. Saving it in the bank will lessen your temptation to spend it but it will also help your money grow with the regular interest bank rates.

2. If your company is offering salary loans, grab it. Apply for a loan with a monthly or semi-amortization that you can handle. Instead of going to a shopping spree with the loaned money, go to a bank then apply for a TIME DEPOSIT. Time Deposits are savings that are bound with a certain period. The longer the period, the better. You cannot withdraw your money unless it has reached its maturity. Time Deposits will ensure that you will not be tempted in withdrawing the money because if you do so, you will need to pay the bank with tax and other charges for terminating it before maturity. This is very effective for me!

3. Do not spend more than what you earn. It is just common sense that if you cannot afford it then don’t buy it. Many are burdened with paying their credit cards with non-sense shopping sprees. Just buy the important things. Think of long term.

4. Do not depend on your paycheck. Find other outlets that can help you earn money. Aside from selling cell phone prepaid cards and doing electronic loads, I am also earning from blogging. Be proactive instead of pitying yourself that you don’t have money one week before the payday.

5. And lastly, once in a while pamper yourself with the things you like, it could be food, clothes or movies. A consolation prize that you have worked hard.

If you like this post, buy me a cup of coffee.

7 comments:

Anonymous said...

yeah ako i make it a point to save money lalo na kapag may bibilhin ^_^ like now i'm saving to buy a new cp with wifi ^_^ kaya i'm like saving 55% of my net income :)

Anonymous said...

oh and yes i do time deposit too ^_^ at bago lang nga may pera akong naka authorize to deposit for the bank automatically on maturity date... kasi on my busy schedule mahirap mag deposit during office hours malayo un bank to where i work.

blackdarkheart said...

sa tatlong taon ko ng stay sa companya ko, wala pa din akong saving s account. hehe. magstastart na akong magipon para makabili ako ng laptop. hehe.

Denis said...

wow, keep hitting me to save more please! hahah

Anonymous said...

Makoy,

Great job! Save save save talaga. Also if you use online banking- you can definitely schedule an automatic deductions every payday (electronic transfer to your savings account). After 6-12 months, you'll be proud of yourself kasi may perang naipon. :)

pehpot said...

The number two tip is very witty!

Make or Break

Denis said...

now, i proved that these are very basic and easy to follow