How much do you save?

Spend some. Save More.

Don't squander your money. Spend some. Save more. When I read the book Pera Mo Palaguin Mo by Francisco Colayco, it changed my life. I learned to build an emergency fund, equivalent to 6 months of my salary. It also taught me how to save - income minus savings equals expenses. Thus, 20% of my income goes directly to savings. I also don't touch our savings. All withdrawals are considered debts. I return any amount I withdraw.



I also made it a point to be debt free. As Colayco puts it, there's really no savings when there's debt. I have two credit cards which I have kept zero balance every month. To others having a credit card means trouble but for me, it's like having a 45-day credit. I leverage that to make big purchases. I have developed an envelope system which I learned from my mom. Amount for big purchases are divided into three equal amounts. Every payday, I set a third of the total amount into an envelope. Since 45 days is equal to 3 salary cycles, by the time I need to pay up, I have enough funds to pay in full. I also use my good credit standing to ask for a waiver of my yearly fee. I haven't paid an annual fee for 5 years now.

I also find ways to put a big portion of my bonuses into funds that would yield higher interests than what banks offer. Government bonds and mutual funds are good ways to start. I also set aside money to pay for insurances, I believe they're good investments too.

I also take to heart what my mom told me a long way back. Never adjust your lifestyle even if you've had salary increases. If you can live with what you have five years ago, I'm sure you can still live that way today with reasonable adjustments, of course. Increased income means increased savings.

Also never pass on the opportunity that would make you earn good money. When Ramir and I were not yet married, we made and sold water fountains and buy-and-sell goods from Divisoria to build our wedding fund. When we got married, we made and sold chocolate lollipops. Now, we sell children's books and jewelries. More source of income, more savings.

Lastly, I make it a point to invest on self improvement. I don't scrimp when it comes to education or bettering oneself or pursuing a passion. I don't have second thoughts on enrolling myself to programs, seminars or classes that I know would help me improve on my craft or my career or even my hobby. Education is a good investment. It ensures more opportunities that can be realized when the right time comes.

I'm no rich kid but I believe I save well. I don't want to be a part of the growing Filipino population that doesn't have a savings account to their name. I have a family with growing needs and I wouldn't want to burden them when I conked out. It's like having a security blanket.

A savings is a savings is a savings. How much can you save without depriving yourself? 20%? 10%? 5%? 1%? Then go ahead, set aside that amount. Be consistent. Have patience and discipline. You'll see that fund grow in no time. And when you do, I hope you'll find the urge to save some more. Start small. Start somewhere. You can do it.