Practicing a savings habit and maintaining it at its best state is of no doubt the hardest habit to practice to achieve success in one's financial journey and even success in life as a whole. For many, saving some amount of money is for emergency purposes, however other than that, there can be other purposes and benefits why we need to save money.
When the pandemic hits in early 2020, many were able to save money as they were able to cut their expenses on entertainment, transportation, clothing, and dining out. Many are also forced to save money with the fear as to how long their companies can stand from the economic breakdown the pandemic brings.
Now that World Savings Day is coming, Cebuana Lhuilllier and Izza Glino of SavingsPinay.Ph joined hands in informing Filipino people that everyone can save even when they have very limited income.
What is money saving
Money saving is the process of setting aside a portion of one's income and putting it in a safe place like in the bank. In the 2019 Financial Inclusion Survey conducted by the Bangko Sentral ng Pilipinas, result shows that only 53% of adult Filipinos are into saving.
The result opted public and private financial institutions along with financial advocates promote savings through World Savings Day which will happen on October 31, 2021.
What are the benefits of saving money
Saving money offers various benefits and this include having a reserve fund that can be used during emergencies or when income decreases. In addition, saving money also allows the individual to have the higher chance of grabbing investment opportunities that normally comes unexpected.
However, savings does not only give your financial freedom but also helps you develop positive traits including self-control, sacrifice, discipline, persistence, and motivation.
Best Saving Habits for Success
Set a saving goal - setting a definite goal is one of the best things to do first when starting to save. This will save as your guide and motivation to focus and keep going. A goal can be a certain amount for a specific date.
Monitor your expenses - once you have set your goal, it is now time for you to monitor your expenses and match it with your income. You can make a list of your daily expenses up to the last cent and you will be surprise of how you are with your spending habit.
Allocate a budget for savings - now that you already have the idea of your expenses, you can now allocate a budget for your expenses and prevent overspending. In this way you can now set aside a certain percentage of your income for savings.
Many financial advocates are telling that 15-20 percent of your income should be allocated for savings. However, this can be hard for a person with big family to support and too little for someone who is single and support no one but himself. A single person can save up to 50% of his or her earnings while a family man can save at least 5% of his or her income.
Find ways to minimize spending - while you already have listed all your expenses, your income, and your possible savings, you can minimize your spending habit by cutting those unnecessary expenses you usually do. For example, if you are into spending for beer each night, you can cut it back into every other night or totally stop drinking beer. Shoe cleaning can be done at home once in a while with numerous tools available in the market instead of paying for shoe cleaners every time.
Automate savings - because of the pandemic, we now have what we call as the new normal and that is going digital on majority of our activities. Meetings going online with apps like zoom, google meet, Microsoft team, and the likes. Shopping has gone online too and so as banking and of course saving. Banking apps now has the auto saving tool that you can use so a certain amount you set will automatically put aside. On the other hand, you can also automate savings by automatically setting aside an amount from your earnings and deposit it to your bank.
Start small and make it a habit - low income should not be a hindrance when starting your saving journey. A percentage of your so called small income should be allocated for saving. You can do this because you already have done the above habits of saving.
What is important here is not the amount but the habit of setting aside a small amount for savings, so when big income comes, it would be easier for you to allocate an amount for your saving goals.
Increase your income - when you already created a habit of saving regularly, you may aim to save for a bigger amount, and you will now find ways to increase your income. You can sell unused stuff you have at home, offer service after office hours and other side hustles you can think of.
Watch your saving grow - upon successfully creating a habit of saving, you can now start watching your money grow and enjoy a pat on the back for a successful money saving journey.
Why Choose Cebuana Lhuillier
When saving money, we always think of depositing it on the bank. However, did you know that Cebuana Lhuillier now has the product called Micro Savings. Cebuana Lhuillier Micro Saving works the same as the normal savings account. You will also get a card that you can use to deposit and withdraw in more than 2,500 Cebuana Lhuillier Branches nationwide.
The good thing about Cebuana Lhuillier Micro Savings is that, kids who are at least 7 years old can open an account, and opening a Cebuana Lhuillier Micro Savings account is only for 50 pesos. It requires zero maintaining balance and no dormancy fee. If you wish to withdraw after office hours where Cebuana Lhuillier branches are already closed, you can do so at any Bancnet ATMs nationwide.
In addition, your savings at Cebuana Lhuillier Micro Savings can earn interest at the rate of 0.20% by meeting minimum maintaining balance of 500 pesos in your account.
Let us now celebrate World Savings Day by opening a savings account at Cebuana Lhuillier and start your saving journey even in just a small amount.
HAPPY WORLD SAVINGS DAY 2021!!!
Reviewed by Leonilyn Vitto
on
10/28/2021
Rating:
