How To Save Money

Before anything else, please answer this question: What is one thing you want to be saving money for?

Let's do a little bit of computation.

If you are earning P10,000 per month, you are earning Php 120,000 annually. If you started working at the age of 20 and will stop working at the age of 60, you will be working for 40 years. If you multiply 40 years of work with P120,000, you get a total of P4.8M.

At the age of 60, you have P4.8M. What was your answer in my first question? Can you now spend this money for that?How much do you think it will worth by that time? Take note that you will get that P4.8M if you will save all your income every month for 40 years. Even if we triple your monthly salary, you will only get P14.4M  by the age of 60.

How much money do you actually save for your future? What are you saving for anyway?

The value of money is decreasing year after year. Compare what you can buy with P5.00 20 years ago to what you could buy with it today. I remember when I was still in elementary, the jeep fare was P3.50 (student rate) but now it's P7.00 (P6.00 for student rate). That's just around 10-12years ago.

How do you save money? By spending it wisely.

My point is: you don't need to save money, it will always be there. Don't worry, it won't die. What you need to save are your assets.

According to Robert Kiyosaki, author of the bestselling book Rich Dad Poor Dad, an asset is anything that puts money into your pocket.

There is no such thing as a secure, stable job anymore. It's time to diversify your earning potential and learn financial literacy. Start a business. Invest. Take risks. Have the 1/2 probability of winning than 0% chance of succeeding. 

"But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today."

-Deuteronomy 8:18 (NIV)