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Have you ever wondered why you never managed to save even ONE peso from your monthly Salary? Bakit lagi na lng kapos? Then, you start to mumble looking for someone to blame why you don’t have savings after all. Do you know anyone like this?

I remember when I was walking at SM Baguio, an agent from one of the insurance companies met me with a smile and talked me into attending a short training at their office. And since I am always interested with personal finance and also waiting for my friend to arrive, I agreed to attend their very short training.

I am telling you this because one of the striking message that the agent told me on how to spend and save money reflects a wrong mindset of many when it comes to money saving.

The agent explained that in order for us to save for our future is not to spend all our money every time we receive our salary which I totally agree with (101%) but his method of saving is what I completely disapprove.

He said, “ipunin ang mga tira-tira at ilagay sa savings’’. So he was basically saying that the SAVINGS should be yung matitira na lang sa salary mo, yung hindi mo pa nagagastos.

What will be the possibility na may matitira nga (wink…hehe)?

This is the reason why you may not have savings at all. Dahil kung ano na lng yung matitira yun na ang savings. But in most cases, we don’t stop spending hangga’t meron pa.

So, what should be a better way to spend your money while saving?

1. Set aside your savings before start spending

It is worth to follow the well-known formula

Salary – Savings = Expenses

This might seem impossible but setting aside a minimal percentage of your salary each month pays off as time goes by.

Salary (10,000 Pesos) – Savings (10%=1000 Pesos) =Expenses (9,000 Pesos)

2. Practice budgeting

One of my early blogs was my envelope budgeting. List down all your basic expenses monthly – your needs and wants, your dream vacation or dream gadgets. Then allot a certain amount for each. Hindi pa rin talaga kasya ang sahod? Well, maybe the next suggestion will help

3. Cut down on your expenses

Look back at your listed budget, do you really need all these? Do you really need those 2 bottles of 8 ounces of soda a day?  Or those trips to the fast food restaurant several times a week or those stops at Starbucks after work?

Are your electricity or water bills soaring up? Well, how about checking on your ways of using them? I always notice my mom plugging out our appliances at home when they are not in use. Or do you leave your TV on while your computer is on, while you are playing games on your tab or phone?

4. Practice KUROT and not DAKOT

When spending especially on wants, kumurot ka lng sa pera mo and huwag dakutin lahat. Like when you want to buy the newest model of Samsung or Apple phone, see to it that when you buy it, hindi lahat nang pera mo ay doon mapupunta.

If all of your money will be spent on just buying that 1 latest phone, wait until you have enough money to kurot from.

In my  kurot strategy, the amount of the stuff I want to buy is at least 1/3 of my total available money.

Say, if the phone price is 20,000 Pesos, I should at least have more than 60,000 Pesos in my bank account.

From these 4 simple ways of spending and saving money, you will be surprised to see how much money you can save. And if you put your savings in investments like the stock market, you will be happy to see changes in your financial life.

P.S.: If you liked this post, please feel free to share it with your friends. In the meantime, I invite to download our free e-book, How  Can Teachers Start Investing the Philippine Stock Market.