Simple Pinoy Ways to Increase Your Savings Starting Now

I wanted to write about the most obvious ways that Filipinos can save money on a daily basis starting today. If you follow through with these suggestions I'm sure your savings will increase significantly on a regular basis.

First, cook and eat food at home whenever possible.

Dining out or buying food at fast food joints can be costly. If you do the math, saving at least 100 php per day matters a lot if you do this for 30 days. I know how cooking food at home can be tiresome especially after a busy day but if you're motivated to save some money then this is one simple way that you can increase your savings.

Second, don't pay too much for coffee. If you can get it for free at the office or at home, please do so.

When I used to work in call centers it was really tempting to buy coffee at Starbucks or Bo's Coffee (because everyone looks cool doing so). If you do this for 22 working days in a month that's 4,400 php savings. Wow, that's a lot of savings by simply avoiding this habit. I know some people may find this hard because we see a bunch of people hanging out at Starbucks all the time but tell yourself that your savings will not increase on its own. You have to do your part to deposit money on it.

Third, stop telling yourself you need to increase your salary or get promoted just to start or increase your savings.

Just stop making excuses period. You really don't need to earn a lot just to start saving. If you learn to budget your money and live a simple life by avoiding unnecessary purchases then you'll be fine. How many pants, bags, watches, phones, etc. do you need to have in order to survive in this world or to function efficiently?

Fourth, if you support your parents or relatives and have nothing left for your savings, stop doing it.

I know this may sound cruel because we Filipinos tend to support a lot of people leaving nothing for ourselves in the end. If you have more than enough to support yourself and your parents then feel free to share. However, I would not recommend it. As an adult or a parent myself, I believe that I am responsible for myself so saving up for my retirement is my obligation and not others. What if they won't understand? They will have to. They can't expect you to support them all your life.

At some point, they will have to understand that you will have to start saving money for your own because you are responsible for your life. This is the most common mistake of Filipinos because we think that we are responsible for our parents/relatives that we tend to forget saving for our own retirement. Let's avoid this cycle and start being responsible for our own future.

Fifth, avoid going to malls frequently.

For obvious reasons you have to start avoiding going to malls where you will be tempted to purchase things you don't really need. I mentioned previously that I used to be a shopaholic, that it was really hard for me not to purchase anything every time we visit malls. Then I realized that I could have saved a lot of money when I started saving in my 20's. If you're reading this article in your 20's then your lucky because you have the advantage of saving money at an early age.

These are just some of the practical simple ways to increase your savings. I hope you find this article helpful as it had made a significant change in my life.

Investments and other Shortcuts to Financial Freedom

After all these years I've realize that you should never get yourself into a situation without doing a lot of research. Recently, I had a bad experience at a Cooperative in Cebu and made the mistake of investing even before doing proper research. Keep in mind that banks, cooperatives, insurance companies, etc. they all tell you what you want to hear. They offer a lot of promises and you start hoping that indeed after 10 years of setting aside a monthly contribution you'll finally experience financial freedom. The problem here is when it's time to claim or withdraw your investment, you'll need to wait for an approval or decision from these companies and some, to my dismay, take a long time and even treat you with no respect as a client.  

Don't be easily swayed by companies that promise you huge return on your investments. It's important to check their credibility and their treatment to clients. It's better to invest your money on a company that promises little return but has a good track record of customer service than a company that offers huge return but gives you a hard time getting your investment back. I've read somewhere that if you can't risk losing your money, it's better to invest it on a bank or company where it's easy to withdraw your money when necessary. 

In my previous article, I've mentioned that there is no shortcut to attaining financial freedom, that one must know how to save their money at every opportunity to achieve this. If you have money that you can set aside for investment, there are several ways to put it into good use. You can open up a small business rather than investing it on a company or bank is one example. Be creative and optimistic when you decide to do so. Banks only offer little interest but if your savings increase, you will also benefit from the compounding interest applied to your deposit after several years. 

How Businesses Have Tricked or Manipulated Our Minds to Become Poor

Indeed malls are being constructed everywhere in the Philippines causing unimaginable traffic to different parts of our country. Everywhere in the news and Internet we see different ads making us feel excited and happy because we want to purchase the latest gadgets or stuff you want to see. These ads have tricked and manipulated our minds into thinking that we need to purchase those things because it'll make us happy and even cool. In the end, this doesn't make us happy at all. For the average income earners, these unnecessary purchases can affect our savings in the long run. Or do we really have any savings at all?

I've known many people who have above average income but have failed to save enough money for retirement and emergencies. They had to ask help from relatives to help them pay for hospital bills. This is the dreaded cycle that many Filipinos experience. It is quite a familiar situation and most people will simply make up an excuse that there wasn't enough money to save in the first place. I disagree with this kind of mindset because it's already been proven by people who have achieved financial freedom that no matter how small the amount you save it will matter in the long run. So better start early when you save for your future. 

So, the lesson from all of this is to simply change our mindset about success. In my previous article, I've talked about the importance of believing that success isn't just about acquiring things that others don't have. It's not simply about having the latest MacBook or iPhone because reality is, the more money you spend the less money you save. That's just how the world works. Business don't care if you don't have any money left when you retire. What they care about is for you to keep spending your money at their stores so they can gain more profit from their business. To be fair with business, I really have nothing against them. That's just how it works. They tap on our weaknesses to gain profit. I'm not saying that you shouldn't buy anything but you should only buy what you really need. 

If you change how you perceive success by believing that people with more savings are richer than those who keep spending, then you will be successful in the end. You will have more savings and by the time you retire, you won't have to ask money from anyone because you have done your obligation. Don't ever rely on your children to support you when your old because they will have their own lives to lead and you can't become a burden to them financially. It is your responsibility to save for your future and for your children but it's not your children's responsibility to support you when you're old.

Simple Ticket to Financial Freedom Great for Average or Below Average Pinoys

Do you share the same sentiments I have by not saving money during your younger years? If you haven't realized this yet then it's a good thing your reading this article. For years, I have read countless articles about how to achieve financial freedom but didn't really thought much about it. I still continue to spend most of what I've earned by buying useless things that I didn't really need.

Believe it or not, there's really no shortcut to attaining financial freedom except Saving

Saving your earnings no matter how little it may seem is essential. For starters it's not really about the amount you save but by getting used to the habit of saving money that's so important. If you figure out your motivation for saving then it'll be easier to make this practice a habit. In my previous article, I mentioned about overcoming the shopaholic mentality and how this has made my life happier. Shopping for unnecessary things used to give me happiness that was only temporary.  At the end of the day I felt utterly helpless and sad because I was weak and allowed myself to be tempted by those things.

Change your perception of Success

I felt that changing my perception of success strengthened my resolve in dealing with my shopaholic mentality and  allowed me to focus on my goals. So, how did I change my perception of success? Let me discuss first what I thought about success in the past. I used to think that people with the latest gadgets or people who seem like they have a lot of money were successful. But when I changed my perception that people who didn't spend a lot but have huge savings were the real successful people, saving became easy. Ask yourself this, how much can I save after every payday if I spend this much? If you are tempted to buy clothes, ask yourself how many blouses or dresses do you really need to survive? Will it make much of a difference in your appearance if you spend a fortune on new dresses or bags? If we accept that saving is our responsibility and not the responsibility of others then I'm sure you won't have a hard time.

Avoid debt as much as possible

Most of all, avoid spending money you don't have. Someone wise used to say, "Treat your money like your blood." Think twice or even thrice before you take out your money. Credit cards or loans may seem like a good idea at first but you'll lose money if you don't pay it off sooner. Because of mistakes I've made in the past I've learned that living a simple life is also essential in attaining financial freedom. If you haven't realized this yet, sacrifice is always part of life. We sacrifice our wants and limit ourselves to our needs. Make this a habit eventually you'll realize that saving money doesn't have to be complicated.

A Filipino's Interpretation of Success

What does it truly mean to be successful? Should we align our interpretation with how others perceive it?

The realization and acceptance of your own interpretation of success is essential for you to become successful in every aspect of your life. So, what do you mean by this? You and no one else should decide your own interpretation of success. This is key to finding true happiness and contentment in life. Many have actually relied on the success of others thinking that this is the very definition of success and that they should copy or replicate their lifestyle to enjoy the same achievement. This kind of thinking will surely disappoint you in the end.

Is success measurable by how much money you've made?

In my own opinion No. I truly believe, like what elders or those who have gone before us used to say, Money is not everything. Money should never be your priority or the main ingredient that will motivate you to work your best. You must do things because you love doing them. It should be your passion and not simply an outlet to make some money. If you love what you do then it won't seem like work at all. Family or relationships should be your priority. Many may disapprove but in the end, you'll have to agree that when we die, you don't get to carry your millions with you. But having great relationships makes us feel better and inspired in life. It helps motivate us in a positive way that allows us to be the best that we can be.

So, does it mean that money is not important at all?

No. Money is still important for us to survive in this world. However, we must be responsible enough to save our earnings as much as we can. In the past, I used to dream of being wealthy and being capable of buying anything I wanted, but as I've grown older I've realized that this never made me happy. The happiness I felt was fleeting and never filled the void I felt deep down. I was unhappy because I realized that I was weak back then. I succumbed to temptation by spending a lot of money on things that didn't really matter. But I'm still grateful in a way because I've learned from my mistakes and have finally succeeded in conquering the dreaded shopaholic mindset. When you save enough, you'll have peace of mind. If you encounter challenges like emergencies, job loss, etc. you wouldn't feel the need to panic and ask money from relatives just because you failed to work on your savings.

Why do relationships matter?

Like I said, relationships matter, a lot! It makes us feel better if we know that our kids or love ones appreciate us because we have time for them. If you focus all your time and energy with work and disregard your family, what do you think will happen? You will probably miss out on your kids growing up or worse, lose your family.  Are you prepared for such risk? If this doesn't matter to you at all because you think money is more important, really? Do you truly believe that? You must maintain balance in work and personal life to realize true happiness. This is the only way for us to survive and be truly happy.

Success doesn't really need to be complicated.  It's not simply having the highest paid job in the world but by having successful relationships with our love ones or family as well. If you have these two factors then you definitely deserve a pat in the back!