One of the best indicators that you’re a responsible person is the way you handle money. If you’re constantly spending your income without any cash left in your savings fund, it’s not a good sign of being smart with your financial resources.
Ideally, you should start saving as soon as you start earning money. As the old saying goes, if you plant something today, you’ll have something to reap tomorrow. What it means is that even though you can only afford to save small amounts of money, your chances of growing your financial wealth become more certain.
Even if you’re still a student, you can already set aside part of the allowance you receive from your parents or other family members in a piggy bank; and once you fill that up, you can put the money safely in a bank account. This way, you won’t be tempted to spend all of your savings and start all over again.
Later on, when you have enough money in the bank, and you want to put it toward investments, you can do so. Just make sure to study and weigh your options, so that you have a proper guide to investing.
Depending on the amount of your income or allowance, you can choose from a variety of saving techniques to help you secure your future. Whether you’re a full-time employee, freelancer, working student, or a budding entrepreneur, there’s a saving method that will work for you.
Aside from a personal piggy bank, you can use other saving tools like physical money envelopes or digital money-saving apps. Once you’ve chosen your method, decide on how much money you’re looking to save. Budgeting systems like the 50/30/20 or 80/20 rule have specific guidelines on how you should split your money between spending and saving.
In our featured infographic, you’ll learn more about the most popular and effective money-saving methods that you can try for yourself.
View the all of the budgeting tips over at the BPI Philam website