The usual understanding of the word "savings" goes like this: Here is wo/man x earning y pesos a month. S/he receives his/her pay. What s/he does is to budget his/her money and then, try as much as possible to save something. Something should be left. Well, this is wrong.
The idea is to pay yourself first. Put the savings first. Pay yourself first. Yes, before you pay Globe/Smart for your cellphone bills. Before you pay Manila Water or Meralco. Before you pay Kuya Rey for the transport service. The budget should be clear so that you are able to take the 10% before spending. That way, there is always the certainty that something is saved.
Later, you will realize that you are able to survive with just the 90% on your pocket/ATM. Then, much later, just like me, you will realize that 10% is very low. And you start adding up to the percentage.
Reminder though. This is a test of discipline. It does not go this way - I wasn't able to save for my Babylonian box this payday. It doesn't matter, I will double it next time. That is not the way to do it. The key is consistency of purpose. Don't put much savings now and then get it later. Remember that the money you put there should be kept there forever. It's like a share in Buffett's Berkshire.
Further, the money kept there should multiply itself. First, through bank interest. Later, if it gets bigger, you can invest it in a good enterprise - stock market, mutual funds, your own business. No matter what you do, you have to continue saving.
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