I know most of us have struggles on how to save money effectively. There are times that the amount we have in the "piggy bank", dissolves into nothing. In short, nasusungkit din kaagad.
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| Source: FM 98.5 CKWR |
This scenario already experienced by Mommy and me. Though we traced where our funds go, we also save a certain amount and be on kuripot mode, wala pa din.
One night, Mommy read an article (I forgot the title) and showed it to me. Now, we are using this and I think it is working. We have savings, a budget for weekly necessities, paid our bills and others.
How to do it?
Compute and save
Compute your regular monthly take home pay. Honesty must be the first rule in this step. Bawal ang mangupit. Walang taguan.
After knowing the combined amount, immediately set aside a fixed percentage of it depending on your goal but be realistic. It should be at least 10% of your income. This savings must not be touch unless in cases of emergencies.
Know your monthly bills.
Compute for the estimated monthly expenses like utility bills (electricity, water, internet, gas, etc.), salary for the househelp, monthly tuition fees for your kids, monthly house rental or amortization, etc.
Know your spending limit.
The remaining amount will be divided into four which corresponds for the number of weeks in a month. The computed amount will be your weekly spending limit.
Plan your purchases.
With the weekly spending limit, try to buy only the things you need for a week. Keep a weekly inventory of the things at home so you can track what you will only need to buy. With this, you can avoid buying unnecessary items which usually aged at your closet or cabinet.
Here is a sample computation:
In cases of extra income like bonuses or commissions, you can do the same thing by saving a part of it then the rest can be use to treat yourself and your family.
I hope this one can help you save part of your income.
Do you have some tips on how to save a part of your income?