Saving comes easy for some, but it’s an impossible task for others. When I ask some friends about their savings, they sometimes cringe or tell me “I don’t want to think about that!” as if I asked them about a life-threatening disease.
The act of saving doesn’t have to be difficult or painful. If done right, saving can be a wonderful thing you can look forward to each month. A few years ago, I didn’t really take saving seriously, but after implementing some techniques, it’s something I now look forward to with each paycheck.
So how can we make saving easier to do?
Automate it. Most banks will allow you to automate your payroll account to deposit monthly to a savings account. Check with your bank to see if you can do this with your payroll account. Saving can be much easier if you don’t have to remind yourself to do it regularly.
Focus on the benefits. I’m currently saving up to buy a house within the next 2 years. Of course, the way to motivate myself is to think about that house, which I’ll consider as my sanctuary. I also think of the pride of home ownership and the beauty of living in the province. This makes me wants to say “Yes! I absolutely want to put money into that dream every month!”
However, other types of savings such as for an emergency fund or a retirement fund tend to be harder. Maybe because their purpose and benefits still seem a bit abstract. For these types of savings that you aren’t particularly fond of, focus on the feeling of security you’ll have when these savings are in order. From my experience, it feels great not to worry about losing my job or getting sick because I know my emergency fund is there to catch me when financial problems arise. Plus, I just feel so free not being pressured to work super hard. That feeling of freedom and security, I wouldn’t trade for the world.
Have a mantra. During tough financial times where I was forced to live paycheck to paycheck, I used to have a mantra that I would recite in my head every time I was tempted to spend on something frivolous. My mantra was “Every time I spend on a short term want, I give up a part of a long term dream.”
Get visual. It’s also more encouraging to save if you can actually see what’s going to happen when you accomplish your saving goals. For example, if you really want to save up for a trip to Paris, you can cut up pictures of France from a magazine and place them in an area you’ll look at regularly – whether it’s on your office desk or by your bed.
Note: The visualization doesn’t work for everybody, especially those who forget that action is needed to make things happen. Some get stuck in the visualization without doing anything about it. In those cases, it’s not visualization – it’s mere daydreaming.
Reward yourself. Break down your savings goals into milestones and have a reward for each milestone you reach. For example, if you want to save P100,000 in your emergency fund, you can reward yourself for every P5,000 or P10,000 you successfully stash away for it.
Rewards are important because you won’t feel too bogged down or tired, thinking that all you do with your money is save it. Without rewards, it’s easier to fall back on old spending habits when you get too tired of saving.
How much do you save each month? What do you do to make it easier for yourself?
[...] Frugal Pinoy: 5 Ways To Make Saving Less Painful [...]
Hi there! I have never been a big spender. I earn well and I have always had. Before I got married, 80% of my money I used to help family and relatives. I was not able to save much except buy a plot of land in Cavite. Now I am married. I am still not a big spender. But my wife is. We continue to help our families the best way we can. When I talk to my wife about saving money she gets mad at me. She says I don’t earn enough so we can’t afford to save. I wonder how I can make her rethink her ways. Any suggestions?
That’s a very complex problem you have there, Allan. I don’t think I can cover it extensively with a simple reply in the comments. If you don’t mind, I’ll write an entire post on the issue of money problems with spouses on my next update (on or before Wednesday October 1), since it is an issue with so many layers.
Why don’t you and your wife set a goal? Like a car, a trip, or something like that. When she starts seeing that it’s possible and that it will greatly benefit your family she might change her mind.
Saving you don’t need to start big. 1,000.00 per pay day or 500.00 can be a good start. just be a constant saver. next thing you’ll see that your 500 to 1,000.00 is not a 100,000.00. the tips on how to make saving less painful is very sound. and for me, it’s realistic.
I am 55, with a stable job in government. I am still supporting my daughter because his husband’s income is not enough for them. I only started saving last month, in the cooperative of which i am a member since 2001. This is for my retirement age and in case i get sick. I have a can at home which i keep under my bed and where i put 20 pesos a day since January. Every 30th, I open the can and deposit the total amount in my savings deposit, which i can get any time I want. That’s 600 a month or 7,200 a year and i will earn 3% interest. I hope I can maintain this habit…
@ Adie: Thanks for dropping by and giving Allan some advice
@ Loida: Good for you that you’ve developed such a healthy attitude towards saving! Thanks for sharing your story with us
This post was exactly what I needed to see. I’ve been feeling bogged down lately coz despite saving regularly, I still feel broke all the time. Since last year, I’ve been investing in mutual funds, stocks and UITF. But your blog pointed out that rewards are equally important. So treating myself every once in a while is something I’ll definitely try to learn to avoid feeling like this constantly. Haha, now I realize I wasn’t just being neurotic and that feeling was actually normal. Thanks a lot!!!
This is a great post. My mother taught us the wisdom of saving for the rainy days. When I was still in elementary school, she would give me my allowance for the week. If I spend it all before the week ends, then I would be going to school with no allowance for the rest of the week. So I learned to control my spending urge.
This habit has enabled me to buy a home for my family and secure their future. It’s all about savings and spending wisely!
@Anj: Glad to know you’re learning to reward yourself. It’s easier to fall off the saving wagon if you deprive yourself all the time of the things you enjoy.
@Jamie: It’s a good thing you learned how to save from your parents! I wasn’t as lucky, but the good thing is that I learned from my mother’s mistakes before I made them myself. Congratulations on being able to save and spend wisely!
[...] for you: make it easy. What barriers prevent you from saving money? I’ve written a post about ways to make saving less painful, so you can check that out for more tips. But here are some other [...]
“it’s something I now look forward to with each paycheck.”
I agree with this! I will be reaching my first year as a working gal this September and I just started to pay attention with my savings last May. And since then, I look forward to every paycheck because I get excited to save my money! Haha
Congrats Cai
That probably makes you ahead of everyone else who just started working. Usually it takes a while before people decide to save their income. Nakakaexcite kasi sa umpisa yung feeling na kumikita ka na.
Good day!
Few days ago, I was able to drop by in your column since I am looking for something to share about frugality. Frugal pinoy is indeed realistic for us Filipinos. Anyway, allow me to share some of my practices in saving for the rainy days.
Even when I was still a student, I make it sure that I always have timeline in everything that I do even in my personal life. I am an average person but very determined. I obtained my 4-year course as I promised to myself as self-supporting. After I graduated from college, I work in a good company and started to plan — that is to have my own house & lot at the age of 30. True enough and by God’s grace, I was able to achieve it. At present, still I am connected with the company and my goal is to really be out of the rat race in a corporate world.
For me to be able to achieve it, I certainly set goals and religiously follow it. I ensure to set a portion for church, emergency fund, savings (retirement), and investment. To be realistic, I set timelines and action plan for me to be able to achieve it. And hopefully, after a year or two, I would be able to run my own business, enjoy my vacation with family, be a blessing to my families and friends, and lastly, to help inspire other Filipinos.
And by the way, I am still 31 years of age… =)
Congratulations, Bingo
I, too make it a habit of setting a timeline and actionable steps for my goals. If you want something and you have no plan, it’s not a goal, it’s just wishful thinking.
Do you want to write a guest post about your process?
I found your site today and seems very promising; a lot of good post.
It is hard to save money especially if you haven’t been use to it during your younger years. For me I always set aside a portion of savings let say 10% or 20% of it minimum and if still got extra I save them also.
The only problem with us is that people tend to compare life style with others so savings is getting out of hand. Also try not to move up or increase your standard of leaving just because you get an increment or promotion. This is one of the main reasons why people are not saving up money although their salary is increasing yearly. I mean just think about your salary 5yrs ago and now, if there is huge difference and still you are not saving money then try to think back your life style before and now. Maybe before you cook your lunch at home and bring it to the office while now you always eat outside (chillis or fridays and etc).
Less extravagant life style can save up a lot of money.
Saving money is not really difficult but balancing things are the hardest.
I am working for three years now and i just started my savings this november, I am already 27 years of age, Is it not too late for me? Thank you..
It’s never too late. Of course, the best time to start saving money is when you earn money for the first time. The second best time is *now*.
Since 2008, I’ve been very interested on how to become financially fit. I’ve been through all those budgeting tools,yet I think,it’s hard to stay balanced all the time.There were moments when I would give up such as not writing down expenses daily. But I very well know I’m procrastinating again.It’s really hard.