How To Save Money- 5 Smart Tips to Save Money

Being in control of your finances is a great stress reliever.

I remember when I was still small, my mom handed me this cute piggy bank. She said whenever I have an extra coin, I should insert it to the hole. Weeks passed and I can feel my piggy bank getting heavier. When I can no longer 'feed' it, my mom said it's time to bring it to the bank. I don't understand why someone has to look after my piggy bank but my mom assured me that it's gonna be in good hands. Little did I realized that my mom was teaching me the value of saving money. 

Per BSP study in 2018, more than 70% of the Filipinos remain unbanked. With this, 60% mentioned they are unbanked because of lack of money. I know most of us are more than eager to save money. But yeah, things happen and practically everyday there's a reason to spend -and so saving becomes optional. And this is very true in pre-pandemic days. Saving money then is like a short-term goal, like, if there's extra then go. Or some wait for a better time to save - when salary becomes higher or when they receive bonuses. Well, the best time to save money is NOW.

Trivia: Did you know that October 31 is World Savings Day? World Savings Day is a dedicated time frame where financial institutions and advocates can gather and promote saving mobilization.  

On the Cebuana Lhuillier Iponaryo webinar  I attended this week, Guest Speaker Izza Glino of SavingsPinay.ph shared that there's a big difference in saving during pre-pandemic and now that we are in new normal. In the new normal, saving money is:

• crucial and necessary
• saving for the long-term is important
• can be done even on low income
• not hard but doable

2020 is about surviving; 2021 is thriving. I know some of us hit rock bottom during the pandemic and what better time to save but now. Sharing with you 5 tips that I practice to save money.

1. Go minimal. We really don't need a lot of things- this is one of the lessons I learned during the pandemic. During the lockdown last year, I had to temporarily move to my sister's house with only 3 shorts, 4 shirts and 5 under wears in my bag. Back in the day, I'd splurge on buying new pair of shoes, shirts and what nots because I always like I have lesser clothes to wear every time I open my dresser. Seriously, we don't need a lot. We just need enough.

2. Control your impulses. In my bullet journal, I have a list of my monthly bills that I need to settle. It's usually after the month cover because it's on top of my priority. I also have a portion dedicated to my online shopping hauls to monitor what I have been spending at. Making a list of what to buy at the grocery is also helpful. What's not in my list are not important items so I don't get this urge to buy them. Whenever we have extra, then that's when we pamper ourselves with milk tea and snacks from fast food. 

Have you heard about the 24-hour rule? This means waiting for at least 24 hours before you make a big purchase. The waiting period gives you time to really think if that item is worth the buy. Say , you're eyeing this 50K worth phone. Is it worth buying or can you buy another unit at par with its specs at a much lower price or maybe just use the money for a better use?

3. Unsubscribe. During the pandemic, I have to let go off some phone apps that required monthly subscriptions. We also had to let go of TV cable subscription because it's only our mom who loves watching at our house. She's not really into cable shows so free TV channels would suffice.

So what about Netflix? Personally, it's something I can't forego. If paying for this meant me-time and keeping my sanity, then why not? I used to pay for a monthly subscription of Php 550 but since I'm solely using it in my mobile phone, I downgraded to Plan 149. Now that's a huge difference already, right? 

4. Do side hustle. Aside from my full time work as a Lead Technical recruiter, I also blog and host events. Whatever I get from blogging and hosting, I put into my savings account. Working from home meant no lunch outs, Friday night parties and dates. Since I've been spending less, I am able to save some extra. Those that I was able to save, I put into my small coffee biz. 

You can also check your house and see what can be sold. My sister cleaned her room and found so many items she can sell: clothes- some of it still new and unused, items bought online that remained unopened, even her bed frame. She was able to sell items worth 8K and we were able to buy our nephew a mobile tablet that she now uses for her online class.

5. Open a savings account and practice saving automatically. It all starts with a goal. Allocate your money/ salary wisely. Set your target. Start small and gradually increase when you can. Putting a numerical value also helps you target your goal. 'I will save 15 thousand by end of year' is psyching yourself more than simply saying 'I will start to save money'. (ALSO READ: 20 SMART MONEY SAVING TIPS DURING COVID-19 QUARANTINE)

I automatically transfer a specific amount monthly from my payroll ATM to my savings account. The previous years I also did the 52 week savings challenge. You can also try the Invisible Money Challenge- say, all the 20 peso bills you have, you automatically put into your piggy bank. You'd be surprised how much you can collect if you do this religiously!

If you're already thinking of opening a savings account, Cebuana Lhuillier Micro Savings is the perfect answer. There's always a Cebuana Lhuillier outlet near you so it's very accessible. You can open an account for only 50 pesos! You can deposit and withdraw at your most convenient time with its 2500 branches nationwide. This Micro Savings account is accredited to almost 21,000+ Bancnet ATMs nationwide for easy withdrawal. Just go to a Cebuana Lhuillier outlet near you, bring a valid ID and their staff will gladly assist you. (ALSO READ: CEBUANA LHUILLIER MICRO SAVINGS) 

 Always remember: It's not how much money you make. It's how you save it.