Mastering the art of saving money

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SAVING money can often feel like a daunting task for many of us, and the reasons behind this struggle can vary widely based on individual circumstances. However, the act of saving is less about the conditions we find ourselves in and more about our willingness to prioritize our financial well-being.

As the saying goes, “Where there’s a will, there’s a way.” By cultivating the right mindset and adopting simple, effective strategies, anyone can make saving easier and more enjoyable. Here are some practical tips that I use to help simplify the saving process and turn it into a rewarding habit.

Why do many of us find saving money a tall order? It’s a tough question to answer given the different situations we are in. But I believe saving money tells us more about our will than our circumstances. As the cliché goes, “If there’s a will, there’s a way.” Here are some simple tips I use to make saving easier and painless.

1. Be grateful. How much money is enough? Is 1 million enough? Or maybe 100 million? How about 1 billion? Well, I’ve got news for you. It will never be enough until we master the skill of being grateful. Until we are grateful, we will always find an excuse not to save. Until we are grateful, we will always find something to spend on to make sure we “look” better than our peers. Until we are grateful, we will always feel we don’t have enough because our neighbor has “more.” Being grateful will allow us to be happy with whatever situation we are in without the need to impress anyone. Exercise being grateful by just reflecting on two to three things you are grateful for every day. It doesn’t have to be a major event that happened; it can be as simple as having a nice chat with parents or having a good cup of coffee to start the day. Focus on what we have now and plan for what we really want to have.

2. Go back to basic (the piggy bank approach). Wherever I am, whether in the office or at my home, I always keep a coin bank on my table to remind me of saving. It is the most basic approach that we were taught when we were younger. I make it a point to put something in it daily regardless of the amount. There would be days where I only put P1 while there would be days where I put P100. I don’t fret about the amount I put in, what’s more important for me is that I put some amount daily. Once we built that habit of saving regularly, then it will be human nature to want to save more.

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3. Make saving easy. If doing it online would be easier than going to the bank to transfer the money, then go online. If we feel that saving is hard, don’t make it harder by adding more work to do it. Find a medium that is easy to save money into but hard to withdraw money from.

4. Save with a friend (or a support group). Sometimes things done alone are much harder than being part of a team. Find someone who you can trust to give you a nudge whenever he/she feels like you are going back to your old habits of not saving or spending. Give this person the permission to be honest with you and remind you why you are saving and why you asked for her support. In the same way, help him out with his goals. This way it will be a two-way support system.

5. Have a goal (bigger than money). The goal is not just 1 million or 100 million. The goal is a house that costs 1 million, or a retirement with the type of lifestyle I want that would need 100 million. The goal doesn’t stop with the amount you want to raise; the goal extends further to something more meaningful. It is difficult to save because most of the time, we have no clue what we are saving for. If the goal is bigger than just money, then saving becomes more sustainable and purposeful.

Saving money doesn’t have to be an overwhelming challenge. By adopting a mindset of gratitude, going back to basics with simple methods, like the piggy bank approach, and creating supportive systems around yourself, you can make saving a more manageable and rewarding experience.

Establishing meaningful goals that go beyond just accumulating wealth can also provide the motivation needed to stick with your saving habits. Remember, every little bit adds up over time, and the discipline you develop now will pave the way for a more secure financial future. Start implementing these tips today, and watch as your savings grow, bringing you closer to your financial dreams.

Jeremy Jessley Tan is a registered financial planner of RFP Philippines. To learn more about financial planning, attend the 109th Registered Financial Planner Program this January 2025 and email at [email protected] to inquire.

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