How to Save Money: Exploring the Best Ways

Everyone wants to get rich, but some of the key components in having generational wealth are investing and working smart. However, one of the most overlooked and underrated aspects of financial stability nowadays is through saving.

Many influencers say that saving is just keeping money in a bank account and letting it sit there.

The reason why experts are saying this is because inflation weakens purchasing power every year. While this is true, when you start saving money, it also helps you prepare for various things.

Money-Saving Tips

There are a variety of reasons for someone to open a savings account. For one, people make savings accounts as an emergency fund, insurance policies, funding for occasional vacations with family, major purchases like maybe a car, a house and lot or condominium property.

In some cases, people save for capital. But generally, people save money for a better financial future.

Whatever your reason is, a savings plan is a good way to secure your financial future and this should be considered not a habit, but a skill. Some people save money better than others.

On the other hand, you can develop this skill, too, by following these efficient steps on how to save money. 

Have a Record of Your Expenses 

An effective way to start your savings journey is to kick it off by recording everything you spend within a month. This means that you must track expenses of every household or personal item you purchase outside of other expenses.

The old-school method of recording your expenses is listing them on paper. But with the development of technology now, some apps can help you.

If you have bad spending habits, you might want to spend using cash rather than a card to pay for your purchases. This way, you’ll have a more tangible item that you can see instead of just swiping for every purchase.

Moreover, if you want to spend money faster, you might want to avoid a staggering credit card debt with overwhelming interest.

After every purchase, keep the receipts so you can track all your expenses. This might make you look like an accountant, but it works. 

Lay Out Your Cash Flow

Lay out your cash flow indicating all regular expenses that you need to pay like electricity bill, living expenses or your day to day expenses, cell phone plan, home costs, cleaning supplies, and other monthly payments and compare them with your monthly income.

This exercise may even help you realize that you really do not have so much money that can be splurged on “wants.”

Have a Budget for Savings 

You have your monthly budget for clothes, food, miscellaneous expenses, and water and electric energy costs which is a good thing, yet another thing that should be included in your financial priorities is the mandatory budget for your savings.

Set Financial Goals, Save Money Fast

But first, set a savings goal. Challenging yourself through savings goals brings extra motivation to control your spending habits.

Going Traditional

Some people even try to save by the traditional means of a piggy bank. There is even a so-called “Ipon Challenge” where you have to save a minimum amount of 20 pesos every day for a year. 

When doing the ipon challenge, consistently set aside a desired amount as automatic savings without missing a day. If you look online, there are even the total values of what you’re going to get per year.

Even one peso a day can guarantee you 365 Php by the end of the year. It may not be big savings but it is still extra savings. What’s great about this challenge is it won’t be a burden once you stay consistent. 

Find Alternative Means To Spending

Alternate Ways to Spending

Cutting all your expenses is essential when it comes to saving money. One of the good ways to save money is to find alternative means for the things you spend on.

For example, if you can find a cheaper brand of a food item, you should take full advantage of this and purchase it instead of the regular ones you buy if they have the same taste or better use energy-efficient appliances to cut down electricity bills. 

Bulk Buys

Additionally, when it comes to everyday expenses like grocery shopping, stay cost effective and look for opportunities to save by using coupon codes, buying in bulk, or meal planning to minimize waste and lower your grocery bills, allowing you to redirect those savings toward your financial objectives.

More than this, you are assured of a better deal and use the savings to pay for future needs.

Revisit Subscription Service

Another way to cut your spending is to cancel subscriptions and streaming services that you don’t use often and end up as extra payments that burden your finances. Most of the time, these are gym memberships and cable TV which no one uses due to online streaming platforms.

Unfortunately, eating out or buying lunch instead of packing one is also one of the things that you should limit yourself to. But if you can’t, you set a budget for it to reduce spending.

Use Extra or Unexpected Income as Leverage

One of the best ways to save money nowadays is by leveraging extra or unexpected income. When you receive unexpected windfalls like bonuses, tax refunds, or even earn money from a side gig, consider allocating a portion of it toward your savings goals.

For instance, you can use this extra cash to build up a fund for your down payment on a new home.

Savings Habit : Ask Yourself Why You Are Saving 

Saving is a great way to have more money. But before planning to save, you should ask yourself why you are cutting your expenses and where the money is going. As the saying goes, your money is not yours unless you spend it.

So before spending, determine what your short-term and long-term goals are. 

If you are saving money for long-term goals such as retirement or a house and lot in the Philippines, it is best if your money goes to an investment plan. Licensed financial advisors will help you in achieving this goal.

Some people save for the sake of saving and this is not a good idea because of inflation.

Watch Your Savings Grow 

Some people save for the sake of seeing their money grow and nothing more. You shouldn’t be saving for the reason of seeing a higher number every time.

However, you should consider checking account every month. Knowing that your savings are growing feels good and is a reward in itself. Consider it as an investment account for use in the near future.

This can give you the inspiration to save more and make you feel that you’ll get whatever you are saving for as soon as possible. You can also review your progress every month when it comes to budgeting so you can see if you ever have problems.

You can watch your savings by simply installing the app of your chosen bank. 

Keep A Separate Debit Card

One of the best ways to save is to have a separate savings account by opening another debit card solely for that. But instead of keeping it, you should have a trusted friend or family member keep the card.

Then, you would want them to automate your savings by installing the bank’s app so you can have an update on how much money is being added to your account. 

This keeps you from having to pay for purchases that you never really intended to make in the first place. Purchases that give you instant gratification like online shopping that may not necessarily be part of your budget. You may end up paying interest and unnecessary taxes.

Invest in Real Estate

Another way of saving money is living in a house and lot in the Philippines with a competitive monthly amortization and can provide the highest quality of living. If you are looking for a house and lot for sale, Camella is one of the leading real estate developers in the Philippines.

Invest in a Developer

With 45 years of experience, Camella provides a secure and serene way of living. 

Saving money is indeed difficult, but you should also know that spending money for yourself is not so bad either. Saving is different from hoarding because when saving money, it goes somewhere.

If you’re a millennial or Gen Z that has no responsibilities, you should not be pressured in saving that much.

Yes, it’s good to have money for the future, but you shouldn’t cut yourself off from buying the stuff you love.