Wednesday, December 28, 2011

Having Pesos and Sense

I heard two very important questions recently:
Why do you save? and How do you save? 
Hmmmm... Interesting questions, huh?

Why do I save?

  • Well, I save because I have learned that there will be days when you will be in need, and it is not easy to have nothing. I have seen people have absolutely nothing, just because they weren’t smart enough to save, and I do not want to see myself in that position.
  • I also save because there are things I want in life and I know how fulfilling it is to own something that I paid for with my own money. Some people still rely on their parents. Some people are not able to afford the things that they want. I save money, because it somehow gives you power to own and do things for yourself.
  • I save because I have big dreams for the future and it involves being able to give a good life to my children, if not like my own, something even better than what my parents were able to provide me with.
Do not misunderstand me… I save, not because I love and need money. I save, not because I am materiaslistic (because the truth is I'm not). But I save because I know that I will have better use of my money in the future.

How do I save?


Well, I always budget my money. This goes for my personal money and the money that the clinic earns. I always make sure that all expenses are paid for and I make sure that I put money away:
  • After planning my expenses, I see what is left of my money, put a portion of it in savings and only leave myself a few to spend for dinning out, salon and nail spa visits. If I have nothing left, then I will have to cut on dining out, salon trips and nail spa visits. That’s basically how it works.
  • I don't always carry money in my wallet. I have only what I need and on an ordinary day, I don't have more than 500. It is not easy to have a lot of money lying around. Even if I keep it in the innermost pockets, I will find a way to spend it.
  • I also make sure to save on all kinds of expenses: gasoline, grocery, electricity. I make sure to plan what I will cook in a month so that I can keep to my monthly budget and I always try to save on gasoline by driving properly (maintaining the right gear for the right speed) and choosing to drive a manual rather than an automatic.
  • I prioritize my expenses (needs always before wants) and although I go shopping, sometimes, I still set myself a budget for clothes, shoes and makeup. I hardly go crazy shopping, but I have -- however, you can trust that I never go beyond what I can afford.
  • Although I am fond of using my credit card I pay my bills in full. I do not like being in debt but I love using my credit card because I can get good installment plans on various purchases and I also earn points and all kinds of freebies from my card.
Although it seems like I do a lot, I really don't. I have yet to learn how to properly save and invest, and since I do not really have anyone to talk to about this, I watch "Pesos and Sense". I didn't get to watch it on TV when the first season was airing but they've uploaded past episodes on YouTube and I just watch them there. It's perfect for people like me, who couldn't be bothered to attend seminars on these things -- and perfect for people who are dying to find out more about investing but really have no one to ask.

pesos and sense2

Having Pesos and Sense is a great thing. Of course, you need "pesos" to be able to spend for the things you need and want, but you also need to have good "sense" when you spend the pesos in your pocket. Hahaha! I know of people my age, some even decades older than I, who still have no "sense" on spending their money. Money is good --- but you should not let money control you. You should have full control over it.

WHY do you save and HOW do you save?
I'd love to read your answers...


3 added some drama:

Alexia Annika said...

why?...for Retirement(passive income), for emergency purposes, To love more and Give More, so that i can be a part of the solution not the problem..

How?, by putting our money in diff. kinds of Investment Vehicle Like insurance, Mutual Funds,UITF, Stocks(EIP), Banks(short-term investments), Real Estate..etc...Do not put all your Eggs in one Basket-Aya Laraya.,



I save because it makes me feel secure. Living my life afraid I don't have funds on an emergency is not the way I'd like to live :)

edelweiza said...

I save and invest money to achieve financial freedom someday (hopefully before retirement comes!). There's so much to learn about money and I'm glad there are many personal finance resources online and on TV (like that show you're referring to) that we all can follow and learn from. :)

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