• Work/Money Diaries

    {How} I Save Money

    For over two years now, I’ve been struggling with something I never thought would be an issue for me. I used to be so careful with my finances, ensuring my savings remained intact and my credit card balance stayed at zero. But then, something changed.

    I became obsessed with shoes, planners, and all sorts of things. I found myself splurging on weekend and online sales, buying items I didn’t really need. Who needs four pairs of sneakers or three planners in a year, right? Before I knew it, my savings were depleted, and my credit card balance was in the red. I was spending more than I was earning, and it was taking a toll on my financial health.

    But it’s not too late to turn things around. I knew I needed to pay off my debts and start saving again. But how?

    I realized I needed to change my approach to saving. Instead of just saving whatever was left of my salary after expenses, I started setting aside a certain amount first and then budgeting what was left. It was a challenge at first, but I knew it was necessary for my financial well-being.

    So, I began using the 50/25/15/10 formula. I allocated 50% of my salary to loans, debts, and housing, 25% to food and transportation, 15% to savings and other savings schemes like “paluwagan,” and 10% to tithes. This approach allowed me to properly distribute my income to cover my essential expenses while also prioritizing savings and debt repayment.

    I even opened a separate savings account to prevent myself from being tempted to spend unnecessarily. With time and discipline, I know I’ll be able to pay off my debts and build up my savings for the future.

    So, how do you save? Let’s share our strategies and learn from each other!