Simple Steps to Saving Money

http://www.flickr.com/photos

In my last post, I wrote about the importance of
saving money where I shared with you four Biblical principles that teach the value of saving money. Now I will write about the the how to saving money. I share some tips how to you can save money, and save money consistently :)

Much of what I write here are based on my personal money saving experiences. I find the how to saving money quite simple. If we just have to follow a few steps, we can begin to accumulate money in our bank account. I believe we all do save money at some point, but the big challenge always is how to save money consistently. Yes, the key to wealth creation is regular and consistent savings. Developing money saving habits are not easy because we, Filipinos, are generally spenders and not savers. For instance, our household savings rate was below 20%, one of the lowest in South East Asia. There are many other ways to save money, and if you do it consistently, you can accumulate savings for your protection against income shortfall in the future.

These are few simple steps you can use to save money and to develop your saving habits:

1. Be Clear About Your Savings Objectives

Before you begin, it is important that you are clear with your saving objectives. What is it you want to be saving for? Write your objectives down and based your savings plan on what's most important to you. The better you understand your saving money objectives, the more you will be committed to implementing and following it through. Here are some you might be planning to save money for:

• Retirement. This is one serious issue you need to think about and to be saving for while you are still actively working. This is part of being responsible. One way to do this is to contribute to your Government Service Insurance System (GSIS), if you are a government employee or open an account with Social Security System (SSS), if you are a private sector employee, business owner, self-employed or freelancer. I know the benefits you get from any of these social security programs are not much, but it can help. Another way to prepare for your retirement is opt for a life insurance policy. There are many types of life insurance products available in the market now that offer superior coverages for least amount of premiums. Some combine it with investments in mutual funds, others have endowment funds too. I'l write and recommend some of the best insurance companies and products in my future posts.
• Emergencies. You may also need to set aside money for emergencies. Anything can happen at any time, and if you do not have funds for emergencies, it can be too much of a headache for you. Some financial advisers I talked to suggest to set aside money for emergencies at least six times of your monthly income.
• Health. Another important item you should not miss is to save for health or medical needs. Getting sick and hospitalized is very expensive nowadays. The cost of hospitalization, medicines, laboratories and doctor's fees can really drain our money away. One option to ease your burden is to be a member of and contribute to our national health insurance program or PhilHealth. Whether you are formally employed or self-employed, you can contribute to PhilHealth and you and your family will be covered. PhilHealth benefits can really help a lot in times of medical emergencies. You can also supplement your PhilHealth coverage with private health insurance or HMO.       
• Play account. Of course, it is also important you save for leisure and relaxation.  Play account is the rich people way of saving for leisure. You are working so hard and you should reward yourself also. You should save money for holidays and vacations and others.

These are few examples you might need to be saving for. There are many more. For instance, if you are a parent, you need to save for your children's education. Young professionals need to save for their dream wedding, too :) and the list can go on.

2. Set Specific Goals

Now that you are clear about what you want to be saving for, next step is to set specific goals. Fix the amounts you wish to have and set the exact dates you want your goals achieved. For instance, if you want to have a holiday, ask yourself, when is it exactly you want to be able to enjoy your holiday? How much money do you need for the holiday to enjoy? You can set the amounts needed that are most realistic to you, and the dates that are most important and meaningful for you. You also need to prioritize your goals and think about what each of your goals will cost you. You might need to do some research to figure out how much money you will need, or you can seek out the help of other people. But please do not burden yourself with complicated calculations. Be simple as possible. What is important is that you are able to figure the estimated costs for each of your goals.

3. Developing a Budget  

According to Robert Kiyosaki, knowing how to budget our money is one of the important financial intelligences we have to master. How to save money is to develop a budget that incorporates savings into it. A budget, according to one definition is: a systematic plan for the expenditure of a fixed resource over a given period. We can use the budget to make saving money automatic by incorporating it in the plan. The best way to do that is to treat your regular savings as an expense in your budget. If you treat saving money as an expense say every month, then you will have to pay for it. You are paying yourself first. If you do it this way, chances are you can save money regularly. You have a choice to use your budget to create saving or not.  For instance, in my case, this is how I structure my budget plan: Total income from all sources less tithes (I believe in tithing so it's on top of my list), savings (broken down by type of savings) and living expenses. In this case, I pay myself first, then I work around the remaining money to develop my living expenses budget. I started doing this a long time ago, this has worked pretty well for me.

I agree saving money that way is not easy at the beginning. It's really a struggle and it takes a lot of discipline to sustain it. But if you stick to it long enough, you can develop in due time better money management skills and money saving habits as well.

If you have other ways of saving money, please feel free to share it here so that others can benefit as well from your experience. Your comments are definitely welcome :)

4 Reasons Why Saving Money is Important

http://www.flickr.com/photos

In my previous post, I mentioned that saving money or setting aside money for the future is one of the secrets to wealth creation. While this principle is recognized by many people, however, this is seldom strictly and religiously followed. I know many friends who struggle in their personal finances especially in saving their hard-earned money. Not because they do not have money to save, in fact, most of them earn significant and above average income every month, but simply because, according to them, they do not have enough money to save. Their case is more of lack of spending or budget plan, and setting their priorities clear, and not the lack of money to save.

There could be many reasons why saving money is important. Understanding the reasons is more important than knowing the how part to save money. The why is more important because it is your motivation that drives you to save money. It is the driving force, that leads you to act. The how is easy to learn and will follow once you are clear about the why. So for the meantime, let's talk about the why of saving money.

Like I said, there could be many reasons you can think of why saving money is important. Here I will share with you some Bible perspectives about money savings and its instruction on how we can best handle our finances. The Bible is rich in instructions and advice when it comes to the matter of finances.

God Wants us to be Good Stewards of His Provisions for us

Jesus tells us in Matthew 25:13-30 and Luke 19:11-27 a parable of the talents. The story is about a man who is preparing to leave for a journey and entrusts his wealth to the hands of his servants. He distributes his possessions according to each servant's ability.  He gave five talents to the first, two talents to the second, and one talent to the third servant. In this story, we see how the first two servants used the master's money. They invested the money they were provided with and made it grow. The other servant did not invest the money and simply hid it under the ground. He produced nothing for the master. Each servant made an accounting upon the return of their master. The first two servants were happy to report with their master how they were able to multiply the master's money. Both received a reward and commendation from the master as "well done thou good and faithful servants." Because they were faithful, reliable and proven to be capable by the master, they were given more responsibilities.

The fate of the third servant was different from the first two. Because he was not able to invest the money entrusted to him by the master and he did not make it grow, he received punishment rather than commendation from the master. He was rebuked as  being "wicked and lazy."  His master suffered loss because of his laziness and incompetence. The value of the his master's money must have declined due to inflation. As a result, the master took away his talent and gave it to the servant who was able to produce more.

God wants us to be good and faithful stewards of whatever it is He has given us, be it money, time and other things. Saving money is good stewardship and it pleases God. If God can trust us with little things, He will entrust to us more of His blessings just as He has promised in Luke 16:10, "He that is faithful in that which is least is faithful also in much. And he that is unjust in the least is unjust also in much."


Saving Money for Famine, Hard Times


Another important reason why we need to save money is to prepare for the famine and hard times to come. The Bible tells us that there are seasons of life. There will be a time of abundance and a time of lack. During periods of high economic growth, our life might be easy and we can live in abundance. However, in time of economic recession and depression (period of slow or negative economic growth), then life can be really difficult and devastating especially if we are unprepared. The season of life is definite but we do not know exactly when the time of lack and famine will come upon us. That is why when we are in abundance, we need to store up so that when the hard times come, we will be prepared to handle it and we will survive.  There is no better way to prepare for the hard times than to save money in time of abundance. Take these wise examples from the Bible which illustrates the value of saving money.

"Four things on earth are small, yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer." (Proverbs 30:24-25)


"Go to the ant, you sluggard! Consider her ways and be wise, which having no captain, overseer or ruler, provides her supplies in the summer, and gathers her food in the harvest. How long will you slumber, o sluggard, when will you rise from your sleep? A little sleep, a little slumber, a little folding of the hands to sleep, so shall your poverty come on you like a prowler, and your need like an armed man (Proverbs 6:6-11)

The story of the ant tells us the lesson to be hard working and to always plan ahead. We should not be lazy. If we are lazy, then it's like we are expecting poverty to fall unto us. And in times of abundance, we should store up our supplies for the hard times to come. And to save money now for the challenging times ahead is a wise action to do.

Another example is the story of Joseph in Genesis. Their story also teaches us a lesson to plan ahead and how once can be used by God as a blessing for others.

"Let Pharaoh do this, and let him appoint officers over the land, to collect one-fifth of the produce of the land of Egypt in the seven plentiful years. And let them gather all the food of those good years that are coming, and store up grains under the authority of Pharaoh, and let them keep food in the cities. Then that food shall serve as a reserve for the land for the seven years of famine which shall be in the land of Egypt, that the land may not perish during the famine." (Genesis 41:34-36)

It is Foolish to Spend all our Money

Proverbs 21:20 tells us that it is foolish or unwise for us to spend all our money and use up everything that we have. We are certain that we will experience some period of abundance and also period of lack in our life. But we do not know when hard times and scarcity will come upon us. That is why the Bible warns us.

"The best food and olive oil are stored up in the houses of  wise people. But a foolish man eats up everything he has." Proverbs 21:10, NIRB)

If you spend everything that you earn every month, and do not save a fraction of what you earn, it can really be a serious problem for you especially in period of tough economic situation. But it is never late to start. Endeavor to pay yourself first, and also try to develop your spending and money saving plan. Try to start saving small money, say between 5-10 percent of your monthly income and stick to it, until it becomes part of your habits. Then gradually increase your savings rate to a level that is most comfortable to you. For tips about how to save money,  I will write about the how part of saving money in my next post.


Providing for our Family Needs is an Honorable Thing to do


"But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than the unbeliever." (1 Timothy 5:8, NKJV)

Another  reason why saving money is important is that we need to provide for our family needs. God looks at our ability to provide for our family as an honorable act. And if we don't provide, God sees it as a serious sin and an act of irresponsibility. God does not say that we provide the needs of our family only in time of abundance and in good times. But He expects us to provide for their needs at all times and in all seasons of life including in time of hard economic time. How prepared are you now?

We know there are seasons in life - time of abundance and time of lack. We do not know when the time of lack will come and what the future holds. Only God knows about that! But one thing we are sure about is the fact the God will provide everything that we need to survive. God might be abundantly blessing you today and providing you a means now to save for your tomorrow's needs. But if you will spend everything that God is providing you now, then you will not have for tomorrow. Learn from the story of the ants and Joseph. Start now to saving money. It is always best to plan ahead, and let us commit all our plans to God. The outcome is in God's hands.

Colayco Foundation Financial and Investing Literacy Program

I attended a Pera Palaguin webinar conducted by Mr Francisco Colayco and Armand Bengco of the Colayco Foundation for Education, Inc. The webinar was very informative and insightful. It was a good learning experience with Mr Colayco and Mr Bengco who selflessly shared their knowledge and expertise about investing and the different ways where to invest our money in and how to make our money grow fast. But while I enjoyed everything about the webinar, there are a number of key principles Mr Colayco mentioned that really stuck in my mind and I would like to share with you.

According to Mr Colayco, we must feel the need for urgency to create wealth and to empower ourselves to  build our wealth. If we don't feel the urgency of our need, more likely we will never act and do something.  Wealth accumulation is not achieved overnight, but over time. And to build our wealth overtime, he said we need to have self-discipline, determination and decisiveness. Qualities that are always key ingredients for success in any endeavors in life and also in our financial life.

Mr Colayco also emphasized the need to increase our financial and investing intelligence. We all need  to increase our financial IQ, and also to learn the basics of investing. Many people make investing issue appear complicated, but it is easy and we should not be intimidated by it. We just have to learn the basic and gradually increase our understanding of it. If we have high financial and investing IQ and know when and how to invest in the right instruments, we can take advantage of different investment opportunities available. That way we can build and accumulate wealth much faster.

To know more opportunities how you could increase your financial and investing intelligence, you can turn  to the Colayco Foundation for Education, Inc. Mr Colayco and his team regularly conduct financial education seminars for all Pinoys here in the Philippines and abroad. He conducts both live and online seminars, some are free and others for a small amount. Visit their website to find out more about the financial education and investing programs www.colaycofoundation1.com.

Online Virtual Assistants Training Now Available for Pinoys

Do you want to work from home as virtual assistant but you have no idea how and where to start? Here is a good news for you. Now you can attend an Online Virtual Assistants training to prepare yourself to be a world-class virtual assistant (or VA). The Virtual Assistant Online Lessons e-course is conducted by the BestBuds Virtual Assistants

Before you can be a virtual assistant, you will need to undergo some training so you will know what virtual assistants do, what skills are needed and how you can be effective, how to find a client, how you can get paid and avoid Internet scams, and many other things. Working as a virtual assistant from the comfort of your home is easy, but you must possess some skills and knowledge to be an effective virtual assistant. The Online Virtual Assistant Training Lessons program will help you achieve that.

What is a Online Virtual Assistants Training Lessons?

The Online Virtual Assistants Training Lessons (VAOL)  is a 30-day E-course developed by a Filipino author Ron Salvador, who is a professional social worker and financial adviser. I know Ron Salvador who is very active in training and equipping aspiring Pinoy virtual assistants in the Philippines and abroad.  He designed the VAOL training program for the Pinoys, especially those who have less money and can not afford to attend expensive VA training, but want to work as virtual assistants. You can find more about Ron Salvador and his mission in his website www.ronsalvadorinfopreneur.blogspot.com/about-me.html

Online Virtual Assistants Training Lessons is designed to walk aspiring Pinoy virtual assistants to the many facets of online freelancing. If you attend the Online Virtual Assistants Training Lessons, you will learn the language, the skills set, the systems and everything about the virtual assistants industry. In a nutshell, a virtual assistant is an independent worker who works online and provides a variety of services to a client for a pre-determined fee. You can check my previous article about my 8 reasons why I myself want to work as virtual assistant here: http://www.stephensungkip.com/2011/04/8-reasons-why-i-want-to-work-as-virtual.html

How the Online Virtual Assistant Training Lessons implemented?

Online Virtual Assistant Training Lessons will run for 4 weeks. Lessons and exercises will be sent to participants via e-mail daily. All you need is your computer with fast Internet connection. If you are not a tech-savvy, do not worry, the Online Virtual Assistants Training Lessons will provide you with step-by-step guide and tutorials that you need to follow and execute to graduate and be certified. It is easy and each lesson is interactive and informative, so you will enjoy. Weekly lessons are structured this way:

• Week 1 will focus on discussing jobs available to virtual assistants, the different and many ways to earn money online doing VA work
• Week 2 will discuss the language, skills set and the systems
• Week 3 will discuss the secret to becoming a world-class virtual assistant
• Week 4 will discuss the step-by-step guide how to find and get clients and
• Tips on where to find VA jobs, how to package and market yourself online as a professional VA and a lot more

Each lesson includes exercises and actual workshops to help you muster all the Internet skills you will need to develop to succeed as virtual assistant. A friend of mine from Cebu who availed of the online virtual assistants training described his experienced as "awesome. I learned a lot about the virtual assistants world." He is on his way to becoming a virtual assistant.

And here is the exciting part...

After you have successfully completed the Online Virtual Assistants Training Lessons, Bestbuds Virtual Assistants will provide you with your  first virtual assistant (VA) gig immediately. You will be hired for one particular project and you will be paid. This is your opportunity to demonstrate your new skills and earn money online. This is a guaranteed project and income for you! No other virtual assistant training program in the Philippines can match this offer! Imagine after your training you can already recover your investment!

How much does a Virtual Assistant Online Training Lessons cost?

Unlike other virtual assistants training programs available today, the Virtual Assistants Online Lessons program is very affordable. The full cost of the entire 4-weeks e-course is only PhP500.00, amount you can easily afford. It is affordable because it is done online, and you can save a lot of money. Other virtual assistants training requires you to be physically present in the training venue. This was my case  when I attended a virtual assistant training where I had to take a leave from my office and I paid about 6x of this amount. The Virtual Assistant Online Training Lessons is an unbeatable offer you should not want to miss. You will recover your PhP500.00 investment immediately.

How to avail of the Online Virtual Assistants Training Lessons?

To avail of the Online Virtual Assistants Training Lessons is easy, just follow these steps:

• Send e-mail to bestbudsvas@yahoo.com and tell them you are interested (you can also mention you learn about VAOL through this blogsite)
• Wait for their reply to your e-mail and instructions, and
• Pay the PhP500 training fee either via Paypal, bank deposit in United Coconut Planters Bank (UCPB), Banco de Oro (BDO) or Rizal Commercial Banking Corporation (RCBC) if you are in the Philippines
• Or pay via Western Union if you are abroad
• Email bestbudsvas@yahoo.com to confirm payment and upon confirmation
• You start your online training.

Francisco Colayco Conducts Free Pera Palaguin Webinar

Are you looking for investment opportunities and tips how you could make your hard-earned money grow fast?  Then, you should attend the FREE Pera Palaguin webinar, organized by the Kapatiran sa Kasaganaan Service and Multi-purpose Cooperative (or KsKCoop) in partnership with the Colayco Foundation for Education Inc. The Pera Palaguin webinar will be on August 12, 2011 from 6pm to 8pm, Philippine time and will be conducted by Mr Francisco Colayco, chairman of the KsK Coop and Mr Armand Bengco, KsK Coop general manager.

Mr Francisco Colayco and Bengco will explain in the webinar the difference between BUY and LEND investments and how BUY investments are key to your wealth generation. You will also learn whether KsK Coop can be your partner to wealth generation. KsK Coop offers members easy and good investment opportunities like:

• Co-own businessess like Chowking Restaurant in One Mango Square in Cebu City and the Rural Bank of Cavite City
• Invest in mutual funds in "sachet" for only PhP300, PhP500 and PhP1000 minimum placement per month, and
• Savings and special deposit accounts

Pera Palaguin webinar is FREE and open to all Filipinos from all parts of the world. All you need is fast and reliable Internet connection. Limited slots are available. Click here to reserve your seat: http://bit.ly/PeraPalaguinWebinar

KsK Coop was  formed and registered in the Philippines on September 23, 2004. KsK Coop helps its members to increase income and wealth through savings and investments. Its primary objectives are the following:

1. To help, educate and motivate members to keep more of the money they earn
2. To empower and influence members to cllectively do more of the money they keep
3. To encourage members to join thrift and savings programs to achieve increased income, savings and investments
4. To achieve financial independence for each individual member and the cooperative as a whole
5. To provide continuous trainings and seminars in and about financial independence.

Pera Palaguin webinar is part of financial education programs of KsK Coop and the Colayco Foundation for Education, Inc. To know more about their programs, visit www.kskcoop.com  and www.colaycofoundation1.com. 

Tags: Money, Investments, Mutual funds, Cooperative , Savings

Powered by Qumana