How to Save Money

I’ve been trying to save money all my life but I can’t come up with a good formula to follow until 2006. I’ve found a book written by Francisco Colayco “Wealth within you Reach, Pera Mo Palaguin Mo”. In this book I learned that you should save 20% of your income every month.

But that’s not it. The 20% should be taken as soon as you receive the money, and not after what is left. The rest of the money is what we budget for our personal expenses. Because usually what we do is we pay all the bills, buy unnecessary purchases and all other expenses, What’s left is what we save.

this is my diagram.