It’s that time of year once again when every weekend not a few neighbors celebrate the graduation of a family member and videokes blare from all sides. Completing 16+ years of schooling is certainly a cause for celebration. For many fresh graduates the whole summer will be a time of fun, fun, fun, while for some, a few weeks break is all they need and they’re off job hunting.
It will just be a matter of time before new graduates will land their first job. And when they do, more partying and celebrations are to be expected. Iba na talaga kasi yung may sarili ka nang kita. It gives you the freedom to do as you please. Usually, your salary in the first few months won’t last long. There’s the customary treat for family, friends and office mates. There are new clothes, shoes, gadgets and other stuff to buy, to pamper your self. It’s okay to celebrate and lavish yourself, but don’t overdo it. Baka naman 3 years later, tuwing sahod, celebration at pampering pa rin ang iniisip mo.
It may seem absurd and premature, but you have to start thinking of retirement as soon as you land your first job. A vast majority of Pinoys, over 50 years old, are not ready to retire because they failed to plan and prepare when they were younger. In fact, many continue to work hard – not by choice, but out of necessity – even beyond the age of 65. If you put off saving for another day, that day may never come or may come too late. Kapag palagi mong sinasabi na “bukas na yang pag-iipon, enjoy muna,” baka maubusan ka ng bukas.
Don’t allow yourself to get into the habit of spending all of your money, knowing that your pocket gets “recharged” on the next payday. Kapag nasanay ka na palaging inuubos ang iyong sahod, asahan mo na kahit doblehin pa ang iyong kita, mauubos mo pa rin ito. Develop good money habits early on. Train yourself to always set aside a certain amount every month. Think of it as paying for your future.
It should not be too hard to save 20-25% of your salary, especially if you are single. Try to save P1,000 to P3,000 (or more) monthly as soon as you start earning and keep doing it throughout your working years. P3,000 monthly will grow to P7.2 million in 40 years, if the money earns 7% per year. If you start with a monthly saving of P3,000 and increase it by just P100 every year, your total savings in 30 years will be P4.5 million, or about P10 million in 40 years. Certainly, retirement will be more comfortable with this amount.
For someone who has become used to reckless spending, saving P1,000 to P3,000 a month will be big challenge. Fortunately, for new graduates and first time employees, it shouldn’t be that hard because you probably haven’t fully developed bad money habits yet. Magiging mahirap lang ang pag-iipon kung nakasanayan mo na ang paggastos ng lahat ng iyong pera. Kaya bago ka pa mahirapan, sanayin na ang sarili sa pag-iipon.
Here are some tips to get you started on a lifetime of saving:
1. Choose wisely the lifestyle you want to follow. A luxurious lifestyle takes a lot of money to maintain. Many are suffering from a lifetime of debt because they are living a life they could not afford. Would you really want a life that hits you with one financial challenge after another? Stick to a simple lifestyle – simple doesn’t mean it won’t be enjoyable!
2. Create a budget and stick to it. You need to plan how you are going to spend your money and you need a budget to do that. Create a list of all your expenses, including your saving, and set a budget for each item. Avoid overspending by doing your best to stick to your budget.
3. Open a savings account and keep putting money in it. So that you will not be tempted to spend your savings, keep it out of sight and out of your hands. You can put it in a savings account that doesn’t have an ATM card. Other alternatives for keeping your savings are time deposit accounts, insurance policies, pre-need plans, mutual funds and UITFs. Not only is it relatively harder to touch your money in these products it also allows your money to grow.
4. Give up costly bad habits. Don’t smoke, drink moderately and don’t do drugs. It’s bad for the health and harmful to your wallet. You may think these habits are cool, but they’re not. Addiction to nicotine, alcohol and drugs is never cool!
5. Don’t buy too many things that decline in value. That’s like throwing away money. Hindi mo kailangang bumili ng mamahaling cellphone, laptops o electronic gadgets. Buy only the unit that comes with the basic features. Don’t pay extra for features you don’t need or can live without.
6. Avoid expensive hobbies and activities. It may be fun and exciting, but some hobbies & activities can burn a hole in your pocket. Mahirap maging tunay na masaya sa iyong ginagawa kung labis na nasasaktan ang bulsa. Find alternative hobbies and leisure pursuits that are inexpensive. For example, instead of collecting toys, comic books and other expensive stuff, perhaps you can “collect” friends. Hindi mo kailangang gumastos ng malaki para sumaya.
It is unlikely that your school taught you how to responsibly manage your own money. So, you will have to learn it by yourself. Walang ibang magtuturo sa ‘yo tungkol sa tamang paghawak ng pera kundi ang sarili mo. Read books and articles about personal finance. “Kaya Mo, Pinoy! 12 Steps to Build Wealth on Any Income” is a great book for those who have zero or minimal knowledge about personal finance. It s written in plain English & Filipino and covers all aspects of personal money management. The lessons are practical and can be easily followed by ordinary Pinoys. (Read more about the book at http://www.pinoysma rtsavers. com/kayamopinoy. html.)
When you start saving early, you will have time on your side and preparing for your future will be a lot easier. Starting early also gives you the opportunity to retire early, which means you will have a lot more time to really enjoy life. Dear graduates, you have in your hands a golden opportunity to build a financially secure future. Do not squander this chance. Start saving, NOW!
repost from pinoy smart savers
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