Between rent, school fees, food, clothes, phone, and transportation, saving money can be hard. But no matter where you are in life, it’s critical that you start saving for your future! While knowing how to start can feel tricky, it’s easier than you think. Here’s how you can set yourself up to save in just 20 minutes.  

Take 5 minutes to determine your goals  

Before you start saving, it’s important to set goals. Take a quick 5 minutes to determine why you want more savings. Do you want to save up for a house or pay for a wedding? Do you have enough savings for emergencies or retirement? 

There are so many reasons to save and you can have multiple. But it’s important to clearly identify your goals and a timeframe to achieve them. This will help you track your progress and stay motivated. Usually, people try to save between 10-20% of their total income a month.

Take 15 minutes to make a budget 

Once you’ve determined your savings goals, make a budget to help you achieve them!  A budget is simply a plan to track both your income and your spending. It can be as simple as a piece of paper with a list of your income, your expenses and your goals.  

Take 15 minutes to write out all of your sources of income and all of your expenses. Looking at all your sources of money and expenses will give you a good picture of where you can trim or adjust  your spending to reach your savings goals. 

Start today

The hardest part of saving money is just getting started. Once you’ve written down your goals and a quick budget, you can start today. Make sure to put your money in a dedicated space to make sure that your money is safe and separate from your general spending. Follow your savings plan as best you can. It doesn’t have to be scary or hard. Just get started! 

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We all know that saving money is critical to building a better future for yourself. All you need to start saving are a goal and savings plan. However, there are some budgeting and savings mistakes that can quickly cost you money. Iwasan ang pagkakamali! Here are some common mistakes to avoid to help you save more! 

Unrealistic goals

Before you start saving, it’s important to set realistic, specific goals. Whether it’s for a land lot or your retirement,  a good rule of thumb is to try and save between 10% and 20% or your total income. Many people fail to meet their savings goals because they attempt to save too much, too quickly. It’s easy to become overwhelmed with a massive goal from the start. Just pick a small amount and start saving today. 

No savings plan 

When people try to save without a well thought out plan, it often ends in failure. Once you’ve determined your goals, it’s critical that you make a plan, like a budget, to help you achieve your savings goals! A budget is simply a plan to track both your income, spending and saving.

Only prioritizing small expenses 

If you cannot meet your savings goals by cutting smaller expenses like eating out, it may be time to explore ways to save money on big expenses, like finding cheaper housing. People often only focus on small expenses that will not allow them to save enough to meet their goals. The bigger the expense you can cut back on, the bigger your savings will be. 

Your budget is too strict 

Don’t set yourself up for failure by creating a budget that does not allow for any fun. While you don’t want to over do it, if you don’t allow any room for enjoyment, you’re likely to burn out and become discouraged. When people get discouraged, many drop their savings plans entirely. So, make sure you make a little room for fun in your budget. 

Not paying yourself first 

Don’t wait to pay yourself. As soon as you get paid, make sure to put money into your savings before any other expenses. Once you get into this habit, it will be easier to save over time. 

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