The importance of saving money cannot be overstated. Money is needed to access essential necessities, such as food, water, and shelter. It may also help us attain our life’s objectives and support the people who matter most to us. It’s important to save money in order to deal with difficult situations, fulfill your financial commitments, and develop a better financial future.
Why is it important to be financially secure?
Being financially secure means having enough wealth, residual or passive income, to cover for your living expenses, in the case of circumstances that would render you unable to work. You’ll have less stress, better health, and opportunities for a more balanced work and home life. But saving money can also be slow and demotivating, and sometimes it can feel like a waste of time and effort. So we’re here to share some tips and money saving hacks to help you out.
TIP & HACK # 1: Set a goal and plan it out
Having a clear sense of how much you’ll need, including a bit of a buffer, and what you’ll use it for is one way to keep you motivated instead of mindlessly setting aside some extra cash. When you have a goal you’re working towards, you already know the purpose of you setting aside that money and can help you when you’re feeling like what you’re doing is pointless.
When you plan it out, break down the goal into smaller, more attainable milestones. This can help you make the plan feel less overwhelming. Because we can’t control our circumstances, it’s also important that you don’t make this plan too rigid. This should be a guide, and not additional pressure that you impose on yourself.
TIP & HACK # 2: Budget according to needs AND wants
Wants are just as important as your needs. This is because some needs aren’t considered basic necessities. But we are complex and social beings. This means our needs aren’t always just water, food, and shelter. To improve our quality of life, we still need to socialize and feel connected to the world. We also need entertainment sometimes. Our life isn’t just for survival, so it is important that when you plan your budget, you set some funds aside for you to be able to enjoy the present. One hack is to place some wants as rewards for milestones that you hit. This can help you motivate yourself, and it’s like you saved up for two things at the same time.
TIP & HACK # 3: Make if fun
Who doesn’t love a good challenge? There are a wide range of saving challenges available online. Those like the invisible 20, where each time you get a 20-peso bill (or coin), you have to automatically put that in a piggy bank or a container. Of course, it doesn’t have to be 20 pesos! Another example of a challenge is writing 1 to 365 in 365 envelopes, randomly picking one everyday and putting the amount that corresponds to the number you’ve chosen. Stash the filled envelopes in a safe place and you have 66,795 pesos by the end of the year!
These challenges help to make saving not feel like a chore or something that’s too serious. The best part is you can tweak these challenges or merge them together, depending on what you want or what is more fun for you. You can also create a challenge together with your friends and add additional competitive mechanics.