BDO's 5 tips to grow your savings
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It is never too late to start saving your money. Here are five easy tips for you to grow your savings.
1. Consistency in budgeting and managing expenses
Make it a habit to make a monthly budget. This way, you will be able to control your spending.
Use a budget tracker or money manager app. You may list it on your phone's notepad app or write it down in a physical notebook.
What is important is that you are comfortable and can easily see that you are spending within your budget.
2. Needs vs wants
Social media exposes us to things that we might want to own. The more beautiful the picture and more enticing the advertising message, the more tempting it becomes.
Before buying something, ask yourself, "Do I need this?"
Know the difference between "needs" and "wants". For example, food as a regular meal is a need. But daily food take-out or delivery is most likely want. Basic clothing is a need. But having so many clothes when there are just 7 days in a week, is most likely want.
Know your priorities. Make a list of the top 10 things that you need and see which ones are the most important and which are the least important.
3. Live within your means
Do not force yourself into buying something that your budget does not allow.
For example, there is no need to buy branded clothes. You can still look good in cheaper clothes as long they are clean and they match and as long as you carry yourself well.
4. Make it a habit to save
No matter how much you earn, set aside an amount for savings. Refrain from spending everything.
For example, you might want to follow the 50-20-30 budget rule. Fifty percent goes to needs such as bills to pay, basic food, groceries, health care; 20 percent goes to wants such as dining out, watching a movie; and 30 percent goes to savings and investments.
The little amount you save regularly will accumulate. For example, if you save P100 a day, you will have P3000 a month in savings. That is P36,000 a year.
It is also important to keep your money in a bank like BDO Network Bank. Not only do you secure your hard-earned savings, but you also earn interest.
Actor Coco Martin, brand ambassador of BDO Network Bank shared that he learned how to save when he was just a child, thanks to his grandmother's influence. His savings have provided him security. It has also helped him during the COVID-19 pandemic.
Ramon Militar of BDO Network Bank recommends having two bank accounts - one for your salary and another for your savings. (How to open a BDO account)
5. Borrow only what you need
There are expenses wherein one's savings may not be enough such as buying a house or starting a business, thus you need to get a loan.
Before getting a loan, ask yourself these questions:
a. Is this the amount that I need?
b. Will I be able to pay the loan on time? (If you pay the loan on time, you will gain a good credit status and can get a loan again in the future.)
c. Will I use the borrowed money for my business or things whose value increases in time such as real estate?
Alberto Quiogue of BDO Network Bank stressed that a loan aims to help you rather than give you trouble so, refrain from borrowing money for unnecessary things.
We will encounter unexpected events from time to time. Some of them such as health issues, loss of a job, death in the family, or calamity, require money, so having savings is a great blessing.
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A client transacts at BDO Network Bank. BDO has over 1,400 branches and more than 4,400 ATMs nationwide. |
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BDO Network Bank has varied products based on your needs. You can find them on the BDO Network Bank Facebook page or the BDONB website.
BDO Network Bank is a subsidiary of BDO Unibank, Inc., a full-service universal bank that provides services such as traditional loan and deposit products, treasury, trust banking, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, and credit card services.
BDO has over 1,400 branches and more than 4,400 ATMs nationwide. It also has 18 overseas remittance and representative offices (including full-service branches in Hong Kong and Singapore) in Asia, Europe, North America, and the Middle East.
BDO is the largest bank in terms of total assets, loans, deposits, and trust funds under management based on published statements of condition as of December 31, 2020./
Featured image source: Michelle Henderson on Unsplash
