Three Tips on Savings That Might Save Your Future from Money Burden

savings tips
Photo credit: Wikimedia (Common)

Many people want to save, but only few really save. All of us dream to have a secured future where we don’t worry too much about money. A future where we can travel to places we want to visit or relax in a resort somewhere for a couple of days. Some of us save to prepare for the uncertainty or we say for emergency. Some save for the education of their children, build their own houses and to finance their retirement. There are many reasons for us to save. However, not of all of us do save. In fact, we spend more than what we save. We borrow so much money that we find ourselves buried in a mountain of debt. Remember the formula:

Income-Savings = Expenses

Unfortunately, most people do not follow it. Instead, unconsciously they use this

Income-Expenses = Savings

The former formula guarantees wealth. The latter guarantees poverty.

I remember a story told by a friend to me about a husband who was planning to divorce his newlywed wife whom he discovered shortly after the wedding had a debt of more than a million on her credit card. The girl had been using her credit card to the limit that she didn’t notice the increasing interest. She had been paying at a minimum, and she had no savings at all. Her behavior about money put her marriage on a very shaky ground even before she approached the altar. This is a true to life story which tells us the importance of savings and avoiding debt in our life. We don’t want to happen this to us so in this post I’d like to share three tips to save for your future.

  1. Set aside a portion of your income and put it in an account where you can’t see it. How much should you save? It depends. But a good start would be 5 percent. Every payday, get the 5 percent and put it on a separate fund before you start paying your bills. Do this for the next three months. Then increase it to 10 percent if you think you can afford it.
  2. Live below your means. We have often hear this, but I need to remind you because the latest smart phones are on their way to the market. Be patient. Before buying something that’s a bit expensive, list down all its benefits and wait a month before buying to give you more time to think it over if this is necessary or not. Oftentimes, we get carried by too much excitement that results to impulse buying. Don’t envy others who have more things than you. Be grateful for what you have right now.
  3. Be constant. As you start savings, you sometimes feel tired. That’s a normal reaction when you do something repeatedly. But, continue savings until the point when you are the one who is excited to put more money in your savings. It is rewarding to see your savings growing.

But, it doesn’t stop at savings. Saving is only a start to develop the habit. We also need to invest our savings. I will talk more on this in my future post.

If you have more tips to add, please feel free to write in the comment section.

By the way, you might also want to read the six steps to financial freedom.

Why Goal Writing is Essential?

goal writing
Photo credit: Pixabay (Creative Common)

In the summer of 2013, I biked to Mountain View to have a short moment with myself. I brought my ASUS tablet and a couple of self-help books. If you happen to be in Cebu, I suggest you visit Mountain View Resort at Busay, they have an amazing view of the city.

While reading, enjoying the view, and feeling the fresh air, I took a piece of  paper and wrote my dreams on it. Two years after, all the dreams I wrote on that piece of  paper became a reality. Well, I discovered that goal writing  is very effective.

I learned about goal writing when I was already working. If only I had learned about it while I was still studying I could have done more. Yet, there is a saying “better late than never”. Brian Tracy, a well-known salesman whose rag to riches story inspired
me, says that only five percent of the population in the US have clear written goals and they are usually the most successful people in their fields.

So, why do we need to write our goals? Here are three reasons.

First of all, by writing your goals you tell your brain to embed them into your subconscious mind. Since your subconscious mind doesn’t know the difference between reality and dreams, the more vivid your goals are the more it will look for more creative ways to achieve them.

Second, by writing your goals, you can review them daily and make some necessary steps to  accomplish them. It doesn’t have to be big at the start. As long as work for your goals daily even
how  small and insignificant you think the action is, there will be a time you find yourself being surprised by the things you accomplish.

Lastly, writing goals gives you direction. That’s why the younger you are, the more you should develop this habit. You’ll never regret for the time you wasted because you didn’t know what to do. Now is the best time to write your goals for yourself, for your family, your career and for your future.

The Benefits of Blogging

The Benefits of Blogging
Photo credit: Pixabay (Creative Common)

I had been staring at the blank screen of my computer for hours on what to write , and yet no idea had come into my mind.

Writers block.

I remember a quote that says, “Fake it until you make it”.  So I just pretended to write  anything that came into my mind. This went for several minutes until I caught myself asking why am I doing this. Then, a bulb seemed to light up inside my brain.

Yes!  Why don’t write about the benefits of blogging? The following are benefits of blogging.

Benefits of Blogging

1. Enhances your writing skill

By forcing and disciplining yourself to write daily even if you don’t feel like doing it can actually improve your writing skill.  Studying or reading books on writing  may be useful, but it can’t make you a better writer unless you put action and doing into it.

Remember the 10,000 hr rule of Malcolm Gladwell?

2. Helps you read more

This is a prerequisite to writing. To write great blog posts you have to read. Not just read, but read alot. Through the process of reading  you gain more knowledge and learning which can be a great source to have a valuable content. I haven’t yet encountered a blogger who doesn’t read. Bloggers are readers.

3.Become a better researcher

To create an informative post that will tons of visitors to your blog, it must be up-to-date and well research. Under research content in a post can cheapen it and your credibility is lessen. Some bloggers I know hire a virtual writer through Odesk or Elance to do research for them.

4.Improves your memory

Many studies have concluded that by exercising your brain through learning, reading and writing can enhance your memory. If the body need physical exercise to be fit, the brain needs mental exercises to enrich it. I’ve met older people who have retained their mental sharpness and when I asked them what’s their secret, usually they would pull out something from their bag or suitcase and handed over to me a book. No wonder they still have sharp memories.

5. Earns you an extra income

Some people go into blogging to earn an extra income. In fact, I’ve met many bloggers who have resigned in their 8 to 5 jobs to dedicate themselves full time into blogging. Writing posts with valuable content to attract thousands of visitors into their site can be a great opportunity for bloggers to offer their products and services. Thus,  earning an income.

How about you? How does blogging help you?

 

A wealthy life through self-development, habits, and personal finance