Tuesday, August 27, 2013

On Saving

How do you guys save?  I read this principle long time ago and I try my best to follow it.  It’s challenging, yes…but the feeling is very rewarding once you see your money grows and goes to the right place.

When you receive your salary or income, divide it in the following with the given percentage:

Ø  Necessities – 50% - this will consist of all the bills you pay for.  From monthly amortizations, to electricity, to groceries.  Anything that is necessary for you to live.

Ø  Financial Freedom – 10% - this is your emergency fund.  A lot of people will tell you to save as much as 6 times your monthly income as emergency fund.  I’d say, save as much and add more.  Don’t stop saving for it.

Ø  Educational – 10% - this is of course for education of your kids.  As early as now, we give this amount to Neo’s savings account.

Ø  Long Term Savings – 10% - this is for investments and items you want to buy.   If there are things like LED 60” Television that you wanted to buy, you can save up using this and buy when you have enough money.  No need to buy on credit.

Ø  Give – 10% - this is tithing.  We allot 10% of our income to tithes.

Ø  Play – 10% - you have to live below your means, but it doesn’t mean you have to live a deprived life.  Use this to unwind yourself and reward yourself for working hard.

Hope this helps you in saving J

Baby Neo’s Mama


  1. What a great tips,, Will try to follow. hoping to save.save.and save..

    1. go go go, sis! super sarap ng feeling when you save something... tiis lang ng bongga.


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