MONEY UNDER 30 WITH SUNLIFE | TIPS ON HOW TO SAVE MONEY

Let’s be honest… when people get a taste of the corporate world and get hold of their first few paychecks, they think about spending their money on new gadgets, clothes, food, travel and anything that you can describe as FUN. Sadly, only a fraction of the mentioned above individuals think ahead and prepare for their future.

Millenials, categorized as those between ages 21 to 30, are at the point of their lives where they want to spend all their energy and money on things that bring them happiness in the present. But here’s the million dollar question… 

HOW ABOUT THE FUTURE?

Some people would say that given their small salaries, it is highly impossible to save for the future. I honestly disagree with that belief. There are loads of ways to save money and invest in one’s future. You just have to know what method suits you.

Mr. Mark Bonifacio shares with the crowd a couple of tips on how to save money

SUNLIFE had a very meaningful dinner gathering and two of their speakers, Mr. Mark Bonifacio and Mr. JP Fabian, shared with us a couple of ways one can save money and eventually, make money work for us:

1.)    CREATE A REALISTIC BUDGET AND STICK TO IT

The key words here are BUDGET and STICK TO IT – it’s useless to give one’s self a budget but don’t follow it at all coupled with excuses that are far fetch. Some good practices are to list expenses, use apps to monitor the INs and OUTs of money, paying one’s self first, living LESS than the amount earned and of course, setting aside an emergency fund (ideally worth three to six months times the salary earned) just to prepare for the rainy days.

2.)    LIVE A SIMPLE LIFE

This is something the millenials find hard to do. It’s a given that all people want to satisfy their WANTS even if it means sacrificing a few of their NEEDS. One good example would be eating less every single day in order to save more money to buy the latest gadget. It’s all about priorities. One should never sacrifice NEEDS for the sake of WANTS. They aren’t called NEEDS for no reason at all. Millenials should do a double take on WANTS and focus on their NEEDS.

But if one really needs to sacrifice a couple of things in order to satisfy a few of their wants, a few methods would be giving up VICES such as smoking and drinking. I honestly don’t know how much a pack of cigarettes costs because I am not a smoker but I have heard from my friends that it costs quite a bit if you multiply it by the number of boxes they buy each month. Quitting that vice alone would save the person a hefty sum of money. And that money can be used to buy a particular WANT. It is when you add the little things that they become something BIG in the long run.

Other methods would also include the following:

DOWNSIZING – living alone or just with your spouse? Why not get a small apartment instead of living in a condominium? The rental difference could be huge.

DIY / REDUCE, REUSE – instead of buying new things, why not reuse the ones that can be found at home. Or make something out of the materials lying around the house. This can really help a person save loads of money.

HOBBIES & COLLECTIONS – this is not entirely a bad thing because we all have activities we like to do things we want to collect and keep. Hobbies and Collections are what we consider as STRESS RELIEVERS that keep us SANE. But it’s all about NOT GOING OVERBOARD in buying collections and doing our hobbies. Let’s say a person likes to play golf every single weekend. We all know that playing gold is quite expensive. Instead of playing every single weekend, a person can really save up by just playing twice a month.

3.)    FIND WAYS TO EARN MORE MONEY

Unless a person is earning a million dollars per month, it would be nice to find other sources of income and not just rely on the income one has at the moment. Part-time jobs are great ways to earn extra income on the side. A couple of friends I know do part time jobs as online writers, teachers or help out at their respective family businesses when they have free time. While some opt for part time jobs, others try their luck in doing small businesses like selling food and clothing online. Others choose to share their talent like singing and hosting in weddings, making designs, etc. The part timers I know who do these earn as much as 30 to 50 percent additional from their main jobs’ salaries. Not a bad idea if you ask me.

4.)    BECOME DEBT FREE

If a person has existing debts and wants to start fresh, then paying all of those off is definitely THE FIRST STEP in order to start anew. Start by setting aside a big fraction of the salary to pay those debts little by little and when the outstanding balance is complete ZERO, then that’s the time to start a debt-free life and start to focus on how to be financially stable.

Tip: Avoid using credit cards. But if the need arises in using such methods, make sure to pay them on time to avoid incurring unwanted additional charges. One would be surprised how much more money is being charged even only a few days of paying the due amount is missed.

5.)    EXAMINE YOUR BILLS & SUBSCRIPTIONS  

            

If a person has an existing plan subscriptions such as for a phone, magazine, etc., it would take much time to examine the contract and the additional charges. Who knows, there are charges that aren’t even necessary and could save a person loads of money when reversed by the subscription company.

I remember when I was 15 years old, my dad got me a plan subscription from a telecommunication company. We were surprised because from my usual 500 a month subscription, my bill suddenly increased to 4,000 a month.  When my dad examined the bill, there were charges that we didn’t even know existed. So he made the decision to discontinue my plan and got me a prepaid number instead. Best decision ever which I still practice until today. I’m not saying that getting a plan subscription for a phone is a big No-No but just make sure to review the terms and conditions and of course, the extra charges coupled with that particular plan to avoid unnecessary expenses.

Tip: Own a credit card and always get those annual fees? One can actually negotiate with the credit card company to have it waived provided with a condition. (e.g. the annual fee may be waived if the holder spends at least 8,000 pesos in the next month. This is actually doable with a bit of diskarte like buying nonperishable groceries in advance just so it reaches that particular amount and voila!... no more annual fee).

6.)    CUT OUT THE BAD MONEY HABITS

Now everybody is guilty of this one a couple of times in their lives. In my case, I tend to spend a hefty sum of money on shopping when I get stressed out at work. My usual excuse: I DESERVE THIS BECAUSE I AM DEPRESSED. And then the opposite happens like something good happened to me, I do the same thing again. What’s my excuse? I DESERVE THIS BECAUSE I AM AWESOME! Ha ha! Kidding aside, I cut this out because the result of such action is a closet full of clothes and half of them I haven’t even worn nor feel like wearing at all. I acted upon emotional impulse and it did not do wonders for my bank account at some point.

Another bad habit is lending to family and friends. I’m not saying that SELFISHNESS is the way to go but let’s face it… some family members, after borrowing from a person, they think it’s a privilege and don’t even bother paying the person back. The same goes with friends (even the best of friends). Some rely on empty promises that never get realized. It’s really best to just pick out those worth helping out so as not to incur material losses.

Have you ever heard of the saying “KEEPING UP WITH THE JONES”? – my dad used to use this phrase when he talked about a distant relative who acted so rich when in fact, he had very little to his name. He borrowed loads of money from people to finance his travels abroad, his gadgets, cars and houses just to show people that he indeed had money but returned home to a bunch of angry creditors who took him to court after. This is a good example of spending beyond one’s means. He wasn’t exactly “dirt poor” but he was far beyond from being “filthy rich” either. Where is he now? Well, we have absolutely no idea but I think everything ended on a bad note for him. Ouch!

It’s another bad habit to “KEEP UP WITH THE JONES” because it’s not good to compare our respective lives with others. It’s all about working hard to achieve a certain state in life. Lucky are those who are born with silver and golden spoons in their mouth but for those who aren’t can always work hard to be better. Or, the best option would be to just not care about others an focus on self-improvement and being happy. Money, after all, is not the only thing that matters in this world. Happiness should still be number 1.  

7.)    “INVEST IN YOURSELF AND HAVE A VISION OF YOUR GOALS”

A great way to invest in one’s self is to have further education (like a master’s degree) and enroll in classes to gain new additional skills. An uncle of mine resigned from his job, took masteral classes and came back to the corporate world with a salary that was 5 times his previous job’s salary thanks to his master’s title. This was a big jump in his career all because he invested in himself. This is one example of an advantage when a person gets further education or develops new skills. The new skills can even be used to do jobs on the side and earn more money.

8.)    TAKE CARE OF YOUR CREDIT SCORES

This is something that most people don’t know. When acquiring loans from financial institutions, they don’t just give out money to anybody. They do thorough background checks and investigation to really make sure that the person they will lend to is credible and has the means to pay them back. Now if they eventually find out that the person actually had a lot of outstanding payables on other banks then it’s definitely GOODBYE to the loan application.

Tips: Like what I mentioned earlier, paying the credit card bill on time and not incurring additional charges is one way to take care of one’s credit scores. Doing so will help the person gain access to capitalization in the future and also score lesser interest rates when proven to be highly credible.

9.)    FIND YOUR MENTOR

“Experience is the best teacher” – it’s nice to learn from those who have experienced the ups and downs when it comes to finance. It’s also nice to really learn from those trained to be financial mentors such as SUNLIFE ADVISORS who are more than willing to share their time and learnings with everybody who wants to be financially independent.

10.) BE PREPARED FOR ANYTHING

As taboo as it may sound, life is indeed SHORT and we only have ourselves to take care of. Our bodies are our number one capital. If we are sick, we aren’t able to do work to earn money to survive. So for me, investing in my health and my future is a top priority. And this should be everybody’s priority too.

When people hear the word INSURANCE, most of them shy away from the idea because they think it’s just a waste of money. FALSE! Insurance is a great investment because not only does it help a person grow his or her money but medical (and the dreaded word death) benefits tag along with it. It’s all about preparing one’s self from the inevitable and making the wise choices in life.

Call me KILLER JOY or anything synonymous but believe it or not, I am one of the FEW millenials who, as early as getting her first paycheck in the year 2010 (after landing my first working stint in a mall), already practiced the art of saving for the future. What was my secret? I always, ALWAYS…. PAY MYSELF FIRST before I start thinking of spending on things. And here I am, 9 years later, proud to have a few investments in different baskets and a life wherein I don’t need to live from paycheck to paycheck.

Ending this blog post with a quote that I learned during the dinner talk…

“IF YOU SAVE ME TODAY, I WILL SAVE YOU TOMORROW” – MONEY

Special thanks to Mr. Mark Bonifacio and Mr. JP Fabian for sharing their valuable and unforgettable insights with us.

Thinking about the future? Call a SUNLIFE ADVISOR now and have them pick out a plan that is suitable for your needs and budget.

Altogether, let's HAVE SOME FUNDS with SUNLIFE =)