Postive and Negative effect of saving money

A short story

MORE THAT JUST A SINGLE PESO

         This past few months, I've been a great spender. I'm used to save my money and even think more than twice if ever I want to buy something that caught my attention. But when I started working, I learned to waste my money even in small things.

But didn't you ever think how to spend much money without regretting it? Because I did. And to tell you honestly, being an accounting student is not easy if you, yourself didn't know how to save money. But as a trying-hard-thrifty-student, I need to balance everything if I am going to buy something. It should be something that I can still use even after 1 year. So here are some tips on how to spend money meaningfully.

·        Evaluate All of Your Purchases

Think if that thing you want to buy can be use more than five months. 

Never make a habit of buying things just because of the influence of other people.                  Buy it because it’s useful to you and not because someone urges you to do so.

 Question everything that it isn’t a necessity (like food and water).

         If you pull something off a shelf at a store, evaluate whether or not that purchase aligns      with    your financial values or your goals.

This might sound funny, but I question my smaller purchases as well. Why? Because     I don’t want to regret buying it.

If you’re grabbing a bunch of low-cost items to buy with abandon, then you’re probably spending meaninglessly.

The point is to spend meaningfully on everything – even that 1 peso chocolate bar.

·         Ask Yourself These Questions

·         * Will spending my money on this item bring me happiness for more than just a few days/months? – If the answer is no, put it back. Part of spending meaningfully is bringing things into your life that you want to stay there for a longer period of time.

·        * Can I see myself getting a lot of value out of this? – Similarly, you should make sure you’re going to be able to enjoy whatever it is that you want to buy, multiple times. This is partially why I don’t buy movies or books. I know I’m not one for re-watching or re-reading! I would prefer to borrow than buy one because I know after using it, it will be abandoned anyway.

·        * Is this purchase bringing me closer or further away from my goals? – If your goal is to be a healthy person, why buy canned goods and even stock many of it in your house, right?

·        * Will I regret this purchase a year from now? Will it just be collecting dust? – This can be difficult to answer, especially if you have good intentions. I have purchased a few things with every intention of getting the most out of them, only to find that it wasn’t what I was expecting, or that I didn’t have the time to dedicate to it. At least make sure you can sell that item even in a lower price.

·         *Do I want to buy this just to not feel bored? – Lots of people go shopping because they’re unhappy or bored. If you know you don’t need something, you’re probably just trying to avoid feeling bored.

·        Create a List

I’ve seen a few people say that creating lists of things they want and need is a great way to combat mindless spending. You just need to be sure you answer the above questions before putting an item on your list.

How can this help with spending meaningfully?

Let’s say you’re out shopping and see a nice pair of shoes on sale. They’re a great price, but they’re not on the list because you don’t need them. Just keep walking! My own process for determining if I want to buy something is a longer one – the more expensive an item, the longer I think about it.

·        Spend Intentionally

                  Another way to view spending meaningfully is to think of it as intentional spending. 

     Your money needs a purpose. Too often, people assume the purpose of their money is to     simply buy whatever they want at any given time.

               When you figure out your values, you’ll figure out a purpose for your money. 

    You want to spend a year backpacking across the globe, then the purpose of your money is to allow you to travel without financial worries.

You’re intentionally investing your money for the future, or intentionally saving so you can fulfill your dreams in the future.

This puts the focus on your values and makes it easier to resist spending on things that don’t matter.

·        Put Your Money to Work for YOU

        Spending meaningfully does require a bit of discipline and determination. It can be tough to ward off all the spending temptations around you. Save money but try not to think that you have saving to avoid from the temptations of spending it.

   Make sure your money is on your side.
           Spending meaningfully is one of the best ways to get your finances in order. When you do that, everything else tends to fall into place.

Make it a priority to create a list of your values, to track your spending, and then evaluate what you’re spending on. Make a habit of spending your money meaningfully.

Phobia na maubusan ng Pera

Words of Wisdom for you to save money

Tips on how to save Money

Budget! Budget! Budget!

A key tip for students is to always budget. If you budget, you’ll be able to survive, simple as that. Make a list and think about the things that you need most, the essentials if you will, and then think about how much they cost. Try to keep your budget small, but high enough for you to get by on. We recommend that you try to budget on a weekly basis rather on a daily budget - it's far easier and means that you can compensate if you go over. Perhaps consider keeping it all in a spreadsheet - it's a great way to see very quickly how well you are doing.

 

 

Other ways to save money as a student

Important ways to save money

Self-Discipline

Self discipline is one of the most important that we should have as a student. According in the article of Remez Sasson,expresses itself in a variety of ways

·         Perseverance.

·         The ability not to give up, despite failure and setbacks.

·         Self control.

·         The ability to resist distractions or temptations.

·         Trying over and again, until you accomplish what you set out to do.

Being responsible students, we need to learn how to say “NO” to the things and events that we want. For me, the image above says that when we choose to study even if we knew that we will have a financial problem. We should say no to what we want. We need to have our priority for us to reach our goals. Remez Sasson also enumerates how self discipline helps us;

 

1      Avoid acting rashly and on impulse. As a student we have that called pulse purchases. Specifically the things that we want. Also going to the events that are not included in our budget. We should learn to say no for it. 

2      Fulfill promises you make to yourself and to others. To graduate in the course that we choose is not just for us. Our parents have a lot of sacrifices just to support us especially in our financial needs. We should use the money that they provide in the way for us to be graduated.

 

3      Overcome laziness and procrastination. As a student we need money to provide our educational needs. If ever we have the opportunity to have sideline work we should grab it will help us.

 

4      Continue working on a project, even after the initial rush of enthusiasm has faded away.

5      Go to the gym, walk or swim, even if your mind tells you to stay at home and watch TV. If you don’t have money for gym you can have your jogging at the side river or at the complex. Prefer to exercise without having any payment .for student exercises is needed.

 

6      Continue working on your diet, and resisting the temptation of eating fattening foods. That means avoid eating in fast food chain. Prefer cooking food in your house. It also helps if you bring your own “baon” in school. In that way you can save money and have safe food.

7      Wake up early in the morning.

8      Overcome the habit of watching too much TV. Students in this time really addicted to the dramas. Buying CD’s just to watch what they want. We need to discipline our self to avoid watching those Korean dramas and anything. Instead use the cost of it for the projects in school or for transportation.

9      Start reading a book, and read it to the last page.

10    Meditate regularly.

HELPFUL TIPS IN SAVING MONEY

As a worker

 

 

The following list explains ways in which a new worker can save money:

 

 

1. Take your lunch to work

 

 

Make sandwiches, packed lunches, or pastas and take them to work instead of going to a nearby restaurant or fast food place every day. If possible, you can make extra food at dinner, refrigerate it, and pack it for work the next day where you can reheat and eat it.

 

2. Mix and Match Clothes

 

 

Instead of buying a new suit for every day of the week, mix and match your clothing. If you must buy clothes, buy smaller pieces that can be worn with more than one other piece. For example, instead of buying a dress, buy a skirt, pants, or shirt, that way you will have more options when you need something else to wear. If you need to buy a bottom, buy one that can be worn with any of your tops. If you need to buy a top, buy one that can be worn with most of your bottoms. With only a few pieces of clothing, you can have an endless wardrobe.

 

3. Free exercise

 

 

There is no need for you to pay for a gym membership as soon as you start working. Make use of all the free exercise you can get. Walk to work, go for a jog before or after work, go swimming if you have a pool, or you can make use of the stairs at your home or workplace and go up and down them several times a day. There are television channels that carry exercise programs on a daily basis. Try watching these programs and exercising along with them in your own home.

 

 

4. Get paid to exercise

 

 

What is even better than getting a free exercise? Being paid to exercise! If your new job does not satisfy your need for physical activity and you have the extra time, you can take on a few extra jobs that will offer you the exercise you need. Offer your services to your neighbors for a small fee. You can walk dogs, mow lawns, clean windows, or wash cars.

 

5. Free Entertainment

 

 

You do not need to fork out a hefty sum for entertainment. There are many ways in which to be entertained for little to nothing out of pocket. Invite your friend over for board games or console games and drinks. You can read a book or exchange console games, books, and movies with your friends and neighbors.

 

 

 

 

6. Travel cheaply

 

 

Instead of paying extra money for gas or private transportation, travel cheaply by taking public transportation, carpool with your co-workers, and walk to work if you can. If you own a bicycle or bike, use that as your means of transportation to and from work. If you have family members or close friends who live near to you and work in the same vicinity as you, carpool with them.

 

8.Repay debt smartly

 

 

Instead of handing over your entire paycheck at one time, try to work out payment plans when it comes to repaying your debt.

 

9. Always shop around

 

 

Do not make impulse purchases. If there is something that you need to buy, shop around and compare prices.

 

10. Banking

 

If you often use a debit or ATM card, it may be better to have your savings differently from your spending money. Some banks offer services where you can specify how much of your monthly deposits are to be inaccessible through your debit card. This way, you will be less likely to spend more money than you should and you will be developing an active saving habit.

 

 

 

11. List All Your Expenses

 

 

One of the reasons why listing all your expenses will stop your overspending habits and ultimately help you save money is that this practice allows you to get a snapshot on how much you actually spend. Every single expense must be recorded because they all add up. Remember to group purchases into categories like utilities, food, rent, fare, dining out, clothes, entertainment, etc. After pinpointing where you’re overspending, it is now time to cut down the amount of money you spend on that category.

 

 

 

HELPFUL TIPS IN SAVING MONEY

As a Student

 

 

With modern students racking up paying rent along with any other bills, it's important to save money any way possible. There are a number of small and often exciting changes you can make in life to keep your pockets full. Spending and saving money wisely is possible no matter who you are.

 

 

 1.) Cutting out Inessentials

 

Whether it's at fast food chains or upper-class restaurants, the cost of eating out is greater than that of cooking at home.

•Limit eating out to special occasions like birthdays and anniversaries.

•When you're eating out on a small budget, fast food is your best bet. Although it is less healthy than other options, you will get a lot more calories for each money you spend.

 

 2.) Quit the gym.

 

Physical exercise is an important and healthy part of everyone's lives. However, gym fees are not. Spend time running, biking, swimming, and doing floor exercises like pushups and curls. Invite your friends to join. This way you still get your exercise and don't have to spend a lot of money to use weight lifting equipment.

•Some gyms and yoga studios offer work-study positions. You can work a small amount of time each week in exchange for free access to classes and space use.

•Look on YouTube and other video streaming sites for yoga and full workout routines to follow along with at home.

 

 3.) Cut out impulse purchases.

 

Walking inside stores or down avenues full of shops can drive you to buy last second treats. These impulse purchases, if they become a habit, can slowly chip away at your savings. Stop before you buy anything and consider how many hours you would have to work to pay for it.

•Always consider the money you have and what you really need to be able to pay for, before going through with any impulse purchases.

•When you see something you like and want, make yourself wait at least one hour, then one day, then one week. Putting distance between yourself and your urges will often lead you away from impulse buying.

•Don't buy non-returnable items.

•Don't buy things just because they're on sale. It might end up being unused in just a few months if it's not really something you need and/or want.

 

 

 Changing Habits

 

1.) Don't shop on an empty stomach.

 

 If you go into a grocery store hungry, you may be more liberal with what you buy. "His eyes were bigger than his stomach...or his wallet," is a phrase that comes to mind.

•Eat a small snack if you haven't had a meal recently. This will make you less likely to buy everything that looks tasty.

 

 2.) Stay at home.

 Many students may want to go to bars, movies, concerts, and any number of paid events to have fun. While these experiences may be enticing, they are also a drain on your wallet. Spend your free time at home or with friends instead and save money.

•Instead of going to paid events, practice any creative passions or hobbies you may have.

•Read your favorite authors and the archives of blogs or websites you really enjoy.

•Take care of small responsibilities like clothes that need mending, organizing, writing letters, clean your house, look over your finances, and determine you’re most important goals.

•Write a gratitude list, go for a walk/hike/bike ride, volunteer, make gifts, play around with your look (hairstyle, clothes, etc.).

 

 

 Spending Smart

 

1.) Buy clothing from thrift stores.

 

Thrift stores sell used and donated items at prices far below retail stores. Going here to add anything to your wardrobe is an easy way to save money.

•It can take time to find the right clothes in thrift stores among all of the donations. Take time to peruse what's available until you find something you really like.

•Make an activity of it and go thrifting with friends so it is even more fun.

 

 2.) Buy frozen foods.

 Frozen food can keep for a long time and can also save you money. Research shows that you can save up to P10,000 a month by choosing frozen meats, fruit, and other foods over fresh.

•Snacks, vegetables, fruits, breakfast foods, deserts, and drinks are all available in frozen form.

 

 3.) Live apartments with roommates.

 Renting studio apartments as a student can be a huge expense. Look for people you would be comfortable living with and search for cheap apartments together. Splitting the cost of rent between two to four or even five people can save you a lot of money each month.

•Make sure that you choose responsible, trustworthy roommates.

•Talk to the landlord of any building you're considering living in and read over the lease. Look for any additional costs like security deposits or paying first and last month's rent.

 

Balancing your funds

 

1.) Pay yourself first.

 

Each time you receive income from jobs, put a portion in your savings account. It may not be more than P500, but over time it will add up.

•When it is time to pay monthly bills, rent, utilities, etc. consider writing a check to yourself as well, deposited in your savings account.

•Employers can set payroll up to deposit a portion of your check into an account every pay period. Making your savings automatic will help you stay committed to building up available money.

 

 2.) Make a needs vs. wants list.

 This will help with your budget. Wants are things you enjoy but that aren't necessary for your health or safety. So things like movies, eating out, nice cell phones. Needs are life essentials: food, clothing, shelter. Write out a list in two columns or wants and needs. Honestly breaking it down this way will give you a better appreciation of what you spend your money on.