Savings

There's a lot of people who find it difficult to save money. They always end up spending it right after receiving their paychecks, allowances or salaries. Have you ever experienced that moment when you want to buy on something, then right after checking your wallet your surprised that you didn't have money left. If yes, how many times? Handling money should also take a lot of discipline and control on  your emotions. Money is emotionally driven, sometimes we just spend things to feed our desire and sometimes to impress other people.

Now, let me ask you a few questions. 

Supposedly you're still single and you won a competition. Let say you receive 50,000 pesos as your prize. What are you gonna do right after? Are you gonna treat your friends to have a great party? or are you gonna go to your nearest mall and make some shopping spree? 

Maybe a lot of your answers still goes in spending it and maybe few of you think of saving it and letting it grow. The way you answer this question will show you how you think about money and it will give you some hints about your money personality. If you think that money is there to be spend, so you're probably a spender. But if you think that most of your money now should be saved, so maybe your a saver. 

Tracking down your money personality should be your first target. So your first step should always start in knowing yourself! Have a clearer view on how you spend and save your money. Increase your awareness on you, because if you already had built that consciousness within you. You will not be surprised anymore if you don't have money left on your ATM's, pocket or wallet. Changing your money personality could change your life. You probably don't like to still be a saver on your retirement. Being a saver is more than just setting aside money and spending it later. Cause saving money today is more on making your tomorrow secure. It is something that you pay for your future needs and wants. Spending is not just buying what you want. You need to first analyze your ability to pay up for your dreams and for your needs. So knowing your needs vs. wants is important and that should be your second step.

First you need to list down every needs that you should be spending on. These should include food, water, shelter, electricity and the likes. Then for the next 2 months you list down every expenses that you or your family are making. Then analyze if most of your money go to wants rather than needs. If that happen you need to make a change in your lifestyle. And slowly you'll realize how beneficial it is to have some money left.

Now some people even though they have this strong determination to save, they still end up drained. One of the reason its because they use a wrong saving formula. So our third step is to know and understand the difference of these two saving formulas.

Income then deduct your expenses what remains would be your savings. These methodology of saving should be changed cause most of the time this would be ineffective. The right way should be..

After receiving your paycheck, allowance or any income you must deduct first the amount that you need to save. Then what remain should be budgeted to pay your expenses. It means before anything else take aside money that you need for the future. (emergencies, educational fund, retirement fund) With this method you could at least make sure that your having a bright future right ahead.