\u201cHe who buys what he does not need, steals from himself.\u201d This was wisely written in a Swedish proverb as it speaks straightforwardly about the contrast between a person\u2019s wants and needs.<\/span>\u00a0<\/span> However, in today’s digital and technological age, millennials (1980-1994), Gen Zs (1995-2009), Gen Alpha (2010-2024), and now Gen Beta (2025) often feel left behind if they cannot buy the latest gadgets, follow new trends, or subscribe to new digital platforms. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n All of these come with a certain price to pay, making it crucial to control expenses\u2014a discipline that is often rare among teenagers and even young professionals.<\/span>\u00a0<\/span><\/p>\n Over a decade ago, when I had my first earnings, I was too frugal to spend. Maybe it\u2019s because I had no interest in gadgets and tools. I was more into food. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n Despite being an accountant with the right skills and position to save and invest, living in the metropolis and carrying the weight of family obligations made it difficult to prioritize saving and investing. More often than not, I found myself succumbing to spontaneous spending, which made it hard to stay on track.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n However, through persistence and discipline, my approach gradually evolved. As such, I would like to share with you how I saved and later invested for over a decade which modestly led to my financial stability by the time I was in my 30s. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n Saving is a portion of income not spent on immediate consumption. It can be done by setting aside money before expenses or by saving what remains after spending\u2014the latter would result in better financial self-discipline.\u00a0 <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n For some general advice, here are nine (9) practical steps to develop good saving habits:<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n If you rarely go out with your friends and officemates, <\/span>it doesn\u2019t mean you\u2019re being unsociable or distant.<\/span>\u00a0They know you care about them. Sometimes, it\u2019s just better not to go out when there\u2019s pressure to spend more than you need to.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n If in case you really need to go out, you must be aware of what and how much you’ll be spending. When you\u2019re with your loudest friends, it\u2019s hard to resist their jokes and invitations to fancy places. But the time spent together is just as important over extravagant venues.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n To build good financial habits, make saving a priority rather than an afterthought. As Warren Buffett wisely said, \u201cDo not save what is left after spending but spend what is left after saving.\u201d This means setting aside a portion of your income first, then budgeting the rest for your expenses.<\/span>\u00a0<\/span><\/p>\n For example, if you skip a night out, allocate the amount you would\u2019ve spent instead and put it straight into savings. This way you’ll be able to see the money you save grow over time, which can be a great motivator. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/p>\n If you’re new to saving, start by opening a bank account instead of keeping your hard-earned money in your piggy bank. <\/span>\u00a0<\/span><\/p>\n You can opt for a traditional bank or a digital bank. The interest may be less than expected, but at least it earns until you are ready for the next big step, which is investing.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/p>\n Once you maintain a bank account, be sure to keep track of your income and expenses. Use a simple daily sheet to write down what comes in and what goes out. <\/span>\u00a0<\/span><\/p>\n If you’re comfortable using Excel or other modern financial tools, take advantage of them to streamline the process and gain better insights into your spending habits.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/p>\n Track your monthly savings and try to beat your last month\u2019s deposit. It may feel like progress is slow, but at least it\u2019s gradually increasing.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/p>\n Make it a habit to track your spending every day. Then before going to bed, check if you have recorded and tracked everything. Doing this regularly will help you develop financial discipline and stay on top of your spending.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/span><\/p>\n <\/p>\n As you get better at tracking your expenses, it will become easier to resist buying things impulsively.\u00a0<\/span> <\/span>If you want to buy something, take a moment and wait. <\/span>This way, you\u2019ll have time to think about whether or not you really need it, or you just want it. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/p>\n Lastly, don\u2019t buy things just to make a good impression on others. Flashy things only impress people who have less than you, but truly wealthy people don\u2019t buy things to show off. <\/span>\u00a0<\/span><\/p>\n You could look at billionaires like Mark Zuckerberg, Elon Musk or even the late Apple founder, Steve Jobs\u2014they do not dress to impress.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/strong>\u00a0<\/span><\/p>\n \u00a0<\/p>\n My first salary after becoming a Certified Public Accountant (CPA) amounted to only twelve thousand pesos excluding taxes. I lived with my parents, brothers and sisters. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n I started with a five-thousand-peso deposit and grew it monthly. My goal was to achieve ten thousand pesos savings per month. As my income grew, my target saving limit grew as well. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n For over ten years, with my habit of saving, I was ready to invest big time.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n Investing is to grow your money over a period. You expect a positive return in the form of income or price appreciation, with statistical growth over what you have initially put in. In other words, <\/span>investing is utilizing your savings with the goal of earning higher returns.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n So, what and which are the possible forms of investments for young professionals and even for those who just saved too much money<\/span>?<\/span>.<\/span> <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Typically, before you open an account, banks and other financial institutions would ask of your spending and saving characteristics. This is to identify whether you are classified as a low-risk or even high-risk taker.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n According to the <\/span>2021 Financial Inclusion Survey<\/span><\/a>, the Bangko Sentral ng Pilipinas (BSP) reported that account ownership of Filipinos significantly increased to 56% in 2021 from 29% in 2019. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The number of Filipino adults with an account more than doubled to 42.9 million in 2021 from 20.9 million in 2019, or equivalent to 22 million adults who became financially included in the span of two years. The BSP even <\/span>set a goal<\/span><\/a> of 70% in 2023.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n However, I noticed among my co-employees and friends that they do not have a passbook savings account but just maintain the company\u2019s payroll account for their savings. It is counterproductive as your payroll account is your day-to-day source of cash for expenses. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n As an accountant, I\u2019ve learned that business owners who mixed their business earnings with personal expenses would lead to a going concern situation in the future. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n As such, treat your compensation as if you have a business and you must separate your business income from your personal income and expenses. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Take the amount you most probably don\u2019t need and c<\/span>onsider opening a passbook savings account <\/span>or depositing the money to an existing passbook account <\/span>to set aside money for future investments or unforeseen expenses.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Once you have enough savings in your passbook, <\/span>you might notice that some funds remain untouched for months or even years<\/span>. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n At this point, it\u2019s wise to transfer your normal saving <\/span>deposit to a higher earning interest savings deposit.<\/span>\u00a0<\/span>A time deposit or term deposit is a deposit in a financial institution with a specific maturity date or a period to maturity. <\/span>![\"Untitled](\"https:\/\/www.dvphilippines.com\/hs-fs\/hubfs\/Untitled%20design%20Blog-2.png?width=1434&height=600&name=Untitled%20design%20Blog-2.png\")
<\/span><\/span><\/p>\n\u00a0<\/span>\u00a0<\/span><\/h2>\n
My Journey to Saving and Investing<\/span><\/strong><\/h2>\n
Read: <\/span>An Accountant\u2019s Journey in the BPO Finance & Accounting Industry<\/span><\/a>\u00a0<\/span><\/h3>\n
Practical Steps to Save Money\u00a0<\/span><\/strong><\/h2>\n
1. Set Clear Boundaries on Social Spending<\/h3>\n
2. Plan Out Your Expenses Well When Socializing<\/h3>\n
3. Prioritize Saving Before Spending<\/h3>\n
4. Open a Bank Account<\/span><\/h3>\n
5. Keep Track of Your Income and Expenses<\/span><\/h3>\n
6. Track Your Savings Monthly and Aim for Growth<\/span><\/h3>\n
7. Build the Habit of Tracking Daily<\/span><\/h3>\n
\u00a0<\/h3>\n
8. Avoid Impulse Purchases<\/span><\/h3>\n
9. Buy for Yourself, Not to Impress Others<\/span><\/h3>\n
Investing: When and where to start\u00a0<\/span><\/strong><\/h2>\n
Understanding Investing<\/span><\/strong><\/h2>\n
Choosing the Right Investment for you\u00a0<\/span><\/strong><\/h2>\n
Opening a Passbook Savings Account aside from a Payroll Account\u00a0<\/span><\/strong><\/h2>\n
From Passbook Savings to a Time Deposit Savings Account\u00a0<\/span><\/strong><\/h2>\n