Philippine Daily Inquirer
DateFirst Posted 22:05:00 10/16/2010
Ditch the credit card; be on the lookout for cash-generating opportunities
IF I HAD saved up the hundreds I spent every day for an appetizing cup of caramel macchiato and a swirl of cinnamon, I would have P240,000 more in my savings.
College life can be quite expensive. Money has to be spent on books, photocopied materials taller than the average Filipina at 5 feet, fashion, cell phone upkeep, computers—the list goes on. Then there’s school stress, which only goads us to gorge on more junk and caffeine.
Recently, The Republican College invited staff of the Bank of the Philippine Islands to conduct a Financial Wellness Program for its college students.
“More than 90 percent of Filipinos at 65 are either broke or died broke,” states Michael C. Ela, author of “7 Common Sense Ways of Becoming a Millionaire When You Retire!.”
So what should one do?
Step 1: Save up—with a goal in mind.
For instance, I would like to have my own car when I start working. Without relying on parents, a down payment for a brand new car can go as low as P100,000. Computing this, it would require saving P125 for 20 days a month, 10 months a year, in 4 years. As soon as you start working, you’ll have your down payment ready for your dream wheels.
That means the macchiato, no matter how tempting the crème brulée might be, would have to be shelved for now.
Step 2: Save before you spend. Make affordable sacrifices. Leisure shopping would have to be put on hold. Home-cooked baon (meal) over fast-food chicken and spaghetti might be more efficient, too.
Aim setting aside 10 percent of your money for savings, as most financially successful people do. The allowance you get might not be enough, so an external source can be of help to augment the savings money.
Step 3: Be on the lookout for moneymaking opportunities. Back in college, with my supportive mom’s prodding, I earned extra by coaching ice-skating throughout the year. Some friends spent their break time doing English tutorials. Be resourceful and turn your skills into gold.
Step 4: Continuously learn about money management. Smarten up all the time. Beware of discounts and credit cards. If a 50-percent off dress is flirting with you, think: “needs versus wants.” Plastic money is not a free pass to the latest iPhone. Dodge that interest-earning swipe.
Step 5: Keep your savings in a safe place. Savings accounts can have a high maintaining balance. New platforms, such as the BPI Direct Savings Account with a P500 maintaining balance and a 1.375-percent interest rate, make handling money easier.
Jaymark Torres, 4th year student at the Republican College, said, “This seminar was very helpful. It’s important for us to start saving for the future, especially for emergency situations.”
IF I HAD saved up the hundreds I spent every day for an appetizing cup of caramel macchiato and a swirl of cinnamon, I would have P240,000 more in my savings.
College life can be quite expensive. Money has to be spent on books, photocopied materials taller than the average Filipina at 5 feet, fashion, cell phone upkeep, computers—the list goes on. Then there’s school stress, which only goads us to gorge on more junk and caffeine.
Recently, The Republican College invited staff of the Bank of the Philippine Islands to conduct a Financial Wellness Program for its college students.
“More than 90 percent of Filipinos at 65 are either broke or died broke,” states Michael C. Ela, author of “7 Common Sense Ways of Becoming a Millionaire When You Retire!.”
So what should one do?
Step 1: Save up—with a goal in mind.
For instance, I would like to have my own car when I start working. Without relying on parents, a down payment for a brand new car can go as low as P100,000. Computing this, it would require saving P125 for 20 days a month, 10 months a year, in 4 years. As soon as you start working, you’ll have your down payment ready for your dream wheels.
That means the macchiato, no matter how tempting the crème brulée might be, would have to be shelved for now.
Step 2: Save before you spend. Make affordable sacrifices. Leisure shopping would have to be put on hold. Home-cooked baon (meal) over fast-food chicken and spaghetti might be more efficient, too.
Aim setting aside 10 percent of your money for savings, as most financially successful people do. The allowance you get might not be enough, so an external source can be of help to augment the savings money.
Step 3: Be on the lookout for moneymaking opportunities. Back in college, with my supportive mom’s prodding, I earned extra by coaching ice-skating throughout the year. Some friends spent their break time doing English tutorials. Be resourceful and turn your skills into gold.
Step 4: Continuously learn about money management. Smarten up all the time. Beware of discounts and credit cards. If a 50-percent off dress is flirting with you, think: “needs versus wants.” Plastic money is not a free pass to the latest iPhone. Dodge that interest-earning swipe.
Step 5: Keep your savings in a safe place. Savings accounts can have a high maintaining balance. New platforms, such as the BPI Direct Savings Account with a P500 maintaining balance and a 1.375-percent interest rate, make handling money easier.
Jaymark Torres, 4th year student at the Republican College, said, “This seminar was very helpful. It’s important for us to start saving for the future, especially for emergency situations.”
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