It’s the contradiction of epic proportions: Save for Bill Gates, no one can spend and still have spare cash at the same time. The rest of us are either: cash-loaded and can live with plenty less, or materially-loaded and verging on broke. It’s society’s curse for everyone who’s stuck working 40-60 hours a week in an office, cramped up in paperwork and deadlines.
I’ve been getting the hang of this new ‘working’ thing, I guess: you work, and every other week you get a paycheck, which you can use to your liking. Given that the three of us were born to accountants, we were taught the value of money at an early age. All three of us were subjected to being partially cut off by the time we were twelve–our parents may bring home a decent amount of money, but neither of them are willing to spoil us with whatever it is we want. My brother knew how to save his butt off just to buy the latest pair of shoes, Nic keeps her money out of sight to buy a new book, and over time I knew how to divide my money for school and notebooks. Now that we’re older, we can get by a little better. But then again, I’m not going to lie–I’ve had major bumps up my road. Ever since I started working, I’ve basically saved and spent the last four paychecks I got. As of the moment, I’m in a better place. I’ve saved enough to add up to a decently-sized bank account, and I’m still getting doing fine even if I’m totally cut off. (Our mom is paying for food, and we have to buy everything else ourselves.) Still, this takes some practice, and some level of restraint.
As of my last paycheck, I have just about enough money in my savings to either: pay for Nic’s tuition next year, or buy a pair of designer apparel. Depending on how I look at it, I can have so much and so little at the same time. I’m trying to saving a little harder–my goal this year is to make it to at least six figures before the year ends–and it’s relatively easy to keep adding some money to what I have right now. So far, I’ve taken to a few habits–some of which go as far as my college days. Maybe it can also help you save a little more, or you can go hard and save a whole lot. It’s worth the shot.
And here goes my ramble on how to be a money-savvy shopaholic:
1. Always write down where your money goes. I got into this habit during my third year in UST. I had my days when my weekly Php900 allowance won’t make it until Friday, and I’d have to ask my Dad to deposit money into my account because I had a terrible cash habit. The truth is, I’ve gotten into planners because I have to track down where my money was going, and when you get to write it down and notice where you’re taking it… some of the things I’ve taken my money to were quite stupid. Back in college, I ate in Mickey D’s every day, and that killed my wallet several times over before I got the message. When you track your expenses, you get to be more conscious and aware that you’re spending more than you actually have.
2. When shopping, pay in the most painful way possible. It sounds totally stupid, but people actually think twice about spending when they hand over cash or the debit card over to the cashier. Unlike credit where you can just pretend it didn’t happen, using cash or the debit card actually has an effect on how much you have, and you can see your money run out. As for me, the only thing I pay with cash are food and commuting expenses. I use my card for paying for everything else–which is not a great sum, because I could barely let go of my debit card. When I have to pay for something that’s over one thousand pesos, I really get an actual stomachache, like I want to throw up. I’m not kidding.
And speaking of credit…
3. If getting a credit card is unnecessary and avoidable, don’t get it. I’ve seen it way too many times. Oprah’s had episodes about Debt Diets, and people are literally losing everything they have to pay for credit card debt. Personally speaking, I don’t see the point of getting a card that’s going to just dig you up a hole into financial collapse. Apart from that, how people can not bat an eyelash over credit card installments is simply beyond me, like a Jupiter kind of ‘beyond.’ My mother uses a credit card so that she doesn’t have to take a lot of money with her all the time, and my dad uses his credit card only to have his annual fees waived. Pao and I don’t own credit cards because they’re really nothing more than a pain in the butt. I think people who use credit cards for shopping missed one of the most basic life lessons, which is…
4. Live within your means. It’s fucking basic. It’s almost as basic as breathing. People don’t get into financial trouble if they didn’t have to maintain a lifestyle that’s simply beyond them, it’s that simple. If you can afford to have a new designer bag every fashion season and still have enough to sustain yourself, then God Bless you, you’re a lucky banana. However, doing the same thing when you can’t even afford a designer bag is another thing altogether. That’s just ten levels of idiocy right there. The main reasons our family does not own that many gadgets is either we can live without it or we cannot afford it. No one in this house owns a Blackberry or an iPhone, and we neither have a second car, a second housekeeper, nor do we go on trips abroad on an annual basis. We were born to parents who lived in an apartment with five other families back when I was a baby, hence we can see our parents’ money habits. They never buy anything they don’t need and can live without. Kamakailan lang nakaluwag ang magulang namin kaya nagssplurge sila paminsan minsan. Something as simple as this can do so much for somebody. Just live within what you have, and be content about it.
5. Lastly, always keep cash away for that rainy day. Everyone in this house has at least a spare five-figure bank account for the rainy day that is yet to come. While Pao does not keep track of his office’s payout days, I make sure to get my paycheck on the payout day itself and then transfer it to my bank account, where interest can accrue and gradually make my money grow. My rainy day is yet to happen, but it is better to face the day prepared than disarmed. :)
It’s not so difficult, isn’t it? :) Those are but the simple things I abide by. They’re perfectly do-able and easy to follow through on. You can try one of those out; do whatever suits you.
I hope that you get to save a lot lot lot because you were able to read it this long. :)
