We just finished year 3 of our coin bank exercise. For this year, the charitable Ilocana joined me in saving in our coin banks, the usual 10s, 5s now even 1s. It’s literally and figuratively every peso saved is a peso earned.
For 2016, despite the higher expenses of married life, and while we have regular investments with banks, VUL, our individual savings, and from time to time through bonds, crowdfunding and farms, I’m happy that the coin bank averages rebounded from a low 2015 though still lower than the year 1 exercise (when I was still single LOL!).
But what’s important really is the discipline of saving. Early this year, we saw various posts on 52-week ipon challenges with increasing amounts as the weeks go by and people seemed pretty much interested. Good! I guess we just need to package saving as sexy, as challenging, as cool, as exciting? Well if you can, go ahead!
I’m not participating though since I already have my own monthly savings scheme set-up for me. Just keep in mind it begins in saving but it doesn’t end in saving. After 52-weeks and you have a big amount, what do you do next? The answer is you invest. Read here for our Newbie Guide in Investing.
So if you really have a discipline in saving and investing, if you have programmed your brain that you need to invest regularly whether via EIP, subscriptions in bonds, then saving in your coinbank or doing the 52-week challenge is just an add-on, a hobby, a good force of habit. But for those still struggling to save, start with the discipline, with the habit. They say it only takes 21 days to develop a habit. Buy that coinbank, and put small amounts regularly. The trick is to save an amount, without you feeling the pinch in your budget. Or if you do feel the pinch in your budget, ensure that you can still live with it.
I also realized that with this habit of saving in a coin bank, you begin to appreciate and value every peso, that every peso is important, that you need 1-peso to build 1-million-pesos, that every peso is a step higher towards your target net worth.
Develop a saving and investing mindset, instead of a spending mindset.
Many people have the notion that they will start managing their money when they have more, so with the little they have, they just spend it all, since it is small. And they do this with every little salary increase they get, waiting for the big payday before they start managing their money. They never get to start. Wrong approach.
The right approach is this: manage your money now, no matter how small you have, and you’ll be surprised that with the right money management, you’ll have more pretty soon. Saving small amounts is a good start in managing your money. It’s never too late to put small amounts in that coin bank, harvest in 1 year, then invest in various investment options.
May you have a richer life!