Financial security is a lifestyle choice: 38 ways to save money now

Have you ever felt that our state of contentment or discontentment with money stems from the lifestyle decisions we make?

Simple assumption, but true. Think about it: it was fun treating your friends to a round of Friday night mojito and eating at the new restaurant on The Block, but what a nightmare if you wake up tomorrow and find out that you don’t even have an allowance for the next five days until the next paycheck comes.

Money is a good source of security and family harmony, it can definitely make our lives better - but only if we manage it well. This is what we learned in the  “Money and Your Family” monthly forum sponsored by Verdana Homes of Alveo Land at the Coffee Bean & Tea Leaf in Greenbelt 3 recently. The forum convenes parents to discuss relevant issues concerning the Filipino family. It is part of a campaign which is meant to provide a venue for families to strengthen their relationships to each other amidst the blight of “all work & no play” that seems to be common nowadays.

Speaking on the floor was financial journalist Karen Galarpe who shared precious tips on setting aside a budget, savings options to make and planning for the future with a good insurance/retirement plan.

A lot of what Galarpe said was what we’ve known all along, but is better applied in real life. Things like eating out too often, being a compulsive shopper and swiping one’s credit card with impunity can really take a toll on one’s finances. That is why married couples, for instance, should really sit down and talk as well as agree on what budget they can live on, with savings for the rainy day, Galarpe pointed out.

Her money management gems to live by:

1. Don’t eat out so much.

2. Bring “baon” to school/office.

3. Buy in the supermarket or discount stores, rather than in small stores.

4. Buy in bulk for items used a lot.

5. Watch out for sales.

6. Compare prices when shopping.

7. Buy only what you need, no wants.

8. Buy fruits in season.

9.  Use left-overs for another dish.

10. Make your own pizza, cake etc.

11. Take the MRT, bus, jeep instead of your car or a cab.

12. Walk short distances, instead of riding a vehicle.

13. Plan your trips.

14. Carpool.

15. Keep car in good condition. Have regular tune-ups.

16. When buying a car, get a fuel-efficient one.

17. Park your own car.

18.  Swap VCDs/DVDs with friends.

19. Watch matinee screenings.

20. Avoid the mall. Go to a park or zoo instead.

21. Buy used books.

22. Unplug appliances when not in use.

23. Turn off lights and fans when no one’s in the room.

24. Have leaking pipes and faucets repaired.

25. Do ironing in one go.

26. Turn off iron in last minutes of ironing.

27. Clean bulbs regularly.

28. Defrost refrigerator regularly.

29. Use only one credit card, and it should be for emergency use only.

30. Pay off debts. Start with the debt with the highest interest.

31. If you’re on a two-income family, live on one and use the other one for savings.

32. Pay yourself first - live on what’s left.

33. When it comes to savings options, don’t put your egg in one basket, diversify.

34. Put emergency fund in easily accessible account.

35. Don’t keep touching your savings in the bank, compound interest can make it bigger.

36. Know more about personal finance. Read books. Attend seminars.

37. If an investment sounds too good to be true, it’s probably a scam.

38. Look at your debt ratio. Amount allotted for debt payments should not go over 30 per cent of your income for the month.

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