It's not what you earn, it's what you save!

@basqui (3890)
Philippines
July 5, 2010 12:56am CST
My father said this to me once when I was still looking for a job and the jobs I've applied for required me to report immediately and they told me about how much I will be paid for. I was to choose from between two jobs and I said it will be the high-paying one, then he said, it''s not what you earn really that is important but what you save. Hey, he's right, even if you earn lots but spend more then it's useless earning big. Do you agree?
9 people like this
38 responses
@savak03 (6681)
• United States
6 Jul 10
Yes, I do agree, but saving seems to be a lost art these days. Before you can save anything you ave to have something to save. Actually I think my favorite proverb is "Your expenses will expand to take up all of your income."
2 people like this
@basqui (3890)
• Philippines
7 Jul 10
Welll, at least limit it to not take all of it..Leave at least a bit for tomorrow.
@saphrina (31740)
• South Africa
5 Jul 10
Hi sweetie. I agree with your dad. The more people earn, the more they spend and don't worry about tomorrow or the day after. The less you earn, the more you learn how to budget and save. Hope you listen when your dad talk to you. TATA.
1 person likes this
• Philippines
5 Jul 10
The more we mylot the more we are saved by an angel
@saphrina (31740)
• South Africa
5 Jul 10
Hi sweetie. How are ya?
@basqui (3890)
• Philippines
6 Jul 10
Yep, it's like when there is less water from the faucet, the more you have to take care not spilling water, right?
@JOIEMARVIC (2342)
• Philippines
5 Jul 10
Your father is basically right. no matter how much you earn, if you do not know how to save and manage your finances, you could still end up broke and in debt. Money is a very effective tool in acquiring the things we need, we just need to always check and balance our finances to avoid spending to much. Saving is also the key to riches. Our savings can be further used as investments or capital for business.
1 person likes this
@SomeCowgirl (32271)
• United States
5 Jul 10
I think that if anyone can follow the advice from an elder about money, they will surely go far. Here in the USA those who are lucky enough to still have relatives living who went through the Great Depression in the worst way, truly know the value of saving and of investing when the time is right.
@basqui (3890)
• Philippines
6 Jul 10
Yep, the elders of course have many experiences in life already so their opinions and guidance should be respected and followed to be successful.
• Philippines
5 Jul 10
I just came from a job interview, about an hour ago. It was a panel interview. The interviewer asked the applicant I was with, why he left his previous company. He answered that he left because, although he was given commissions from the products he was able to sell (plus incentives like night differential and all those), his basic pay was only 17,000PHP. It came to mymind that, if he was recieving 17,000 plus lets say 5,000 on commissions, plus another 5,000 for other incentives, that would give him roughly 27,000 a month. Thats more than enough for someone who is single and still lives with parents who doesnt oblige him to share on expenses. But what if you were living alone, and paying for several bills? or if you have your own family already? for me, choosing the job, especially its compensation package, would all depend on the following reasons: 1. status in life (single, married, with kids, living alone, etc.) 2. the reason why im working (to be able to buy what i want, to invest on something, so you could start a family, etc)
1 person likes this
• Philippines
5 Jul 10
good thinking! i recently gave birth and my hubby and I were just starting to have a family. we're renting a house and we do not have a car, we're both working as an employee in the office, but our incomes are not enough. you know, good thing i came on this site, i would really have to earn more than what i'm earning now for the future of my family.
1 person likes this
@basqui (3890)
• Philippines
6 Jul 10
Yep, some workers or employees are not contented with big salaries if they really have families. A friend of mine works in a shop and they pay him only Php2500 a month and he likes it because it's stay-in job where there is free board & lodging. He is single so he has nothing to support but himself.
@neildc (17254)
• Lapu-Lapu City, Philippines
12 Jul 10
this is something in my mind when i thought of transferring from this city to the other location with my job. i know there are some other offices we have in the other cities. and if our agency could have one office installed in a city near the province where my wife have a house, i will request for a transfer to that office. currently, i work in this city where i rent a house. my salary is not even enough for all the needs, like electricity bills, water, and the basic consumption. if i can get a job in a city near my wife's home, we can even save the money for the rent. electricity is much cheaper and i will also save some money for the fuel. i agree with your thoughts.
1 person likes this
@basqui (3890)
• Philippines
13 Jul 10
That's really helpful having your work near your home. HAve a wise decision and be successful in your career neil. Good luck!
• India
10 Jul 10
Hello basqui, your dad is right,, LOL I have worked as professor for more than 40 years , am retired now, i had saved regularly, they were made fixed deposits in various banks, i earn interst regularly on that...I bult homes already, yes it was due to the savings i made.. Thanks for sharing. Welcome always. Cheers.
1 person likes this
@basqui (3890)
• Philippines
13 Jul 10
I wish I could retire soon and be relaxed. lol, I'm 30 years away from that moment I think but at least I could start saving now and retire the same way as you did. Have an enjoyable life and keep mylotting prof.
@34momma (13896)
• United States
9 Jul 10
you have a very wise father. that's a lesson i am learning right now. it's not how much i can earn, but how much money i can put away for a rainy day and for my future that's really important! your father is a smart man and that's some great advice he passed on to you
@basqui (3890)
• Philippines
13 Jul 10
Yes, I'm thankful of having a good father although he could be annoying sometimes when he had to dip his nose in everything I do. Maybe it's a father's instinct to help out but it should be on a limit, right?
• India
9 Jul 10
I am sorry, basqui. I do NOT agree with your father. There is always a limit to how much you can save. You can buy the cheapest shoe, but still you have spend something on the shoe. You cannot live without slippers/shoe throughout your life. Likewise, you can save only upto a limit, beyond that , you HAVE to spend. You can't avoid. But, this is NOT the case with Earning. You can continue to earn as much as you can. There is NO limit to earning. The only limit is your thinking. That's why I always advise my clients to concentrate on their income. Saving part, I will look after.
1 person likes this
@basqui (3890)
• Philippines
13 Jul 10
Yes, that's right. We have our everyday needs. And it's the things that should be prioritized. WEll, we all need shoes but if you could manage to survive having two pairs or three then it's best to live with it. You don't need a hundred pairs do you?
@dragon54u (31605)
• United States
7 Jul 10
I agree with your father! I know of people that make $100,000 per year but they are very poor--they have a lot of credit card debt and big mortgages, car loans and so forth. They really have nothing, the banks own everything they have because they would not save up for something but demand it right away and use a credit card. I don't make much but I consider myself well off--I have no credit card debt, my mortgage is small and affordable and I have a decent savings account so that if anything bad happens I am prepared. See the difference? That "rich" person is poorer than I am because I save and manage my money well. Your father is wise.
1 person likes this
@basqui (3890)
• Philippines
7 Jul 10
Yup, they are the kind of people who thinks that their earnings in the future could patch up their expenses now. I mean they are spending now because they think they could earn this much in the next months and the would later realize that they have over spent. Well, rich people are used to easy living so they don't want to cut out on their lifestyles so they keep spending out of their credit cards.
@dorannmwin (36698)
• United States
7 Jul 10
Your father shared very wise words with you and this is something that I've seen with practical applications in my life. You see, several years ago when my husband and I were looking for our first house, we were offered a mortgage that was higher than we would be comfortable spending. There are a lot of people that would have taken that mortgage, but my husband and I are more in favor of saving money than spending every penny that we earn.
1 person likes this
@basqui (3890)
• Philippines
7 Jul 10
Of course that's pratical spending, you wouldn't spend on anything that you can't really afford.
@rosekiss (30276)
• Eugene, Oregon
6 Jul 10
I do agree with that, as you can earn and earn, but if you can't save any of it, then you really aren't accomplishing anything. I have had a hard time saving money,up until March of this year, and still it isn't easy, but it is easier than it was. I don't really make all that much online, but I just continue to do what I have been doing as I know I iwll eventually get paid, albit not all that much. I have had to help my daughter with her bills, which in essence hurt me a little and I told her I am not going to do it anymore. Her husband lost his job, and that is hwy, but I told her that he needs to do whatever he can to make money even if it is flipping burgers, but that is beneath him I guess. I hope that I can start saving more than what I have been able to do, as I know it will help in the long run. Good luck to you and happy mylotting.
1 person likes this
@basqui (3890)
• Philippines
7 Jul 10
Well good luck so that you could help your daughter, but at least leave some for yourself and don't give them all so that they could start earning for their own.
@cher913 (25893)
• Canada
6 Jul 10
i agree with your dad. lots of people will spend their money on the latest fad whatever it may be, but you are secure in the knowledge you have money saved up. to that end, i only shop in thrift stores for my clothes!
1 person likes this
@basqui (3890)
• Philippines
6 Jul 10
There are lot of thrift shops in the city nearby and it's a good way to save on clothing expenses too.
• Philippines
5 Jul 10
I don't entirely agree with that premise in a sense that what you earn limits how much you can save. Given the same spending habits, you can save more if you have higher income. If I were your father, I would have advised you to accept the higher paying job (if all aspects of the jobs are the same except the salary)for practicality's sake and just give you another advice regarding the benefits of saving.
@basqui (3890)
• Philippines
6 Jul 10
The job's location is far so I chose the nearer one.
@arahvma23 (269)
• Philippines
5 Jul 10
i definitely agree to this! my dad always emphasizes that i should save. i used to attend to a financial group before and i've learned that we should be aware of the RULE OF 72 which A. Einstein invented, applied in finance. It's really amazing how it works. They've computed my needs and found out that I should have 20 MILLION PESOS to attend to my needs and wants!
@basqui (3890)
• Philippines
6 Jul 10
Yeah, if you will really spend on your needs and wants at the same time then you will surely save nothing. Give priority to needs first more than wants. As the Chinese businessmen have the characteristics to delay their compensations. For example, they can live everyday having the same clothes over and over, they don't really need new clothes if they still have good ones at hand. They give priority to having incomes and not outcomes in business.
• Somalia
4 Aug 10
haha. I guess i've been doing the chinese way of buying stuffs only of they are really needed or must, must be replaced sometimes I only buy stuffs when they are already practically unusable, still I don't have anything saved that could be referred to as investment, and I'm already earning more than other filipinos of my age.
• Philippines
5 Aug 10
Really? If I were you amoyube1980, I would already invest that for a lot or a house and lot, just to be ready when you get married... :)
@dpk262006 (56104)
• Delhi, India
6 Jul 10
It is said that 'money saved is money earned'. If I need to spend Rs.100 and I can save those Rs.100/-, it means that I have saved Rs.200/- (Rs.100/-, I would have spent, otherwise).
@basqui (3890)
• Philippines
7 Jul 10
so you have saved twice if you have not spent it, is that it?
@dpk262006 (56104)
• Delhi, India
8 Jul 10
You guessed it right.
• Philippines
7 Jul 10
YES i do agree working to save is much better than working just to earn :)
@basqui (3890)
• Philippines
9 Jul 10
Yep, there's a big difference in those cases.
• Philippines
6 Jul 10
OUCH, that hurts. I definitely agree with your father. In fact, that's what my father always tells me too. The thing is, sometimes, it just feels so good to reward yourself after a hard pay period of working. I tend to forget that I don't really earn that much so I have to set aside some for future purposes. The big question is, how do you sincerely control your spending?
@basqui (3890)
• Philippines
7 Jul 10
Prioritizing the needs and wants. Needs are the necessary ones like food and daily needs while wants are the extra unnecessary expenses.
@derek_a (10902)
6 Jul 10
Yes, I think your father was quite right about this. Although it is important to earn enough money to save.. If we can save some of our money, we can feel as if we have had a surplus of money - therefore we can feel richer. My Dad used to say to me to put something aside each time I got my wages, even if it was only a small amount. The weeks and years will go by and before I know it, I will have accumulated more savings. It is a good habit to have. _Derek
@basqui (3890)
• Philippines
7 Jul 10
Yep, I know a friend who deposits Php 50-100 a day in the bank, actually the bank representative goes by his shop and collects any amount. I f he keeps doing this for the whole year then he could have more or less Php 30,000.00 at the end of the year.
@Hatley (164670)
• Garden Grove, California
6 Jul 10
hi basquit well he has a good point but it also depends on how many bills you have to pay each month, how much rent you must pay each and every month. You cannot say any money at all if you are just barely being paid enough to just cover your expenses how can you save anything the pay check has to be enough to live on and still save some money. the cose of living in California in the United States is high now and the wages just do not go up in comparison so how are we to save. I am talking about the necessary expenses not luxuries but food,rent, utilities,auto insurance etc.the things you cannot not pay.
@basqui (3890)
• Philippines
6 Jul 10
Priorities for needs and necessities is one big thing for workers especially those that have families already, for me I'm still single so I just help out in the expenses in the house because we live together with my parents. Maybe if I'll get out of the house then I have to tighten my belt more in order to survive.
5 Jul 10
I totally agree, I was reading about this lawyer who earned a lot of money- about £50,000 a year. Yet she was spending more than that and in a lot of debt. Living within your means is important, but quality of life is even more important. So I guess the solution is to balance all these out and then hopefully you'll be alright!
@basqui (3890)
• Philippines
6 Jul 10
Balance in all thing is important, not only in earnings and spending. There is always day and night, summer and winter. If one gets the biggest part then the world would not work out right.