I am extravagant, I want to save money, Where do I start?

Philippines
August 31, 2011 9:53pm CST
I just recently attended a seminar about saving money while still young, my big problem I have a lot of debts with my credit card and loans in cooperative. They said that we will save 20% to 30% of our salary monthly. How can I do that I am not a big income earner. Any tips and advice would be appreciated.
1 person likes this
8 responses
@stanley777 (7177)
• Philippines
1 Sep 11
The best thing for you to do is, every time you received your paycheck set aside a fraction of it and deposit the money in a bank. Refrain from impulsive buying.Have a lists of the necessities that you really need to buy and stick to it.If possible don't use credit card because having one you have the tendency to buy things which is not so important thinking that you will not pay it in cash.Also I think having credit cards you have to pay interest in them too for using it.
• Philippines
1 Sep 11
Credit card for me is necessity as of the moment since I do not have money yet. But if time comes that I paid all my debts, I would have to close it.
• Philippines
1 Sep 11
I thought when applying for a credit card one must have at least money deposited in a bank as a guarantee.Maybe I'm wrong coz' I haven't tried applying for one yet.
• Philippines
2 Sep 11
even if you do not have money in the bank you can apply.
@Olleenz (3400)
• Indonesia
1 Sep 11
Long time ago I have big income/month in my pocket but I can't make any saving. After I lost my job and start in other job with lower income (almost half lower), I can make saving. Sound stupid right, but it's real. The key (at least for me) is how to make budget and stick with the plan you make. You already know your income and the real problem is how you spend it wisely, right? Make a list, start with your routine expenditure (after that is up to you, cause I don't know your life) and make ranking on it (Urgent / important always on top priority). After that, think how you can reduce all cost. When you buy a product, never think about prestige (usually costly) but buy based on usage. You don't have to buy the cheapest ones but we also consider how long you gonna used this product (quality). Buy on average (quality & price) always worked. I don't know it's gonna worked on you but this worked for me.
• Philippines
2 Sep 11
I think I gonna start my listing according to my needs. Would you suggest to buy relief clothes than the expenssive new one?
@Olleenz (3400)
• Indonesia
2 Sep 11
You still thinking on prestige perspective. According to my list rank, buy cloth never had high priority ... sometime not even on the list. Priority on spending is always important when we want to make a saving. It's up to you which one you gonna buy because I don't know what are really need. But if quality is close enough or similar, I gonna buy the cheapest one.
@Olleenz (3400)
• Indonesia
2 Sep 11
Sorry, there something that I forget to tell you. Changing our perspective is necessary because it gonna change our attitude/behavior? when we must make expenditures.
@Judy890 (1634)
• United States
1 Sep 11
DO you have a bank account? a bank account can help you with saving your money you can also try save all the change you get after buying from stores thats what I usually do.
• Philippines
2 Sep 11
Yes I have one for my payroll. Yes I started already a small piggy bank in my house.
@Olleenz (3400)
• Indonesia
2 Sep 11
Had bank account sometime can't help us to make saving when we still have debit/credit cards. Realize or not, these cards persuade us to spend our money even we don't really need it.
• Philippines
3 Sep 11
Its a matter of disciplining ourselves and stick to what our goal on savings.
• Philippines
2 Sep 11
Before you save money, pay all your debts first and when you paid all your debts try not make any loans because you can't save money if you have loans. Try not to buy things that are not necessary. Focus on important things. If you can't save 20%-30% of your income. You try to save 5%-10% of it.
• Philippines
2 Sep 11
That is what I am working out now.
@dandan07 (1908)
• China
2 Sep 11
The most important thing for you is to pay back the credit card bills and the loans first. The two will cost you a lot on the interest. Then after you get your salary, put 20% to 30% into a fixed deposit account which you cannot easily cash out. Then use the left money to lead your life. It can help you save some money. As you have less money on hand, I think the better way for you is using cash not a credit card. So that you can feel how much money is left and how much a thing really cost. If you use a credit card, the money to you is only a sense of digit, it can not help you get rid of something you do not need.
• Philippines
2 Sep 11
Is it okey to loan money to pay for another loan that generates higher interest? What I mean is I will loan in a cooperative or in SSS (social security system) and that amount will be payed to a credit card.
@lingli_78 (12852)
• Australia
2 Sep 11
well, the first thing i can suggest is to change your lifestyle and differentiate between needs and wants... next is to try frugal living instead of extravagant living... these will help you to cut down on your expenses significantly and hence you will be able to save more and pay off your debts faster... good luck... take care and have a nice day...
• Philippines
2 Sep 11
I started one week ago changing my extravagant life to frugality.
@katrinapaz (2438)
• Philippines
1 Sep 11
my suggestion is to lessen your trips to the mall because there are a lot of things that we really dont need but are nice to look at there and we are tempted to buy. another thing is to lessen your eating at fastfood chains and cook more food at home. also just limit yourself to one indulgence or reward per salary, in that way you will look forward to another self reward and you are not overbuying.
• Philippines
2 Sep 11
I just go to mall during weekend for family bonding. It's four times a month without spending too much.
@ekoytyas (4672)
• Indonesia
22 Oct 11
just try to spend your money, no need to buy much food or something useless.