Friday, August 26, 2016

The Tipster's Second Serving: The Road to Financial Freedom - Simple Ways to Save Money

For your second serving towards the road to financial freedom.

6. Withdraw from your own bank. Surcharge fee for withdrawing from other banks' ATMs could reach to around Php. 7-15.00. Remember, every peso counts. Just think of the health benefits you give to your heart each time you decide to walk that two blocks where your bank's ATM is located. Probably there's a view to enjoy too, on the way there. Thinks of ways to make the task lighter. Your heart - and your wallet (or even your eyes) - would give you a pat on the back for that.

7. Try not to withdraw from your bank account at all. Now this may sound confusing but what I really mean to say is that, if you still have enough money to last you for the day, or for the week, try not touching your money in the bank. This has something to do with Average Daily Balance (ADB) which the bank computes at the end of the month. This is at least for savings accounts. The bigger your ADB, the bigger your monthly interest. 

         Others prefer a different strategy. They set aside cash enough for a week or maybe a month, so that their money in the bank goes untouched for quite some time - until they use up their stash, that is. If you prefer this strategy, just make sure you have a safe and protected place to store or hide your cash.

8. Deposit your coins in your bank account. Sounds like we're getting more serious about bank accounts here. Anyway, Are you one of those people who keep a piggy bank at home with all your loose change in it? Some would even choose just to save 5-peso-coins or 10-peso-coins. I used to do that - with an emphasis on the past tense.

         I used to challenge myself to fill my piggy bank - a 2-liter empty bottle of mineral water - to the brim, with 5-peso and 10-peso coins. It would take me a lot of months to do that and what an exhilaration those milestones would be for me that time. Recently, although I still use the same piggy bank, it is not anymore my goal to fill it to the brim like before. As soon as I feel that I have a lot of coins - maybe filling a quarter of the bottle - I immediately deposit it in my bank account, so that my money could earn for me, no matter how small. I could only shake my head thinking about the number of months I have allowed my coins to "sleep" in the piggy bank. Again, lesson learned. Let us all allow our coins to "sleep" in the bank this time, safe in our savings accounts, and earning for us. 

9. Bring packed meals to work. I do this each time I have the chance to cook. Sometimes,  I just cook rice and then I just buy viand at the canteen.  Packed meals are a great way to save.

10. Buy clothes at the thrift shop.  I started to be a frequent customer of thrift shops when I was a medical resident-in-training when I have to skimp a lot on my budget. Until now that I have graduated from training, I still find time to go to my favorite thrift shop. In fact, I have left my contact number in one shop because they send messages to their customers each time they have new stocks or new arrivals. That's quite a strategy right there to maintain their customers' loyalty. 

          I realized that being able to have an eye for good clothes or items in the thrift shop is a skill that one develops in time. I was not really good in choosing stuffs before but in time, I have developed my skill. Actually, if you just look closer and strive to be patient in scanning through the items they are selling, you can see that items in the thrift shop are actually made of good quality. If you are lucky enough, you might even get branded items at a very good bargain price. My family and friends are amazed when I tell them that which stuff I bought from the thrift shop. Aside from buying cheap quality clothing, the way you carry yourself counts a lot too. 

To be continued. 

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