April 24, 2008

Smart Student, Rich Professional

Posted in saving tips at 11:06 pm by kimsan23

Mom and dad always reminded to save money even when I was a still a student. I would try at first but would and up closing my measly account to use the money for pizza. I started with several bank accounts with minimum amounts of 200-400 pesos and would end up just spending everything. I guess the problem was that I didn’t understand how valuable money was and how hard my parents worked to earn. We lived in a big house with 3 maids, 3 cars and an army of 4 dogs. I didn’t see how we would ever lose anything or run out of money. I wasn’t a spoiled brat though, I was taught to earn and work for the things I wanted to buy– I did, that but the money was never enough and I was too distracted by other concerns. I thought everything would be okay and was running smoothly from my parent’s end until our property got foreclosed. I wasn’t prepared for anything like that to happen. If I had maintained some sort of savings, I could most probably be sitting on my laurels now.

My advice for the day, be a financially informed student and you’ll have some money to spare for the long term.

As a student, you normally receive an allowance. Usually, there would be an extra few pesos at the end of the day. Learn to partition your savings into two or three types.

  1. Reward Savings – money set aside for items/things you’d like to buy for yourself.
  2. Extra Money Savings – money added to the gimmick fund for going out and partying!
  3. Long Term Savings – money for the long term. Save enough to open a bank account and add to it every month. It doesn’t matter if you end up adding 100-200 pesos a month, do it and don’t spend it. Make it your life savings.

When I was in college, I actually had enough money to do #’s 1 & 2– but never a cent for #3. If I had half a mind to save even small amounts from my part-time jobs, I’d probably have enough now for another time deposit.

What’s hard is trying to make up for lost time.


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