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We all know that the best part about having a job is the cashola. It’s great to finally be able to make some money, have a little elbow room to treat yourself to a new pair of shoes, or even be able to buy your parents a thank you meal.

But while earning enough dough is thrilling, we all know it shouldn’t end with the ability to buy yourself a fine meal after a hard day’s work. We mean, we gotta save for the rainy days, too.

Managing personal finances, budgeting and saving money may be a bit of a challenge. To help you get started, Aibee Cantos, CEO of Philam Life gave us some tips on saving money properly as early as now.

1. Save as early as possible

Saving money at a young age is really a good start for future investments. Saving small amounts can make a difference later down the road.

“You have to understand that saving early is the best approach. As long as you’re still young, you have to start saving and investing so that you can leverage on compounding your own money,” Aibee said.

Saving doesn’t just mean depositing money in the bank. It could also mean buying an insurance, for instance, which is cheaper when you’re younger, by the way—so start now!

2. Develop the right habit

Young professionals may tend to have the buy this, buy that habit even though those things are not really necessary. So it’s important to develop the right habit and have a good level of self-control, Cantos said.

“Temptations to buy things that you want even if it not that necessary, may be hard to control. Pero kapag nadisiplina mo na yung sarili mo na pag-ipunan muna hangga’t kaya, you’ll do good,” he said.

3. Small is something

Many think P5 is insignificant, but that’s like 1/20 of P100. The lesson being: save even if it’s small. Small, in fact is a good start. “Even if it’s a small amount, start investing. Minsan akala ng karamihan lalo na yung mga young professionals, na they need to have a lot of money before they can invest. Which is not correct kasi madaling maubos yung pera. No matter how small, start that daily habit. So that when you start progressing in your career, it becomes much more significant later on.”

4. Set your financial goals and change your mindset 

People should change their thinking that saving money is hard. It is not. Having a right mindset about saving money will give you more motivation to achieve your financial goal.

5. Pay yourself first

How many of us would diligently go through all our bills first, and then treat yourself next, before saving what’s left of our paycheck? While that’s responsible—of course you have to pay your debt!—Cantos said that may be a wrong way of going about it.

Think of saving money as paying yourself. And like in airplane safety videos, you gotta take care of yourself first before you take care of others. This means: Pay yourself first by deducting your savings from your salary, before spending the rest of it.

Ang formula kasi dati, pagkakuha mo ng sweldo, kung ano lang yung matira, yun lang yung mapupunta sa savings mo. This is not good. Dapat after you mo makuha yung salary mo, magtatabi ka na dapat agad. No matter how small it is, basta makapagsimula ka lang kasi you’ll be surprise with the result kahit paunti unti.”

6. Start saving for retirement

You may think that saving for retirement at age 22 may seem a little bit early, but the sooner you start saving for retirement the better. It will also make your future secured.

“Prepare for retirement as early as now. Minsan kasi, yung mga younger employees, hindi pa nila iniisip yung retirement plans nila kasi nga bata pa. Pero kasi, the sooner you start saving, mas maganda yung iniisip na rin natin yung plans natin for the future. With this, you are ensuring that you will be better no matter what happened to your career in the future. Mas magiging comfortable ka rin knowing that your personal finances are in good hands.”

7. Ask help

Asking help is not bad. Aibee Cantos said that if you can’t easily manage your own money, other people will find ways to manage it for you. Financial advisers can really contribute a big help in saving, budgeting and investing your money properly.

“Financial advisers are properly trained individuals that can help you on how you’ll save money. People need somebody to help them how to budget, save, invest or even buying life insurance. If you’re not confident on how you’re going to do it, it’s really good to have somebody to help you what we you can do,” he added.

Illustration by: Madel Crudo

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