Saving Money for Newbies

I am not a financial guru but on my way to be financial freedom. Last year, when  I decided to change my financial situation, I developed the habit of reading finance articles, books, blogs and vlogs and apply it as my own. Here's some that worked for me. Just a quick disclaimer, these tips are generally not for everybody so follow at your own risk.

1. Limit shopping spree

When I decided to change, I limit myself from going to malls or department store section. I usually splurge without thinking every time I promise myself to only window shop. So to discipline myself, as much as possible, I avoided all places where I could possibly spend on things that I don’t really need or regret afterward.

2. Have an inventory and spend only on the necessary

When I was younger, I used to buy lots of snacks, books, body wash, accessories, clothes and etc. There’s nothing wrong with buying these basic needs. What’s wrong is buying them in excess without planning to use them.

I used to haul cheap fiction reads from local bookstore. Yes, it’s cheap and I buy ten of them in one go and just leave them to dust on a shelf without even finding time to read them. I used to buy too much hair, body and other products that I don’t consume until its expiration. These were habits I was not aware until I made the decision to overhaul my finances and started listing down all my expenses.

All the while I think I was buying only the necessity, but truth is, I was actually throwing away money by not consuming or using them. As for books, was it the right information you actually wanted to read? If you’re wearing uniforms at work 5 or 6 days a week, do you need that tons of clothes in your closet?

Having an inventory of the items you need is very important. It gives you the perfect idea of your basic needs, how much you spend, your ideal budget and prevent you from throwing away your hard-earned money.

3. Limit movie dates

When I’m stressed, I used to eat my heart out, skip work and just go watch a movie. It entertains me and temporarily release me of my anxieties and stress from work. I usually spend Php300 or up when I go to a single movie because aside from popcorn, I also buy food, sweets and drinks. And usually, I go not only once but twice or thrice a month whether with friends, family or office-mate just to kill boredom.

When I started accounting all my spending, I definitely crash this off my list. For the main reason, you can entertain yourself through watching videos and tutorials online, reading a book that was dusting in your book shelf for a very long time or you can teach yourself to cook or do gardening. There are even free movie links online that you can access.

If you want to have an intimate movie date, set it at home after a dinner with candle light or setup a projector to have that movie theater vibe with friends and neighbor. Be creative.  

4. Limit your expensive coffee

I love coffee shops. It’s not because of the coffee but the vibe and ambiance. I even went to the level of splurging money on expensive coffee shops just for the feel of it. But later I realize, this habit of mine costs me a lot. One time, I went to a local coffee shop and buy an instant coffee, it costs me five times the price that I could get it from a retail store.

If you can’t give off your boost, find way to still get it but at a cheaper cost or better yet invest in a good coffee maker and make yourself good coffee every day.  

5. Having a healthy lifestyle

Most of us, only remember the value of health only when we get super sick. Nature forbids! We only have one body and no amount of riches will revive a decaying flesh. Hence, it’s very important to pamper and nurture our bodies with good amount of sleep, right nutrition and exercise.

Maintaining a good health will save you a lot of money in the long run especially as we aged wherein, we are prone to lots of illness and complications.