How's Your Savings?

Let's do a little financial check-up, please fill out the blanks below:

To better illustrate it, let me use my friend as an example:

He earns P 20,000 per month in a big and stable company and is now working for more or less 5 years.

After filling it up with my friend, I asked him: "Where is your P1.2M?"
He was stunned. He didn't know where it all went. I asked again: "Where is half of it, 500T?"
Still he couldn't answer. Lastly, I asked: "How about 1/4th of it or at least 1/8th of it?"
No response.

5 years working and no savings at all.

Your income is like a slimy fish, if you don't know how to hold it or grip it, it slips away from your grasps and believe me you wouldn't know where it all went. As the case of my friend, Unknowingly he became a millionaire, a million peso has indeed passed by his hands but it all slipped away. 

How many people do you know working for more than 5 years or even 10 years and does not have a single savings account? How about those earning 6-figure income managers who unfortunately is buried in debt?

You see, all this things happen because one lacks the discipline of saving. 

How about you? How's your savings?

Ask me, "Tiyo, how do you save?"
Then let me ask you back, "What do you do when you receive your salary?"

The normal formula goes like this:

INCOME - EXPENSES = SAVINGS

And when I'm going to ask you what your expenses are, I am sure you will enumerate a gazillion of things. 

Truly, you pay for all your basic needs: food, clothing, other important fees and expenses, and maybe lifestyle. And I am pretty sure, nothing is left to save. That's why some resort to borrow money or debt.

BUT,  are the companies you are paying already wealthy?

That's a big YES!

How about you? Well, probably... a "NO". You see, even if you don't pay them, they are already wealthy. So don't make them your problem. Why? Because if something happens to you, will they pay for you? NO. They don't care anything about you, they don't even know you. A lot of times, we forget who we should pay first: OURSELVES.

So in saving, the formula should be:

INCOME - SAVINGS = EXPENSES

Pay yourself first. Accumulate enough savings and be financially educated to learn how to turn your savings to wealth by understanding how money works. 

All of us sure have a coin bank (piggy banks) when we were kids, right? What do you feel when you know it  is almost full? Excited!

Continue to be excited. Continue saving, and know that it is the first step in becoming wealthy.