Saving 30% Of Your Income Is Feasible
Is it really possible to save a larger portion of your income? That’s actually a good question especially if you are someone who is looking forward to make more money from savings and passive income. If I would answer this question, yes it is possible as long as you are willing to sacrifice some of your spending habits. Big time entrepreneurs in the country started from saving 5% or 10% of their salary when they were just starting their own businesses. Even OFWs practice this strategy in order to give more money to their family here. To help you out on how to save 30% of your salary monthly, I listed the things you need to do in this article. I hope this makes a big difference!
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila — March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stok Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Set Your Savings Threshold
One of the big steps you need to make if you want to save more is by setting up a threshold for your savings. Align this to your capacity to save and invest. If you are just starting, you can set your savings threshold to 10% and increase it from time to time. This will help you reach that 30% or more margin in the future. This should be a mandatory step to make your savings habit a consistent activity. Do this monthly and you will be surprised of what you can save at the end of the year!
Another step to make your savings feasible is by avoiding spending too much of your budget. You can avoid overspending by creating a monthly budget that you need to follow so you can track whether your money is sufficient to cover your savings and monthly expenses. Some people who are successfully saving and investing follow this simple formula: Gross income – Savings = Expenses. You can opt to use this formula for a stronger saving strategy.
Aim For A Higher Salary
If you are serious about increasing your saving threshold, you should also aim for a higher pay if you are an employee. The higher your salary is, the higher your savings will be. It is true because as your salary increase, your salary margin jumps as well. Instead of increasing your luxurious expenses when your salary becomes higher, put all the remaining money to your savings or investment.
Start Earning Passively
Yes, passive income should not be out the place here. You will be needing this if your salary is not enough to increase your savings. Rather than spending on gadget upgrades, learn to put the money in an investment that will help your earn just by sitting on your desk chair. You can try investing in stocks and mutual funds to increase your passive earnings. It is essential that you also aim for something to keep your income steady in the long run.