Wednesday, May 22, 2013

Saving and Investing Tips

Just recently, my dad was able to attend a seminar by Suze Orman and he shared with me some useful information that I need to know on the proper way of saving and investing my money. Here are three important things that I learned that we need to take note of when it comes to managing money.

Make sure you credit card bills are paid every single month. 
By doing so, you get to save a big amount as finance charges for unpaid credit card bills are roughly 3% monthly and there is no bank that gives you interest that high on your deposits. Mind you, that is monthly so by doing the math, that's like losing 36% annually on credit card debt.

Spend on what you need and not what you want.
In this very materialistic world, this is one of the hardest things to do. I myself is not exempted and there are a lot of temptations, especially for ladies, to spend on a lot of wants. One thing that Suze Orman pointed out though is that we should try to limit our spending to the thngs that we NEED in order for us to be able to save.

Set aside money monthly. 
Learn to take off a certain amount monthly to be put to savings from your salary. It has been a normal practice for some to auntomatically debit a certain amount from their payroll account and credit it to a savings account. In this way, they are forced to do budgeting and use only what's left from their payroll. In addition, I think we should also develop the practice of saving even our additional cash inflow like 13th month pay, bonus, and the like so that we have enough whenever there are unexpected expenses or investment opportunities in the future.

We should bear in mind that a huge amount of savings is a result of saving small amounts often so we should not be discouraged whenever we start small as this will eventually become big.

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Carlos said...

Really good tips! I wish I was able to attend; hopefully Suze Orman will be here again next year:)

Thanks for sharing