Make it a habit #2: Save automatically
Most people find it hard to start saving, especially after years of just spending their entire paycheck monthly. But according to Automatic Millionaire author David Bach, the road to creating your wealth starts by learning how to save automatically.
So how does one do this? There are now local banks like BPI that offer automatic savings. Through BPI Direct, you can automatically transfer a set amount of money from your payroll account (preferably BPI, as well) to your BPI Direct account. It can be as small as P500 per pay day.
The great thing about saving automatically is that you are forced to make do with the amount you’re left with. If you’re receiving a monthly net salary of PhP8,000, you will be left with P7,500 after the automatic transfer. Through this, you are conditioning yourself that you can live by with just P7,500.
At first, the amount may be small and at times, you will find yourself getting impatient. But just hang on there and before you know it, one year is over and you’ll have PhP6,000 in the bank (plus earned interest)!
Personally, I am a fan of saving automatically. I am blessed to work in a company that promotes this kind of saving facility. On my third month of employment, I already enrolled in the program and have authorized our accounting to delete 10% of my gross salary monthly. And every time I would get a salary increase, I also adjust the amount to be saved automatically.
In just four years of employment, I already have close to Php150,000. And because our money earns high interest, I earn about PhP4,000 to P5,000 annually.
Give it a try right now and ask your favorite bank if they offer this kind of savings plan.
Entry filed under: Banking, money tips, Savings. Tags: automatic millionaire, automatic savings, automatic transfer, bank of the philippine islands, bpi, BPI direct, david bach, payroll, saving automatically, Savings.