Filipinos work abroad for various reasons. One main reason is to help uplift the financial status of their families and be financially secure. If your aim is to save one million in five years, here are some of the things you may consider:
1. Put up a sustainable income for your family. You will never be able to save money if your family calls you everytime they need money. First thing you have to do is to put up a sustainable income that can support them so that they will not rely on you everytime they need money.
2. Read books about finance. There are many books that share knowledge on how to manage finances well. “The Richest Man in Babylon“, “Secrets of the Millionaire Mind” and “Rich Dad, Poor Dad” are three great finance books you can read to jumpstart you way to saving one million in five years.
3. Based on your salary, determine how much you should save to get one million in five years. There are variables that affect your goal of saving one million in five years. These are your salary and expenses. The higher your salary and the lower your expenses are, the higher your savings will be and the fastest you can reach your financial goal.
Some financial books advice to save at least 20% of your salary. You may increase this percentage to 40% if you want to expedite the attainment of your goal.
4. Have a systematic way of saving money. You need diligence in order to attain your financial goal. There are banks that automatically deduct from your main account every month and save it on your second account. If your bank does not allow this, then do it manually. After you receive your salary, immediately save the amount you set for your savings.
5. Cut down expenses. To save more of your money, of course you have to lower down your expenses. If you usually eat breakfast outside, you may want to change it to a home-made sandwich. You can also save on your phone bill by monitoring the data you use.
Assess your finances by identifying what are your expenses, determine which items you can lower down and take actions to cut down the costs and add this money to your savings.
6. Grow your income. You can save a lot of money when you have high income (provided that you have lower expenses). To have a higher income, you may look for a higher-paying job or find investments that will help grow your money.
It is not an overnight or a one-day thing to save one million. (Well, unless you won in a lottery.) It takes good financial knowledge, hardwork, diligence and wise management of money to reach your financial goal of saving one million. You can do it! Start now!