Readers' question: How do i save money?

A reader emailed me, asking "how do i save money?".Another one asks my opinion on Francisco Colayco's suggestion (in his book, Pera mo, Palaguin mo) of using envelopes.

With this post, I hope to answer these questions in the simplest, and most effective way i can. In fact, i will only use 3 words: Just do it!

I'm sorry if you were expecting a magic formula. But folks, really, ask yourself, how else do you expect yourself to save? In my opinion, there is no formula. Just willpower.

By all means you can, save every excess centavo. These add up. It's developing the habit that's more important. Once you've developed the habit, and have made this automatic and lasting, I promise you, you will very soon be taking the next big leap which is "growing your money" thru investments.


I can relate to you, ordinary Juan Dela Cruzes. I've been there. I am living proof that this is possible. Discipline, willpower and a bias for action. These are key.

Hesitant still? Also read (click links) relevant topics about:

a) Why create wealth?
b) Why save?
c) Money-saving tips
d) Investing 101
e) What to do with money saved

what to do with money saved

As you now know, every penny counts. If you've been following my posts, i'm betting you're now well on your way to creating your own wealth.

Let's recap. So far, i have taught you to:

1. Realize and admit you have a problem first

2. Understand your "big why"

3. Take action - know what to prioritize when it comes to spending

4. Start saving
5. Start valuing your time

Now we go to the next lesson to be learned- What to do with money saved.

For beginners:

My advice at this point? Go to your nearest bank. Open a passbook account, start saving there regularly. 

The objective is for you to develop the habit of not pocketing your excess pesos. Put it where you cannot have ready access to it. Remember it's a passbook, and not an ATM account. It's also a way for you to become at ease with the people inside banks.

For people with credit card problems:  

Start paying up. Little by little. Just face it and get over it. 

For people who are now ready for the next big leap: 

Start investing. Read my previous post re Investing 101. Choose among the items there. Research, ask around. Consult with knowledgable people. Start small. Just do it.

Details in my next posts. I promise you readers financial freedom. Start believing.