Tag Archive for savings

Quote Of The Week

It’s not how much you earn, But how much you save.

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[FUN] Aaaand it’s gone!

Got my paycheck 2 days ago …aaand it’s gone!

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Saved Income

Do you have a stable source of cash every month aside from your job?

If you are like most of us, you probably don’t have cash-generating assets yet.

That’s okay, friend! If we keep on striving, we’ll acquire these additional sources of income on top of our earned income in the near future.

So while we still don’t have that much-coveted secondary source of income–from rental properties, franchise profit, stock dividends and the like–yet, we might just as well decide and strive to lower our living expenses and cut off unnecessary luxuries we may have.

Then, treat the amount of excess cash we had gleaned and accumulated as our: “Saved Income“.

Okay, I’m not sure if there’s such a financial term called “Saved Income”, but for the sake of posterity, let’s coin this term as:

The difference of the previous monthly living expenses budget less the actual cash spent in the current month.

Saved Income = Monthly Budget – Actual Expenses

Say, your budget last August was $1,000:

  • Rent: $ 600
  • Transpo: $ 100
  • Food: $ 200
  • Entertainment: $ 100

This September, you decided to move to a much cheaper room; cut off excessive parties, movies and gimik expenses and cook your own food instead of eating out.

At the end of the month, the actual amount of your living expenses will be:

  • Rent: $ 350
  • Transpo: $ 100
  • Food: $ 100
  • Entertainment: $ 50
  • TOTAL: $ 600

To calculate your Saved Income:

Saved Income
= Monthly Budget – Actual Expenses
= $1,000 – $600
= $400

That’s equivalent to a 3-digit monthly income ( $400) or worth P 13,480 cash back at home.

$ 400! = P 13,480 !

Where can you earn that amount of money these days? (If you know where, don’t forget to drop me an email 😉 )

Again, I just coined this terminology and definition for this article so feel free to share your two cents on this, and I hope you get the drift.

There you have it! While waiting for the monetary fruits of our businesses, properties and investments of the future, let’s decide to earn that “Saved Income” as an alternative, this very day. Just as the old adage goes: “A penny saved is a penny earned.”

Remember, every Sing Dollar you save is equivalent to around P33 back home.

Not Bad right? 😉

SAVINGS RATIO = Savings / Income

savings ratio

Yan ang formula kung ilang prosyento ng iyong kita ang na-iimpok mo sa isang buwan. Tinatawag rin itong: “Average Propensity to Save“.

Halimbawa:

Si Buboy Batumbakal ay isang Sales Manager sa McDo na kumikita ng P 30,000 kada buwan.

Ang gastos nya sa renta, pagkain, pamasahe, gimik at kung saan pa ay P 10,000. Maingat siya sa kanyang mga gastos at umiiwas sya sa bisyo kaya’t buong-buo nyang naiipon ang natitirang P 20,000.

So kung kakalkulahin:
Savings Ratio = Savings / Income
= 20,000 / 30,000
= 66.67%

Mga 2/3 ng kanyang kita ang kaya niyang naitatabi.

66.67% rin ito, isang malaki porsyento na masasabi nating marunong humawak ng pera ang isang tao… at minsan, kung gaano rin kakuripot ang mga ito! 😉

Tignan rin natin si pareng Juan Tiyaga:

Siya ay isang OFW na nagtratrabaho sa Singapore bilang isang office clerk. Kumikita siya ng S$ 3,000 kada buwan o P 99,000.

Para makatipid, nakihati siya sa tatlo pa niyang mga kasama sa isang room sa Woodlands kaya $200 o P 4,950 ang renta niya kasama na ang mga bills sa tubig, kuryente, at iba pa.

Hindi siya bumibili ng pagkain sa mga kainan o Kopitiam kundi namimili sila ng kanyang kasama at nagluluto sa bahay para pagkain nila kinabukasan. S$100 lang ang kontribusyon nila bawat isa.

Kahit mahilig sa mga computers at gadgets si Juan, pinagpasyahan niyang huwag kumuha ng iPhone 5 at kung anumang bagong gadgets, kahit pwede namang hulugan, kaya wala siyang extrang binabayaran buwan-buwan.

Ang total na gastos niya sa buong buwan ay umaabot lamang ng $500 o P 16,500 kaya naman nakakapagpadala siya ng $ 2,500 o P 82,500 kada buwan sa Pinas.

Kung titignan natin:

= 2,500 / 3,000
= 83.34%

83.34% ! Wow!

Sa panahon natin ngayon eh saan ka pa makaka-IPON (hindi Kita) na tulad ni Juan Tiyaga na P 82,500 kada buwan.

Ikaw, ilan ang Savings Ratio mo?