3 Simple Yet Sure Ways To Save P12,000 By The End Of The Year

The new year is always a good chance to set new financial goals, and you don’t even have to go big right away. A LOT of things have happened in the past 12 months, so don’t feel so bad if you can’t afford to put a huge lumpsum into bonds or other similar investments.

The simple act of saving money is definitely a good place to (re)start, especially if the habit of setting aside money has fallen to the sidelines.

How to save P12,000 in a year

Saving up at least P12,000 by the end of the year? That is not just a comfortable goal, it is a huge amount for households that have nothing left each month after paying for their necessities.

Money management does take discipline, and building the habit of saving can be tough. But having a pocket to pull out from in case you need extra cash makes the effort worth it. Here are a few ways to do it:

1. Set aside P1,000 a month

Total by the end of the year: P12,000

This is probably the most straightforward way to go about it. When your income arrives, transfer P1,000 to your savings account. We recommend moving it to the bank to make it less easy on you to spending it.

If you get your salary every 15th and 30th of the month, you can also set aside P500 per pay day if P1,000 outright is tight.

2. Set aside P35 a day

Total by the end of the year: P12,775

If P1,000 a month is hard, try going for P35 a day. The coins you have from change for teh day can add up to P35 — put it in a piggy bank.

If you don’t have enough barya on a certain day, make sure to put in more the following day. This method also earns more than the first — just remember to head to a nearby bank to have them changed to bills at the end of the year!

3. Remove from cart, add to savings

Total by the end of the year: Depends on how much you’ve “added to cart”

It’s undeniably fun to buy stuff online, especially during those monthly sales on shopping platforms. But how many of those you’ve added to cart do you actually need? Check the amount of items you can do without, and instead of buying them, put their cost into your savings account. You’d be surprised at the amount you’ll be able to save.

BONUS: For those who have managed to save their 13th month pay, get a time deposit

Total by the end of the year: Depends on how much you decide put in

If you already have an existing savings account or if you’ve you managed to save your 13the month pay and you want to grow it, moving your money to a time deposit may be a smart choice, as it’s it earns bigger interest than a regular savings account. The pro is that it’s forced savings, so it’ll grow what money you already have.

The con is also that it’s forced savings, and you’re not allowed to pull it out until the term is complete, so make sure that it’s money you can forget about for, say, six months to a year. The earnings will be worth it, though! 

This story originally appeared on FemaleNetwork.com.

*Minor edits have been made by the SmartParenting.com.ph editors.