It’s a must for everyone to start saving. By setting enough money aside, you will have that cash cushion to fall back on in case of emergency. You may also save enough to reward yourself and your family in the future!

To help you build your savings fund, here are a few tips:

1.     Before anything else, pay yourself first. Once you get hold of your paycheck, put aside at least 10-20% of your money in your bank account. This is wiser than just hoping that you’ll have some money left when the month ends. You’ll be forcing yourself to work within a limited budget, making you a smarter spender.

2.     Record your expenses. Keep a small notebook handy. Jot down all your daily expenses or keep your receipts. This will help you keep track of your spending habits, and it will make it easier for you to see where you can cut back.

3.     Budget wisely! After listing down your daily expenses, find out your fixed or predictable expenses (like rent, food, monthly bills, remittance for your family, etc.) and your flexible or variable expenses (like spa, travel, new clothes, etc.). Compare these to your regular income and then budget accordingly. Make your fixed expenses a priority!

4.     Cut down on the number of credit cards you have. One is enough for emergencies. It’s so easy to spend money that you can’t see, making you let go of hard-earned money more quickly. Credit cards are best for people with self-control and who can manage to pay their dues on time. If you’re not one of them, you might find yourself drowning in debt.

5.     When you receive your “bonus” (or any unexpected cash), deposit it to your savings account immediately. Do this on top of your monthly savings. Not only will you be less tempted to spend it, you will also be able to save more in less time.

These are just a few tips to get you started on saving. Remember that there are rainy days ahead, so it’s best to be prepared!