How Our Lifestyle Affects The Way We Plan For Our Investment Budget

Everyday we are struggling in our work to earn more. Doing the daily routine jobs makes us feel dissatisfied with the way we are living.

According to the recent study conducted by BMI that most Filipinos usually spends more of their income without spending limit where no budget is allocated for savings and investments. This instances especially happens to families who have a family-member working overseas.

According to Randell Tiongson in his article Why Our Neighbors are Richer than Us, published by Philippine Daily Inquirer, that,
"Neda reports place the savings rate in the Philippines at between 12 and 16 percent. Following the 70-30 rule on spending and savings, there’s not much promise for our nation. It is unfortunate that many Filipinos have embraced a First World consumerism lifestyle but have a Third World income. We simply do not save enough.
Does this mean we are hopeless? Definitely not. All we need to work on is our savings rate and we can best do so with financial education. We must embrace principles of proper budgeting, controlled spending, financial planning and we can start improving our surplus that will guarantee a better future for all of us."

The way we manage our monthly earnings totally depends on how we control our daily buying habits. Unnecessary spending on things that are not important must be cut off. Simple habits like smoking, drinking alcohols and soft drinks and even eating junkfoods will greatly enhance ones investment budget if these habits will be lessened or totally avoided at all cost. Another Filipino common vice which must be cut-off is the extra spending on cellphone loads. The danger of all this vices will not only eat up our monthly earnings but in the long run will also imperil our own lives.

We should indulge ourselves into integrated thinking in order to maximize our monthly saving power. Thinking deeply into the matters that affect our financial well being is vital. The essence of doing these creative thinking will definitely empower us to expand our wealth.

Take a closer look at this scenario. When we started saving at the age of fifteen years young just saving one peso (P1.00) daily it will become more than a million when we retire at age sixty. Yes, annually it will accumulate to P365.00 and keeping this amount yearly in a time deposit account with an interest of 10% yearly will eventually reach into more than a million if conscientiously undertaken through the years until the retirement age. The power of cost-averaging system is at your disposal. It only takes one-peso daily to become a millionaire. Think about some of your useless spend outs instead use it as a saving vehicle in order to augment your future wealth and experience the lifestyle of living like a millionaire.