A recent report from the Bangko Sentral ng Pilipinas noted that only 31.4% of Filipino households maintained their savings in the first months of 2024. With prices rising and the economy becoming more unpredictable, it’s worth remembering why building your savings is crucial to your financial future—no matter how small you start.
This short guide outlines key points to consider when working towards building your savings.
Why You Need Personal Savings
Personal savings aren’t just nice to have—they allow you to spend on what you want without limiting funds set aside for what you need. Take a look at the benefits you could enjoy once you’ve built your personal savings.
It helps you buy what you truly want
Your savings enable you to buy things without relying on borrowed money. Whether it’s the new gadget you’ve been eyeing, a well-deserved vacation, or a down payment for your dream home, savings empower you to invest in what truly matters to you. It also prevents you from incurring more debt, allowing you to enjoy what you love without the financial strain.
It builds your financial discipline
Setting aside a portion of your income regularly helps you develop healthy financial habits that can last a lifetime. Over time, these habits lead to better budgeting, reduced impulse buying, and smarter financial decisions.
The more disciplined you become, the easier it will be to reach your financial goals.
It cushions you from unexpected expenses
It’s always wise to prepare for the unexpected. Your car tire might blow out, or your laptop may need replacement—costly expenses that can eat into your budget if you’ve been looking forward to, say, a vacation or a big-ticket item.
Instead of panicking or resorting to loans, you can handle these challenges confidently, knowing you have a financial buffer.
Now that you understand why savings are necessary, it’s worth asking: How do you even get started?
4 Ways to Get Started Building Your Savings
It doesn’t have to be as daunting as it seems. How do people save thousands of pesos? By setting money aside slowly and regularly. Here’s how to get your savings started:
1. Set clear financial goals for yourself
What are you saving for? Is it an emergency fund or a down payment on your dream condo? A clear savings goal motivates you to choose long-term vision over short-term wants, encouraging you to develop a savings habit.
It also helps you define actionable steps. Many expenses seem costly until broken down into manageable pieces. Knowing how much you need to set aside monthly makes achieving financial goals much easier.
2. Start small with your next income
You don’t need to save a large amount right away. Starting small is perfectly fine! Even ₱100 or ₱500 from your next paycheck counts.
Your first goal should be to develop the habit. Once you’re comfortable setting aside a portion of your earnings, you can gradually increase how much you save. The key is consistency—over time, these small contributions will add up significantly.
Saving too large an amount early on might lead you to dip into your savings, which can be discouraging.
3. Keep an eye on your expenses
How will you know if you’re progressing toward your savings goal? By tracking every transaction. The more data you have on your expenses, the clearer your financial picture will be. This insight helps you gauge how soon you can reach your goal.
Tracking your spending also reveals where you can cut back. For instance, if you realize you’re spending too much on dining out, you can create a meal plan that costs less, allowing you to save more.
4. Take advantage of financial products
There’s a reason behind the rise of buy now, pay later in the Philippines. Sometimes, you may need to make a purchase without depleting your savings—this is where financial products come in handy.
Consider using high-yield savings accounts or budgeting apps to manage your money better. The Atome Card is another tool that can complement your savings strategy.
With Atome Card, you can split payments into manageable installments, making necessary purchases without draining your savings. This flexibility helps you stay on track while still enjoying life’s necessities and luxuries.
It’s Always a Good Time to Save
Financial independence starts with a solid savings account, and achieving that comes down to your habits. The benefits of saving are clear: it empowers you to make informed financial decisions, prepares you for the unexpected, and allows you to invest in your dreams.
Whether you’re starting or continuing your savings journey, remember—it’s never too late to take control of your finances. With clear goals, consistent efforts, and a close watch on your spending, you can build your savings successfully.
And don’t forget about the tools that can help you along the way! The Atome Card is more than just a convenient payment solution—it’s a valuable asset in your financial toolkit. By letting you split payments into manageable installments, Atome helps you maintain your savings while enjoying life’s essentials and luxuries, all while sticking to your budget.
