On Savings

In personal finance, it has always been a requirement to have savings. Save funds for future use. We name them as our emergency fund, health fund, travel fund, charity fund....  name it in any way you would want it to be called. The fact that you are into saving is really a big plus. 

When I was younger, there are only 2 options that I know on how to save. Either save it through banks ( if you have the cash to meet the minimum deposit requirement) or save in a piggy bank. Actually, I never had a piggy bank. I only had old milk cans or old Alaska milk boxes. I even had made my own passbook from old notebooks so as to monitor my cash , I mean my "baryas". 

Nanay is a Tagalog from the Quezon Province and Tatay is an Ilocano from La Union. They are both frugal and organized. However, it was Nanay who taught me the value of saving. The Story of the Ant and the Grasshopper was an everyday sermon. " Kapag hindi ka nagimpok kagaya ng langgam, mangugutom ka!" or " Huwag kang kagaya ng tipaklong, napakatamad. Pagnangailangan walang  magamit." If there is the jar system, I believe that is not new. I have long been seeing that ever since I was a child. Here is the photo of my Nanay's:

Nanay's own bank

As you can see, every container is named for a specific fund.

1. Savings - Yeah! Literally, this is her savings. She doesn't have any bank account or mutual                       fund. All cash and coins are stored here.
2. Pamasahe - She named this because she is saving for her trip back to her hometown . Last                      time she went there was 6 years ago.
3. Medicine - For their maintenance 
4. Permit - For her sari-sari store
5. Pamasko - Yes! The complete name of this container ( The Pringles Sour Cream with Lord                      of the Rings photo) is Pamasko para sa mga bata. How lucky her neighbors are!
6. Senior Citizen - For her and Tatay's monthly contribution
7. For my son-  My son will always have a portion of her savings according to Nanay :)
8. LPG/ Kuryente/ Tubig -  Nanay is sure ready 

I really admire Nanay for being so organized in life. By the way, it is Tatay who has a bank account. All his SSS pensions go there. His fund is much bigger than my emergency fund up to date coz I'm still working on it. They never imposed a monthly allowance from us. I give them cash voluntarily but when I'm on a tight budget, "Sorry Nay next payday po". I got surprised that when Nanay got hospitalized due to Cholecystitis or inflammation of the gallbladder, she had fund to share. We were then blessed coz out of the Php76k+ bill it went down to Php26k only ( less Philhealth and Senior Citizen). 

The sad part of my parents' savings is that they only remain as they are. When they saved P100, they will only get P100. Nothing more, nothing less. I asked Nanay why she didn't open a bank account. She said, " Hindi ako marunong mag-ATM kagaya ni Tatay mo at saka kapag kailangan ko kagad andiyan naman na." Really if only I had been more cautious with finances, I should have helped them handle their savings. They only know savings through banks. They know nothing about other investments. They are not renting by the way, the house and lot are theirs. So even we got financial problems before due to tuition fees or sickness, everything seemed bearable. Nanay also has a sister in the US who is very thoughtful who sometimes sends her monetary gifts on occasions. My sister who works abroad sends them allowance. But since Nanay is not a spendthrift, she still keeps them. She has a small sari-sari store as well. These are her sources of funds. However if only Nanay knew how to invest, she's surely a millionaire by now. I mentioned in my previous post that Dear Hubby and I saved funds for our wedding. Yes, we didn't ask any help from our parents. That's why our wedding is one of the best results of having savings. And that lesson we owe from Nanay. Sarap kaya magsimula ng walang utang :)

Now that I have a family of my own, Dear hubby and I have our own bank accounts plus some of investments in mutual fund equity and UITF. I also enrolled in PAG-IBIG II where my company automatically deducts Php250 from my salary every payday. We also have separate VULs ( insurance and mutual fund combo). I dream of owning our house  soon. But it is best to say, " my goal is to own a house in 5 years time." Savings is really a must.

My parents are not rich. We are not rich. We don't earn much from our salaries. Maybe we'll earn 2-digits per payday if we will work 24 hours a day including weekends. However, setting aside 10-20% of our salaries in savings and investment will go a long way. Being ready for the rainy days really does matter. I do know of some who are "feeling" rich but do not have savings instead they have huge debts because of their lifestyles. It is still never too late to change for the better, to start. Act now. Be like the langgam.