Mendoza: Saving – synonymous to survival

Director’s Cut: (This portion features the thoughts of DepEd 11 Regional Director Susana Teresa B. Estigoy, CESO IV to all stakeholders and recipients of the efforts to improve the basic education) I do not consider my job as plain work --- rather it is my LIFE. “We have to continually examine what succeeds and fails, and why. We have to uphold and live true to our battlecry and slogan of governance: “Education For All (EFA) 2015: Karapatan ng Lahat, Pananagutan ng Lahat”

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SAVING money nowadays is synonymous to survival.

Justine Davies, a financial planner and member of the Financial Planning Association of Australia, in her article “A-Z of Saving Money: Family Budget stressed that having kids though a blessing is expensive in terms of budgeting.

Davies pointed out some of the things that we should do in order to make both ends meet without sacrificing quality and depriving our kids of their needs -- wants may come next if there is extra budget.

She said the first thing to do is to develop an attitude towards saving. She mentioned that Henry Ford said that if you think you can, you can actually. And if you think you can’t, you’re right. Just like a new gym program or a new job, a new budgeting goal can be fun if you want it to be. ‘Tightening the belt’ can be an interesting challenge rather than a tedious chore, so pump up that enthusiasm and watch that financial waistline shrink!

Instead of renting, buying our own home through financial institution like HDMF or GSIS or banking institutions can have more benefits in the future. Davies emphasized that shopping around for a mortgage is worth doing -- a one per cent difference in interest over a 25-year loan of Php 300,000 would cost an extra Php 60,000 over the term.

Because of time constraints -- sometimes it is our constraint, not the time -- we tend to eat out rather than cooking on our own. If we try to count the budget spent in buying stuff from fast food chains and having it on our own, it would add up to just a half or even less in a month or a year. Davies has this to say to avoid wastage, “Sit down once a week and write out a menu for the following week. Then write a shopping list and do one big trip to the store. Voila --instant efficiency”.

Insurance is also one way of indirect saving. Davies said while it may not save you money day-to-day, it makes sure that you are fully covered in the event of illness, accident or death, not to mention home, contents and car cover, could save you an absolute packet in the event that something goes wrong.

Another way of saving is tracking down your expenditures. Do not just let money to come in and go out just like that. Do not always say that where it goes is a mystery. Davies pointed out that keeping a written track of day-to-day spending helps plug the financial holes in your budgeting. You could be surprised by how much you can save, simply by knowing what you spend your money on.

Preparing for unforeseen health or accident cases is the so called safety nets of budgeting. Davies opined that safety net is designed to help with your out-of-pocket medical expenses once you have reached a certain threshold.

We cannot deny that sometimes, even we have finalized our budget, there would be some instances that we will be tempted to buy things which are optional. Davies advised that we need to plan ahead and buy when the sales are on; also take advantage of fetes, garage sales and markets.

Paying our bills on time or ahead of time can also add up to our extra savings. There are a lot of companies who offer discounts for early payment and penalties for late payment. So we have to grab this chance.

Davies also mentioned that a little forward planning can go a long financial way. While it’s nice to have some current fashion but for our day-to-day basics of t-shirts, trousers, shorts and skirts are often heavily discounted at the end of season or towards the months when traders consider them as off peak months for shopping like enrolment time, graduation, examination periods and the likes.

It is also worth our consideration to shop around for the best deal on your telephones, internet, gas and electricity. Grab the offer that is advantageous to you and your family and at the end of the day will give you more savings at the same time, you are satisfied with their services. Sometimes, the lowest offer does not mean an instant saving.

Lastly, on a personal note, it is very important if we reinvent ourselves by stretching our best potentials to survive. We have to do multitask to save from extra services that will again drain our pockets. If we can do it on our own, why ask for a plumber, electrician or repairmen to do it. As long as you are confident that you are doing it properly, go on. But, if it is really a major repair, always go to the expert because the money you save might only be a small portion of what will you spends if it becomes worse.

Happy saving.

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You can access DepEd Updates, latest issuances and other relevant information through our website: http://www.deped.gov.ph. For comments, suggestions and/or contributions, email me at renzthescribe@gmail.com. For queries, complains and other concerns, call DepEd Region 11 at (082) 227-9342 or fax to (082) 227-1102 and (082) 221-6147.

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Mr. Lorenzo E. Mendoza, M.A. is connected with DepEd Regional Office 11 and currently on study leave.