3 Important But Forgotten Laws of Saving Money

Today we’re going to talk about how to save money. But before we start, I would just like to share that I find the timing of this topic to be rather funny because I just got married to the girl of my dreams, celebrated our dream wedding, and of course – we spent a lot of money. And now here I am about to talk about saving money.

Reflecting upon this topic, I got to think about the important but forgotten laws of saving money. Because these are the same laws of saving that allowed us to save up for our wedding fund. These laws are actually common sense but seem to have been forgotten by most people – so they never get to save money. Once you know these principles, these laws of saving money, it will be very easy for YOU to save money as well. I’m sure you’re getting excited, so lets get started:

Law #1 – Remember WHY You Want to Save Money

This is all about the purpose of saving money. Most financial advisers would say that it’s to prepare for the future, or to be prepared for emergencies, while a few would answer that it’s for having the money itself. These answers are all valid. But here’s what I believe…

Saving money is NEVER about the money.
Rather, it is about forgoing the ordinary, for the extraordinary.

I remember that back when I was in college and I was still dating my future wife Mae, I would only eat turon for lunch throughout the week so that I would have enough money left over for dates during the weekend. At that time, Mae was already working and earning her own money, while I was still studying and dependent on my allowance.

So if I wanted to go on a date, I had to give up a regular and ordinary lunch and just opt for the turon.
I was simply forgoing the ordinary lunch for an EXTRAORDINARY date experience.

When I started working and things were getting serious with Mae, I began saving up for an engagement ring which again would cost a significant amount of money. So I rarely spent money on myself. I rarely ate out or watched movies, never bought any gadgets, or even shoes or clothes. Again, todo tipid.

I was forgoing these ordinary things that young professionals buy for the extraordinary experience of proposing to my dream girl!

Then of course we started saving for our wedding. Again, it was the same thing. Forgoing the ordinary dates, expensive food trips, and gift giving in order to have an extraordinary wedding.

This is what I mean when I say that saving money, is NEVER about the money in itself. But it’s your ability to forgo the ordinary, the forgettable stuff, the things that don’t really matter – so you can experience the really extraordinary things in life.

Now that we’re married, the things that we are saving for include our dream home, our security fund, and our travel fund. We continue to happily forgo the ordinary for the extraordinary.

So when you are saving money, NEVER EVER feel bad for yourself, or think that you’re so kawawa. Because it just means you’re saying no to things that are forgettable, in order to experience the things that are unforgettable in life!

So the lesson here really is that before you even start saving money, you need to ask yourself:

What exactly am I saving for? What is that unforgettable, extraordinary, goal that I will spend the money on later on?”

Is it for financial stability and peace of mind? Is it for a trip to Europe? Is it for the fulfillment of being able to send your kids to the best schools? Maybe it’s to start that business you’ve always wanted to get into!

Whatever your extraordinary goal is, relish in it. Get in touch with it – because it will give you the willpower to say no to the ordinary, in order to have the extraordinary.

Now, moving on to the next Law of Saving…


Law #2 – You Have to Segment or Separate Your Money

This means that the place, be it the bank account or the physical location where you keep your money, must be completely separated from where your spending money is kept.

Here’s another wedding preparation tidbit: Mae and I started saving for our wedding even before I proposed. We talked about it, that eventually that would be where our relationship was headed, and so we started preparing for it! We created a joint bank account, and all of our savings for our wedding went there. We filled that account for almost a good 2-3 years. Every peso that went into that account, stayed there for good, because it had already been allocated for the wedding. That made the saving process very easy for us.

So for anyone who wants to save, having a separate account just for your savings is a MUST. Otherwise, halo halo yung pera mo, and it would be too difficult to do it mentally. Your payroll and ATM account must be entirely different from your savings account. Again, this is very basic and very simple, but it goes a long way when you’re trying to save money.

Finally the last law of saving money is:

Law #3 – “Every Peso Counts”

If you want to save P1,000,000 – then it just means you have to save P1, 1,000,000 times! Or save P10, 100,000 times!

What happens most of the time is that people get obsessed over the amount they have. And right of the bat, they say, “Oh no P1,000,000 or P10,000,000 – I can’t save that, it’s too high!” And immediately they give up and don’t save anything at all!

But that’s not the case, if you can save P1. You can save any amount you want to. The process is the same! The things you have to do to save P10 are the same things you have to do to save P100 and are the same for what you have to do to save P1,000 and so on!

Every peso counts. Every piece of candy, every movie ticket, every meal at a restaurant, every pair of shoes, every time you say “minsan lang naman”… all of those moments count towards your savings goal.

To illustrate the concept of every peso counts, let me share with you on how I was able to save up for the wedding. The target amount we were saving for was about P16,000 each per month in order to reach our wedding budget. Now this was also at the same time when I was starting up my own business, so the amount of money I would earn at the end of every month was totally variable. The business needed as much cash as it could get, while I knew that I had to save up for the wedding! So how did it happen?

Well there were months where I could only save P2,500 out of the target P16,000. But so what, I saved the P2,500 anyway. Then the next month P4,000 lang ang kayang maipon but so what? I’ll still save the P4,000! There were many times when I was craving really hard for a Jollibee Spaghetti with Chicken Joy (ughhh!) but I knew that that P109 had the potential to be added to the wedding fund. And these small sacrifices went a long way in helping reach the target savings for the wedding.

Now granted, there were months where the business was really good, so I was able to save more than P16,000 so I would add it to the wedding fund. But here’s the thing – If I didn’t save the all the small amounts – our wedding fund would be short by about P86,000. I wasn’t always able to save a LOT – but I was always able to save because every peso counted towards that wedding fund.

As you’re hearing Law #3 now, you might be nodding your head saying “Yeah, that makes sense” every peso counts – But the big question is: What are YOU doing about it?

If you’re able to apply this lesson of making every peso count – trust me, you’re really going to be surprised at how much and how fast you’ll be able to save money.

And those are the three most important, but sadly forgotten laws of saving money. Lets have a quick review:

The First Law is about the purpose, the reason why you’re saving money. It’s NOT about the money, but it’s about forgoing the ordinary, so you can have the extraordinary.

The Second Law is really a savings technique that you have to separate your savings account from your spending accounts.

The Third Law is the practice of saving every peso because it counts towards your savings goals.

And when you consistently follow these three laws, you’ll be able to reach your savings goals in no time – and THAT is how you win the Game of Wealth.

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