Saving money can seem daunting, especially if you've struggled with financial stability for a long time. However, saving is a skill that anyone can learn. By mastering the basics, you can lay a solid foundation for building your personal wealth.
That said, while saving money can be as simple as putting money in a piggy bank, there is a smarter, time-efficient way to do it. With a conservative approach and the right savings account, you can grow even a modest fund steadily and reap a significant financial nest egg later on. Let’s look at how you should be allocating your extra funds each month:
1. Open aHigh-Interest Savings Account
Keeping your cash in a traditional bank account can be a good start, but your funds may actually lose value since typical bank interest rates don’t outpace yearly inflation. Fortunately, the growth of digital banks in the Philippines has created new opportunities for everyday Filipinos to grow their wealth faster and smarter.
Maya Savings, for example, offers up to 14% interest per annum (p.a.)—making it the best savings account Philippines’ personal finance markets have to offer. To boost your base rate from 3.5% interest p.a. all the way up to 15% interest p.a. daily, you just have to use your Maya app to pay for essentials that you already pay for daily. Pay for your utility bills, buy cellphone load, or use Maya Wallet or Maya Easy Credit to pay via QR, PWM, or card.
By putting your money in a Maya Savings account and doing everyday payments with Maya, even making small contributions and transactions can help you grow your money and outpace inflation. With a Maya Savings bank account, you can be sure that your money not only maintains its value but also grows in a meaningful way.
2. Set Clear, Actionable Goals
Setting a specific savings goal, such as buying a car or building an emergency fund, can provide you with the direction and motivation you need to save consistently. With Maya Personal Goals, goal-setting becomes a lot easier. Thanks to its guaranteed interest rate of 4% p.a. monthly and the ability to easily budget and set multiple goals, this feature of the Maya app empowers you to sustainably enjoy the finer things in life.
3. Take Advantage of Bank Tools and Services
Maya offers a variety of tools and services designed to help you save and grow your money. One such feature is the ease of depositing money into one’s Maya Savings account from one’s Maya Wallet or other bank accounts via PESONET and InstaPay. Fund transfers to Maya Savings from your Maya Wallet are instantaneous and free of charge, which means it shouldn’t cost you anything to quickly send your money wherever it needs to be before you have a chance to spend it, simplifying your path to growing your personal wealth.
4. Start Small
If saving a large amount seems stressful, you can always start small. Even a small amount each month will add up over time, especially if you keep your contributions consistent by automating your savings. As you get more comfortable with managing your money, you can gradually increase the amount you save to accelerate your interest earnings.
5. Create a Realistic Budget
If you don’t have a clear picture of your financial situation, it will be very challenging to allocate the right amount of money into your savings and other investments. This can make it all that much harder to stay committed to building your wealth.
Budgeting can be complicated but, you can begin simply by tracking your income and expenses. From there, you can categorize your spending and identify areas where you can cut back, as well as determine the perfect amount to save each month.
6. Cut Unnecessary Expenses
Speaking of cutting back, it becomes easier to save if you’re able to stay happy with less. Consider dining out and ordering food delivery less often, canceling unused subscriptions and memberships, and finding cheaper alternatives for certain products or services. This will make it easy to bump up the amounts that you contribute to your savings account.
7. Invest Wisely
While saving is important, investing can help your money grow even faster. However, if you’re just beginning your savings journey, you may want to first explore low-risk investment options such as bonds or index funds. You can also try risk-free investment vehicles like the Maya Time Deposit Plus to guarantee earnings on your funds. With Maya Time Deposit, you can deposit any amount anytime, and you can choose from terms of 3, 6, and 12 months. You can even earn a boosted interest rate of 6% p.a. monthly when you achieve your target amount and hit your target term.
As your wealth and capacity to take on risk grows, you can then look into more aggressive options that can grow your net worth faster, including investing in equities or stocks.
Earn More on Each Peso with Maya Savings
Maya Savings, Maya Time Deposit Plus, and Maya Personal Goals all offer amazing interest rates for depositors who are new to growing their wealth. Maya Savings offers depositors up to 15% interest p.a.—the best in the Philippine consumer savings market, while Maya Time Deposit Plus allows depositors to earn as much as 6% p.a. interest monthly. Maya Personal Goals, on the other hand, provides a guaranteed 4% interest p.a. monthly per goal, making them formidable instruments for growing one’s wealth. With Maya’s banking products, you have a powerful way to plan for any of the more challenging things in life, be it a wedding, retirement, or lifelong financial security.
