SAVING is one of those things that almost everyone knows is important, yet many people still find difficult to do consistently. We tell ourselves that we will start next payday, after the next bonus, or once some of the bills have been paid. Then another month passes and somehow there is still very little left.
Part of the problem is that saving competes with many things. There is always something to buy, somewhere to eat, a sale to take advantage of, or an upgrade that suddenly seems necessary. Saving, on the other hand, asks us to give up something today for a benefit that may still be years away.
This is why saving is not only about how much we earn. It is also about the choices we make with what comes in.
One simple way to improve those choices is to learn how to separate needs from wants. A new phone can easily become a “need” because our current phone is already two years old. A new pair of shoes may seem necessary because there is a big discount.
Before buying, it helps to ask whether the item is really needed now. If the answer is yes, then there may be a good reason to spend. But if the answer is simply that we want it, perhaps there is no harm in waiting.
This does not mean that wants are bad. We work not only to pay bills but also to enjoy life. The important thing is that wants should not repeatedly take money away from more important priorities.
Another habit that can help is knowing the alternatives before making a purchase. Sometimes, we pay more simply because we did not take time to compare.
For small purchases, the difference may not matter much. But if you are buying an appliance, gadget, or anything that costs several thousand pesos, a little canvassing can be worth the effort. The same item may be available at a lower price elsewhere, or another brand may provide almost the same quality for less.
Suppose one pair of shoes costs P1,500 but lasts only six months, while another costs P3,000 and lasts two years. The second one may initially look expensive, but over time it could turn out to be the better buy.
Of course, expensive does not always mean good quality either. Sometimes we are paying for the brand, advertising or image. The objective is not to buy cheap or expensive. It is to get good value for the money being spent.
Buying in larger quantities can also help reduce expenses, but again, this has to make sense.
A bigger package may have a lower cost per piece, but there is no saving if part of it is eventually thrown away. For people who live alone, it may be practical to share some purchases. Household supplies and other nonperishable items can sometimes be bought in bulk and divided.
The amount saved may look small, but this is how saving often works. It is rarely one big decision. It is usually many small amounts that are kept instead of spent.
Perhaps the most important thing, however, is to know what all these savings are for.
I have always found that saving becomes much harder when there is no clear purpose behind it. If the money is simply sitting in an account without a goal, it becomes easier to use it when something attractive comes along.
But suppose that same money is for your child’s education, an emergency fund, a home, a business or retirement. Suddenly, spending it has a different meaning because you know what you are giving up.
If you are saving P5,000 a month for further studies and you spend that amount on something unnecessary, you are not simply losing P5,000. You are also delaying the goal you have been working toward.
This is where having a clear financial objective can help with discipline. The goal reminds us why we are saving in the first place.
There will still be times when we spend more than planned. There will be birthdays, vacations, family occasions and other things worth enjoying. Saving should not prevent us from living.
Saving becomes easier when it becomes part of the way we make decisions. Ask whether something is needed, compare alternatives, look for value and remember the purpose of the money you are trying to keep.
Rienzie Biolena is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 118th RFP program this October 2026. Email info@rfp.ph or visit rfp.ph to learn more about the program.
