I wish to share with you the lessons that I have learned from John C. Maxwell's Maximize Your Day: 365 Days of Insight to Develop the Leader within You (2007).
St. Francis of Assissi said, "Start doing what is necessary; then do what is possible; and suddenly you are doing the impossible." All good leadership begins where you are. It was Napoleon who said, "The only conquests which are permanent and leave no regrets are our conquests over ourselves." The small responsibilities you have before you now comprise the first great leadership conquest you must make. Don't try to conquer the world until you've taken care of things in your own backyard.
Wednesday, January 17, 2018
HOW TO SAVE MONEY USING THE 100 WEEKLY INCREMENT SAVINGS SYSTEM
I call this the 100 Weekly Increment Savings System. Whether you allocate 20% for savings which I have discussed in my previous blog, or follow this system, you are sure to save.
This system is quite challenging. But a better way of saving, this assures me around $117,600 savings.
The system is incrementing your savings by 100. For instance, for the month of January which has four weeks, savings can be started with $100 for the 1st week and ending with $400 for the 4th week. This will give you $1,000 savings at the end of January. To simplify this below is an illustration:
1st week - $100
2nd week - $200
3rd week - $300
4th week - $400
Total - $1,000 (January)
Since this increments on a 100 dollars basis, your 1st week on February should be $500 on the 1st week and end the month with $800. To continue the illustration:
5th week - $500
6th week - $600
7th week - $700
8th week - $800
Total - $2,600 (February)
Provided that each month has four weeks (there are months which reaches to five weeks), below is a summary of what you will earn from January to December:
January - $1,000
February - $2,600
March - $4,200
April - $5,800
May - $7,400
June - $9,000
July - $10,600
August - $12,200
September - $13,800
October - $15,400
November - $17,000
December - $18,600
Total - $117,600
By the way, you can use your own country's currency. I am using dollars as an example. If you live in the Philippines, you can use pesos.
Hence, at the end of the year, it is $117,600 savings (or Php 117,600 if pesos is your currency).
Again, this endeavor is very challenging. But it will save you a lot of money.
This system is quite challenging. But a better way of saving, this assures me around $117,600 savings.
The system is incrementing your savings by 100. For instance, for the month of January which has four weeks, savings can be started with $100 for the 1st week and ending with $400 for the 4th week. This will give you $1,000 savings at the end of January. To simplify this below is an illustration:
1st week - $100
2nd week - $200
3rd week - $300
4th week - $400
Total - $1,000 (January)
Since this increments on a 100 dollars basis, your 1st week on February should be $500 on the 1st week and end the month with $800. To continue the illustration:
5th week - $500
6th week - $600
7th week - $700
8th week - $800
Total - $2,600 (February)
Provided that each month has four weeks (there are months which reaches to five weeks), below is a summary of what you will earn from January to December:
January - $1,000
February - $2,600
March - $4,200
April - $5,800
May - $7,400
June - $9,000
July - $10,600
August - $12,200
September - $13,800
October - $15,400
November - $17,000
December - $18,600
Total - $117,600
By the way, you can use your own country's currency. I am using dollars as an example. If you live in the Philippines, you can use pesos.
Hence, at the end of the year, it is $117,600 savings (or Php 117,600 if pesos is your currency).
Again, this endeavor is very challenging. But it will save you a lot of money.
HOW TO SAVE MONEY USING THE FOUR BUCKET SYSTEM
I would like to share with you how I save money using the four bucket system. The four bucket system is an imaginary system of buckets where I place my money. These four buckets are: Expenses, Savings, Investments, and Tithes.
Every time I receive money, whether this is my monthly salary or an honoraria from a speaking engagement, I divide the money into four buckets. The first bucket is called Expenses. I allocate 50% for this bucket. Let's say I received $1,000 monthly salary for the month of January, my first bucket is allocated $500. This bucket I use for my daily expenses which includes food, gasoline, housing, cosmetics, toiletries, payment for loans, and clothing.
The second bucket is called Savings which is 20%. For a $1,000 monthly salary, this means that I allocate $200 for this bucket. I would highly recommend that you open a separate saving account with passbook in another bank. In this manner, you are able to separate this amount from your expenses. If your bank issues a passbook with an ATM card, I would suggest that you keep the ATM card so that you will not be tempted to withdraw the savings.
The third bucket is called Investments. I allocated 20% for this bucket. For a $1,000 monthly salary, $200 goes to Investments. This bucket is for my personal insurance, money market, and other bank investments.
Finally, the fourth bucket is for Tithes at 10%. I am a firm believer that 10% or more of what we receive should be returned to God. Should I receive $1,000 monthly salary, $100 goes to tithes. I donate this amount to my church or give this to charities. God loves a generous giver. And He will bless you more.
At the end of the year, I have $2,400 for savings and another $2,400 for investments. If there is a 13th month pay and bonuses given on December, my savings and investments increases as well. My church and charities are also thankful with my donations which amounts to $1,200 per year.
On a monthly basis, I am reminded to fit my day-to-day budget based on my Expenses bucket.
Every time I receive money, whether this is my monthly salary or an honoraria from a speaking engagement, I divide the money into four buckets. The first bucket is called Expenses. I allocate 50% for this bucket. Let's say I received $1,000 monthly salary for the month of January, my first bucket is allocated $500. This bucket I use for my daily expenses which includes food, gasoline, housing, cosmetics, toiletries, payment for loans, and clothing.
The second bucket is called Savings which is 20%. For a $1,000 monthly salary, this means that I allocate $200 for this bucket. I would highly recommend that you open a separate saving account with passbook in another bank. In this manner, you are able to separate this amount from your expenses. If your bank issues a passbook with an ATM card, I would suggest that you keep the ATM card so that you will not be tempted to withdraw the savings.
The third bucket is called Investments. I allocated 20% for this bucket. For a $1,000 monthly salary, $200 goes to Investments. This bucket is for my personal insurance, money market, and other bank investments.
Finally, the fourth bucket is for Tithes at 10%. I am a firm believer that 10% or more of what we receive should be returned to God. Should I receive $1,000 monthly salary, $100 goes to tithes. I donate this amount to my church or give this to charities. God loves a generous giver. And He will bless you more.
At the end of the year, I have $2,400 for savings and another $2,400 for investments. If there is a 13th month pay and bonuses given on December, my savings and investments increases as well. My church and charities are also thankful with my donations which amounts to $1,200 per year.
On a monthly basis, I am reminded to fit my day-to-day budget based on my Expenses bucket.
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