Whenever I finish an investment seminar, one of the questions I almost always get asked is - how can I invest when I barely have enough money to save? This is a fantastic question and one where I had to dig deep to find the answer. I found it while talking to one of my good friends. Like most people, during these times of economic hardship, she lives on a very strict budget so that what she earns covers all of what she has to spend for herself and her family.
What surprised me is that despite the tough economic conditions of today, she found a way to save! I was so fascinated with her system that I wanted to teach it to all my clients and seminar participants. Let's call it the Libre Method of saving.
The Libre Method works like this. The key criteria we have here is we have to first have a piggy bank (i am a huge fan of the piggy bank). Now let's start. I know you pretty much know what you spend each day on different expenses. For example, your daily transpo may cost you PHP100 a day and you know your lunch or snacks may cost PHP50 per meal or perhaps you buy you child a gift every week and spend PHP100.
Now what if on any given day instead of you going home the usual manner someone decides to offer you a ride saving you PHP50? What if on a given day its someone's birthday and decide to treat you for lunch saving you another PHP50? What if someone gives your child a gift saving you PHP100? What do you do with the money you just saved?
Normally you use the money that's left in your wallet and spend it on something else.
Today I'm going to ask you to do something different. Instead of spending it, I want you to save it and put the money in your piggy bank. (BTW, piggy banks love notes more than coins!) And every month, I want you to empty the money from there and invest it. Simple as that. Na libre ka? Invest mo!
Do you know that saving PHP50.00 a day over 30 years is nearly PHP3.2 million at 12% compounded return?
For more information on how I can help you email me on hoover@barongroup.com.ph.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment