“HOW TO SAVE AND SPEND MONEY WISELY” EP. 8 SHOW NOTES FROM THE PODCAST:

Sticking to a budget is a tough thing to do, especially with all the temptations around us (aka unli-samgyup, milk tea, online sales and more). But don’t fret, sticking to a budget is actually manageable once you break it down to easy baby steps. In this episode, we will talk about practical budgeting tips such as the 60/40 principle, when to invest, having multiple bank accounts and taking calculated risks.

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1. Work Hard

○ Have great work ethics.Train yourself to be on time. Do more than what your boss expects you to do.
○ If you have great work ethics, **people pay you more and get you more**.
○ Be loyal to your job, don’t quit immediately because of little things. Work hard and get that promotion.
○ Of course, don’t spend as much money as your making. Live under your means.

2. Learn how to budget

○ Follow a weekly or monthly budget. If this is too hard, at least **put a cap on your daily expenses.**
○ Do baby steps. You can start with sticking to a budget for a week. If that works out, try 1 month, then 2 months then so on.
○ Keep yourself motivated by having a **treat every time you reach a week/month** of sticking to your budget.

3. 60/40 principle

○When you get your money (less taxes and everything else), **60 percent goes to your necessities**, your food, clothing, house etc. Keep the **40 percent for savings and leisure**.
○ Using the 40 percent is up to you. You can keep a 20 savings:20 leisure ratio or 30 savings:10 leisure ratio if you want to save more.

4. Don’t put your eggs in one basket

○ Have many bank accounts. Separate them by purpose so you don’t end up spending too much:
○ **1 account for retirement.** Put money here monthly (no matter what the amount is). You are not allowed to touch this account. Ever.
○**1 account for emergency and travel money.** Set a minimum amount for this account and stick to it so that you always have money in case of an emergency.
○ **2 accounts for your usual expenses**: food, clothes etc.
○ Invest your money in mutual funds, time deposit and insurance. **Get health and life insurance in your 20’s**, these insurance plans are cheaper when you are younger. Your future retired self will thank you!

5. Don’t invest just for the sake of investment

○ Think carefully before you invest: **Do you know anything about it? Are you good at that specific thing?**
○ For example, if you don’t know anything about mutual funds, don’t invest in it. Learn more about it first or just put your money in time deposit.

6. Educate yourself

○ Read books about budgeting. Ask your banker friends, your parents, your relatives for financial advice.
○ **Search about it!** There’s a ton of YouTube videos and articles out there on how to budget.

7. Plan ahead

○ Plan your budget for future events and travels.
○ Ask yourself, **what you want to save up for?** Do you want to study abroad? To travel? To get married?
○ **It’s so much easier to save money when you have your end goal in mind.**

8. Take calculated risks

○ It’s hard to take risks when you’ve worked so hard for your money, but remember **no risk = no gain.**
○ Instead of letting your money sit, find ways and **ask people on how to make it *paikot*.** Invest your money in a time deposit. Make a business with your friends. Do mutual funds. Whatever you’re good at, invest in that.

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Stay tuned for more episodes and don’t forget to use the hashtag #AdultingWithPring if you have any comments or suggestions for future topics!

Episode summary by Jacy Olivares, follow her in Instagram: @jacyolivares

Adulting With Joyce Pring the Podcast:

The How-To’s of your 20’s told by a 26 year old. Basically, the blind leading the blind - expectantly and with gusto. Adulting With Joyce Pring the podcast is available for free on iTunes, Spotify, Podcast app, and all your other podcast providers. All written, recorded, and produced by Joyce Pring, unless stated otherwise.