Feel like you can’t save anything?
Start with one percent of your income, which is Php 10 for every Php 1,000 that you earn.
Just curious, have you taken the widely talked about Filipino version of the 52-week savings challenge and were able to finish it? The challenge requires saving Php 50 in the first week of the year and increasing it by Php 50 every week so that by the last week of the year you will need to save Phph 2,600. Basically, it requires saving specific amounts regardless of how much you earn. Sounds easy? Not really.
In the last 4 months of the 52-week savings challenge, you are to save somewhere between Php 7,000 to Php 10,000 a month. So, if you are earning Php 20,000 to Php 25,000 monthly, this represents 30% to 50% of your income. So, unless you earn more than Php 20,000 , I find it a bit unrealistic and unsustainable.
Here’s my challenge to you…
If you normally save nothing, starting today, save one percent of your earnings.
During the 2nd month, increase your savings by another one percent. On the 3rd month, add an additional one percent. Within a year, you’ll be saving an extra 12 percent of your income.
Example 1: Income = Php 20,000 / month; Regular Savings = Php 0
|MONTH||REGULAR SAVINGS||MONTHLY SAVINGS|
(month% x income)
|TOTAL SAVINGS FOR THE MONTH|
|TOTAL AMOUNT SAVED FOR THE YEAR||Php 15,600|
|January||0||1% x 20k = Php 200||Php 200|
|February||0||2% x 20k = Php 400||Php 400|
|March||0||3% x 20k = Php 600||Php 600|
|April||0||4% x 20k = Php 800||Php 800|
|May||0||5% x 20k = Php 1000||Php 1000|
|June||0||6% x 20k = Php 1200||Php 1200|
|July||0||7% x 20k = Php 1400||Php 1400|
|August||0||8% x 20k = Php 1600||Php 1600|
|September||0||9% x 20k = Php 1800||Php 1800|
|October||0||10% x 20k = Php 2000||Php 2000|
|November||0||11% x 20k = Php 2200||Php 2200|
|December||0||12% x 20k = Php 2400||Php 2400|
If you are already saving regularly, the challenge will allow you to gradually increase the amount you are setting aside. If you already save 5 percent of your income, save 6 percent. If you currently save 10 percent, save 11. OR if you are regularly saving a fixed amount, save an additional 1 percent more on top of your savings.
Example 2: Income = Php 20,000 / month; Regular Savings = Php 1,000
|MONTH||REGULAR SAVINGS||ADDITIONAL MONTHLY SAVINGS|
(month % x income)
|TOTAL SAVINGS FOR THE MONTH|
|TOTAL AMOUNT SAVED FOR THE YEAR||Php 27600|
|January||1000||1% X 20k = Php 200||Php 1200|
|February||1000||2% X 20k = Php 400||Php 1400|
|March||1000||3% X 20k = Php 600||Php 1600|
|April||1000||4% X 20k = Php 800||Php 1800|
|May||1000||5% X 20k = Php 1000||Php 2000|
|June||1000||6% X 20k = Php 1200||Php 2200|
|July||1000||7% X 20k = Php 1400||Php 2400|
|August||1000||8% X 20k = Php 1600||Php 2600|
|September||1000||9% X 20k = Php 1800||Php 2800|
|October||1000||10% X 20k = Php 2000||Php 3000|
|November||1000||11% X 20k = Php 2200||Php 3200|
|December||1000||12% X 20k = Php 2400||Php 3400|
For easy reference, here is a table showing the required monthly savings for different levels of monthly income.
|MONTH||MONTHLY INCOME (in PHP)|
|TOTAL SAVINGS||Php 7800||Php 11700||Php 15600||Php 19500||Php 23400||Php 27300||Php 31200||Php 35100||Php 39000|
The One Percent Challenge allows you to develop the habit of saving gradually. The amount you save depends on your income. So even if you earn a little, it wouldn’t be difficult.
Take the one percent challenge to save money. Jumping from saving nothing to saving 12 percent overnight is hard. The most effective way to do this is one step at a time — or, in this case, one percent at a time.
PS. This challenge is inspired by Paula Pant of Afford Anything.