Frequently Asked Questions About Saving Money

June 1, 2016

Today is a rather different blog post. I will be gathering the frequently asked questions in terms of saving money and give answer for each one. My goal is to give you a closer look into the world of saving whether you are a beginner or pro. I can tell you by experience that saving is a very tough act. It’s all about attitude, determination and financial discipline. 

I know that we all need a little push to get better so I gathered common questions people ask about saving money and the answers I came up with.

  1. How Much Should I Save?

There’s much concern as to how much a person should save. This actually depends on three main factors: your age, your goals and your income. When you decide the amount you’ll save try to answer the following questions:

  1. What’s your age?
  2. What are your goals?
  3. How much is your income?

Save in accordance to your span, your reach and your means. The more your income grows, the more your savings should be and not the other way around. You can’t preset an actual amount to save in a monthly basis but it is a good habit to allocate as little as possible to go on your savings instead of nothing at all. Have everything automatic so you won’t forget to save. 

  1. Where Should I Put My Savings?

Another question we often asked and wonder is to where is the best place to put our savings. There are different places/option you have for this depending on your goal.

Gone are the days when you have to use an old alkansya for your savings. Now its easier to open a savings account in the bank you trust. Check out my posts All About Banking 1 and Part 2 for tips on how to choose your bank wisely. I suggest to open one that offers online banking so you can process everything in the ease of your home. Also go with a bank you really use either for your payroll or other bank accounts. 
My post Investment Options You Can Try with Your Bank gives a summary of the different investing vehicles that your bank offers and where you could keep your money for better returns. The thing is your savings should be an accessible but safe place. Somewhere you could easily get in case of emergency but will not allow anyone to get it without your license.  
  1. Why is saving money important?
A lot prolong the need to save money until they are in near their retiring years. They thought that saving is not for them and they have a lot of time left to grow their money. As a matter of fact the earlier you save the more you advantageous to your financial life. Compound interest will make your money grow without you even doing the hardwork. Here are more reasons why we ought to make saving money a habit:
  • To be prepared in case of emergency
Unexpected expenses such as car repair, loss of job, medical issues in the family call for an emergency fund. Your savings could cover the amount needed for the said unexpected expenses so you won’t be in debt. If you want to learn more about Emergency Fund CLICK HERE
  • To save money on your retirement. 
We all need to save in the future and if you want to enjoy your retirement age then you better start saving money now. Your Social Security System or Government Security System will never guarantee your life after your retirement. My FAMI Mutual Fund for example is reserved for my retirement years. I just continue to invest on the account and plan to just make the money stay as long as possible to grow. 
  • To save and invest for your personal milestone. 
Without proper savings you can never buy and invest for a house and lot or a start up business for example. You need to save money to have enough down payment on a bigger house. Other personal milestones includes a new car or a trip abroad etc.
  • To reach financial freedom. 
The ultimate goal to those personal finance savvy is to finally reach total financial independence wherein you never have to worry what tomorrow will bring in terms of your finances. This can only be achieved if you take care of your money. 

  1. Should I Save or Invest my money?
This is actually an interesting question. I believe in saving money but I also encourage everyone to try investing. The thing is you alone can decide on what will happen to your money and how will your financial situation improve.
What’s the Difference Between Saving and Investing?
Saving is basically setting aside an amount for future use. You save for a specific goal like kid’s college education, deposit on a house, emergency fund, etc. MORE ABOUT SAVING >>>
Investing on the other hand is taking an amount with the aim of making it grow or increase its value like stocks, property and other investing vehicles. MORE ABOUT INVESTING >>>
Who should save?
All of us need to save money. It is a financial move that will give you a big edge towards your financial life. The only time that it is forgivable to skip saving money is if 1. You need to get rid of your debts and 2. Your family is coping from financial breakdown due to illness or death. 
The first saving goal you should secure is an emergency fund. Emergency fund refers to 1-3 months worth of your income reserved for unplanned expenses such as loss of job etc.  Once you have built your emergency fund you should keep on saving. Try the 50-20-30 Rule of Budgeting wherein 20% of your income will be put to your saving fund.
When to Invest your Money?
Now though saving can give you financial security, it can never make you rich. This is where a good investment comes handy. Investing your money also answers your long term saving goals like children’s education and retirement. 
Every investment has risks so its better to be emotionally and financially prepared. Try to search first for the right investment vehicle that match to your investor profile. Study the terms and condition of your investment and make sure that you really have enough money to invest. 

  • For short-term goals such as trip abroad or a new car – save. 

  • For medium-term goals such as moving to a house and lot – save but put your saving in an account that can give higher returns such as money market or time deposits. 

  • For long-term goals such as money for retirement – invest, maximize the time you have to grow your money. 

The rule of thumb is save and/or invest depending on your goals. If you will be using the money in under five years, save. If it will be in ten years of more, invest.

  1. How to save?

I have answered a reader question regarding this topic and I’ll stick to my answer. You can CLICK HERE to read the full but the summary is here below:

Study your current financial situation

You can do this by checking your net worth or the difference of your assets and liabilities. READ: Why You Must Know Your Financial Net Worth and How

Select an amount you can save

Know how much you’d like to put away. Save what you can afford. Do not force yourself to save half of your income if you still have needed expenses. What’s important is to come up with an amount to save no matter how little or how big it is. If save consistently you’ll be surprised by how big it can be in the future. 

Have some saving goals
Why are you saving your money. Are you saving to buy a new car next year? Is it a downpayment for a bigger house for you and your family or you are saving to start a business soon.
Automate your savings so you won’t forget about them
Deduct your saving first things first before you even pay for your expenses. This is a good habit that everyone should adopt.
Commit even if its hard and even if you feel tempted to spend
Just think of your saving goals whenever you lose hope. 

I hope you enjoyed this post and learned a lot with the topic. I might do a part two of this in case I really need to update the post or I receive further questions regarding saving money from others. If you have a question that was not answer then don’t forget to comment down below. 


Clariza Glino

Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at, a beauty and lifestyle blog for frugal Pinays and manages,, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at

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