From YOLO to YAGO: How to save more, spend less in 2019

ABS-CBN News

Posted at Jan 03 2019 08:51 AM | Updated as of Jan 09 2019 07:48 PM

Watch more in iWant or TFC.tv

MANILA -- Filipinos who want to save more money should imagine their future selves and avoid looking at saving as deprivation, a financial planner and book author said Thursday.

Those seeking to better manage their finances in the New Year should trade the YOLO or "you only live once" lifestyle" for YAGO or "you also grow old," said ex-investment banker Rose Fausto.

"It is not deprivation. It's prioritizing yourself. It's prioritizing your future self," Fausto told ANC. "It's a mind shift."

Setting aside money for savings and investments is the "first basic law of money," said Fausto, author of "The Retelling of the Richest Man in Babylon."

Filipinos should start by saving 20 percent of their income. Asking the bank to automatically set aside a portion of their monthly salary for savings will help, she said.

"Automate it. Save more and invest more. You have to help yourself. Don't just rely on your willpower," she said.

"It's like a tax. If you're paying the government 20 percent or so, why don't you pay yourself that much also?" she said.

Taking stock of spending in the just concluded Christmas holidays can help Filipinos plan their spending for the current year's holidays, she said.

Filipinos tend to "spend as if there's no tomorrow" during Christmas, she said.

"Spending is okay. You become happier. You are able to celebrate with your loved ones when you spend but there has to be a limit to that, you have to budget," she said.

When tempted to buy a luxury item, Filipinos should first think if they can afford to buy 10 pieces of it, she said.