How to Save Money, Pay Debt and Invest?


Whatever amount you make, use 20% to payoff some of your debt. Then save the 10% of your income the moment you receive it. Live below your means, or live with 70% of your income and as months pass, try to live with only 50% of your income to save money and also to payoff your debts.

I like talking about finances, it sparks something in my heart and brings out the passion in me.

I like to influence people to save money for themselves. You can’t only help people with just your valuable time. You can also use money as means to help those people in need.  If you don’t have money saved up for yourself, how can you expect to be a great help to those people you loved dearly?

I can see people spending their hard earned money on things that they clearly don’t need. Sometimes they even buy things that they don’t want just to be on latest trend or to keep up with the things people around them also buy.

It’s a heartache whenever I see man in their 50’s extending their hand, asking for financial help, sitting on the pavement or walking on the streets with creased clothes. It’s an added pain if you could see some wounds on their knees, probably because they can’t put on first aid treatment due to lack of money.

You will try to give them what amount you can give but that doesn’t end the misery they have that contributes from lack of financial support either from their family or from themselves.

These old men in the streets have been tied to lack of resources for years. The energy they had when they were young wasn’t fully utilized to save up for old age. Many people also got to this state because of expenses in health care of their loved ones. Some reach this point in life due to gambling or other bad habits they had since they were young.

Some people became poor due to lack of resources, faith in themselves or becoming a victim of scam/ illegal businesses. There are endless possibilities why someone became a person that they don’t want to become in their future.

This is the reason why you should take your finances seriously.

You can’t let someone decide who you will be and where you will be in old age. You need to at least try to strive for a better, happy and peaceful life. You need to take responsibility for your words, actions and decisions.

How to save, pay debt and invest?

How to Save Money?

If you could be entrusted with a little amount, you could be trusted with a big amount. If you could perform well with a small responsibility, you could excel if you are assigned to a bigger responsibility. What actions you do today can bring you to the fruits you will harvest in your future.

Do you even save for your future?

Did you just spend your money on useless things that you pile up in your room?

I like the idea of saving money the moment I got it from my employment income. I save more money compare to my peers. I always multiply my income to 10% and deposit it in my passbook savings account. I also have an auto debit arrangement in another savings account so that I can save up some more. This might be a small automatic savings each cutoff but it will still accumulate given some months and even years.

Savings can be also in the form of fund transfer from your payroll account to your another passbook account that you don’t intend to withdraw money from anytime soon. I do these fund transfers once a month with about 10% of my whole income for the month.

You can also save money by lending it to your family members in need of money. They will pay you back when they have their income each month and you can put the money they are paying you in your passbook account.

I like putting my money in my passbook accounts because it takes an effort to withdraw, as you need to appear in the bank or make an authorization withdrawal slip. I also like that I can see the numbers in the passbook as it’s printed unlike with ATM accounts, though the digital features is available too.

I just like seeing the amounts printed on paper unlike the digital numbers I can easily see in a mobile banking application.

Saving money can be so easy and automatic if you are willing to make them like that. Digital age has helped alot in saving through online transfers. You only need to be disciplined to put the right amount for your savings.

As many people would tell you, start with a small amount.

You can increase your savings rate once you learn more about living below your means.

Time is important but your understanding of why you are saving is also with equal importance.

You can’t sail without any understanding of how the winds blow.  You should also understand the factors that can affect you or the decisions that hurt you financially.

Where do you stand financially five years from now? Do you accumulate debt from different banks or di you have millions of savings spread across multiple bank accounts? The results depends on what your mindset is from today till you age.

How to Pay Your Debt?

I have some debts too. Even if I save alot, I also take the opportunity to have money when I need it the most. The only difference is that I don’t use debt to buy things I want, I use debt to buy the investment that I want.

Using debt to buy shares in times of pandemic can bring you great return. The interest of 3 years from your loan can be paid off by the paper gains you could see from your investment of 3 months.

As I stated in the top, you should use 20% of your income to pay off your debt while you are learning to live on 70 % of your income.

As you master the art of paying off your debt you will see some significant changes in your lifestyle and your net worth. Saving Money Early In Life can save you from a long term debt!

You will have payoff the millions of your debt if you focus on using your money wisely. You will also not reach that point if you started to use money wisely early in your life.

Think of your needs before your wants. Do you really want that brand new car or do you really need it? Do you need that expensive watch or do you want it? Do you need to buy takeout foods or do you want it?

Do you gain any benefit from consuming foods and services from other people that can be pricey most of the time?

If you will buy a property and you will take a loan just to purchase it, think thrice before getting that house, car or furniture.

You don’t need to please people and but the things that they say you deserve. There are several ads to see daily that wants to sell you something, you don’t need to buy anything. That new appliance isn’t as helpful to you. You wouldn’t use that furniture as you weren’t at home that much.

Always think about the usefulness and frequency of use of a thing before ever putting it in your living room. You don’t want unnecessary clutter parking in your home.

How to Invest?

This is my favorite part! Investing your money. You need to be wise and invest in something you are familiar with and is knowledgeable about.

How do I Invest This Pandemic?

I like investing in mutual funds because given the pandemic, I am gaining alot from buying low and seeing the market climb when the restrictions related to lockdowns are easing.

I also like buying shares in Unit Investment Trust Fund, as I can buy shares through fund transfer and emailing the screenshot to the one incharged of my investment. The UITF are available investments that is mostly offered by the banks.

I bought my Mutual funds in the Insurance Company who is offering the same. While I also buy some shares of mutual fund in a dividend yield type in the same brokerage account where I buy stocks.

I also invested a small amount in Bitcoin as I want to diversify my portfolio.

I love reading the charts whenever the market ends and plan on what stocks I could buy with my buying power.

Currently I have an order to buy 2,000 more shares of the energy company that I previously bought. I set the price I was willing to pay and hopefully someone will sell their shares with the bid that I set.

I like buying shares in mutual funds and in the stock market as it’s so low as compared to previous performance.

I know that the market will recover and I will gain from the risks I took today.

You need to be fearless when people are in doubt, and be speculative when people are overconfident with the market.

As I always say, you never know whether you are buying the lowest of lows or the highest of highs. You can only trust yourself that you can hold your investment for the long term so that you can minimize any loss and maximize all the returns you can potentially have.

If you reach this point, thank you for reading the entire blog that I am so passionate to write about.

I can see myself enjoying more late night writings about finance and how to save invest and grow money! I hope you enjoyed reading as much as I enjoyed writing this blog post. Have a great day and start saving today!

3 comments on “How to Save Money, Pay Debt and Invest?”

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