To Save or To Spend

If you have 200,000 Php today,
what will you do with the money?

Photo from FHM PH

First let us define spending and saving...

Spending is using the money you earned to buy goods and services that can be consumed immediately.

While saving is setting aside hard-earned money to be used in a certain time. 

There two classifications of Savings: Short- Term and Long-Term. A short-term saving can be the amount of money one person needs in order to sustain his needs for at least a year. Long-term savings are usually a large amount money that is set aside for future investments or larger expenses. 

Now let's take a look in the picture on the side.

It is an usual spending and saving habits based on a certain amount of money by people in the ages of 20's, 30's and 40's. 

In a 200 Pesos, a guy in 20's can spend it for cellphone case or save it in his contribution to the government. A person in his 30's might spend the money for a shirt or save 200 pesos in his savings bank account. A 40's guy most likely will purchase a cologne or use it for his travel insurance.

Given a Million Peso, one have the option to spend it for his dream car, dream house, wedding and honeymoon or to save it for a business, financial protection and other investments you can think of.

In reality, spending money makes you enjoy its benefits right now and then. You trade your money into something valuable to you and can make you happy at that moment. On the other hand, saving money can make your money grow through interest at a given time. It is money earning money. You just have to look for a successful savings plan that suits you and your dreams.

Income leads to Expenses and Savings.

Expenses leads to having Just enough.

Savings leads to Investments. 

Investments leads to more Income.

Now,either you spend your money or you save it, the decision is up to you.

"One Small Change Can Make One Big Difference"

Project J.18