NU 12- New Spending Habits- Joseph Cunanan

Ateneo Innovation and Entrepreneurship "New ideas create more and better new products and services; create more wealth."

New Spending Habits/ Routine

When I was still a college student, I said to myself that the moment I get my first job, I will and I must
be able to buy the things that I want, and on the side, I must be able to save a little amount of money
for emergency purposes. But as I grow older, I realized that as a wise person I must strike a balance
between buying & saving.

Before, I used to buy things that I want, but now I started to buy things that I need. Before I purchase a
product or service, I ask myself first the ff questions:

ü Is this something that I really need?
ü If I buy it, what benefits will I get it?
ü Are there things that I already posses that If I buy this particular product, it will
become redundant?
ü What’s the value for my money?
ü Are there alternative options in the market that are more reasonably priced?

The questions listed above helps me in making decision when I spend my money. I want to make sure
that all questions are satisfied because I believe that money spent, is a money lost. So I have to make
sure that I get the best value for my money.

Another thing that I started to change just recently is the way I use my credit card. The schemes offered
by major credit card companies like buy now pay later, 24-36 months payment instalment options with
0% interests and all the freebies and stuffs that go with it, are all exciting and enticing. I must admit that
I was able to invest on furniture and appliances using these schemes and I really love it; no regret. But
now, I promise to myself that I will only take advantage of this payment scheme for the things that I
really need, not for special gadgets or technology that soon will lose its lustre right even before I finish
paying for it.

In terms of saving habits, I will open an auto-debit savings account the moment I get my salary increase
in Feb 2013. I plan to save this amount every month so I have a spare amount of money to use for
emergency reasons. The good thing about this auto-debit process is its convenience and practicality.
Convenience because it will automatically be debited from my payroll account, practicality because you
can change the amount to be debited per month, following your own debit schedule, plus you can’t
withdraw the money without going to the local bank’s branch. This will encourage you not to withdraw
the money that you saved.

These are the major changes i wish to take in my spending habits for 2013. I wish to be able live up to
these changes and see the financial gains for myself.3