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The 4 Ps to Saving Money

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Even in a tight economy, people hate saving money. Worse, people hate being in a situation where they have no choice but to save money, even for just a certain short period of time. Thinking about it creates images of living on plain bread, or waking up early to walk to work, or having to skip baths or re-use clothes to save on soap and water.

We’ve been hearing horror stories in that vein a lot lately, especially now in as people are in the midst of a tough period in financial and economic history: How families had to give up their homes and live with their relatives in tiny rooms, basements and garages. We hear about people had to give up to survive.

What people don’t always get is that you don’t need to live that way to put money away. Saving money has, and always will be, the cornerstone of every major financial success story. Becoming a millionaire means putting away that little bit of income regularly, a few dollars at a time.

Being extra-thrifty does not mean you have to take a vow of poverty and shun material goods. It does not mean you need to sell you car to save gas, nor does it mean you only live on sliced cheese for lunch. It does, however, mean that you will need to make some sacrifices. It helps to pare away things that you won’t need, and to better take care of the needs that you do have. It’s all a matter of perspective, really.

Is it worth it? Ultimately, yes. You can think of it as building yourself a big safety net in case something, like a disease or an accident, happens. You can view it as a key stepping stone to getting that dream house or new car. You can do it just because it feels nice knowing you have money in your pocket AND in your bank account.

Here are the ‘4 Ps’ to saving money.

Prioritize!
Everybody trying to give you tips on saving money says the same thing: Pick your priorities! Set them to what you know you’ll need: Food, transportation and clothes for the next day. Toss in the rent, the electricity and water bills, and what you’ll be left with is not enough to spoil a date, but definitely enough to put away for a rainier day.

Then the more fun kind of prioritizing happens. What do you enjoy doing? Pick one thing to focus on first. When you earn more, pick another. Saving money shouldn’t mean giving up on those yoga classes, or the night outs with the gang. You should still do that, but just keep things in perspective as well.

Put some aside!
The first thing you should do when you’re done paying for your non-negotiable expenses is to set some cash aside. Put it away: Stuff it in a bank, stick it in an envelope or load it into a prepaid credit card. Just make sure nobody touches it.

Picking Right: Quality and Quantity!
Another basic, must-know rule: ‘Buying cheap’ is dumb. Better that you pick the best quality of any basic item, and buy in bulk. Saves you not only trips to the stores, but it also helps you get more quality items for less. At the same time, you are at least partially insulated from future price increases. If given a tricky choice of one or another, don’t compromise – there is sure to be a deal out there that can give you both!

Price Check: Eyes on the Price
No, your eyes do not deceive you. The prices for those potatoes and that chicken have indeed gone up. Your eyes are not playing tricks on you yet.

But you will be going crazy if you’re not able to get the jump on those crazy prices. Try to save receipts and track the cost of things you buy a lot, and take note of the changes. This can really help you plan your next few purchases, and will help you identify areas wherein you can save in the long run.

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5 Responses to “The 4 Ps to Saving Money”


Joseph Jimenez August 26, 2009

Being a single guy, I think these tips will really work. I don’t skip baths but I do find myself re-using clothes to save some money, but I think every guy does that.

It’s tough to prioritize especially when I’m out at the bar and want to buy a hot girl a drink. But I’ll put some effort into these tips. Buying groceries and stuff is tough, I never really thought about watching the prices though. But if it saves me some money I suppose I’ll spend some time doing it.

I think I’ll be stuffing my extra money under my mattress. Hopefully it’ll become a big pile and I can sleep better. Great article, good tips.

Chuck August 27, 2009

Hey micash, I do agree very much with this blog and I relate to much to the point that when I read this post, I though of myself doing the same things. I do prioritize the things I buy especially to those thing I need. I also put some of my money in my personal account and that goes to my savings. Moreover, before I buy or purchase something, I must need to know that quality of the product and its price hence quality and price are also very very important when it comes to buying things in such situations that you need to save.

I also agree on the fact that you don’t need to thrive yourself when you buy things. One thing I learned in this situation is that be simple and practical. If it is not a necessity, then don’t buy it.

Ley August 31, 2009

Hey joseph, i think what you said really helped me even if I’m a girl. I must say that you can use your clothes as long as you don’t smell like smoke but it’s really ok to re-use clothes.:D I do understand your situation about prioritizing especially when you mentioned about buying a drink for a hot girl but also take note that you can do other things besides buying her a drink. If she’s alone or waiting for someone, you can start a conversation from there. When it comes to buying groceries, just buy what you really need. See to it what’s for urgent use and a temporary necessity. Yah do keep your money under your mattress:D But now that you mentioned it, you better hide your money in a safer place:D

i do agree to this blog considering the fact that I’m a girl and of course. girls have a lot of needs but i do consider that if you buy in bulk for example napkins or bath needs like shampoo especially those ones in bundles or those in “buy a shampoo and get a soap for free”. Basic things like that, I put that into consideration. Moreover, I think saving is what keeps me from working hard considering that we are living in a recession. But after that, we can buy what we can as long as we have extra money.

matt September 1, 2009

Hey mi cash! I can totally relate to this blog of yours.Actually, I just landed on a good job right now and I got my first salary and I must say that I have plenty of things to buy. But thing is, I am considering this money as my money for the future since as much as possible, i want to have money just in case I need some to spend or it can serve as my emergency money in times of need.

I do agree with your 4 P's especially with prioritize since (and i must share) that if you learn how to prioritize, everything will fall into place since you know what to buy, when to buy and not to buy the unnecessary things. But also when you prioritize things to buy, do not forget yourself that you have other needs and moreover, do not limit yourself into spending, from time to time you can treat yourself but do not abuse it too much. maybe a mochafrapp a month to treat for a good month's worth is ok.

also, you need to check if what you're going to buy has quality and take note of its price. it is ok to buy an expensive thing as long as it has quality and it may serve as an investment. In may case, I do buy in bulk since it's an investment on my part so that i wont go back (eg., grocery) again and again as it saves me time and energy,

Thanks again. This is a very good blog.

Janiechick September 3, 2009

Great list! Easy to remember too. “Price Check: Eyes on the Price” –I really love this! I usually keep my eyes on the prize(s) and that's what gets me in trouble. LOL!

Anyway, thanks! I'm going to pass this on to friends since we're all working on maximizing our salaries, and cutting down on spending.