Many Filipinos want to save but struggle to do so.
Fewer households reported saving across all areas and income levels, according to a report. The few who set aside money do so for more basic items like medical emergencies, tuition, and retirement.
One thing that influences our spending is the so-called “FOMO,” or the fear of missing out. We’ve all been there, scrolling through social media and seeing people go on vacations and wear the latest fashion. It’s easy to feel left behind when trying to save money. But what if we flipped that mindset? What if, instead of feeling deprived, we felt empowered every time we saved?
It starts with a mindset of living within your means. This means you create a goal-based budget that considers intentional saving and investing while rewarding yourself with fun experiences.
This is where “SWOMO,” or save without missing out, comes. SWOMO is an approach to money management that balances working hard to achieve your goals and treating yourself on a budget. After all, being financially mindful doesn’t mean missing life’s best moments.
Here’s how a SWOMO attitude can take over your FOMO.
Set clear goals
Setting clear goals allows you to better budget, be more intentional about spending and saving, and take advantage of deals.
Beefing up your emergency fund? Eyeing that Safari tour? Planning for your dream home? Put them all on a “vision-to-action” board —our take on the vision-board activity, where it’s not just a collection of dreams but a structured roadmap to keep you on track to achieving your goals.
Metrobank recently introduced this exercise at an event where media partners reflected on their goals and the steps to take to achieve them. Aside from the aesthetic photos that make up their dreams, their vision-to-action boards also include small but meaningful steps that bring them closer to their goals, including setting aside funds for them.
Media partners were given photo sets for their goals (family, relationships, career, and personal ones) and tools (healthy habits, personal development through reading, and adopting the right mindset on finances) they can use to reach them.
Do you have a lot of plans? Don’t be overwhelmed! Here’s a quick read to guide you in creating your vision-to-action board. Visualizing your plans allows you to break them into smaller chunks and understand which can be prioritized and achieved in the short or long term.
Being a goal-getter
Being guided by goals makes you plan your finances better. Recall the GIFT movement, where we encourage proactive financial planning ahead of the holidays when people usually have more money to save or spend. Having clear goals allows you to make saving a key part of your budget.
When drawing up a budget, identify your needs and wants—or goals. This is where your vision-to-action board becomes useful. Knowing which goals to prioritize after deducting essential expenses can help you allocate your income better. Goal-based budgeting and saving help turn aspirations into action!
You can use applications or Excel sheets to record your finances better. Earnest has its budget tracker here!
Saving with intention
There are several ways to optimize savings. Here’s one: having separate deposit accounts for essential expenses, an emergency fund, and other specific goals can help manage money.
For example, keep a “house fund account” for the downpayment of your dream home and a “fun account” for your planned European holiday next year or quarterly spa treatment. These must be separate from accounts meant for emergencies and fixed monthly expenses.
Consider setting up automatic transfers to these accounts. You can better see the progress for each goal if you keep dedicated accounts for them. This will help you focus, especially when starting your financial wellness journey.
Intentional spending so you don’t miss out
A visualized set of goals and a process to fund them can help you be more intentional in using your money.
Whether it’s for your me-time now and again, a lavish resort excursion with your family for your mom’s 60th birthday, or that house renovation you’ve been eyeing, saving for your goals keeps you on top of your finances while enjoying what life offers.
While at it, take advantage of deals like airplane seat sales for that trip you’ve been planning for. Promos present an opportunity to get a bargain, especially if it’s on something you’ve been saving and preparing for.
Remember, saving should make you feel empowered, not deprived. Get over your FOMO and start to SWOMO.
We talk more about saving goals and budgeting in the free Earnest e-book.
Disclaimer: This article is for general information purposes and does not constitute formal financial advice. Always do further research before making financial decisions.