How To Save Money Using Simple Mathematical Formulas

3 min. read By eCompareMo on

These moneysaving strategies have been proven to work the world over. But not a lot of Filipinos are applying these in their budgeting and spending habits.

There are countless reasons you cannot keep a single centavo from going into a purchase. Lifestyle upgrades, living in the moment, and crippling debts are just some of them. Or maybe you set aside a portion of your money today and spend it tomorrow? Talk about being consistently inconsistent.

The truth is that a lot of us know for a fact that saving is an essential for survival, but, really, only a few people put their money where their mouth is.

If you are a novice at the art of saving money, here are some methods you might want to try to start building your wealth for the long term.

How to Save Money Philippines

How To Save Money Using Simple Mathematical Formulas

Pareto Principle: The 80-20 Rule

Dubbed as “The Balanced Money Formula,” the 80-20 Rule on money is the slow and sure way to save without compromising too much of your lifestyle.

20% of your net income goes to savings

80% goes to expenses (50% on needs and 30% on wants)

*If you have a P20,000 net income, for instance, you can spend P16,000 and save P4,000.

365 Days Peso Challenge

Take the guesswork out of saving. For this one, all you’ll need is a calendar and a reminder. This concept is pretty simple: save the amount depending on the nth number of day you’re on, and get realistic results.

Day 1 = P1 peso

Day 2 = P2 pesos

Day 3 = P3 pesos

Day 4 = P4 pesos

Day 5 = P5 pesos

…and so on

*1+2+3+4+ = …365 days will get you a total amount of P66,795 at the end of the year.

70-20-10 Rule

The budgeting method that best suits millennials. Not only does it cover spending and saving, it also makes room for debts and loans.

70% goes to cost of living

20% goes to savings (10% for retirement/insurance; 5% emergency fund; 5% for travel goals/tech purchases)

10% goes to credit card payment and loans

12-Month Saving Challenge

In this saving method, you gradually taking a percentage off your monthly net income starting from one percent. This way, you can start saving even a small amount and adjust your expenses and lifestyle accordingly.

January            1% x P25,000 = P250

February          2% x P25,000 = P500

March              3% x P25,000 = P750

April                 4% x P25,000 = P1,000

May                  5% x P25,000 = P1,250

June                  6% x P25,000 = P1,500

July                    7% x P25,000 = P1,750

August              8% x P25,000 = P2,000

September        9% x P25,000 = P2,250

October            10% x P25,000 = P2,500

November        11% x P25,000 = 2,750

December         12% x P25,000 = P3,000

Total                  P19,500

Li Ka-Shing’s Secret Formula to Wealth

Imagine how a school dropout turned himself into the richest man in Asia. Li Ka-Shing shares his technique using the power of five allocations covering both saving and growing money.

30% on living expenses

20% on expanding your network

25% on investing in stocks, mutual funds, etc.

15% on investing in yourself and learning (buying books, attending seminars etc.)

10% on travel

About the author


eCompareMo eCompareMo is the No. 1 financial e-commerce site in the Philippines. Follow us on Twitter and Instagram: @ecomparemo.