The usual advice of financial experts is to save at least 10 or 20 percent of your income so you can eventually save a nest egg for your old age. That could be a wise thing to do. But there are other ways of making a saving for a more immediate purpose that you have in mind. Like your dream pickup truck that costs P1.2 million, for instance.
Say you are a diversified farmer. You plant rice, corn and vegetables. And you also fatten hogs in a staggered way so that you can sell 10 fatteners a month. At current prices, an 80-kg hog sells at P120 per kg liveweight or P9,600 per head. Hence, 10 fatteners will bring in P96,000 per month.
Now you open a special bank account you might call Dream Pickup Account. What you do is deposit all the gross income of P96,000 you get from selling the 10 fatteners each month. That will take you just one year to save that P1.2 million for your brand new pickup truck.
Where do you get the money to feed the pigs? Well, you get that from your income from rice, corn and vegetables. You will just have to discipline yourself not to touch whatever income you get from selling your fatteners. Discipline is the keyword.
We know of a fellow from Bulacan who disciplined himself and was able to build a P4-million dream house more than 20 years ago. He had a number of money-making projects that more than took care of his family’s needs. One of his sources of income was a rice mill. What he did was raise cattle which he fed with rice bran from his mill and molasses. He was able to save the P4 million he used for building his dream house in eight years by setting aside every peso from the sale of his cattle.