How to Save Money and Build Wealth for Future Retirement

By M.V. Dumas

I am now 41 years old. I’ve been working professionally since 2008, and through all the ups and downs of life, I’ve learned one of the most valuable lessons: financial security is not about how much you earn—it’s about how wisely you manage what you have.

For many years, I was like most Filipino employees—earning just enough to get by. My monthly take-home pay of ₱14,000 was quickly consumed by rent, bills, groceries, mobile subscriptions, and credit card payments. Saving felt impossible. I thought I was doing the best I could, but I was stuck in a cycle of spending and surviving.

Even people who earn six-digit salaries fall into this trap. I’ve seen it. They live in fancy condos, drive luxury cars, send their kids to prestigious schools—but have zero savings. Why? Because they spend more than they earn. Lifestyle inflation is real, and it’s dangerous.

A Painful Lesson: My Financial Collapse in 2012

In 2012, I got a new job with better pay. I felt like I was finally moving forward. I rewarded myself with a Fitness First membership, which was expensive. I also applied for three credit cards—Metrobank, HSBC, and EastWest Bank—convinced that I could afford the lifestyle that came with them.

But then life hit hard.
My beloved mother was diagnosed with stage 4 breast cancer. I had to leave my job and become her full-time caregiver. It was a heartbreaking and overwhelming time.

With no income, my debts exploded. I had over ₱250,000 in credit card balances, plus unpaid loans from SSS and lapses in my monthly contributions. I was drowning. I had no emergency fund. I was emotionally broken and financially empty.

Getting Back Up—One Step at a Time

After my mother passed away, I slowly got back to work. It wasn’t easy, but I was determined to rebuild my life—and pay every cent I owed.

By God’s grace and discipline, I did.

Today, I am proud to say:

I no longer possess a single credit card.
I have zero loans.
I am completely debt-free.

From 2012 to 2014, I endured one of the hardest seasons of my life. But now, I am free—and more careful than ever.

I no longer buy things I don’t need. I value simplicity. Even though our household income is now in six digits, we live a modest lifestyle. We don’t own luxury items or chase brands. We focus on what truly matters—our family, our values, and our future.

Building an Emergency Fund

An emergency fund is a must. It’s a financial buffer that protects you during life’s unexpected turns—job loss, sickness, accidents.

I first learned about this through the International Marketing Group (IMG), which runs a Wealth Academy. Back then, I didn’t understand its urgency—until I lost everything. I now make sure to set aside money every month into a passbook account with no ATM. That way, I’m not tempted to withdraw it.

In just two years, I was able to save ₱480,000—money that later saved me during another family emergency.

Make Saving a Habit, Not a Struggle

One powerful line that changed me came from the book “12 Steps to Build Wealth on Any Income” by Alvin Tabañag:

“Develop saving into a habit so that it becomes as normal as breathing.”

I now find joy in saving. I keep coin banks at home—one for ₱1, another for ₱5 and ₱10. I’ve learned that the value of money is not in how fast you spend it, but how faithfully you grow it.

The Smarter Saving Formula

Wrong formula:
📉 Income – Expenses = Savings
→ Usually leads to zero savings.

Right formula:
✅ Income – Savings = Expenses
→ This forces you to save first. What’s left is what you’ll spend.

It works—even for those who earn less. A household helper earning ₱6,000 (average wages outside NCR) who saves ₱1,000 monthly is doing better than a call center agent earning ₱25,000 but spending it all. It’s never about how much you make. It’s about how well you manage it.

Step One: Pay Off Debt

You can’t build wealth while trapped in debt. Credit cards charge up to 3% interest per month—more than what banks give you in a year.

What worked for me:

I prioritized paying off my credit cards.
I closed all my accounts.
I promised myself: Never again.

Today, I only spend what I have. I no longer borrow to “reward” myself.

4 Practical Steps to Stay Debt-Free

Limit Yourself to One or No Credit Card
Use only for emergencies. Pay in full every month.
Save More, Spend Less
Open a high-yield savings account or time deposit. Some digital banks offer 4–6% interest annually.
Create and Follow a Budget
List your expenses. Grocery with a list. Plan your spending.
Find Side Income
Blog, tutor, sell online—find ways to earn extra. Multiple income streams give you more freedom.

Preparing for Retirement at 41

I began preparing for retirement in my late 30s. Now at 41, my goals are clearer:

A simple home in the province
Financial support for food, medicine, and emergencies
Funds for my children’s education
Peace of mind in old age

I don’t want to grow old dependent on others. That’s why I combine saving with investing.

Start Growing Your Money

Consider these financial institutions and plans:

Ask about VULs, mutual funds, retirement plans, and long-term investments. Don’t be afraid to start small. Consistency beats perfection.

Giving Back Quietly

Now that I’m financially stable, I’ve also found joy in giving.

Without announcing it, I’ve:

Sponsored college students by providing their allowance
Helped elderly residents in homes for the aged
Donated to orphanages and children’s shelters

I don’t share this to brag. I share this because I know what it feels like to be empty—with no one to turn to. When God lifts you up, don’t forget to lift others too.

Saving money is not just about keeping. It’s also about giving. Blessings are meant to be shared.

Final Reflection

Everything I’ve written here comes from real experience. I’ve failed. I’ve struggled. I’ve sacrificed. But I’ve also overcome.

If you’re in debt, start today. If you’re scared, start small. If you’ve been careless, forgive yourself—but learn the lesson.

It’s never too late to change your financial story.

Start saving. Start budgeting. Start living wisely.
And when your cup overflows—don’t forget to bless others.

—M.V. Dumas A.K.A. Chee Chee Dumas

CHEE CHEE'S CORNER