1. Keeping money under your bed. If you have 100000 around the house it would still be 100000 when you are in your retirement age. That is, if your house never gets broken in, or consumed by fire or your bills not bedded by mice (Bad Boys 2). And even if it survives those, you yourself won't when inflation at that time cuts your supposedly 'savings' purchasing power.
2. Hoping that it will grow in the bank. The first time I've open an account at BDO (just last month), I've put in around 15k then added up a few amounts that on the same month. I am not sure yet when they compute the interest but it somehow gained 5pesos. I was joking the other day how I excited I was to have a passive 'income' of 5 pesos but seriously, what can you buy with it? Now even if they raise their interest rates every year, I don't think we can rely that much on the bank in giving us returns even if they get to use it for their businesses.
3. Not trying to save. Fine. So I've been stupid for 23 years now. How many times have I looked back and think, what if when the instant that my mom gave me an allowance I save up even just a peso a day? Would I be richer from then? Well no, but I would have had roughly 5000 k. But what if I started saving since I started work, like even just a 50 pesos a day? Well that's more or less 3 years (365 days * 3 years) * 50 = 54,7450 already. And if I've only been educated the moment I started receiving paycheck I would have had the chance to enjoy the 9 day streak of good PSE stocks which happened just last Tuesday (http://www.absolutetraders.com/newsletter/2010/09/13/psei-outlook-for-sept-13-17-2010/). No one would have guessed but really. Who wouldn't have a wide smile when your ABSCBN stocks you bought for around 25per stock is now 50+ each?
4. Spending on too much stuff. Well it doesn't need a description now does it? Just remember that the value of anything you buy doesn't exactly gain anything, must it be some toy or comic book. You are lucky if it indeed gets pricey overtime, but that exactly depends when a geek sprungs up to be rich and buys your lot.
5. Making money wait. Like women, money won't wait for you. Don't let it wait till you realize that you needed to have more Aquinos (I was referring to the bill) in your account. And the more that you age, the farther you needed to double time in racing towards it and seizing it by the horns. There's no reason why you don't save up. Face it. Unless you wanted to live a life being a hermit, you have to understand that spending is as normal as breathing.
Next post would be Smart Money Habits :-)