Financial Story: "Bookkeeping Grandma's" Money-Saving Wisdom - Source: Market News
Chen Chuting does not earn a high income, with approximately 4000 yuan monthly earnings. However, in just over four years after graduation, she independently saved up enough for the down payment on a house, purchasing housing before many of her classmates who earned more than her, leaving people greatly astonished.
Saving money turned her into a "bookkeeping grandma"
Chen Chuting is from Shiyan, Hubei Province. In 1995, after graduating from high school, she was admitted to study accounting at South China University of Technology. Chen Chuting began her imaginative university life alone in Guangzhou: attending classes, soaking in the library, watching movies, strolling, and shopping... However, unlike her classmates, she approached everything she did very systematically—her parents provided her with a decent allowance, but she still meticulously recorded every expense, reviewing them at the end of each month to identify any unreasonable expenditures. Initially, Chen Chuting documented all her expenses in a notebook. After online bookkeeping became popular on the internet, she chose a free online bookkeeping website—Caike Online (www.coko365.com)—for her records due to its powerful functions, convenience, and clear presentation.
Her boyfriend Zhang Bin, a Chinese Literature major at Jinan University, both loved and hated this habit of hers, giving her the nickname "Bookkeeping Grandma."
Accumulating wealth through a "snowball" plan
After starting work, Chen Chuting discussed with her boyfriend that she would be responsible for saving money, aiming to secure a home and get married without needing financial support from their families. For this, she initiated a "snowball" savings plan.
In her first year after graduation, Chen Chuting’s income was not high, with only about 2400 yuan left after tax each month. She worked during the day, packed her lunch, returned to Guangzhou by company transport in the evening, and stayed in the company dormitory. The dormitory was not entirely free, requiring a monthly rent and management fee of 200 yuan; after getting off the company's vehicle, she still needed to take a 3-yuan subway ride to reach the dormitory. Calculating it out, she spent roughly 350 yuan monthly on accommodation and transportation. To save on living expenses, her dinners were usually self-cooked or bought from the cafeteria of the nearby Guangdong Education Institute, averaging around 6 yuan per day, totaling 180 yuan per month.
Additionally, as she had started working, her shared expenses with her boyfriend were generally covered by her. Including her regular shopping and socializing costs, she spent an additional 400 to 600 yuan per month.
Chen Chuting managed to save between 1300 to 1500 yuan each month. After setting aside some funds for necessary living expenses in the first two months, starting from the third month, she deposited her remaining money into a one-year fixed deposit account before receiving her salary each month. Through this "snowball" savings method, by the end of 2000, combined with her year-end bonus, her bank deposits had already exceeded 25,000 yuan.
Habits need to be corrected if unreasonable
In September 2000, one year after Chen Chuting started working, her salary increased to 3000 yuan, leaving her with around 2800 yuan after tax. With nearly 500 yuan more in her salary, Chen Chuting made another decision: to increase her monthly fixed deposit by 300 yuan, add 100 yuan to her personal expenditure budget, and spend over 1000 yuan buying commercial medical insurance for her boyfriend, which averaged out to 100 yuan per month.
Like ordinary girls, Chen Chuting also had the habit of going shopping or browsing in malls, but she was highly planned. Each time she shopped, she thought it through beforehand. Once, Chen Chuting bought a winter coat, then later realized her wardrobe and storage boxes were full. While sorting through her clothes, she found many garments that hadn't been worn for a long time. Chen Chuting suddenly realized this was an unreasonable consumption pattern and decided to change it.
Wealth continuously appreciates
In July 2001, the outstanding Chen Chuting was promoted to Deputy Financial Manager, with her monthly income increasing to 4000 yuan. By this time, her bank deposits had reached 35,000 yuan.
With initial savings accumulated, Chen Chuting decided to make her deposits appreciate. Just as the country issued government bonds, after consulting some experts at the bank, she decided to implement a three-step financial plan: invest all 35,000 yuan in three-year government bonds; with the increased salary, she could save about 2600 yuan each month, depositing 1600 yuan regularly and using the remaining 1000 yuan to purchase fixed-amount mutual funds, directly deducted from her account.
Chen Chuting considered this: there are always bank fixed deposits maturing each month, which can cover unexpected expenses; when buying a house in 2004, the three-year government bonds will have matured, ensuring returns; mutual funds carry higher risks but offer average returns of around 10%. Combining these three methods allows for both appreciation and risk reduction.
By July 2004, Chen Chuting's government bonds matured, and including interest, she had over 38,000 yuan; her bank deposits exceeded 60,000 yuan; after selling all her mutual funds, she had around 40,000 yuan. At this point, Chen Chuting had already completed her task of saving for the down payment on a house ahead of schedule. (Source: Market News)