Breaking the Habit of Living From Paycheck to Paycheck
As one of the millions of the young urban professionals or yuppies now employed in the Philippine corporate scene, you have developed the habit of living from paycheck to paycheck, since you still don't have a grip on wise spending.
Admit it or not, you lavishly spend on good food and branded clothes like Topman, and rush to the nearest Nike outlet for the latest Airmax or Roshe Run as soon as your first paycheck lands in your hands. And you barely survive the remaining days of the month by bringing a doggybag of your leftovers for lunch in the office, and enduring long queues at the LRT or MRT stations.
Adding salt to the self-inflicted injuries, your parents demand a few thousands from you to sustain the mortgage of your new house, electricity and water bills, and even your little sister's weekly allowance. With too much on your shoulders, including your guilty pleasures, you are unable to save even a few hundreds for your long-term goals like a shot at law school or a masters degree in one of the prestigious universities in the country.
But don't settle for the not-so-thrilling life of living from paycheck to paycheck - it is too fraught with uncertainty. Turn things around and try these few money-saving tips and strategies:
Let a grand hang out.
Honestly, you don't need to save-or should we say, you won't be able to save a lot of money since you're just starting to live your own life and your parents have recently withdrawn their financial support for your clothes, shoes, and even toiletries.
Saving 1,000 pesos every 15th and 30th can get you 24,000 pesos in a year. And in a span of just over four years, you would be able to hit the P100,000-mark! Of course, this depends on whether you would earn the same amount of money for that entire length of time. There's no point in worrying about how small your savings are every year. Chances are, if you are good at your job, you would get regular increases, even promotions.
Curb your enthusiasm.
Yes, we get it. You just can't live without your smartphone or a new pair of shoes to add to your collection now and then, but you can still budget your expenses-from your sister's weekly allowance to the mortgage of your new family house, or perhaps your own condo.
Grab your phone and list down all your weekly expenses. Monitor what you spend for a month. After that, set a specific budget that you can spend for your daily transportation, dining out, and luxuries. For instance, you can allot 2,000 pesos as your weekly budget and stick to it. Don't overspend with your first paycheck; scrimp a little so you can hit the end of the month with some money left in your wallet.
It's over - for now, at least.
Last but not least, resist the temptation of going on weekly nights out with your friends or your significant other, as this could cost some serious money. This may be the hardest part of being thrifty, but this is the only way to keep your moolah secured in your payroll bank account. You don't need to worry that you'll lose your friends because you are trying to save money. You may not know it, but they probably want to do the same thing. They might even take a cue from you. For updates, there's always Facebook.
The habit of overspending is nurtured by the misconception that the next paycheck would work for all of your needs, responsibilities, and (lest we forget) wants. Do away with all the myths of spending on the things you want and need for the present time, and work for your long-term goals and keep your eye on the prize.