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The Secret Solution to Reducing Your Expenses
Why do a lot of people live from paycheck to paycheck?
Yes, the lack of money is a very common problem among many Filipinos, even those who have good paying jobs. This is because many ordinary Filipinos are not financially literate and would often increase their expenses along with their salary raises. Some take on credit cards and end up with more debt than savings just to gratify themselves with material desires that they really cannot afford.
Indeed it’s time to take a stand. You need to do two things to improve your financial state. First, reduce your expenses. Second, earn more.
For now, let’s focus on how you can reduce your expenses. There’s only one secret solution— live below your means, not even within and definitely not above. Below are several ways for you to do this:
Take your “baon” to work.
A regular employee in the Philippines often ends up spending most of their money on their daily transportation and food expenses. Just imagine how much you’ll spend if you have to leave the house early and need to eat breakfast outside while on the go. Then you’ll also have to buy your lunch and snacks. Now if you’re going to do overtime work or run some errands, you might become hungry along the way and be tempted to buy dinner. This is probably why many wonder where their salary had gone to days before the next salary is scheduled to be paid.
Thus, you ought to take “baon” (packed lunch) to work, preferably for lunch and snacks. If you buy in an ordinary eatery, a regular meal consisting of one cup of rice and one viand will likely cost about P40 to P70 depending on your choice. Sometimes, you might add a side dish and dessert too, which will jack up the amount. If you use this amount to buy food in the local market and cook it at home, it can actually amount to an equivalent of three meals! Hence, it’s more sensible to bring “baon” to work.
Always buy in cash.
It can be tempting to have and use the purchasing power of the credit card even without earning the money yet. Oftentimes, people get excited to avail of installment arrangements in order to buy the latest TV, a new gadget, or even different items in a department store. This is why more and more credit card companies are coming up with these tempting offers.
Remember to always buy in cash as much as possible. If you want something expensive, you ought to learn how to save up for it or to earn from a sideline job so that you won’t bury yourself in debt or regret your actions in the future.
Buy in bulk whenever you can.
It’s always better to buy in bulk whenever you can because you can often get discounts. You can check out packaged items or buy one take one deals in the groceries and opt for these instead of buying a few at a time. You should also purchase the bigger containers which are frequently priced cheaper instead of getting several of the smaller ones. Calculate if you need to. Even saving a few pesos will matter a lot in the long run.
Limit your “gimik” or go for inexpensive ones.
Even if you can afford to hang out in Starbucks and buy a 180-peso coffee drink every single day, it’s certainly not advisable. Compute the total amount you’ll spend in a month and think of what you should have spent it for!
Young Filipinos adore going out on a “gimik”— the local slang expression for a day out or night out. This can range from a movie date to clubbing at a bar. It’s a great way to unwind and spend time with friends and loved ones. Nevertheless, you should limit it and also opt for cheaper ways to have fun.
There are many other ways that you can reduce your expenses and save more in the process. It takes great discipline, but with constant practice you’ll be able to nail it. Always try to begin with the end in mind by imagining the wonderful consequences of implementing these cost reduction methods.