It may seem that my hiatus was more than a year. So much has happened due to the current situation of this pandemic. Countries like the Philippines had been imposing draconian lockdowns even in 2021. Unending restrictions and quarantines became a monthly agenda of our country. These also severely injured the economy by procuring more debts and all-time high inflation rates. The side effect to commoners like me would be the mental and emotional upheaval to get through monthly financial distress. As you know supporting ageing parents is a bit of a norm in the Philippines. This is because our economic set-up does not combat inflation rates. For instance, a thousand peso cannot buy the same goods in the year 2022, unlike what it can do in the year 2016. Now, I can resurrecting from my hiatus to share what are the measures I took to be able to save from last year and the important lessons I have learned.
Uninstall Online Shopping Apps or Block Shopping websites
This is harsh, but this is effective. There is a Filipino term called, “Budol” which means impulse buying. It is triggered by marketing strategies likes discounts, sales, ads and more. In our country, dates like “4.4 Sale” or Payday sales are used to manipulate buyers to buy things that they don’t need. They project that this item is nice and useful so you’ll be enticed to buy it. Of course, I fell victim to that, but I changed ways overtime. The best remedy to save money and avoid this scenario is to uninstall apps, unfollow social media shopping sites, and block shopping websites.
Stop buying expensive coffee, boba tea or desserts in a daily basis
Just like almost everyone, I love desserts and coffee. The premium brands have their way on marketing it. From native, medium roast, dark roast and variety, coffee is next to water for working professionals and college students. In order not to be enticed with it, I buy coffee in the grocery store. This is the one where I manually pour the solid contents and the hot liquid water in the cup. It can caffeinate my system, just like the way expensive coffee can so why should I switch?
Stop associating with people who like to eat and shop constantly
Yes, people love to eat and shop. Yet, there are people who love to save, cook their own meals and switch to minimalism. If you have a friend that loves to go out on a Friday night or weekends and dine out to every new deli in town (unless if she does it for work), maybe you should take time to reflect on your friendship. However, it doesn’t mean that you have to spend time alone, but it means you have to set your priorities straight.’Cause if you want to save as much as possible, you will have to tighten up your budget by not splurging every weekend.
Keep your money where you cannot have easy access
What I mean with easy access is that you cannot easily check the balance or withdraw. An example would be a time deposit account or a savings account without electronic access. Save as little a buck or a grand every pay day for 10 or 20 years can make a difference. Just don’t peak at it from time to time. My Aunt, an economist, gave the best formula in savings. It is: Income - Savings = Expenses. If you earn 20,000.00 Pesos in a month in the Philippines and opt to save 2000.00 Pesos, you will have to deduct it automatically to your income. This leaves you with an 18,000.00 revolving fund which you can use to pay your rent, utilities, groceries and self-care necessities. In short, always save before you spend.
The cliche goes like this: religiously follow your budget
In a small notebook, jot down all your expenses such as rent, water bill, electric bill, internet bill, groceries for the month, subscriptions, self-care indulgences and of course, your savings. Then, cross match it with your cash flow or income. If the expenditure is higher than the money that is going in, you need to reduce the wants in order to meet the needs. Set an exact amount on how much you save and never ever spend it unless it is an emergency. If you spend everyday, why don’t you set a day in a week without spending. It could be a Saturday or Sunday. Just stay at home and cook your own meals.
The key virtue to saving to money is patience and discipline. Building a habit and living with it is a challenge, but the fruits are worth it. Researching and reading the appropriate financial books are the best tools you can have. Keep learning, keep going and Good luck!
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