Our country has had a struggle economically and it’s continuing to show with the current compensation status of workers. That being said, most Filipino workers find it difficult to save money, leaving them on a paycheck-to-paycheck condition. However, there are certain things we have to understand in order for us to ensure that despite the current status of salaries, we can still somehow keep a savings plan we can count on. In this article, we will be discussing a few tips on how to save money on a low salary.
There are many different saving and budgeting techniques we can follow. In order for these to be maximized, you need to assess your salary and your lifestyle first. You can’t go saving without first trying to identify where you are in terms of what you earn, what your expenses are, and how much you’re trying to save.
Try and find the ideal saving and budgeting tips for you:
- A Deeper Look at the 50/20/30 Money Saving Rule
- How can a Filipino Student Save Money Effectively?
- 10 Money Habits Every Filipino Should Stop Immediately
Have a record of your expenses
First and foremost, you need to track what goes in and out of your pocket. You have to list down your earning and the expenses along with it. By doing this, you can readily evaluate whether or not you’re spending the money the right way. What you can do is to make a table with four (4) columns:
- Earnings (list down everything that provides income)
- Expenses (everything that goes out on a regular/monthly basis)
- Miscellaneous expenses (other things you spend money on; dinner out, weekly activities, etc.)
- Savings (Everything that is left behind after all of the expenses)
As much as possible, try to lessen miscellaneous expenses to add more to the savings column.
Avoid showing off
Some people like the idea of displaying their social status by wearing expensive clothing, by purchasing expensive items and gadgets, or by buying things that they don’t really need. Instead of trying to impress other people, focus on your own lifestyle.
Have a model on how you want your lifestyle to be. Moreover, it’s more relevant and efficient to think about how you will be looked at other people. Try to imagine; people who try hard to look to be rich and wealthy might be drowning in a pool of debt. On the other hand, those who like to keep a simple composure might be generating more income because they worry less about how they look and focus on how they can improve.
Expand profit generation
Probably one of the best ways to save money on a low salary is to look for another stream of income. Having multiple income strands is like expanding opportunities for your profits. You can have many different rakets in order for you to earn more. Banking on just one source of income is like being trapped in a maze you won’t be able to get out from.
But, having another source of income can help you get out of that by being flexible, and by getting more savings.
Try to cut down large chunks of expenses
Used to having your air-conditioning unit turned on the whole day? Adjust and purchase electric fans. Although there are ways on how you can reduce your electricity bill, it’s still better and safe if you just avoid coming up with a large electricity bill.
Try to identify which of your expenses eats up value fro myour earnings and savings. Can these be lessened? Can you have control over these? If the answer is yes, then start to lessen that, which, of course, leads to a bigger batch of savings for you.
Make it a goal to get out of debt
Debts are normal but it won’t be anymore if they haggle with what you need to spend on. One of the best ways to save money on a low salary is to get out of debt; and that you stay out of it. Doesn’t it feel like you’ve let out a huge problem when you get out of debt? It certainly does so in order for you to be more efficient and to maximize saving over low income, depleting that mountain of debt should be the first key.
Having a low salary does not mean that you can’t have and enjoy leisure time. However, wouldn’t it be nice if you think that your salary isn’t that low? Or if it is, that you have other strands of income?