Everyone wants to have some money saved somewhere. Saving money is a crucial part of being financially independent and secure. People with enough money saved are said to have better preparation for the future as compared to those who have nothing. To save money in the Philippines can be challenging for some, that’s why we have lined up some useful tips to help you out.
For Filipinos, navigating around the changing economic status of the country requires grit, persistence, and knowledge. Effective budgeting and smart financial choices are important. Below are the ways how you can save your hard-earned money if you are in the Philippines.
Create a realistic Filipino budget
Creating a budget is one thing. But creating a realistic budget that is aligned with the current economic situation of the Philippines another. The budget should suit the Filipino lifestyle to make money-saving more effective. These are the things you can do as a starter:
- Track down your expenses. You will realize where your money is coming and going and you can make the necessary adjustments.
- Categorize the expenses from your top priority down to the least. Make sure that your bills are categorized and prioritized.
- Decide on how much of your income goes to your savings.
With this in place, you can get started with your budget. You will have a better overview of your inflows and outflows. You will also have an easier time deciding on which expense to cut back on.
Learn to live within your means
Learning to live within your means is one great way to save money. Filipinos should be content with the simple pleasures in life. Indulging oneself is not bad but should still be within your means. If you learn to adopt this mindset, this can significantly impact your ability to save money. The problem that young Filipino professionals are facing is that they can succumb to excessive consumerism. In addition, some are pressured by friends and relatives to keep up with materialistic trends. Filipinos wanting to save should focus on their needs rather than wants. If you are not mindful of unnecessary expenses it would be hard to save up. You should also ask yourself if a purchase aligns with your long-term financial goals. By embracing a simpler and more frugal lifestyle, you can stretch your budget and save more.
Grab those discounts and promos
In the Philippines, discounts and promotions are abundant. There is no shame in using discount cards and coupons. It is one way of maximizing your money while availing of freebies and discounts by companies. Capitalize on this by being a savvy consumer. The great thing about living in the Philippines is that there are a lot of Filipino who are embracing the e-commerce business. Here’s what you can do to get those discounts.
- Check for the sale date. It usually falls on a holiday or an event.
- Follow your favorite brands. Take advantage of sales events, such as “Lazada’s 11.11” or “Shopee’s 12.12,”
- Sign up for loyalty programs and cash back apps that offer rewards for your purchases.
Reduce your utility costs
The bills for your electricity, rent, water, internet, and other utilities take the largest portion of your income. Check which of these can be reduced. Be creative and resourceful and find ways how you can make adjustments. Consider the following:
- Switch to energy-saving measures to reduce your electricity consumption.
- Unplug appliances when not in use
- Use the switch to energy-efficient light bulbs
- Schedule the use of air conditioning
- Check your water pipe for any leakage.
- Embrace water-saving habits.
- If the budget permits, get solar panels for your home to harness renewable energy and reduce electricity costs in the long run.
Prepare your meal/cook at home
If you enjoy eating out, you better consider cooking at home. Food expenses can quickly add up. Think of how much you can save if you cook your meal versus dining out frequently. If you don’t know how to cook, it’s time to learn. There are plenty of Youtube Channels you can follow. Here are some of the things you can do.
- Plan your meals ahead
- Make a shopping list before heading and be sure to follow it
- Buy ingredients in bulk. These will help you save up.
- Batch cooking and meal prepping can save you time and money.
- Visit your local wet markets where you can find fresh produce at affordable prices.
- Limit dining out to special occasions and view it as a treat rather than a regular expense.
You can still enjoy going out and dining out with friends but on a much-limited occasion as compared to before. This entails discipline and self-control if you want to save money.
Consider using public transportation or carpooling
When you own a car, you have to consider the gas, parking, maintenance, and other expenses. Transportation costs can eat into your budget, particularly if you rely heavily on private vehicles. If you are using a ride-hailing service such as Grab, you will spend a lot of your income on this alone. Consider utilizing public transportation options such as buses, jeepneys, and trains whenever feasible. If you need to use a car, explore carpooling with colleagues or neighbors who have similar commuting routes. This also gives you a chance to catch up with them, if you’re the friendly type of passenger. Carpooling not only helps save money but also reduces traffic congestion and environmental impact. Additionally, carpooling allows you to split the fuel and parking costs, further reducing your expenses.
Check for Affordable Entertainment Options
Having fun is not a crime and of course, you can spend your hard-earned money on it. There are entertainment options that are easy on the pocket. Take advantage of local parks, museums, and cultural events that offer free or discounted admission. There are those with free admissions. Explore the beauty of nature by going on hikes or organising picnics with friends and family. Instead of going to pricey cinemas, consider movie nights at home or outdoor screenings. Engage in hobbies and activities that don’t require a significant financial investment, such as reading, exercising, or learning new skills online.
Pay your Debt First
It would be difficult for you to save up If you have outstanding debts. Make it a priority to pay them off as soon as possible. The earliest you can pay off your debts the better and the higher the chances of investing. If you have a handful of credit cards, start paying them off one by one. High-interest debts can drain your finances and hinder your ability to save.
- Check whether you can merge the loans that you have. Negotiate a payment solution.
- Create a debt repayment plan and allocate a portion of your budget towards clearing your debts systematically.
- Consider negotiating with creditors for lower interest rates or explore debt consolidation options. By becoming debt-free, you free up more of your income to allocate toward savings and investments.
Make Saving Automatic
It could be a slow process and would take time but compounding will be fruitful in the long run. Automating your savings is an effective way to build your savings effortlessly. If you automate your service, there is no excuse why your savings account is not accumulating in funds.
Set up automatic transfers from your salary account to a separate savings account. This way, a portion of your income is automatically saved before you even have a chance to spend it. Treat your savings as a non-negotiable expense and make it a habit to regularly review and increase your savings contributions whenever possible. Over time, your savings will grow steadily, helping you achieve your financial goals.
Get a professional financial assistance
For you to save money in the Philippines, you have to learn how the economy works. Enhancing your financial literacy is crucial to making informed financial decisions and optimizing your saving strategies. This will help you come up with informed decisions.
- Read personal finance through books, articles, online courses, and workshops.
- Stay updated on financial news and trends in the Philippines. Consider seeking
- Choose a mentor whether face-to-face or online
- Seek advice from qualified financial professionals who can provide personalised guidance based on your financial situation and goals. They can help you identify opportunities for saving, investing, and growing your wealth.
Saving money regardless of whichever part of the world you are in right now requires discipline, resourcefulness, and a willingness to make conscious financial choices. You have to be committed to your goal and willing to do whatever it takes to reach it. Remember, every peso saved is a step closer to financial freedom and achieving your goals. Start implementing these strategies today and watch your savings grow over time. If you understand the true value of every peso, you will realise that saving money is not as hard as it seems.