One of the Filipino natures is to become gallant every payday. And it’ll become really obvious when you see them eating in a restaurant, holding a cup of coffee from Starbucks or planning to go out of town as soon as they receive their salary.
There’s nothing wrong in here. In fact, it’s highly recommended that you treat yourself once in a while after all the hard work you’ve done. And it is best to do whenever you have an extra budget. Take note, it must come from your excess money. It is because, when you tried to become a one day millionaire after receiving your pay, you’ll end up broke and the cycle will continue again and again.
Unless, you start changing the way you manage your money. So let me share some things you can do to start living frugally and avoid being a one day millionaire.
Strictly follow Income – Savings = Expense formula
- Are you one of the guilty persons that instead of spending what is left, you’re doing the other way around? Spending first before saving. So at the end of the day, you just realized that you have spent all your money with the bills and all, and there’s nothing to save already.This is the reason why it is recommended to follow this formula. Every time you receive your salary, make sure to set aside an amount for yourself and your future. Develop this habit so you can be a future millionaire, not just only in one day.
Create a Budget Plan
Aside from following the formula, it’s also important to create a budget plan so you can track where your money goes. Track your expenses as much as possible so you’ll not be surprised with your salary to become money soon gone. You can download budgeting apps to do this. Excel and a notebook are very useful tools for me in creating a budget plan. Just find an app or tool you’re comfortable with so you’ll feel that this is a fun thing to do.
Avoid walking inside the mall
One of the marketing strategies of malls is to have their super duper mega sale every payday. This is used to attract employees to spend their hard-earned money in just one snap. So if you want to stick with your budget plan, avoid walking inside the mall every time you receive your salary.
Again, there is nothing wrong in spending your money to satisfy your wants as long as it is within your budget or it is your excess money. Make sure to weigh between needs and wants and what you should prioritize first of all.
Bring your own food
Bringing your own “baon” (B.Y.O.B.) is one effective way of living frugally. When I had my first job in one of the business districts in Ortigas, I knew food will be very pricey for me. So I committed myself of bringing my own food when going to work. I get to save plus I’m not having the problem of “Where to eat today?” everyday.
Practice delayed gratification
I admit. When I started working, I make sure that I travel out of town every other month. It serves as my happy pill and refreshment after working in a toxic environment. But I realized every time I travel and going back to work, I am completely broke. Am I happy? No. Am I refreshed? Still no.
Yes, I gained wonderful experiences when travelling but reality keeps hitting me back. Reality of toxic working environment. At the same time, being broke. Double kill!
So I tried to change this by practicing delayed gratification. It’s really hard especially if my emotional side comes in. But I believe, thru God’s guidance, I will have all the time to travel in the future without being broke.
I still travel but it’s only once a year now. And this time, I am travelling without being completely broke and no toxic working environment to welcome me back.
Be invisible sometimes
Part of being a one day millionaire is also going where your friends go, trying not to be out of trend. But if you’re trying to be strict with your budget, I’m telling you, it’s okay to be invisible sometimes. Learn to say No when they invited you to a trip this weekend or to a restaurant even you have your “baon”.
It’s really not important to be on trend. What’s important is you start developing good money habits today so in the future, you have the freedom to join them already while not worrying your budget.
Save with Goals
Ever wonder whenever you are trying to save but ends up having nothing at all? Maybe because you just wanted to have savings. But then you are saving with no purpose at all that’s why you are tempted to spend what you have saved.
Today, we’re gonna change that. Label your savings from now on. Ask yourself.
Why am I saving? Is it for my major travel next year? Birthday celebration? Investment? House and lot?
Saving with goals will make you more committed and not be tempted to spend it. Also, you become more motivated because you have something to look forward to.
Invest for Long Term
Saving alone will not make you financially free. Why? Because inflation will eat your money. If you’re working hard to earn money, you also need to make your money work for you by investing.
Investing gives you the freedom to earn money without physical work. All you have to do is make yourself educated with those investment plans. Learn to differentiate scam from a trusted investment.
When you have developed those saving habits, it’s time for you to get invested already so you’re not just a one day millionaire but a future millionaire.
- Cheers to becoming financially free! If you want to know more about insurance and investment plans, feel free to reach me out.Your financial advisor for life,
Christine Caranyagan, Licensed Financial Advisor
Sun Life of Canada Philippines, Inc.
My mission is to help fellow Filipino people to achieve lifetime financial security.
If you want to learn more about financial planning, I conduct it for FREE. Our office is located at 15F Frabelle Business Center 111 Rada Street, Legaspi Village Makati City.
Or you can just reach me thru this number: 0935 7368 619 or email me at email@example.com to set an appointment.
It will be my pleasure to be your Financial Advisor for Life.