Tips to help save money – even without regular income

MANILA, Philippines - For the millions of people in the country who live below the poverty line, is there a way for them to embrace the culture of saving when they don’t earn anything on a regular basis – or at all?

The simple and fast answer is yes. While many have subscribed to the idea that only those who have a monthly salary or regular income can save, this is not necessarily true.

Traditionally, savings is more often associated with earnings, not expenses. That is why the question that always pops up in my “Ikonsulta mo kay Ninang Riza” segment on UNTV is: “How can we save when our income is not enough to cover our basic needs? Worse, on some days, we do not even have any income at all?”

Setting aside money that one earns or receives is one way to save. But it’s time for people to realize that it’s not the only way.

‘Ipon’ vs ‘Tipid’

This is where the new concept of savings comes in. In many ways, savings can come from effectively managing one’s expenses.

Most of the expenses that prevent us from saving are not a result of buying or spending for what we want or need. More often than not, the culprits are the penchant for excess or wastage, making wrong decisions, procrastination, or inaction.

In Filipino terms, people can save not only from ipon sa kita, but also from diskarte para tipid sa gastos.

This is especially true given the set-up of many Filipino families where only one or two members contribute to cover expenses for the whole family. With the right financial values, attitude and behavior towards money, cutting on expenses should be a walk in the park for just about everyone.

Let’s look at these diskarte tips or strategies that could help families and individuals increase savings without adversely affecting the quality of their lives – even if they do not expect any form of regular income, but have some sort of cash flow.

1. Savings by avoiding wastage or consume only what is necessary.

No one is telling you stop watching AlDub on TV, but it wouldn’t do you any good to leave the TV on while you take a 15-minute shower. Instead, turn the TV off in the meantime and turn it back on when you’re ready to watch again. This simple trick could save you hundreds or even thousands of pesos in the long run. The point is to consume only what you need, not just for electricity but also for water and other basic needs.

2. Savings by DIY (do-it-yourself).

If you need a new bookshelf, consider harnessing your creativity and making one yourself. Using materials readily available in the house or buying kits that you yourself can assemble, instead of the ready-made items, is almost always cheaper. It’s easier than most people think, plus it gives a sense of fulfillment after you have assembled items for your house.

3. Savings by making or producing things you need.

If you have the space, grow your own vegetable garden. Planting sili, radish, or even papaya is easy. If not, you can always plant on pots (think of basil, oregano or mint). You can also make your own soap and dishwashing liquid, mix your own perfume, or sew or mend your own clothes.

4. Savings by doing household repairs and personal services yourself.

Instead of calling a plumber for a clogged sink or a carpenter to replace a broken doorknob, consider doing this yourself to save on labor costs. It would also be beneficial to learn new skills like cutting hair or perhaps giving massages (or hilot) so you and your family members need not get the services elsewhere.

5. Savings by proper and careful use of things.

This includes everything from household tools, appliances, and equipment. For children, this means taking care of their school uniform, shoes, or bag. If things are kept in good condition for years, then you save yourself from buying new ones. No new purchases mean extra cash that can be used for something else.

6. Savings by avoiding vices.

Completely avoid vices like smoking, drinking, gambling and the like. Not only do these things burn money for no good reason, but they also lead to health and personal problems like addiction, huge debts and bankruptcy, and ruined relationships.

7. Savings by being healthy.

Once you fall ill, the savings you might have had for months or years could be gone in a snap. Often, the biggest expenses are for medical bills when we get sick. So, it is important for each family member to maintain healthy habits like eating the right food, doing exercise and getting enough sleep and rest.

8. Savings by managing expenses.

This includes knowing and prioritizing what to buy or to spend for, when and where to purchase goods and services. First, make a list of all expenses and prioritize what to pay for or buy. Second, for purchases, especially for food, groceries and household needs, make a weekly, semi-monthly or monthly procurement plan to avoid buying in small quantities. Lastly, one should go to the proper sellers like the wet market for fresh produce or to the supermarket for groceries, instead of the neighborhood sari-sari store or the corner convenience store, to get cheaper prices for the same quality and quantity of goods.

These diskarte tips should be done by all family members to feel their benefits in full. After all, cutting down on expenses should be a group effort of the entire family, especially the non-earners. 

For ordinary people who are not earning enough to save money or do ipon sa kita, saving by cutting on expenses or doing diskarte para tipid sa gastos can be their mantra for savings.