online shopping vs saving
This is for those times "add to cart" is the easiest thing to do.
Illustration: cottonbro via Pexels

These financial savvy millennials share their 2 money-saving formulas

Kathleen A. Llemit (Philstar.com) - March 10, 2021 - 3:34pm

MANILA, Philippines — There's a running joke most Filipinos are fond of throwing at their colleagues—numbers and math often make their noses bleed. The very thought of being asked to crack a simple equation conjures an image so horrifying that it is commonly answered with a wisecrack or joke.

But for those eager to grow their net worth especially during this pandemic, there are two formulas you can bet are not puns but are worth considering seriously.

1. The 70-30 rule (or sometimes, 60-40)

Online shopping is both a boon and bane during a crisis when we're all required to spend most of our free time at home. With so time on hand to browse through catalogs, the "add to cart" gets harder to resist.

It does not have to be that way always, said TikTok creator Ady Cotoco. "Sobra din ako ng overspending sa mga online shopping platforms, as in every double-double campaigns. Grabe ako mag-add to cart kasi I know the discounts and platform," he revealed.

The recently hired account manager of an online shopping platform gave a valuable tip to those who find themselves in the same boat as him. 

"The tip is which I apply to myself is the 70 to 30 scheme. When I get my salary, 70% goes immediately to my time-deposit savings account which I cannot touch anymore and then 30% goes to my wants and needs. This will further be equally divided to my wants and needs," he shared.

He also advised to track one's expenses, a tip he got from his mother.

"Track your expenses. If you can write all, please do. That's what my mom taught me and until now that's what she does kahit na 'taho lang 'yan na tig-P20. By the end of the month, compute your expenses so you'll know where you are financially at," he said.

He said it's a small sacrifice but it has worked for him.

2. Income minus savings equals expenses

Normally, most would deduct their expenses first from their income and the amount left is kept as savings. This should not be the case, said YouTuber Charm De Leon.

De Leon is known for creating content on adulting and personal finance. "When we get our income, we immediately spend it on expenses whether it's a need or a want. Renta or milk tea? So what's left is our savings," she noted.

"For us to be able to save, it's quite simple. We just have to switch the expenses and the savings in the equation. So, when we get our income, savings must come first. If you've set aside your savings, then you can budget your money for your expenses," she advised.

By observing the reverse equation, she assured that "you'll have a peace of mind that you're consistently saving."

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