The Budgetarian

How to save up when salary is not enough

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How to save up when salary is not enough
When the need and the unprecedented time arise, we should have something in our pockets. But how can one save if your salary is not even enough? 

MANILA, Philippines — Layoffs, closures and retrenchment during the pandemic have left many people struggling financially. But that's why if there is one major thing that the pandemic has taught us, it is to save money.

When the need and the unprecedented time arise, we should have something in our pockets. But how can one save if your salary is not even enough? 

Being financially literate can help you secure your future as long as you develop a plan and spend according to your means.

Online job portal JobStreet recognized this difficulty among Filipino employees. In a Facebook Live Session during the recent Virtual Career Fair, host and DJ Nicole Hyala and guests Salve Dulpito, Ady Cotoco, Charm De Leon and Jerick Vivar discussed ways to save money when salary is just enough. Here’s what they have to say:

Don’t be afraid to ask questions

When it comes to money, people often shy away from talking about it because it makes them feel uncomfortable. But to better manage your finances, you must learn to ask for advice from people as this will help you explore different ideas and strategies to manage money effectively. 

Set saving goals 

The most crucial step is defining your short- and long-term financial goals. Financial goals are where you want to be with your money in the next 5, 10, and 20 years. What is it that you want to achieve? How long will it take? What are the steps to achieving it? Write them down as both a reminder and a motivation. 

Keep track of your expenses daily

You have to stay on top of your spending by tracking your expenses every day. The main thought behind this is to identify and eliminate wasteful spending habits in your life. Moreover, consistently tracking your expenses will help you maintain control over your spending and promote better financial habits like saving and investing.

Create and stick to a budget

Your budget should outline how your expenses measure up to your income — so that you could plan your spending and limit overspending. Learning to become more intentional about your spending can help you get ahead. Once you have your budget under control, you will be better positioned to ensure that your spending habits live with your saving goals. 

Income – Savings = Expenses, instead of Income – Expenses = Savings

By re-arranging the equation, we are essentially prioritizing savings overspending. This means, the moment we draw our salary, we allocate the money toward savings and spend whatever is left after saving. This puts a limit to unnecessary spending – you should learn to say no to things that you do not need.

Managing your finances requires a lot of patience and hard work, but these day-to-day sacrifices will definitely make up for it in the long run. If you consistently work at it, your financial situation will give you peace of mind and expand your options for decisions that have a major effect on the quality of your life.

RELATED: Neri Naig shares how she became financially independent from husband Chito Miranda



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