Living below your means

[Spook]

I've seen this board discussing ways to save money. It's a foreign board though so most of the tips doesn't apply to us here (using coupons, buying from garage sales,...). I think we Filipinos can use some tips on how to save money too, so let's post our own ideas here.

[lupuS]

Tip Number 1:

Resist the Urge to Borrow Money - in this country, lending money often hides under the scheme installment sales. Do you buy jewelry, household appliances, clothes, or similar items and pay via hulugan? If so calculate the difference between the sum of your payments and the cash price of the merchandise. That difference is interest - an expense you can avoid if you wait until you have saved money to enable you to pay cash.

[zimdude]

Tip Number 1.1 (derived from Tip Number 1)

Don't use credit cards for borrowing!
Buy only what you can pay at billing time.

[Spook]

Tip #2

Categorize and monitor all your expenses down to the single centavo. I know it's quite difficult, it took me a few months before I've religiously listed all my expenses down, but it'll be worth it. You might be surprised at the results and find out that you may be spending more eating out than you think. Use this as reference to find out where you can cut expenses and put your money where your reals priorities are.

Hey, even basic accounting is boring but it'll help you a lot.

[Spook]

Tip #3

Here's another one...

Resist the urge to buy. Make a wish list and write down whatever you want to buy when the urge comes. Wait for a week, before buying the earliest item you have in your wishlist. Chances are, the urge will pass after a week, saving you a lot of money. Or you'll have an urge for another item that will replace the urge for the first one. Or if you ever buy the item after a week, you're at least sure that you really want it, having waited for a week.

It would even be better if you could wait for a month instead of a week, but I think that might be too much punishment for a lot of people.

[lupuS]

Tip Number 4

Keep your cash in the bank, not in your wallet - how much money do you have in your wallet? P500? P1000? Your entire half month's take-home pay?

If the cash is not in your wallet, then you can't spend it on impulse. Keep only enough cash for a week's normal spending and leave the rest in the bank where it is out of your reach and earning interest.

[raven23]

Funny thing is, any rational person would understand all these above tips and would agree with them... but few of us really do.

My #1 tip for living below your means:

Make more money.

[weapon_x11]

Agree with raven23. Make more money than you can spend. The less time you have spending the better. If you really, really want something save up for it instead of using your credit card (i.e. installment plans ng BPI/Citibank). Its much harder to let go of cold hard cash than signing a credit card invoice. :glee:

Bawasan ang pag-kain ng junk foods, sa bahay ka na lang mag-meryenda (Php80 coffee x 20 days = Php1600). :D

[Spook]

Yes, I agree with raven23. There are actually two ways to make savings: earn more and spend less. Problem is, it's easier for most people to spend less than earn more. If you could really earn more, chances are you're already doing it.

...which leads me to another tip.

If you ever get extra money, extra earnings (e.g. from overtime), or a raise, try to save as much of them as possible. If you've been able to live with what you have before, you still could even after getting a raise.

[zimdude]

http://www.dfnn.com/urmoney/default.asp?page=specialfeature

"The truth behind mall sales and zero interest rates"

[leelayce]

Do not buy what you want

only what you need

....and what you think you need may be something you only want

[tina11]

TIP #4

pay yourself first.
our first instinct when we get money is to pay our bills, but in order to really save money, we should pay ourselves first. an example would be to transfer your funds from your payroll account into a separate savings account (and do not touch the money in this account, EVER). :)

[mpxcz]

if ever you get a raise or some bonus... even if your 5 year time deposit has gained interest... temper yourself to not use it too much, live out of your income... but darn it! I want to buy a car... :D hehehe

so instead of this tip I'll take raven23's advice

[kurnel]

Originally posted by Spook
Tip #2

Categorize and monitor all your expenses down to the single centavo. I know it's quite difficult, it took me a few months before I've religiously listed all my expenses down, but it'll be worth it. You might be surprised at the results and find out that you may be spending more eating out than you think. Use this as reference to find out where you can cut expenses and put your money where your reals priorities are.

Hey, even basic accounting is boring but it'll help you a lot.

i have to agree with this. I did it and it cut as much as 50% out of my credit card bill

[diwata28]

ride the bus, jeep, mrt or lrt instead of cab---for the commuters

[cHUGEe]

Originally posted by tina11
TIP #4

pay yourself first.
our first instinct when we get money is to pay our bills, but in order to really save money, we should pay ourselves first. an example would be to transfer your funds from your payroll account into a separate savings account (and do not touch the money in this account, EVER). :)

oy. may nagbabasa ng mga business books. i last read the phrase "pay yourself first" from robert kiyosaki's, "rich dad, poor dad". ganda.
magandang advice nga yon. you could setup another savings account with the bank your payroll goes into and have them automatically transfer funds com payday. para di madaling galawin.

[Krakista]

Do not put too much money too into your ATM account. Have a separate savings account that is passbook only and no ATM.

[rains_delight]

Before the pay day comes, list down all the fixed expenses like electric bill, water, telephone, internet connection, etc. on a sheet of paper. DO NOT ROUND IT OFF! For example, instead of writing P 3,000.00 for your electricity bill, stick to the exact amount of Php 2,568.67. Then determine the budget for other expenses such as groceries, everyday allowance, etc. You can now make an assumption on how to cut your expenses.

When you receive your take home pay, stick to your budget. The net savings should be placed in the bank. Preferably in time deposit so you will be forced to save money.

Another simple tip: Spend only the paper bills. The coins will be placed in a piggy bank and before you know it, you have just saved!

[phalluscolossus]

You know the limitations of your paycheck and yet you 're living like a king!! You keep on using your credit cards until its maxed out, until you can't pay for it anymore because of the compunded interest rates. You're having trouble paying your rent, but you just have to avail of that car loan that's your company's offering to all its employees, just because you feel "guilty" that it would ba a lost opportunity, despite the fact that you already have a nice second hand car.

Are you the siimliar type of worker? Are you a shopaholic? Do spend money which you still do not have?

[SILENTMAX]

im 23

i have one pair of shoes.

i still ask my mom to buy me clothes

i used to have 1 belt pero ngayon 2 na.

i buy affordable perfumes

if i shop i shop at sm department

i have a shopping list when i go to a mall.

i only have 1 credit card which i pay monthly

i commute sometimes

i live with my parents

nagpapasalamat ako at kahit papano may kaya magulang ko kaya di ko na sila kailangan bigyan nang pera. :D

my only luxuries is cars which i love dearly. i have 2 cars :) both bought 2nd hand and both all mine, all mine


btw i have a networth above and beyond what a person my age should have.

[KuyaDanny]

What a lucky man. :)

Love them with all your heart, SILENTMAX. Forever.

[noriel]

nakakainggit

wanna be like u wen i gorw up, sirmax:)

[SILENTMAX]

thanks kuya danny
i do realize how lucky i am :)

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[soulthird]

I don't...

For one, I always keep a certain amount of money in my bank account and make sure I don't go below that.

I don't use credit cards which means that if I purchase something, it's cash I have readily available and not something I have yet to pay for.

I don't do much of the clothes-and-shoes shopping. I only do them during, say, a mallwide sale.

When buying a major item (one that costs more than what I get a payday) I think it over twice and thrice before I go and purchase one

I'm working on my being an impulsive buyer LOL...

on the downside I tend to buy things when I'm bored so I can have something to tinker and make myself busy with. tsk.

[doctor_doom]

Originally posted by noriel
nakakainggit

wanna be like u wen i gorw up, sirmax:)

You wanna grow up like that? Nakikisukob sa parents tapos ginagawang security blanket ang pera ni papa? Saan ang challenge dyan? Get a life and get real! Make your own money, get your own place and live your own life!

Do you really want to take financial and business advice from a 23-year-old who lives with his rich parents? If this girl is such a genius with money, ***** naman kaya niyang magsarili at harapin ang obligasyones at responsibilidades ng tunay na kabuhayan.

[dekster]

Offtopic:
Have you guys tried using the software MS Money? (pirated copies are accessible hehe)

For me it's pretty good... I've been using it for around 4 years now and because its become a habit, I get to kep track of my income and expenses really wel... :)

As for my reply to the topic... I just recently started using credit cards but I make an effort not to go beyond what I'm earning... I think I'm ok naman when it comes to my spending habits although I'm not saving as much as I would like hehe... Basta... I can't wait to get a raise! :D

[snop]

Originally posted by phalluscolossus
You know the limitations of your paycheck and yet you 're living like a king!! You keep on using your credit cards until its maxed out, until you can't pay for it anymore because of the compunded interest rates. You're having trouble paying your rent, but you just have to avail of that car loan that's your company's offering to all its employees, just because you feel "guilty" that it would ba a lost opportunity, despite the fact that you already have a nice second hand car.

Are you the siimliar type of worker? Are you a shopaholic? Do spend money which you still do not have?

Great thread, phallus!

You may also want to click
here: LBYM (http://207.44.234.62/~admin1/forums/showthread.php?s=&postid=3378737#post3378737) - Living Below Your Means, One secret to success.

[SILENTMAX]

Originally posted by doctor_doom
You wanna grow up like that? Nakikisukob sa parents tapos ginagawang security blanket ang pera ni papa? Saan ang challenge dyan? Get a life and get real! Make your own money, get your own place and live your own life!

Do you really want to take financial and business advice from a 23-year-old who lives with his rich parents? If this girl is such a genius with money, ***** naman kaya niyang magsarili at harapin ang obligasyones at responsibilidades ng tunay na kabuhayan.

:)

what does not kill me only makes me stronger.

[Gabriela]

23 ka lang pala max. oh yeah you must really love your car, loaded pare. parang kakaskasin mo tsekot kong bulok nung alabang EB natin. :D

anyways, i dunno if I'm living beyond my means, joint earner and spender kami ni hubby eh. may utang na naigagapang bayaran. i've exceeded my credit limit so i'm paying it now. tapos nun utang ulit. i hope to buy my dream laptop this dec.

[thehitman]

I'm happy to say that I am living well within my means. I keep my savings to 30%-40% of my salary per month, and the rest, I splurge to my heart's content. Not exactly rich, but I am financially stable enough to be able to sustain myself.

Originally posted by dekster
Offtopic:
Have you guys tried using the software MS Money? (pirated copies are accessible hehe)


Nope. But I do keep track of my savings and expenses using an MS Excel worksheet. It's a "complex" system of formulas and allows me to account for my salary for the next two weeks (until next payday). Actually it's crude, but it gets the job done for me.

:cool:

[lyrehs]

beyond my means...NO.
but beyond my responsibility... fast approaching YES.

[bronze_freak]

definitely not. ayaw ko mabaon sa utang....:no:

[DivineFist]

Originally posted by dekster
Offtopic:
Have you guys tried using the software MS Money? (pirated copies are accessible hehe)

For me it's pretty good... I've been using it for around 4 years now and because its become a habit, I get to kep track of my income and expenses really wel... :)

As for my reply to the topic... I just recently started using credit cards but I make an effort not to go beyond what I'm earning... I think I'm ok naman when it comes to my spending habits although I'm not saving as much as I would like hehe... Basta... I can't wait to get a raise! :D

I use MS Money too. It's "fun" to see where my money goes every month. I also like the Portfolio part.

As for living within my means, I live with my parents, and I make it a habit to give them around 6k - 8k a month for their expenses at the house. Even with that, I still try to make a habit of setting aside 10k a month for savings which I funnel to mutual funds and stocks. I have budgeted 200 per day for expenses so I have a good figure of how much to spend. I do splurge once in awhile. I have this credo of not minding how much do I earn, but how much do I save. And most of all, don't forget to give charitable contributions to both your church or your favorite charity. For some strange reason, I don't feel the pinch even though I contribute to such organization every month.

:glee: :glee: :glee:

[eboy73]

Even though my pay has more than doubled in 8yrs, I still maintain the lifestyle I had when I was making little. After all, this is the only way I'll be able to retire early:D
Best thing that ever happened: payroll deductions. Before I see the money it is automatically taken and deposited into my 401k account.

[KuyaDanny]

Are you living beyond your means? by phalluscolossus has been merged with this thread.

[Carpe_Diem_Z]

*untog*

[makulit_ako]

If you can, go abroad and earn more.

if you can't. Don't ever use credit cards. Keep them as a novelty but don't charge more than you can pay. don't let your the outstanding amount earn interest, zero them out. When the yearly membership fee arrives, call them and say you want to cancel your card because another card offers free membership. They will waive your membership. Works most of the time.

Money in the bank, change in your pockets. If you manage to save a big amount, set aside a chunk and invest (e.g. time deposit).

Give yourself a reasonable allowance per week. Not too luxurious but not too cramp.

If you want something, save money for it. Don't use credit cards.

Don't eat out at food chains too often. Buy food from the local market. Mapapractice mo na cooking skills mo, makakamura ka pa.

Mag-plantsa ka in bulk once every other week.

Magcharge ka ng mobile phones mo sa office :lol:

Punuin mo yung mga drinking containers mo sa bahay sa office :lol:

[jtan]

living below your means is surely an effective way to accumulate more cash, but you are sacrificing your happiness factor.

[chebyshev]

i've always been an impulsive shopper pero nagpaparehab na ako ngayon. :glee:
just wanna share with you guys these guidelines which i always jot down whenever i feel the urge to buy something.
1) do i want it?
2) do i need it?
3) do i need it NOW?
4) do i have the money? (cash)

pag YES lahat, sugod na sa mall. otherwise, tuloy-tuloy lang ang paglilista. :D

fairly simple right? i always keep my booklet in my bag so kahit saan ako, pwede ko syang i-update. so far, it works for me. :)

[compgurl]

hi everybody!!!! thanks for this wonderful topic... i've learned a lot from this forum... before i really dont care if i save money or not..i dont even have passbook...(only ATM) but now i realized that i should save money... if only i have save the money that my parents gave me i'll probably have lots of money now.... anyway thanks to you guyyyzzzz!!!!

[Mymnosene]

hmmmm. living below my means, yes. But I have recently moved out of the house and am getting married in november kaya't walang ipon, regardless of the two-income factor (plus sidelines) naming mag-asawa. after the wedding we plan to really save.

Sa ngayon, we both commute, minsan sya nag-bi-bike to work. we don't go out a lot, but since we plan to do events, labas din kami....*sigh*. Nagbabaon kami instead of eating at our respective canteens. that last one really saves us a lot. Plus, when i get a cabinet for the office (all i have now is a desk and a tiny locker-cubby) i plan to bring my own coffee. libre naman dito sugar and hot water. ;)

wonder where I can find that MS Money software?

[Chase_Meridian]

Thank God for this thread! Hi, I'm Chase and I'm a chronic shopaholic (hi Chase!).

When I got my most recent payslip, I divided my net income into 15 days so I would know how much money I can spend in a day (yes, including weekends). But there's one down side to this -- there are some stuff that I really want to buy that cost my one week's wage! So that means I would have to ban myself from purchasing anything for one week! La Mesa Dammit!

Oh well, my only consolation when I really cant control my spending is the thought that I am helping out our economy. ;)