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Living below your means

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.
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Comments

  • lupuSlupuS Mabuhay ang mga... PExer
    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.
  • zimdudezimdude indietechartist PExer
    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.
  • SpookSpook Member PExer
    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.
  • SpookSpook Member PExer
    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.
  • lupuSlupuS Mabuhay ang mga... PExer
    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.
  • 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_x11weapon_x11 close but no cigar PExer
    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
  • SpookSpook Member PExer
    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.
  • zimdudezimdude indietechartist PExer
    http://www.dfnn.com/urmoney/default.asp?page=specialfeature

    "The truth behind mall sales and zero interest rates"
  • leelayceleelayce tindera ng lupa at condo PExer
    Do not buy what you want

    only what you need

    ....and what you think you need may be something you only want
  • tina11tina11 Member PExer
    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). :)
  • mpxczmpxcz webSlinger (); PExer
    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
  • kurnelkurnel Out Cold PExer
    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
  • diwata28diwata28 travelbug PExer
    ride the bus, jeep, mrt or lrt instead of cab---for the commuters
  • cHUGEecHUGEe can't stop Jpop PExer
    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.
  • KrakistaKrakista Speak to Win! PExer
    Do not put too much money too into your ATM account. Have a separate savings account that is passbook only and no ATM.
  • rains_delightrains_delight Banned by Admin PExer
    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!
  • phalluscolossusphalluscolossus Member PExer
    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?
  • SILENTMAXSILENTMAX FOCUSED PExer
    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.
  • KuyaDannyKuyaDanny Moderator PExer
    What a lucky man. :)

    Love them with all your heart, SILENTMAX. Forever.
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