We all know that we deserve a rewarding lifestyle after a stressful days of work. But this also makes a conflict with our goal to earn millions of pesos from our salary. We commonly aim to save for our future, but at the same time, we also aim time to enjoy our life today.
What I have noticed is that this conflict is always caused by a change in lifestyle. The higher the earnings, the higher the expense. It seems that these two items become directly proportional.
I remember having a salary of P12,000 with my first job, and was able to surpass my monthly budget struggles and even saving a few thousands in the bank. When I moved to a new job with a higher salary, I expected to have more savings, but to no avail, I realized that I’m actually also spending more! This, I believe is the main key on how we can balance both our present and future. We must learn how to manage our spending regardless of the amount we are earning.
To help you get started, here are some items I have noted that commonly grabs our monthly budget. I do not intend to eliminate them, as I know these also are the items that relieved us from our daily stress.
Coffee or Milk tea- this can be our booster in doing our daily tasks but replacing it with a glass of water for some days can also help improve our health. Did you know that drinking water can help us stay in focus? It can help us be alert and concentrate more with our work.
For meals, I also suggest to have your “baon” instead of buying from fast food chains. Aside from it being home cooked, it can contain more nutrients than those of the commonly oily and fatty fast foods.
Movie date/Weekend shopping- you can also try spending your weekends in a park. I remember a Korean friend telling me that Filipinos are so into shopping malls, while Korean love spending their bonding time with friends and families at the park. We can also try this sometimes. Instead of going into a mall (which commonly ends up in watching a movie or shopping), why not bring your kids or your special someone to a park or a zoo. This can be very educational and at the same time, having picnics with them is more intimate.
Cigarette- we all know that cigarette is bad for your health! It also threatens the health of people around you. But I know that it’s hard to stop from this habit abruptly, then at least you can start by reducing the number of cigarette sticks you consume daily. It is both beneficial for you and to your pocket, as well.
Leisure Budget- this may include gadget upgrades and travels. Again, I do not say not to do these things, but manage them. You can always enjoy the best of both worlds. You may not have the latest gadget in town, but you have a growing money in a mutual fund investment, for example. You may travel at times and invest some of your income to COL or BPI Trade Stock Trading.
Given the benefits I have stated above, financially speaking, this savings can also help you prepare for your future. Based on the example given, a minimal change in your daily lifestyle can give you a P11,670 savings per month or a total of P141,120 per year. If you save this amount for 10 consecutive years in an investment vehicle that can give you a 10% average return, this can translate to a savings amounting to P2.2 Million after 10 years and P5.8 Million after 20 years.
From this, we can see that having the best of both worlds is possible. We can have our desired lifestyle today, and yet, we can still prepare for our future financially. Again, discipline and living in moderation is always the best answer. Please feel free to leave a comment below if you have any ideas or inputs regarding this matter.
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