If you’re living paycheck to paycheck, then you are on a steep slope. This lifestyle renders one venerable and you won’t have cash for emergencies. At one point, your paycheck won’t be enough to cover all your bills.
The cycle continues whether you are getting a monthly or bi-monthly salary. More so amid the pandemic when things still seem uncertain. No one knows if they will receive the next paycheck in a month or a termination letter. During the festive season, we all go out to impress our friends and relatives. We even go deeper into our pockets to make the season merry and enjoyable for our families. Although it’s okay, you need to be smart about it.
In the Philippines, during the holiday, Filipinos spend a fortune buying gifts for friends and family. This is what has led many losing Christmas bonuses and even their 13th-month pay. However, this year we want to do things differently to manage your expenses and save for the future. 2021 seems a good year, but we don’t know what it holds in the future. Here are 4 payday habits you must avoid.
4 Payday Habits to avoid in 2021
Not keeping track of expenses
Credit cards have become the new model of paying for products either online or offline. Consumer insights study shows 64% of Philippines carry more than one credit card. The percentage is even expected to grow due to the pandemic.
But the big question is, do you check your credit card transactions? How much do you spend on every purchase? The sad truth is you will check your credit card when its declined or when you receive a bank notification.
On the other hand, cash payments also present one with the same problem. It’s hard for you to keep track of your expenses once all the bills are taken care of. That is what renders you broken mid-month, and you have to wait for the next check to payout debts accrued during the period.
Most Filipinos face such predicaments when cash hits their bank. They spend more than they should by purchasing items or products they don’t need. This is what renders a huge population of Filipinos poor and living below the poverty line.
But there is a solution to this; all it requires is better financial management tools. The first step is accepting yourself and living within your means. The next thing is taking a pen and notebook and jot down all your monthly expenses. Separate your needs from wants and stick to the basic items. Therefore, you can track your expenses and find extra cash to invest in Robocash group, stock, bonds, or even in a locked savings account.
“Bahala na si Batman” mentality
Filipinos live by the mantra “Come What May,” known as “Bahala na si Batman.” The mantra seems harmless and encouraging, but until it hits home when you are broke. During this time, Filipinos wake up and realize they have been living beyond their means and luck cash to sustain them till the next paycheck.
And what happens if you are sacked in the middle of the month. Therefore you need to change your mind and look for a new mantra to live by. This could be “I choose to live a rich and full life.” That guarantees you look for multiple sources of income.
You would opt to invest the extra cash in stocks, bonds, or even start a business. Make sure every coin is accounted for, and none goes to waste. Having such a mindset prepares you for the future.
In the Philippines, when salaries hit the banks, there is a joyous mood in the air. Everyone is happy and wants to take a vacation, purchase the desired item. During this period, mall and retail stores make a killing by presenting you with crazy deals. Though the discounts seem enticing and worth it, you need to tame your desires. Or else you will end up heading for soft loans from shylocks the next day.
That’s why we recommend budgeting before the purchase. If you earn PHP 25,000 per month, 30% should go to your current account for personal use and 70% to your savings and investments. This guarantees you shop for what you need to avoid impulsive buying.
Always remember to prepare a list of the items you need from the stores and supermarkets. Stick to the list and don’t purchase any item outside the list to save cash in 2021.
The “Hiya Mentality” is an excellent principle Filipinos live by. Treating your family and relatives out is a fantastic thing. This shows you have a big heart that is ready to put others first before you. Plus, parents believe they worked hard for their children to ensure they have everything, and the same is expected of them when they’re old.
That’s good since you receive blessings from your parents, but you need to be smart about it. Nonetheless, not all your savings should be allocated for such activities. Instead of investing in trips and vacation trips, channel the cash to their health insurance schemes or their business. And once in a while, treat them out, maybe during the festive season. This eases their financial burden, and you can save cash for your future investments.
Though you might have followed all the payday habits to avoid the above, there are times you’ll find yourself broke. This makes it harder to pay for your utility bills and even take care of your expenses. If so, https://robocash.ph/articles/short-term-loans can help you. This online loan platform gives out money 24 hours a day. The firm provides affordable loans at a low interest rate. You can request cash from PHP 10,000 to PHP 25,000, depending on your need, and get it in a bank account or at one of its branches. You can solve your urgent financial problem, but remember that you are required to repay the loan on time.