In the Philippines where the poverty incidence is 16.4 percent, understanding the tips to save money is crucial. The tips to save money will make or break the quality of life you longed dream of.
To save money in the Philippines requires constant effort and unyielding determination.
The high inflation rate, income inequality, rapid population growth, and low economic growth are some hindrances keeping most Filipinos living a better quality of life.
The latest FIES (PSA 2015a) data showed that 58.4% of the Filipino population belonged to low-income earners. Another SWS survey reported that almost half of Filipino families considered themselves poor.
Various statistics agree that poverty in the Philippines will continue to increase unless a concrete government resolution is implemented. Of course, people’s actions also play a significant role.
Since change must start from ourselves, we’ll reveal the top 15 tips to save money this year.
Just a head-on warning, the savings tips we will provide in this post require constant efforts and determination!
Are you ready to SAVE MORE?
15 Tips to Save Money in the Philippines
1. Fix Your Mindset
The best tips to save money start with a proper mindset.
Understand the reasons why it’s essential to save money.
Right from the get-go, convince yourself that saving money will benefit your and your loved one’s future.
Be motivated to save money by considering the pros you will get in the long run. Remember, saving money should bring fulfillment; not just an obligatory act.
2. Focused on a Clear Goal
One of the best tips for saving money is to have a clear goal. In other words, you need to have a definite purpose for saving, which will motivate you.
For instance, if you want to buy a laptop, buying a new laptop is your savings goal.
The first thing you need to do is visit a computer store or research online to find out the actual price of the laptop you plan to buy. After you know the price, you can estimate how much you need to save every month to buy the laptop without compromising your budget.
Of course, people save for different reasons. Some save to buy cellphones, cars, appliances, or even houses. Actually, it doesn’t matter what your purpose in saving is as long as you are clear about it. Remember that you need to be sure to hit a particular goal!
3. Budget- Smart
Creating a budget is also one of the best tips for saving money in 2024. To create a budget, you need to itemize your monthly expenditures. This way, you will know how much is the actual money you need to secure each month and for what items.
Crafting a budget will not only track your expenses but also make you a wise spender. In other words, you’ll learn how to prioritize things. If it’s not part of your budget, leave it until you have more funds!
4. Fixed Payday Savings
Also, one of the best tips for saving money in 2024 is to set aside a particular amount every payday.
You can start by allocating 10%, or even 5%, of your salary as your fixed monthly savings. It doesn’t matter how much you save every month; you just need to get used to it. Savings should be part of your routine to make adherence easier.
5. Add-on Savings
If you are employed, you get bonuses, allowances, and even salary increases. Unfortunately, most people don’t save the financial add-ons they get. Instead, they also level up their lifestyle if they receive more money. It’s a mistake.
One of the best tips for saving money is to value everything you get aside from your salary. In other words, bonuses, allowances, and even pay raises should be automatically included in your savings.
As you read at the start of our list, saving is just a matter of mindset. If you want to save, pretend you did not have a salary increase. Forget that you receive bonuses. Again, everything that’s been added to your usual salary should go straight as your savings. Do it, and you will really save more this year.
6. Record Your Expenses
If you’re serious about saving money, track your monthly expenses. List everything that consumes your paycheck and evaluate the entries. Analyze which items are no longer essential and don’t include them in your succeeding budget. Every item you remove from your monthly expenses will add up to your savings.
7. No Unnecessary Expenses
To save more, don’t buy things that you only want!
You need to include essential items only in your monthly budget. If it’s not listed on your budget, then it’s not essential; don’t buy it.
If you are serious about saving, discipline yourself and follow your budget no matter what happens.
8. Stay Away from Shopping Apps
Also, avoiding shopping apps is one of the tips for saving money.
In 2021, the Philippines had 73 million online active e-commerce users, recording a whopping $17 billion in market sales in the same year.
There’s nothing wrong with buying things online, but make sure to purchase IMPORTANT items only!
Unfortunately, many Filipinos ruin their budgets by making unplanned purchases online. Don’t join the bandwagon!
Don’t install a shopping app to avoid being tempted to buy random things online—it’s as simple as that!
9. Cancel Unnecessary Subscriptions
One of the best tips to save money is cutting unnecessary subscriptions.
Evaluate your recurring expenses. If some of them no longer provide value or are redundant, cancel your subscriptions to save more.
For instance, if you have a smart TV, you no longer need to subscribe to a cable/ satellite TV service. If you have a cellphone, maybe it’s time to cut your landline. Again, examine your budget, and you will definitely find a number of items that are no longer relevant.
10. Cook and Eat at Home
It’s not bad to eat at fast food chains but do it sparingly. Unfortunately, 54 percent of Filipinos are guilty of eating at fast food restaurants once a week. This habit surely wouldn’t help if you want to save more.
Instead of eating outside, why not cook and eat at home? It’s less stressful and will provide greater bonding opportunities for family members.
So, the next time someone invites you to eat outside, tell him to buy meat and ingredients instead. Take charge of the cooking, and you will be shocked at how much money you can save!
11. Don’t Lend Money to Anyone
It’s not wrong to lend money, but it’s a different story in the Philippines.
If you are determined to save more, never allow anyone to borrow from you. Aside from it may negatively affect your budget, getting back your money becomes a matter of ‘faith’ in most instances.
If you want to save more money, try to be rock-solid this time. Don’t lend money to your friends, even your relatives.
12. Stop Your Vices
Determined to save more this year? Forget all your vices!
Drinking alcoholic beverages, cigarettes, vapes, bar hopping- these things take a toll on your budget.
Try to live a healthier life. Instead of thinking of vices, why not convert them to more family bonding?
If you stop your vices, you will save more and live a purposeful life.
13. No Bad Debts
One of the best tips to save money is avoiding bad debts.
What are bad debts?
Bad debts are money you borrowed for nonsense reasons. In other words, you did not get any return on investment. Don’t do this if you want to save more in 2024!
It’s not wrong to borrow money from banks or loan apps; let me state it clearly. However, you should only borrow money during emergencies. If not for emergencies, you can borrow money to finance a home renovation, start a new business, or fund schooling, but never for other ‘nonsense’ reasons!
14. Side Hustle
Also, one of the best tips for saving money is to find a side hustle.
Side hustle pertains to a job or business, aside from your main job, that provides additional income.
In 2023, 60% of Filipino employees resorted to sideline jobs to meet both ends. Another report suggests that Filipinos need two to three jobs to avoid poverty.
If you want to save more, it’s time for you to find a side hustle.
But before you apply for an additional job, evaluate yourself first. Determine your strengths and weaknesses. Of course, don’t forget to assess your health. If you feel your skill sets warrant and your health permits, apply for a side hustle now to save more!
15. Watch Your Health
Health is wealth, which may sound cliché, but it’s reality.
To save more, you must take care of your health. If your health fails, who will provide for your family?
Before it becomes too late, eat healthy foods and make exercise part of your daily routine. Keep yourself healthy if you love your family and, of course, to save more money.
Takeaway
We just revealed the top 15 surefire tips to save money in 2024. We guarantee you will save more money if you follow our list.
Like you, we also dreamed of saving more. We understand saving money is not as easy as ABC. But with the tips we’ve provided, you’re one step closer to achieving your goal!