Where does your salary go?

Getting ahead in terms of finances doesn't necessarily mean that you have to have a fat paycheck. Having lesser salary than your friends who've managed to save is not an excuse for not saving at all. This week i have been blog hopping around to see where Filipinas mostly put their money on, many are disappointed that all their salaries seem to disappear at once.

Here's a rough estimate of our top expenditures:

1. Food - you may think food is cheap but with all the tempting cafes sprouting about and posh restaurants that promise a better eating environment, we can't help but pay more to enjoy more. A hectic working day sometimes really deserve a fancy dinner to get you going.

2. Trinkets/Accessories - because we love mall hopping, we also don't want to leave empty handed. This is the next money vacuum out there. It includes bracelets, cellphone accessories, hair accessories, and beauty products.

3. Clothes and shoes - need i say more?

4. Family - empowered women serve as breadwinners to some families and they continue to help out their parents with bills, hospital expenses, etc.

The list goes on but I can only manage to write until the fourth one. How do we get around these expenses? Maybe, we should put ourselves in number one. Paying yourself first, no matter how small, think P100 pesos for every week, is not a bad idea.

Also, the next time you go to the mall, have a list of things YOU NEED to buy. Better, send your sister to buy it for you instead so you won't arrive with more than you need.

When it comes to food, we are actually paying for the right to eat in a certain environment, quiet, with the right blend of people, and maybe some music. How about scheduling a once a week dinner with friends? Just to avoid spur of the moment dinners and you can also look forward to this day when a stressful one hits you on the head. Tip: always look at the bottom of the menu if service charge and vat are included/excluded.

Family is always our priority, explore options of putting up a small business for your parents so they can depend on a regular stream of income, no matter how small it is, it will help.

Try this: On your next payday, try to list down EVERYTHING that you spend. from there you will discover useless purchases that you can scrap out soon so you can end up having more.

Saving and Sorting Money by ATM

We're back, sorry for the long vacation. I was busy looking for a new job and now it's been two months since i started working as a copywriter. It's a dream come true to write for a living! :)

With that shared, how can we save more of our salaries and get control over them? This is a no-brainer, but i would like to share it anyway. When i got my first salary, i decided to do "sorting" of money through ATM cards. My goal was to see how much i really make each pay day, how much do i spend, and what should be my weekly allowance.

Since then, i separated my salary from other income. Even if i have money on hand from other things, i will get my allowance from my salary account thru ATM since the allowance is for expenses related to work. By doing so, i get a very clear picture of how much is retained from my pay.

It's that simple and I may sound stupid for even sharing it. It's just that some people are confused whether they are earning or incurring more expenses than savings. Money and finances are really confusing because there are a lot of factors that affect our financial decisions. Sorting money and getting a clear picture on the amount we have on hand, is a great way to lessen the mental burden from finances. Also, you get to set aside part of your savings from other income and save them from being spent. That's exactly why rich people have separate bank accounts!