Filipinos’ usual financial monthly routine goes around with income and expenses. Once they get their paycheck, it will be allocated to their expenses and then save what is left. But essentially, money experts advise that people should save first before even using their funds for their expenses, but that’s not the case for everyone, since we’re dealing with different amount of income, sets of expenses and attitude towards money. Here are common things people unknowingly burn their money on:
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Buying on non-sale season
Planning your purchases has always been wise. If you shop for your things on the same place, you would know when they will have a drop on their prices and schedule of their sale. Truly, timing is everything.
Not adjusting air-con’s temperature
Save five to 15 percent from your electricity bill by adjusting aircon’s thermostat for hours – especially when the temperature outside is fine. It’s better though, when it automatically adjusts.
Shopping at the wrong store
It’s convenient to shop at one place, but if you consider real savings, buy them on the store specialized for them. For instance, don’t buy medicines on the supermarket or don’t buy bags in the bookstore because usually it’s more expensive. Also, buying at a convenience store is convenient but it’s never money-friendly.
Ignoring generic brands
We all have that love and trust for brands, but if you really want to be an effective money-saver, buy the generic ones over fancy labels. Generic drugs can cost as much as 80% less than brand-name alternatives. Clever advertising and fancy packaging don’t make brand-name products better than lesser-known brands.
Buying insurance you don’t need
You’ll only need a life insurance if you have a child, financially-dependent on you. Most singles, kids and seniors won’t need it. Just to make it clear, car insurance is for car-owners only – as some financial institutions sometimes give ‘free’ coverage to their customers. Medical insurance is not necessary when you are supported by the government and your company for your hospital expenses.
Keeping unhealthy habits
Gambling, prohibited drugs, excessive drinking and smoking is not healthy for you and your financial status. Once you kick your habits out of your life, you’ll save even more.
Paying ATM Fees
There is usually a P15 fee when you’re withdrawing money on a different bank and atleast P2 when you’re checking your account balance.
…This and a lot more. What do you think are your practices that makes you burn your money without really noticing it?
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.