Published: June 30, 2018 | Updated: October 19, 2020 | Posted by: Venus Zoleta | Personal Finance
Petsa de Peligro na. Name-meligro na naman ba ang wallet mo? It’s the worst time of the month again. Several days before payday, all you’ve got are a few 20-peso bills and coins. You try all sorts of Petsa de Peligro survival hacks just so you can stretch your money until the next payday. “Kapit lang. Malapit na ang sweldo,” you remind yourself, even if waiting for your paycheck feels like forever. The struggle is real, indeed.
Then after receiving your salary, you pay your bills and splurge a bit. There you go again—you’re broke until the next payday.
Sounds all too painfully familiar? If so, you’re trapped in a paycheck-to-paycheck cycle, a situation many working Pinoys find themselves in. Living paycheck to paycheck is stressful, as you constantly worry about having enough money to get you through the next payday. It also keeps you from reaching your financial goals.
Start your journey to financial freedom with these anti-Petsa de Peligro tips.
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“Do not save what is left after spending, but spend what is left after saving.” Successful businessman and investor Warren Buffet couldn’t put this nugget of wisdom any better. Unfortunately, many working Pinoys struggle to develop the habit of setting aside a portion of their income before spending it. In fact, only 7% of Filipino millennials have a monthly savings plan, based on a recent study.
If you don’t prioritize saving and investing, you’ll always be grappling with surviving Petsa de Peligro. You won’t have an emergency fund that can save you from unforeseen expenses.
To make it easier for you to remember, keep this formula in mind: Income – Savings = Expenses.
Always caught by surprise when your bills are due? Don’t know where your money is going? It only means you aren’t monitoring your spending closely enough.
So much have been said about effective budgeting, yet its importance can’t be stressed enough. It entails assigning an amount for each spending category and keeping a record of all your expenses—down to the last peso—to ensure that they don’t exceed your income.
Budgeting can be a tedious and time-consuming activity, especially for busy professionals, but it’s worth the time and effort. Here are a few tips to make sure you’re doing it right:
Ever noticed how the rush-hour EDSA traffic turns from bad to worse every payday Friday? It’s when people flock to the malls (that hold a sale) and hang out with friends in restaurants and bars.
If you often experience Petsa de Peligro, then you really need to take a long, hard look at how you spend your money.
Some of these cost-cutting measures may not be worth that much, but they do add up over time. When you get rid of non-essential expenses, you free up money for your essential expenses and savings.
It’s so easy to get broke during Petsa de Peligro when you try to please everyone. It can be your relative who’s trying to borrow money from you, friends who invite you for a night out, or officemates who often joke you about treating them for pizza because you got promoted.
The magic word? “No.” Politely decline anything that can wreck your budget (Focus on your goal!). Embarrassing as it may be, let them know that you’re trying to spend less so that you can stop living paycheck to paycheck. They’ll surely understand. Your friends and workmates may support you and even follow your example.
Instead of just finding ways to survive Petsa de Peligro, work harder to break free from that difficult situation. All it takes are some lifestyle adjustments and being mindful of your spending habits.
Venus is the Head of Content at Moneymax, with over 15 years of combined experience in digital marketing, corporate communications, PR, and journalism. She invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Outside of work, she’s crazy about cats and Korean dramas. Follow Venus on LinkedIn.