Last Updated on April 13, 2017 by Marie Bautista
Some twenty-somethings aren’t just gipit*. They are deep in financial crisis. Here is how to deal.(Also read about a simple system for you to grow your money fast. Look out for the free eBook at the end of the post.)
When you’re young, entry-level positions are part of the deal. This often means you have to keep living at home or settling for a so-so first apartment where you will make do with instant pancit canton dinners from time to time.
Take heart. You are not alone.
Most 20somethings experience this “I’m so poor” stage. Meanwhile, wealth is much more visible now (flashy gadgets, celebrities with grand lifestyles) that it can seem like everyone else is rolling in money, making the sad state of your ATM card doubly depressing.
Money problems can actually create an over-all, low-level stress. The key is to figure out what you’re up against and begin making progress, no matter how small.
Here are the reasons your bills may be bleeding you dry…and what you can do about them, starting now.
necessary Dues
Living expenses make a huge dent on your budget. If you’re living solo, your rent, along with your electric, water and mobile phone bills can run up to a monthly total of P10,000 or more.
Then, of course, you have to buy groceries, set aside cash for transportation or gas and maintenance if you have a car, and incidental expenses, like association dues.
These days, even those with above-minimum wage salaries of around P15,000 to P20,000 find it hard to meet their monthly dues. It’s even more challenging when they are out on their own.
What you can do: Live with your parents until you’ve saved enough. Besides, most landlords demand a two-month deposit and a one-month advance on the rent. Giving your parents a portion of your monthly salary (say P5,000) is a better deal at this point.
Pathetic Paychecks
You’re in your dream career field and you’re set to pay your dues but the paltry starting pay really hurts. (Remember that the government also takes out a chunk of your pay for taxes.)
Being a “freelancer” isn’t as freeing as it sounds. Most freelancers don’t have health insurance benefits, so even basic doctor check-ups cost a fortune.’’
What you can do: Even if you’re doing freelance work, make sure you pay your SSS and Philhealth contributions so that you can get to enjoy the same benefits of your office counterparts.
Look for microbusiness. In other words, “Rumaket ka!” Do you type fast? Are you good in foreign language? Can you bake? Can you write and blog? Be creative and cultivate your entrepreneurial skills so you will make some extra income.
Credit Card Crises
Credit card companies recruit heavily – via telemarketing, email advisories and through booths in shopping malls. By the time most newbie credit card holders realize how much interest they’re paying for trinkets and restaurant meals, they’re buried in bills.
Mountains of debt can make it psychologically easier to indulge. If you already owe P50,000 for new gadgets, what’s another P5,000 for a bag?
What you can do: First priority is to pay off high-interest cards. Transfer big-interest balances by looking online for low-rate-offer on new cards or just call your credit companies and say you’re thinking about doing it. They will often lower your rate just to keep you as a customer or give you a deal if you transfer other balances.
If you’re really in trouble, get a financial counselor or a money-savvy friend to help you budget, negotiate your rates down, and get you on a realistic payback plan.
And start using cash. ONLY. It’s more painful to part with a pile of P100 bills than to swipe a piece of plastic.
Have a life
Women go broke because they read so much about stars’ lifestyles that they thing being galit sa pera is normal.
From high-tech gadgets to beauty splurges like whitening treatments and spa sessions, we have acquired “needs” that didn’t exist until a few years ago.
Since fitness is good, we often forget its price tag. Gym memberships average P3,000 to P5,000 a month. You also have to shell out cash for gym gear.’’
Going out can make you go broke – mark-ups for alcoholic drinks are huge and the price of fun stuff like movies and shows is constantly on the rise. You easily blow away P2,000 on a night out (not to mention the terrible headache the day after).
What you can do: A little pampering is good for every woman’s soul. Figure out what you want to splurge on, then find ways to save on just that. Don’t hoard books you won’t get to read or pretty shoes that you are afraid to wear out.
Always remember to factor the extras, like movies and online subscriptions in your budget. And get a celeb-lifestyle-comparison reality check. Stars earn more than you do, and they get most of that high-end stuff as freebies.
Watch out for little costs that could add up!
COFFEE. With no free coffee in the office, you spend at least P150 a day for your frappe.That’s up to P36,000 a year assuming you get your signature coffee fix five time a week!
ATMs. Out-of-network machines charge at least P10 for each withdrawal. At three withdrawals a week, that’s about P1,500 a year.
Water. A small mineral bottle is around P15. Refill your bottle at home or at a water refilling station which is much cheaper.
Preparing for your future is tough, but we want to hold your hand…
Learn about a simple system that will make you grow your small paycheck.
Read about that simple system here!(It’s free…)
Click for your free life-changing eBook by Bo Sanchez. 
Great idea for teens and college age young adult to follow will share.
Living solo is expensive but it will also help you to budget your own money and be independent. We just really need to live within our means to avoid being broke.
The struggle is real, indeed! I've been there and I know how it's like, starting a life and feeling hopeless about saving for the future… or even just for a rainy day. These are nice tips, actually, effective ones too. It's really about the little things you do to save money that will really, really help you.
We must live with our limits kung ano lang kaya not to the extent super broke na. I heard a lot of Bo Sanchez and Chinkee Tan financial seminars
I love this post. Indeed earning hard for money pero ang bilis lang gastusin nito, parang hangin lang na dumaan sa atm mo or sa kamay mo. hehe. We have to prioritize what is our need and set aside all those "WANTS" , para hindi mahirapan. Sometimes kasi or most, mas malaki pa ang monthly expenses natin kaysa kinikita natin.
We were always broke, kahit mejo malaki naman ang sahod ko before, wala paring natitira samin. This is one of the reasons why my husband left to work abroad and we promised to save more and more while he's away. We're already starting and I'm taking these advise so I can cut more costs.
Those are great tips.. having some savings and budgeting are essential nowadays so that we don't fall into debt.
This tips are so helpful. Surely watch out on this little things that's add up, like buying coffee, soda, water and stuff. I also let my hubby cancel his membership kasi hes not using it as much naman. Thank you for this tips Sis 🙂
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Actually there so many ways to save and to earn. I like the "Rumaket ka!" because it's very true. We should be resourceful and should not depend on our salary to live. Use our God-given talents. Most of us kasi are living just half of what we can actually do. Most of the times our talents are hidden, hehe.
I'm not sure if my comment went thru but as I was saying, I'm not really broke but I don't have a lot. Everything was just enough.
These is a very useful post. Been trying to save money since I had job a months ago. Will make sure to use this information to spend less and earn more.
this applies even for those who are 30+ and haven't saved that much yet. 😀 but of all things listed, i think having a credit card is the biggest factor of all. you get that "invisible money" and wouldn't thought that you spent so much na pala until you receive your bill. lol
My mantra in life to keep me from getting broke is to live within my means. And I never opted to credit cards no matter how tempting they can become. 🙂
These are great tips. It's hard to live below one's means specially now that temptation to buy is everywhere. We always see gadgets from friends from facebook and there's online shopping which we can do without even leaving the house!