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.
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.
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…
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Read about that simple system here!(It’s free…)
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