JR Biggaw
I have job, I work hard and get paid well, but why am I still living paycheck to paycheck?
Cliché question, isn’t.? Honestly, this has always been an eye-opener for me to be more financially aware while living away from my parents. I admit I really had a hard time managing well my monthly earnings during my early years in the city; I had to wait the next payday before eating out at a good restaurant, hanging-out with my friends or making any basic financial moves.
I vividly remember when I only had cannned goods “Sardinas” and Noodles “Pancit canton” for a week because my salary was gone to pay off my debts. Awful, right?
Living paycheck to paycheck – no liquid assets like savings account is tough, challenging and stressful. There were days like you couldn’t do anything about it. Needless to say, I never wanted to be in this kind of situation again. So, I took a big step to take control of my finances!
Poor budgeting
It’s really important to properly budget your regular earnings, to watch out your cash flow – so you can track where your money goes. If you don’t budget your paycheck in a way that tells you when your next payday comes and when your bills will due, you might end up with a little cash on your wallet until next pay-out, which potentially leads you to; borrowing from your friends, running to a payday loan “Sangla ATM” to offset your other needs and liabilities.
Unable to Identify Priorities
It’s Friday Payday! Of course, time to pay-off all your hard work for the entire cut-off. – Team fund hasn’t been funded yet, but your close-fisted Boss set a KKB (Kanya Kanyang Bayad) team dinner on a buffet dining in Mega Mall. Along the way, you shopped around and bought a shirt, jeans and a pair of shoes to gratify your satisfaction, since it’s 50 percent off sale. Saturday morning, you got a ping on your messenger – your friends set plans to go clubbing tonight in BGC, of course, you went along, you don’t want to be blabbed about, if you won’t show up! Sunday morning, you went to the supermarket to buy your basic needs.
Man what happened! your landlady is knocking at your front door the next day to ask you fo the monthly rent – Oh my GOD, I’ve have totally forgotten! – you are off to work and saw your mailbox inched open – there, you got three envelops; Electricity bill with disconnection notice, internet bill, water bill and your money is only enough for the rest of the day until payday. So what now? – You’re broke man!
Poor understanding about Savings
Nearly 70 percent among Filipinos have no savings accounts – 2015 National Baseline Survey on Financial Inclusions from Bangko Central ng Pilipinas.
Whether we like it or not- Most of us enjoy the mindset of “Live your life to the fullest.” it gives us an excuse to satisfy ourselves with instant gratifications which totally lead us to poor financial decision – making.
I used to have this mindset, “I live for today and forgetting about tomorrow.” – It was depressing and shameful.
I was sick – Too much eye exposure on computer radiation that caused my eyes to often dry. I nearly lost my sight and had to stay at home for two weeks for an eye rest. No watching television, no computer / laptop and no mobile phones.
I was astounded when the pharmacist told me that one of the medicines that the ophthalmologist prescribed is about two thousand one hundred pesos (2,100.00), on top of it, I had to buy two other eye drops. – My cash is only enough until payday- I was like, WHAT!
I had no choice but to call a friend and my parents for SOS! What if no one lends me a penny to buy my medicine, I may have been blind by now.
Lack of income diversity
Job security is sometimes on the declining chart, you may never know, if you’ll be the next one to get laid-off. Ceasing paycheck to paycheck lifestyle doesn’t only limit on; budgeting your regular wage, trimming down your expenses or equipping yourself about financial diet.
You also have the option to make more money!
Income diversity means having alternative income; small business or online part-time job/s. It can help you avoid living paycheck to paycheck in a way that you’ll have extra income that doesn’t disappear if you get laid off to work for couple of months. Your extra income can also increase your assets – increase your emergency fund or maybe your retirement account.
You can also use your extra income in other things – like vacations or family out of towns. That way, you can concentrate on using your money from your day job to build your savings and other assets.
Final thought
There are probably hundreds of websites where you can cherry pick the best advice from, well, it could be a good platform to start, but without changing your mindset and taking risk to advance yourself toward money-disciple, you’ll never get away with this kind of Lifestyle.
Managing your wants and needs, living with the knowledge that you’re working towards your financial security – should be a takeaway every time you outlay your funds, to save instead of spending for self-gratification.
