Millennial on a Budget: How to Save Money in a Busy (and Expensive!) City

As a millennial living in the heart of a busy country, it’s not always easy budgeting my daily allowance. Slowly becoming an independent woman, I’m pushed to learn new things, such as cooking my own food and making my own bed.

One of the major things I had to face was learning how to budget and allot money for savings. Fortunately, I was well-prepared as I started learning how to budget at a young age.

That doesn’t mean I never faced hardships. With all the temptations around me (shoutout to my guilty pleasures: food and pink things!), I sometimes find it hard to stay within the amount I give myself for the day or week. But as I soon adapted to paying the bills and learning to appreciate the value of money more, I learned some things along the way.

Open Bank Accounts

You’re probably wondering: Why multiple bank accounts? This is to ensure that you’ve got money spread around for emergencies and whatnot. I keep an account with an ATM card (for allowance), a savings account with a passbook, and a checking account (for rent).

The reason why I urge you to get a savings account as your MAIN bank account is to avoid overspending. I get discouraged having to go all the way to my main bank in order to withdraw money (there’s an additional charge if you withdraw in other branches). I choose to have an ATM for both emergencies and to allot for my weekly allowance.

So once you have the minimum amount (usually 10,000 PHP), get a savings account and follow through with an ATM card and checking account.

Have Emergency Funds

I once tried to go cashless. It does NOT work. Not all places accept card (7-11 or small stalls being one of them), so I make sure I have a bit of money stashed somewhere in my bag and wallet for the “just in cases”.

Also, allot part of your earnings for emergencies (such as hospital bills, forgotten bills, etc).

Prioritize

As a freelancer, I have complete control over how much I make. And I do my best to prioritize savings first, then my responsibilities.

I always set a certain amount for my savings, then separate my money into what I need to pay for rent and utility bills. I then allot money for my daily allowance, and the rest would be either for emergency funds, or my wants (which, thankfully, does not steer away from good food or the usual nights out with family and friends).

Know the Difference Between Need and Want

This is a bit basic, but difficult for me to grasp at times. But what I taught myself was: If I can live without using it for a few days straight, then it’s not really worth the purchase… YET.

When you’ve been good and have a bit extra saved up (after seeing aside for savings and obligations), then cut yourself some slack and reward yourself with a new set of earphones or that bag you’ve been eyeing! You deserve it.

Find Ways to Save

What bothers me are spontaneous purchases. You can save as much as 500 PHP a month just by using a water jug than buying a water bottle at work.

Pack your own water, bring your own lunch. Purchase clothes when the sales arrive. Wait for seat sales when traveling. Check out restaurant promos (there are websites that offer various discounted products and vouchers for food!). There are a TON of ways you can save up, simply do your research.

Set Goals and Rewards

Like mentioned, I make sure I have my own financial goals to reach. This motivates me to work harder and save more.

But you should also think about today! That’s why I make sure to have a rewards system when I reach a certain goal, or if I’ve been good for the week/month. A fancy dinner, climbing a mountain, whatever suits you!

In a Nutshell

Basically, all you need to do is to budget smart and look for ways to spend as little as you can without going overboard to extreme cheapskate. It’s all about balance, and it takes time.

Once you begin setting goals and sticking to it, you’ll be able to learn how to budget YOUR way and become successful!