When your monthly budget is tight, living comfortably may feel like it’s out of your reach. It’s difficult to spend on your essentials and the things you enjoy if there isn’t enough money to fund them. Fortunately, there are a lot of money-saving strategies you can apply to make living comfortable on a tight budget possible. Here are some helpful tips that fit the lifestyles of every Filipino.
Re-Evaluate Where You’re Spending Your Money On
Re-evaluating your spending is an excellent way for you to take a closer look at where your money is going. This practice allows you to see if you’re overspending in certain areas, providing you with an opportunity to redirect funds toward more important or beneficial uses. For instance, you might find that you’re paying for services or products you no longer need. These can be subscriptions to streaming services or gym memberships you rarely use. Canceling these subscriptions frees up extra money in your budget, which you can add to your savings or use to pay for your essentials (e.g., groceries, utilities, and medications).
Start by tracking your expenses meticulously for a month. Make sure to record every expense so that you can gain a clear picture of your spending habits, making it easier to identify patterns that may be problematic. Once you have a detailed list, categorize your spending into essential and non-essential items. This will help you see which categories are consuming the most money and where adjustments might be necessary.
Leverage the Perks Offered by Digital Banking Products
Digital banking has revolutionized the way consumers handle their finances. It has given them various tools designed to simplify money management, enhance their savings, and improve their overall financial health. These modern online digital banking solutions offer numerous advantages that, when used efficiently, can help you optimize your budget and make the most of your resources. If you’re looking for the best digital bank in the Philippines that offers digital banking products that come with great perks, Maya is a name you can always count on.
As the number one digital bank in the country, Maya is committed to helping you achieve your financial goals. We offer a suite of digital banking solutions that come with features that can help grow your wealth. Maya Savings, for instance, has a base interest rate of 3.5%. This is higher than what most traditional banks offer, allowing you to earn more while you save. Apart from this, Maya Savings also gives you the chance to boost this rate by up to 15% p.a. by completing simple tasks like buying prepaid network load, paying bills, or paying with your Maya Wallet via QR Ph, card, or online, and Maya Easy Credit.
Another Maya product that can help you maximize your savings is Time Deposit Plus. Unlike other time deposit accounts, Time Deposit Plus doesn’t require you to deposit a lump sum to start saving. It’s more flexible, enabling you to deposit any amount to your account at any time. This means that you can build toward your goal at your own pace, so you can still maintain a comfortable monthly budget. This product also offers three terms—3 months, 6 months, or 12 months—and each one starts with a 3.5% p.a. base interest rate. However, the rate can be boosted by up to 5.75% p.a. when you hit your target amount. To enjoy this boost longer, try to hit your target amount before your term ends.
Both these products can be accessed via the Maya app. Create an account today so that you can start saving using tools offered by the best digital bank in the country.
Create a Practical Budget
A well-structured budget makes it easier to track your income and expenses, prepare for your future financial needs, and ensure that you live within your means. Establishing a clear and realistic budget also lets you gain control over your spending, ensuring that you make informed decisions about how to allocate your resources. Furthermore, getting a comprehensive overview of your financial situation enables you to better plan for irregular or unexpected expenses, such as medical bills, job loss, or unexpected home repairs due to typhoons or flooding. This ensures that you won’t have to dip into your savings or incur debt when they arise.
To create a practical budget, you must first list all sources of your income. Next, identify and categorize all of your monthly expenses like rent or mortgage, utilities, and loan payments, as well as variable expenses like groceries, dining out, and entertainment. Finally, set realistic spending limits for each category based on your income and financial goals. Ensure that your budget includes savings and debt repayment as part of your monthly expenses. Doing so helps you build financial security and work towards long-term goals, such as buying a home or preparing for retirement.
Bulk Buy Your Groceries When Possible
Purchasing items in larger quantities can lead to significant savings, especially on products that you use frequently or have a long shelf life. Bulk buying can help you reduce the frequency of shopping trips, and fewer trips to the store mean less spending on transportation and less time spent shopping. Moreover, stocking up on essentials ensures that you have a buffer in case prices rise or supply issues arise, providing peace of mind and reducing the likelihood of running out of critical items. As such, incorporating bulk buying into your financial strategy lets you stretch your budget further. When paying for your groceries, consider using Maya’s services at checkout if you have an account to give your Maya Savings’ interest rate a boost.
Set Short-Term “Treat Yourself” Goals to Help Curb Impulse Buying
Just because your monthly budget is tight, it doesn’t mean that you can’t splurge on items or experiences every once in a while. Rewarding yourself with a modest treat, such as a nice dinner or a new gadget, from time to time is an effective strategy for managing impulse buying because it enables you to satisfy your need for occasional indulgences. However, to ensure that your splurges won’t compromise your financial stability, you have to properly plan for them.
Setting short-term “treat yourself” goals can provide you with a structured way to manage your spending urges while maintaining a tight budget. This approach involves planning for achievable rewards that you save up for in a given time frame so that you can balance immediate gratification with your long-term financial priorities. To make this strategy effective, it’s important to set specific, attainable goals that you can look forward to. This can help you stay motivated and disciplined in your spending.
Additionally, you can leverage digital banking solutions, like Maya’s Personal Goals, to get more out of your goals. Personal Goals offers a guaranteed 4% interest p.a. monthly, giving you a serious boost forward with your money. It also allows you to manage up to 5 accounts at a time for up to 180 days each, making it easier to manage your goals. Moreover, depositing to your Personal Goals is easy and affordable, so you won’t have to worry about spending too much every time you transfer to your goal accounts. If you’re depositing from your Maya Wallet, the transaction is instant and free. Conversely, deposits from other banks and e-wallets through PESONEet and InstaPay will entail minimal fees from the corresponding source bank or e-wallet.
Living comfortably on a tight budget is achievable. By applying the right strategies, you can take control of your finances, manage your money more effectively, and ensure you can enjoy life’s little pleasures without derailing your tight budget.
