Managing money can be challenging, especially for young professionals trying to balance their daily expenses with future goals. But being good at handling money can start small — with good financial habits. Through small, actionable steps, you can set yourself up for a brighter financial future.
While different habits may work for different individuals, we put together some ideas in this article. Try one or two that resonate with you, and start getting a better hold of your finances.
Track every peso you spend
Keep a record of all your expenses, no matter how small. Whether it’s a jeepney fare, a milk tea treat, or a Netflix subscription, knowing where your money goes helps you stay in control. Use apps or even a simple notebook. Review your spending at the end of every week and month to spot unnecessary expenses and make better spending choices.
Follow the “3 Envelopes Rule”
Divide your income into three categories: needs, savings, and wants. For example, allocate 50% to needs (e.g., rent, utilities, groceries), 20% to savings, and 30% to wants (e.g., travel, entertainment). Use literal envelopes to separate funds, or automate your fund allocation through digital banking tools. This approach keeps your spending in check and ensures you save consistently.
Plan your meals
Getting food delivery may seem like a minor deviation from your budget — and a small treat — but a quick review of your food delivery spending will show that these things quickly add up and drain your budget. Plan your meals for the week, batch cook, and save money — not to mention, eat healthier — when you take your meals at home. So you don’t feel deprived, you can set a maximum of 1 or 2 meals a week to be delivered.
Set small, specific savings goals
Instead of aiming for vague targets like “I want to save money,” set specific and realistic goals. For instance, “I will save ₱1,000 this month by setting aside ₱250 weekly.” Break your goal into manageable amounts and celebrate your progress to stay motivated.
Start a small side hustle
There’s a limit to how much costs you can cut from your daily spending. Explore supplementing your income with side hustles that match your skills or interests. Whether it’s selling baked goods, offering graphic design services, or becoming an online tutor, extra earnings can go toward your savings or paying off debt. Platforms like Lazada, Shopee, or Facebook Marketplace are great for showcasing your products or services.
Save some money towards your emergency funds
Life is unpredictable, so having an emergency fund is crucial. Start small by saving as little as ₱50 per day or ₱500 per payday. Open a separate bank account specifically for emergencies to avoid spending it on non-essential items. Over time, aim to save at least three months’ worth of basic expenses.
Start small, benefit in a big way
Building good money habits doesn’t happen overnight, but starting with small, practical steps can make a big difference. These habits are designed to be easy to implement and sustainable for young Filipinos. Remember, every peso saved brings you closer to your financial goals.
At Globewest Finance, we’re here to support you with helpful tips and resources. Let’s work together to achieve a more secure financial future.
