Money and insurance

5 Reasons Why Your Salary Isn’t Always Enough

When your salary is high up the pay scale and you still can’t make ends meet, you need to reassess your lifestyle.

December 28, 2016
FWD Life Philippines

Why is it that money is hard to earn and easily spent? Paycheck after paycheck, you find yourself with no savings and living out of budget. Financial experts believe that whatever your salary grade is, you can save the standard 20% if you want to do so—it’s just a matter of committing to this goal. 


According to a Bloomberg report in April 2022, roughly 62% of the American population lives from paycheck to paycheck. In the Philippines that figure is even higher with wages being lower—but good enough for many workers like BPO employees, whose average salary is Php375,000 a year, and significantly higher for other senior positions in many industries. 


For those who are earning more than enough yet can’t save, what are you doing wrong? Here are some reasons you can’t get your financial wellbeing off to a good start.


1. You blame your low salary.

It’s not always your salary, sometimes it’s you. Having a high salary is not a guarantee of financial wellbeing or that you’ll be able to save especially if your spending habits are uncontrolled. The more you blame your salary, the more you will spend it all, thinking that it’s a given you’d have zero savings. Start depositing 20% of your salary in the bank. Then budget the rest for your expenses. 


2. You spend money that you don’t have yet. 

The problem with having a steady income is people already anticipate and line up purchases even if the money isn’t in their hands yet. Some purchase items on credit while others go for installments. There’s nothing wrong with this if you’ve budgeted your purchases and you know you still have enough for savings. But what if you don’t? Wait until you have the money before you spend it. Live within your means.


3. You act like a credit card is free money.

No. A credit card is not something that you should liberally swipe because the credit limit of your card is not your own limit. Your limit should be based on your budget. Determine how much you should only spend in a month and make sure your credit card purchases don’t go beyond that. Control your credit card spending, or better yet, don’t use it at all. 


4. You take on debt without thinking.

As much as you can, remain debt-free. Interest payments can kill absolutely anybody financially. If you really have to borrow money, pay it immediately. Don’t let interest rates bury you further into debt. 

5. You don’t invest. 

It’s not enough that you put your money in a bank. A common misconception is that you can earn from a bank. Not really. You keep your money in the bank so you’d have money available when you need it. On the other hand, you invest your money to make it grow. Have you noticed lately how much your savings account is earning for you?


6.You don’t have the essentials yet. 

There are what people call money essentials—a savings account, investment and insurance. Most people will have savings account but not the other two. You can have both with investment-linked insurance plans like FWD Life Insurance’s Manifest and Set for Life to get you on the road to financial wellbeing. It’s insurance plus investment in one! Learn more about these plans from an FWD financial expert by clicking here.

Or visit FWD’s online shop to discover other protection plans that fit your needs and budget.