5 Reasons Why Your Salary Isn’t Always Enough

Are you living from paycheck to paycheck with no savings to speak of? It does not matter whether you’re high up the salary grade or way below. You’re not handling your finances right. Which one of these things do you do? 

Why is it that money is hard to earn and easily spent? Paycheck after paycheck, you find yourself with no savings and living in centavos. Financial experts believe that whatever your salary grade is, you can save the standard 20% if you so want, it’s just a matter of committing to the goal. 
So what are you doing wrong? Here are some of the reasons. How many of these are so true of you? 

1. You blame your low salary.
It’s not your salary, it’s you. Having a high salary is not a guarantee that you’ll be able to save, especially if you keep up with your spending habits. The more you blame your low salary, the more you will spend it all, thinking that it’s a given that you’d have zero savings. Start depositing 20% of your salary in the bank. Then budget the rest for your expenses. 

2. You’ve already spent the 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 item on credit while others go for installments. 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 think a credit card is free money.
No. A credit card is not something that you should liberally swipe, just as long as you do not go over the limit. The credit limit of the card is not your limit. Your limit should be based on your budget limit. 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 spendings or better yet, don’t use it at all. 

4. You love to take on debt.
As much as you can, be debt-free. Interest payments can kill absolutely anybody financially. If you really have to borrow money, pay them 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? The service fee banks charge is sometimes even higher than the monthly earnings. So invest your money wisely. 

6. You don’t have the essentials yet. 
There are what people call money essentials—savings account, investment, insurance. Most people will have savings account but only a few will have the other two. FWD Life Philippines offers lifelong protection as well as earnings through an investment fund of your choice. For as low as PhP1,500 a month or PhP 18,000 annually, payable in five or 10 years, you’d have both insurance and investment.