Most of the headaches of the employees or someone who is working with a low salary is budgeting of their money or income vs their expenses. Nowadays almost everything keeps on increasing though there are some months that we forcefully pause because of the pandemic. If we are depending in our monthly salary and we have a lot of bills and expenses we will come up a negative balance on the next day.
One lesson I learned when I was working overseas is on how to budget this as we only receive it once a month, unlike here in Philippines it’s twice a month. (Long time ago I experience to receive it weekly).
The simple calculations for a minimum wage earner of a private employee without any loan deductions from SSS and HDMF as follows for the 2 weeks pay:
Net Salary P5,620
Less: Usual Expenses
Transportation (P100 x 10 days) P1,000
Food Allowance (P150 x 10 days) P1,500
Telephone Load (prepaid load of P100/week) P200
Household expenses (groceries for 1 month) P2,500
Net Balance in your Payroll ATM Account P420
I checked the Net Salary based on sweldongpinoy.com with a monthly pay of P12,000 in a semi-annual pay-out.
The transportation cost if the person is riding tricycle, bus, jeep or van everyday.
The food allowance is based on Jollibee big/complete meal (1pc chicken joy with burger steak and half spaghetti value meal) though there is some who will order food at the sidewalk or to those people selling food in their building the cost of P150 is also for lunch and snacks already.
You cannot afford to get a plan of P500 to P900 a month for telephone expenses therefore you will go for the unlimited data/text/call worth P90 to P100 a week. As long as there is free facebook and messenger access is enough to communicate with your family and friends or co-workers.
The household expenses for the 15th payrun is for groceries to be consumed at home, trying to squeeze in the budget of P2,500 for one month while for the 30th payrun of P2,500 to be allocated in paying the rentals, electricity and water bills. But I doubt if you can get a P2,000 room rental if you are living in Metro Manila. And P500 will not be enough for your water and electricity consumption therefore the P840 balance might include to pay for these expenses.
Now, the headaches will kick-in if you lend/loan some money to your friends or relatives and how you will pay it. And also if there is an emergency if you need to go to see doctor then you do not have at least P500 in your bank for the consultation fee then how? You will disturb again some of your friends and relatives to ask to help you.
This kind of our culture is like a cycle and it should stop because we cannot achieve our goal and what we want, it will end up to our frustrations in life.
We need to plan and save. We need to be generous too if we have extra money but with this case do not give more than you have in your pocket. I think they will understand your situation if you cannot give financially but you can lend your hand to help them in other ways like your time and skills if needed.
We need to think on how and which factor to cut-cost for emergency purposes at least will lessen your headache when it comes to you.
Ask yourself if for the P2,700 allowance for two weeks you can cut P50 per day. And it will cost around P500 savings for half month or P1,000 for a month. Try to think in advance for one year you will have in your pocket or bank with a total of P12,000. Not bad right? And in 10 years if no emergency case happens you will have around P120,000. You can start to invest this in a business as extra source of income and some legit or legal investment.
So now will you spare your P50 of your allowance everyday? You can have your piggy bank at home or just open a bank savings account without your maintaining balance first.
So happy savings 🙂