![]() Unlike most budgeting methods that puts you at the mercy of your monthly expenses, the Envelope Budget method gives you full control of your cash on hand. Once she’s done with her repayment, that money will go to savings, and vows to avoid lifestyle inflation. According to her computation, these figures are her monthly average spending:Īccording to her, there are still a few more months left before she can finally complete her payment on her dental braces. She reveals she gets a meager salary as an entry-level hospital worker, but says she has already figured that it’s not the amount of salary she takes home every month, but what she saves. 3: A fresh graduate from Caintaĭespite only having less than one year of experience as a nutritionist for a private hospital in Pasig, Alyssa already knows how to make her budget work for her. Increase your chances with 20+ banks and lendersĪpply Now Case Study No. However, the only caution here is that none of the said expenses should exceed the allocated percentage. While a lot of people say that savings should be bigger than the non-essential expenses, this allows people to keep themselves satiated and away from their savings account. One of the most common budgeting techniques recommended by personal finance coaches, the 50-30-20 method divides your net income into three basic categories: needs, wants, and savings, respectively. ![]() While she said not this percentage doesn’t always go to her savings, she’s willing to learn more on how to become better at handling money. Below is the breakdown of her total monthly budget:Įven with her expenses and the amount she gives to her parents-which goes up to one-third of her total budget-Sheila can still save up to 15% of her salary. Despite this, she still has enough money to either save or spend. While she may be earning more than enough for herself, a huge chunk of her salary goes to her parents. ![]() Sheila works at a business process outsourcing (BPO) in Taguig City. “I’m currently giving a big part of my salary to my parents once I’ve deducted my basic expenses to my monthly pay.” “I have an unusual budgeting style at the moment,” admits Sheila. This way, your “miscellaneous” expenses for the current period will be minimized-if not avoided at all. Simply identify your most important expenses for the upcoming month-for example, your kid’s tuition fee-and allocate budget for it ahead of time. While this is mostly used by companies, you can also try it at home. In this type of resource allocation, it “starts from a ‘zero base’ and every function within an organization is analyzed for its needs and costs,” according to Investopedia. Zero-Based budgeting is a type of budgeting used mostly in a corporate setting. While the couple may be able to meet their basic expenses, Knia said they have little to no savings made every month because of the high cost of having kids. Their food and lodging costs are waived, since the family is living with Knia’s parents. With little kids and a car loan to pay, he and his wife Knia have the following expenses and savings every month: “You may know everything in budgeting but once you have your own family with kids, you’ll be surprised how little you know about it,” Edison says. He admits that he wasn’t really prepared for the expenses that come with being the head of the family. However, things are different when you’re doing it for your family.” “When I was still single, I knew how to budget for myself. “Since we’re basically a new family, we’re still learning the ropes of budgeting for a household,” shares Edison Pablo, 28, from Quezon City. 1: A young family of four from Quezon City So whether you’ve already mastered the art of budgeting or are still learning the science (or art) of stretching your money until the next payday, you may pick up a few things from these examples-and even improve on them. Since Filipinos have different levels of income as well as varied expenses, their budgeting style should suit whatever their financial status is. There’s no such thing as one size fits all when it comes to budgeting. 3 Filipinos With Different Needs And Expenses Share Their Budgeting Methods 4 min read By eCompareMo on June 29, 2016
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