It is not difficult to see that Filipino society encourages a culture of spending. Anywhere you look, especially in urban areas, you will find gigantic billboards that are so appealing to your senses you can’t wait to buy the item advertised. Prime spots in broadsheets, radio and TV are so full of advertisements that it makes it hard for people to resist spending even on items they don’t need.

While lack of money is one of the reasons why most Filipinos don’t have enough savings; it’s not the only one! Many individuals who are capable of saving are not able to do so because they overspend. It may sound impossible but you can actually find money to save with your current income (regardless of high or low it is) by simply changing your spending habits.

If you take the time to list down all your expenses over a couple of months you will be shocked to find out that you are spending on a lot of things that you don’t need or can live without. You will also be surprised to know that the little, cheap things you buy can easily add up to a substantial amount over time. You don’t have to look far to find money to save, you just have to reduce or eliminate unnecessary expenses. Below are ten expense busters that are guaranteed to free up hundreds or thousands in cash every month and boost your savings if you follow them consistently.

1. Be contented with what you have.

Stop comparing yourself and your family with other people. If you always try to keep up with your relatives, friends & neighbors you will soon find yourself buying things you really can’t afford. Envy can be a very costly emotion; it can lead you to financial disaster. Your worth as a person or as a family, is not measured by your material possession; so be satisfied with what you have.

2. Avoid all forms of gambling.

A compulsive gambler would sell the shirt on his back just to have money to gamble. He won’t hesitate giving up everything he has just to get the chance to win. So before you get hooked, stop gambling whether it’s legal or illegal. Many gamblers have lost not just their lifetime savings and home but also their families.

3. Quit smoking, drink moderately and don’t do drugs.

Smoking, drinking and drugs are not only bad for your health but they’re very bad for your wallet. The money you spend on these unhealthy habits will easily add up to hundreds of thousands or even over a million over a few decades (see table at the end of this article). Add to this, the amount you need for medication to treat its ill effects and you can just imagine how much money you’re wasting. Worse you can die from excessive smoking, drinking and doing drugs; and like gambling it can ruin the family.

4. Take public transport.

If you live in the outskirts of Metro Manila, like Cavite, Bulacan and Laguna, you can save several thousands every month just by opting to commute instead of driving your own car in going to work. With the high cost of fuel, traveling in a private vehicle is no longer practical. Taking public transport is still the most cost-effective way to move around; just don’t take a taxi all the time.

5. Bring lunch to work.

Food sold in canteens, fast foods and restaurants costs 100% to 300% more than home-cooked meals, so try to find time to prepare food to bring to work. You could be saving more than a thousand pesos a month by doing so and get to double your savings if you spouse will do the same. It certainly is well worth your time to cook your own lunch.

6. Cut coffee and soft drink consumption.

Addiction to caffeine can be very expensive especially if you are fond of those sold by high-end coffee shops. A daily dose of P100-a-cup coffee on your way to work will set you back at least P2,000 every month. It would be wise for heavy coffee drinkers to get their caffeine from cheaper alternatives. Soft drinks may not be as expensive but it will still add up to huge amounts over the years; and there’s also diabetes to worry about which is expensive to manage.

7. Do not buy on credit; use cash.

Studies have shown that paying in cash will cut down your spending by 25% to 30%. If you are the type who is easily persuaded to buy things on impulse it’s best that you leave your credit card at home; much more so if there’s a midnight sale. You can manage your expenses better by paying cash because you stop spending when no money is left. If you use your credit card, try to pay in full every month so you won’t have to pay interest… and still get the reward points.

8. Ease up on signature labels & avoid expensive activities.

End your love affair with signature labels because it is very costly. They cost many more times than a less known & less expensive brand. Sometimes the only difference is just the label; quality-wise they are the same. Signature clothing can score you “pogi” points but you will score more if you know how to carry yourself even with inexpensive clothing. Do not engage in expensive hobbies, fitness or leisure activities; instead do something as exciting but easier on the pocket. You will get the same health benefits by running around your subdivision instead of working the treadmill in an expensive gym.

9. Avoid excessive texting, internet chatting & PC gaming.

Its bad for your fingers, your hands, your back and your wallet and still many people are into it. They’re but a few of the bad effects of technology; its addiction in a high-tech world. Don’t allow yourself to become obsessed with these seemingly passive activities because it will definitely burn a hole in your pocket. Like many other types of addiction they’re not good for family relations.

10. Refrain from having extra-marital affairs.

People don’t openly talk about it but extra-marital affairs can be very expensive. The “other partner” is usually high maintenance and most of the times they are only in it for the money. Even with a good income, taking care of a family, even a small one, is already a formidable financial challenge. A costly addition is going to put a severe strain on your finances and it will be extremely difficult for you to save.

Following consistently the strategies above will help plug your “spending leaks” (expenses you can live without) and should drastically cut down your monthly expenses. Look at the table below and see how the money you save from cutting down on unnecessary expenses will grow over the years.

If you dream of retiring a multi-millionaire then make a conscious effort to reduce or eliminate unnecessary expenses. Such a smart move will let you add hundreds of thousands or millions to your nest egg in the next 20 to 30 years and the earlier you do this the bigger your savings will be. A 25-year old who will stick to the ten expense busters throughout his working life can look forward to a comfortable retirement with P10million or more in savings. Remember, the buying decisions you make today will greatly impact the level of your savings in the future; so spend your money wisely!

Last update: February 14, 2008
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