Are you living from one payday to payday?  Are you having a problem in having savings for the future? Do you find yourself having no money when payday nears and you use to call it “araw de peligro,” which literally means dangerous days?  Let us share with you the TOP 5 REASONS WHY YOU ARE LIVING FROM PAYDAY TO PAYDAY.

You are Living from PayDay to PayDay Because

1. You think you deserve it – you worked hard so you deserve to but whatever you want. But you have to be smart about choosing the things that you really deserve.
2. No financial goals – saving money can be unmotivating at times. But once you identify your goals, saving money actually became something that you will really want to do. Remember the equations, SAVINGS = SALARY – DESIRED SAVINGS PER SALARY.
3. Not planning for unexpected expenses – there are times you might think everything will be alright and you do not need to plan for these expenses. But there might be emergency expenses that you need to prepare for, like loss of job, illness, house/car maintenance or education.
4. Always choosing convenience – sometimes it’s just so convenient to just eat outside, especially when you’re busy and there’s no time to cook (or just take GRAB) . However, small everyday spending is one of the major reasons why we scramble make ends meet before the month ends.
5. Living the moment – if you are working in a stressful job, it might happen that buying things will help you feel better and justify the cost. But doing so will give you a life of living paycheck to paycheck, zero savings, and debt.

What to Do to Stop Living from PayDay to PayDay?

The best way to start saving money is to actually decide on how much you want to save.  Most of us say that SAVINGS = SALARY – EXPENSES, but this should not be the case.  You should decide on how much you want to save, SAVINGS = SALARY – SAVINGS and then after deducting your savings that is where you will get your expenses.

It is hard to save especially if you are the breadwinner of the family.  It is easy to desire for things that will feel us more convenient or happy like gadgets, clothing and more but always ask yourself, “Are these things really needed now?”  If they are not needed at the moment then postponed it.  However, do not be a pure saver or someone who has that focus on saving, saving, and saving.  Try to also enjoy yourself, have fun, take vacations and savor the fruit of your labor.

Remember, you do not have to live from payday to payday.