Many Filipino families have a two-income household setup in order to cope with inflation and expenses. With two income streams, would you like to know how you can save more money? Here are some tips.
- Related: Mommy Tipid Tips to Beat Inflation
Having a Two-Income Household
A lot of Filipino families have two income streams, as both mother and father work. Or maybe one owns his or her business. Life is more comfortable that way because of a higher combined household income.
With the amount of income coming in every month, the couple could easily afford their needs as well as some luxuries. They could even afford occasional family vacations.
Sometimes, however, saving for the future gets neglected. It’s easy to lose focus while living in comfort and style.
The common formula for savings is: Income – Expenses = Savings
However, it should be this way: Income – Savings = Expenses
This is for those who want to seriously save as they prepare for their future. And their families’ future, too.
If you haven’t yet, would you like to start saving for the future? If you already have some savings, would you like to be able to set aside a more substantial amount?
Here are some ideas for you.
Determine your household expenses. If you have kids, you will also need some allowance in your family budget.
This amount could be used for sudden expenses, such as those for school projects, hospitalization, or special events.
Check your utilities and monthly bills. Are there areas where you can tighten a bit?
Do you have pets? Pets are lovable and endearing. But sometimes, their maintenance can be more expensive than that of a child’s. Determine if you can really afford this expense vis a vis the emotional benefits that the family gets. After all, there’s no price for happiness.
A Savings Plan for a Two-Income Household
No two families are alike. All family dynamics differ. But here are three scenarios that your family could possibly relate to.
Scenario 1: The Salaried Couple
The couple may be working for a local company or employed online. The fact is, both are receiving a regular monthly income. Depending on the amount they are receiving as well as their expenses, they can make this decision. They can decide to spend only one spouse’s salary and save the other lump sum.
There will be some sacrifices, so at first, you may do it every other month. Or until the adjustment becomes more comfortable.
This set up will, of course, depend on the amount of the salary as well as the expenses of the family.
Scenario 2: The Entrepreneurial Half
The husband may be working in an office while the wife decides to stay at home. Meanwhile, she engages in small businesses to earn some money. It could be online marketing or a direct selling.
If the husband is earning more, they could decide to use his salary for their household expenses. The wife’s earnings become their savings.
Scenario 3: The Sideline
There are some employees who venture into small businesses, for extra income. A call center agent may sell insurance or cell phone load. Whatever it is, that’s extra income on top of the salary.
The couple may decide to make extra money on top of their salaries and keep this amount.
Purposes of Saving Money
Set goals for yourself and your family. Life is not just about current needs, so every family should have short, medium, and long-term goals. Here are some of the purposes of setting aside a portion of the monthly income for savings:
- Building the family home
- Buying a new car
- College Fund – We Chose Mutual Funds Over Educational Plans
- Capital for a Business Venture
- Travel Fund – Travel Savings is a Must for Families
- Retirement Fund
- Help fund – Our Family Help Fund
When you are used to a certain lifestyle, it will be hard to give up some things at first. It will take a lot of discipline not to use the money you have saved for some random purchase.
One of the things that encourage people to deviate from their saving goals is peer pressure. The need to live up to the lifestyle of friends can be strong. However, life is not a competition.
It’s alright to splurge from time to time, as it makes lives more enjoyable. But trying to keep up with the neighbors’ or social media posts is not.
The best solution is to stick to your goals and follow your savings plan. It will be worth it in the long run.