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How to Save Money | Ideas for a Two-Income Household

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Many Filipino families have a two-income household setup in order to cope with inflation and expenses. Usually, the husbands work full-time in the office or even online while the wife has a side hustle or even works online, too. With two income streams for the family budget, would you like to know how you can save more money? Here are some tips to have a more financially stable future.

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.

Pegging Expenses

Determine your household expenses. If you have kids, you will also need some allowance in your family budget. Just make sure that you and your husband are on the same page with your financial adjustments at home.

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Do you have kids? Planning to have more kids?

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.

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Who earns more? The husband or the wife? You can use the higher amount and save the lower amount. Or vice versa.

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.

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The second income could also be used to pay off big purchases, like the monthly payments for a family car.

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.

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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:

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In a two=income household, it would be easier for you to stick to your savings plan.

Resist Temptation

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.

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Random purchases are savings stealers.

The best solution is to stick to your goals and follow your savings plan. It will be worth it in the long run.

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21 thoughts on “How to Save Money | Ideas for a Two-Income Household

  1. I work from home and make some cash through various hustles. My income is our savings, while my partners is for the mortgage etc. Great tips to help people save money.

  2. Some amount of savings is important to have but not so easy for some to get. I hope we do reach a day where we can put a little away.

  3. Sometimes no matter how we try to save, we can’t. That’s because we can still be easily tempted with awesome sales and promotions. Especially hotel promos and airline seat sales. Then our savings goal will go to nothing. Just stay focused and know recycling. Always helps!

  4. Definitely informative! Saving money is so important. So is planning for the future. I try my best to save, but I’m also a shopaholic :'( lol It’s really very hard to save money for me. huhu

  5. Setting aside a percentage of your income for savings does not work for our family. That is why we got this plan from BPI Philamlife. It serves as an insurance and retirement money for me and my husband.

    1. Really sis? Why is that? hahaha But it’s good that you have an account with BPI Philamlife. 🙂 Let’s really prepare for our retirement.

  6. Saving money is definitely harder than you think! I know that firsthand! It definitely requires a plan to be able to set aside money after earning! This is a great resource for families.

  7. People need to also remember that saving is not just about setting aside money. One needs to ensure that their savings do not decrease in value. Your Php1,000 may no longer be able to buy as much what the same amount can buy now. So consider putting your money where it can gain big interests, or for it to grow bigger as time goes.

    1. Oh yeah. I will write about where to put money where it grows faster and to catch up with inflation. Next post. Thank you for the idea. Will write about mutual funds. 🙂

  8. Great, well-researched and lived through write up. These money tips are a treasure of information for many as we live in a world that revolves around money.

  9. I admit, I am very guilty with some “want” expenses BUT happy as well coz I am starting to getting rid of it. I am just the one working and not easy to save BUT totally agree when it comes to budgeting (mahirap most especially if meron nagkakasakit sa bahay). We also have a pet (mas masarap pa minsan food niya kesa samin).

    At the end of the day, I always make sure to save. I may not really good at budgeting but naka survive naman. Thank God. ?

    1. It’s so hard to save actually. For us, we did splurge quite a bit for the last quarter of 2019. Time to tighten the belt again for 2020. 🙂

  10. Thanks for the tips mommy,napaka impormative. Malaking bagay po tlga na dalawa Ang nagtratrabaho Lalo na sa panahon ngayun. Andyan Ang pandemic tapos lahat Ng bilihin pati Gasolina eh tumataas. Hindi sapat para makapag ipon Kung Isa lng Ang magwork.

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