4 ways to stop living from paycheck to paycheck

Whether it’s building an education fund for your master’s degree or saving money for your next travel,

 it’s important to find purpose in cutting back on expense. 

Do you always find yourself running out of money and wishing for the next payday to come sooner? This is called “living from paycheck to paycheck” and it can be very stressful, especially knowing that you might not have enough to cover your bills or buy the things you need in time for the next payday.

 

It may be a challenge to stop living this way, but the good news is that it can be done. As an expert and partner in helping people achieve their financial goals, AXA Philippines, one of the country’s leading insurers, shares tips on how to get ahead financially:

 

Learn to budget. One of the biggest mistakes you can make is not knowing where your salary goes. If this sounds like you, it’s best to start budgeting effectively. That way, you can be sure that you allot enough funds for all your expenses. When budgeting, you must list down all your  expenses, such as utilities, food, transportation, and living expenses, and make sure the total amount of these items are well within your salary. If not, then check which items you can reduce or do without.  

 

Live below your means. Another effective way to have more money is to simply cut back on your spending. This will also enable you to redirect your salary from paying debts to building savings. The key to cutting back is to challenge yourself to spend at least P500 or P1,000 less every week on groceries or negotiable expenses. Doing it in increments helps make it more manageable and helps ensure that you’re successful at it in the long run.

 

Make savings automatic. If you plan to save what’s left of your salary after you’ve spent most of your paycheck, you will never be able to have savings. Try to stick to the formula of income – savings = money for expenses. That means setting aside money for your savings first before you spend. If it helps, you can also set up an automatic transfer from your salary account to a savings account on paydays so you aren’t tempted to spend it.

 

Have a financial goal. Whether it’s building an education fund for your master’s degree or setting aside money for your next dream travel destination, it’s important to find purpose in cutting back on expenses. Keep your goals in mind. Also, you don’t have to do it alone! AXA Philippines is ready to help you achieve your life goals with Goal Getter, an affordable investment and life insurance plan with an initial investment as low as Php10,000. You can keep adding to it with as little as Php5,000 monthly top-ups to reach the minimum required investment of Php 50,000. What makes it even more convenient is that it’s available online, so you can get started right in the comfort of your own home – no need to head out and meet with an agent.

 

Breaking out of the paycheck-to-paycheck cycle may seem like a struggle at first, but the key is to try, and have a partner like AXA Philippines to walk you through it. To know more about Goal Getter, visit www.axa.com.ph/GoalGetter.