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Ok. This topic goes back to the laziness that has been going on in my life.

Monday, August 6, 2018

Sample Computation: How Much Do I Save When I Have a Minimum Wage?

 
Back in the days when I am earning minimum, it is so hard to save money especially if you have to attend to the needs of your family.


Nevertheless, it is still possible if you are serious about it. It might mean no new clothes every now and then or no pricey lunch out or dinner with friends but once you set a priority anything is for sure is possible.

So let us start with how much is the minimum wage as of the moment. Minimum wage as of August 2018 is P512.00 according to DOLE website.











Daily
No. of Days


P
     512.00
X
22
      11,264.00






SSS
            417.80


HDMF/Pag-ibig
            100.00


Philhealth
            137.50


Tax
                     -  




      10,608.70









  
Let us say, your take-home pay will be P5,378.34 per cut-off, let us break down some of the obvious expenses all throughout half the month.









Expenses


P
        5,304.35


Transportation
200
11
        2,200.00


Food
50
11
            550.00


Bills
            500.00


Groceries
        1,000.00


* Other Priorities




Savings
        1,054.35










You can add other things on *Other Priorities like tithe or other miscellaneous expenses.  


So..

With over a thousand pesos to save per month will give you more than twelve thousand pesos in a year. If you are diligent enough, you might want to put your 13th month to your savings too and that will give you a total of over 24,000 pesos.

That is a huge amount of money I would say.


But what will you do with that money will determine if you will be financially free or not.


You might be tempt to spend it for travel or buy things that you stop yourself from having for a year like new shoes, clothes you name it, but spending it all at once will not going to achieve anything.


Now is the perfect time for the quote:

“Stuck between I need to save money
and you only live once.”


I couldn’t make a suggestion about this one, because I myself is really torn about this quote. Of course I am saving money for the very purpose of being financially free. But is delayed gratification worth it? (I don’t have idea at all you tell me)

The idea of spending my own money carelessly together with the person I love the most is the best feeling ever because you can able to give them happiness in the simplest way(ex. my family most especially).

Money can’t buy happiness, but if money is spent in a good way you will definitely feel like you’re living your best life.

This perspective I guess is truly applicable to single folks like I am, because I don’t have heavy responsibility upon my shoulder, so of course sometimes I wanted to enjoy life like travelling, a dinner with my parents or new gadget maybe.

The safest thing to do I think is to spend half of the savings for the things that you want to splurge on and half of it is for building your emergency fund or investment fund or retirement fund.


To be truly cut loose from a payday after payday scenario you have to focus on finding a way to make your money work for you, or try to find a way to earn the biggest amount of money for a short period of time.

And that could be in the form of creating a business, or invest on passive income that will give you good interest.

It is easy to write it down, but believe me it is so hard to start especially if you don’t have idea about it. So, accumulating free knowledge over the internet will help you a lot (be discerning as well so you will be able to determine which path best suits you, because one method might not work for the other) knowledge will protect you to any losses as much as possible.

I think that I’ve said enough, I am sorry for the blabber, but I just have too.

That is it for now.

Thanks for reading all the way!

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