If you have a job or have a source of income, then it is your advantage to meet your needs. But despite of having a job, there are still many Filipinos who cannot save money, and usually run out of money.
Many of us live beyond the means because we sometimes do not know the difference between our needs and wants. Usually, we measure our needs based on the things we see around us, pressure from our friends and family, and being insecure or envious of others.
To solve this problem, we need to identify our real basic needs. Below are the real needs that will help us to live well.
1. Food.
Filipinos are known as food lovers. Everywhere you go, you can see many food shops like fast foods restaurants to fine dine-in restaurants. And usually, it is one of the reasons why we always run out of money. To eat a simple and nutritious food cooked at home is a need. But eating in an expensive restaurant is really a want. However, there are times that it is cheaper to buy food rather than to cook. Just choose which option will give you nutritious food at the lowest cost.
2. Clothes.
How many clothes do you really need? You need clothes that are clean, neat, and are suited for your daily activities. To buy expensive clothes which is out of budget is a want. Take the example of Jimmy.
“Jimmy is admired because he is always dressed well and neatly. Actually, he only has four pairs of pants and ten shirts, even if he can afford to buy more. He says that he is able to save by buying only when his pants and shirts are already worn out. He chooses high-quality clothes that will last long and will still look good, even if he has worn them many times.”
3. Housing and Utilities
A house which is enough for you and your family, with simple furniture, a basic cooking set, a TV set, simple cellphone or telephone are needs. However, a big house with expensive furniture, expensive home entertainment, and expensive cellphone are wants.
4. Transportation
Enough money for you to be able to work and return home is a need. Sometimes, it will cost you less to own a car than to take public vehicles. How about buying a car? There is nothing wrong in purchasing a car. It only becomes wrong when you buy it without carefully examining your financial capacity to pay.
5. Education
Many young people think that to study in a prestigious school will give them a good future. This idea is not true. You can be a successful student if you are diligent in your studies. If your parents cannot afford you to enroll in your chosen school, then you can help them by:
• applying for scholarships
• becoming a working student
You must also remember that choosing what course to take and what school you will study is an investment decision, so choose wisely.
6. Recreation
You need a simple recreation to help you relax and cope up with stress. There are many free things that you can enjoy without worrying any financial expenses.
• you can go to a public park
• you can read books and magazines
• you can spend quality time your family
• you can jog every Sunday morning
• etc.
Avoid travelling in different places and having big parties if you will use the money from your active income. Travel and big parties are only for those who already have passive income to spend.
To live a financial stress free life is possible. It only depends on the person’s lifestyle,and to live within your means is the best rule.
-Adapted from Wealth Within Your Reach book 2
