Remember those pancit canton I practically lived on in college? Yeah, those weren’t exactly gourmet dinners. Those were “I’m a broke student, and I’m pretty sure my wallet’s gathering dust” dinners.
Sound familiar?
Been there, done that. Wore the “I’m broke” badge of honor like it was going out of style. But let’s be real, that “tiyaga” life gets old fast. You start dreaming of real food, actual clothes that aren’t from your parents’ closet, and maybe, just maybe, a weekend trip that doesn’t involve raiding your classmate’s pantry.
Fast forward to today, and let’s just say I’m eating a lot better. No, I didn’t win the lottery (though a guy can dream). I transformed from a “broke student” to a “savings god,” and it all started with a simple money system.
Ready to ditch the instant noodles and level up your finances? Let’s dive in.
My “Ah-ha!” Money Moment: Realizing I Wasn’t Actually That Broke
Here’s the thing: I wasn’t actually dirt poor. I just had zero clue where my money was going.
Sound familiar? Thought so.
It’s easy to blow through your allowance, “baon,” or that part-time job money without even realizing it. A few “kape” runs here, a “sale” purchase there, and bam – you’re staring at an empty wallet wondering where it all went.
That’s when it hit me: I needed a system. Not some complicated spreadsheet thing that makes your head spin, but a simple, easy-to-follow money system that even a sleep-deprived student like me could handle.
Broke Student to Savings God: The System
1. Track Your Spending: Know Your Enemy
First things first: you can’t fix what you don’t track. I’m not talking about obsessing over every peso, but get a general idea of where your money’s going.
- Use an app: There are tons of free budgeting apps out there that make it ridiculously easy to track your spending. Find one you like and actually use it.
- Go old school: Prefer pen and paper? No problem. Keep a small notebook with you and jot down every time you spend.
- The point is: Get a clear picture of your spending habits. You’ll be surprised (and maybe a little horrified) by what you discover.
2. The 50/30/20 Rule: Budgeting Made Easy
Once you know where your money’s going, it’s time to create a budget. Don’t worry, it’s not as scary as it sounds. The 50/30/20 rule is my go-to, and it’s surprisingly simple:
- 50% Needs: This is for the essentials – rent, utilities, food, transportation. Basically, the stuff you absolutely need to survive.
- 30% Wants: This is where the fun stuff goes – eating out, movies, new clothes, gadgets. You know, the things that make life enjoyable.
- 20% Savings & Debt: This is your “future you” fund. Use it to save up for big goals, invest, or pay off any debt you might have.
Now, you might need to adjust these percentages a bit depending on your situation, but the general idea is to create a clear framework for your money.
3. Automate Your Savings: Make It Mindless
Remember that “future you” fund? Here’s the key: automate it. Set up an automatic transfer from your checking account to your savings account every payday. Even if it’s a small amount, the key is to make it consistent and automatic.
Trust me, you won’t even miss the money, and your future self will thank you later.
4. Side Hustle Hustle: Boost Your Income
Listen, budgets are great, but sometimes you need to boost your income to reach your financial goals faster. Luckily, there are tons of side hustle opportunities out there, especially in the digital age:
- Freelancing: Got writing, design, or programming skills? Freelancing platforms are your best friend.
- Online selling: Good at finding bargains or creating unique crafts? Online selling platforms like Shopee and Lazada are your oyster.
- Tutoring: Ace that one subject everyone struggles with? Share your knowledge and tutor your way to extra cash.
The point is: be creative, be resourceful, and don’t be afraid to hustle. Every little bit helps.
5. Be Patient and Persistent: Rome Wasn’t Built in a Day
Building healthy financial habits takes time and effort. It’s not always going to be easy, and you’ll have moments where you slip up. That’s okay. Don’t beat yourself up. Just dust yourself off, learn from your mistakes, and get back on track.
Remember, becoming a “savings god” is a marathon, not a sprint. Be patient, be persistent, and trust the process. Your future self will be proud.
So there you have it – my simple money system that helped me go from “broke student” to “savings god.” It’s not rocket science, but it takes commitment and discipline.
Now go out there, take control of your finances, and ditch those instant noodles for good. You deserve better.