One-person households were once a rarity in the Philippines. But today, changing demographics have made them a common phenomenon, accounting for 9.2% of the total number of households in 2017. Changing values, rising incomes, and smaller overall family sizes have coincided to not only make single living more appealing to a wider group of Filipinos, but also more financially sustainable.
Many have found living alone to be an exhilarating experience that offers fulfillment and self-discovery. However, it also comes with its own set of challenges, especially when it comes to managing finances. Thriving solo requires a good mix of practical life hacks to keep your physical, mental, and financial health in good shape. Integrate these life tips into your solo lifestyle to become a better, more financially secure version of yourself:
1. Create a budget and dedicated bank accounts.
It’s easy to overspend — particularly if you’re young, free, and at the prime of your life. For that reason, you’ll want to be extra conscientious about keeping a budget that reins in impractical purchases. Start by listing your income and expenses, prioritizing essentials like rent, utilities, groceries, savings, and insurance. Then, open new accounts at a digital bank PH-based savers trust, like Maya. Auto-transferring funds from your payroll bank account or digital wallet to these key accounts can also make money management simpler by ensuring that the funds you allocated for critical areas are no longer as easy to spend.
2. Practice mindful spending.
The single most important thing you can do when you’re living alone is consistently ask yourself if the things you’re spending on are needs or wants. There’s nothing wrong with treating yourself, but the line will get crossed sooner or later if you don’t make it a habit to consider each purchase. Being mindful won’t stop all impulse buys, but it should ensure your money is consistently spent on things that truly matter, thus keeping your finances stable. You should also be mindful of how you can get the most value out of your money on top of being mindful of how you spend it. Using your Maya app for everyday spends, for example, will allow you to continue to boost your interest all the way up to 15% p.a., which means that you’ll earn while being careful about your money.
3. Stay healthy.
Outside of mindful spending, prioritizing your health will also stabilize your finances by minimizing costly medical bills. Remember, there is a real monetary cost associated with bad diets, staying up late, and being sedentary—you just don’t pay it upfront. Consider good health practices like regular check-ups. Make preventive care a part of your mindful spending habits so you can stay healthier, happier, and more
productive. It may initially be hard to develop these habits on your own, but with practice, a healthy lifestyle will become a routine.
4. Build an emergency fund.
No matter how careful you are, unexpected expenses can arise at any time. Aim to limit your purchases of big-ticket items until you can save at least three to six months’ worth of critical living expenses in an easily accessible account. Make it part of your mindset that this amount is your new “zero” for your day-to-day living. Even if you have insurance, having cash on hand will be a lifesaver in case of emergencies such as medical issues or a sudden loss of income. If left untouched, part of the money you’ve set aside for your emergency fund can also serve as a nest egg for future financial goals. Your Maya Time Deposit Plus account can serve this double purpose and grow your money for either emergencies or your nest egg, which you can tap in the future.
5. Cook at home.
Eating out regularly will significantly drain your finances. A much more financially responsible and potentially healthier approach would be to plan your meals and cook at home. If you don’t have time, consider batch-cooking your meals. Check out recipes and cooking videos and practice your culinary skills so that you always have healthy food that you actually like at home.
6. Shop smart.
Admittedly, typical sales, discounts, and loyalty programs don’t always save you that much cash upfront. Over time, however, the total savings can be significant, particularly if you’re shopping for items that are in the budget anyway. Explore the public markets and discount chains near your home to find the best possible deals, taking care to also account for your transportation expenses. You can also explore online marketplaces to find great deals on bulk items.
7. Limit subscriptions.
Most of us have at least a few subscriptions that we don’t use. These can be serious drains on your finances, so consider going without them if possible. If you only need these services infrequently, consider sharing an account for that service with close friends or family.
8. DIY repairs and maintenance.
Having DIY skills can be of immense value when you’re living alone, deepening your independence for minor repairs and saving you some cash in the process. YouTube is a great resource for tutorials on fixing minor issues like leaky faucets or sluggish electric fans.
9. Use public transportation.
Many Filipinos dream of owning a car. Unfortunately, it does not matter if your bank approved your car loan if you can’t afford the accompanying fuel, maintenance, insurance, parking fees, and near-instantaneous loss of resale value. If you’re in a position where you cannot easily pay for all these costs, you’re probably far better off without a vehicle, since the full value of a car may be wasted if you don’t have a family. A smarter move would be to just use public transportation or ride-sharing services for your daily commute. If possible, consider moving close enough to your workplace so that you can easily walk or bike to it.
10. Maximize energy efficiency.
Energy prices in the Philippines keep going up year after year, presenting a huge issue for cost-conscious solo households. Swap out all your home’s lights for energy-efficient LEDs and consider upgrading appliances older than 10 years to more energy-efficient models. Most importantly, minimize your use of air conditioning, prioritizing bedtime. Fortunately, if you live alone, you don’t have to compromise with anyone on how long to keep the air conditioner on or what appliances to use.
Managing your finances wisely and adopting tried-and-true life hacks is the key to living a sustainable solo lifestyle. If you’re after a healthier, more financially stable future, getting started on these habits will take you most of the way there.
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