You know that feeling.
If you are a breadwinner, you know what it feels like to give up personal wants or needs for the sake of your loved ones. You have felt that pressure to say “yes” to a family member asking for or borrowing money when in reality, you needed to say “no.”
Although it’s fulfilling to support your family financially, it is also extremely challenging for many. If you are among those who struggle to set financial boundaries and save money, continue reading. Beyond Small Talk is here to help you!
Entrepreneur, investor, and guest Marvin Germo shares 4 practical tips to set healthy financial boundaries and save money:
Tip #1: Budget your income
While the Pinoys are known for their generosity and love for their families, we are not much known for setting financial boundaries. In the Filipino culture, it’s just normal for the highest earner in the family—also known as the breadwinner, to support the whole household.
However, this habit could create unjust burden and unhealthy financial dependency.
So here’s an encouragement for you: setting financial boundaries does not make you a bad person. Marvin suggests that you budget your income wisely and be firm on how much you would allot for your personal needs, your savings, and the needs of others.
“We are not required to give all that we have then we’d end up borrowing money to buy food or being buried in debt during emergencies. Whatever is in your heart that you decide to give, that’s very amazing already!” he shared.
Tip #2: Identify your needs and wants
Separating what you need from what you want takes a whole lot of self-honesty, discipline, and patience, but it’s important in setting financial boundaries and saving money.
How do you know if an expense is a need or want?
It depends on how and why you use it, according to The Balance. Do you use your Internet connection because you work from home? That’s a need. Do you use it for playing games or browsing social media? Then it’s a want.
“If you really want to save money, remove your wants. I am not saying that you should not enjoy your earnings. What I am saying is, at this season of your life—if you think you need to fix your finances and the only way is to remove your wants—do it,” Marvin said.
Tip #3: Find extra sources of income
Do you feel like you’ve already removed all your wants, you don’t spend too much, yet you’re still short of money and there’s nothing left to save?
Marvin explains that sometimes, the issue is not how much you save. Saving money on a tight budget is possible, but if you’re running out of money all the time, consider finding an extra source of income.
“Use your extra time after your job to find another source of income. We’re sitting on one of the greatest times to be alive because there’s many opportunities that can be found on the Internet. Find something that you can do online where you can make money,” Marvin suggests.
Tip #4: Start dividing your accounts
When you have all your money in one place, it looks like a huge amount. But when you start dividing it into different accounts, each account seems small.
The trick to spending less and saving more is to make your money look small and avoid the feeling of being a “one day millionaire.”
“The trick in your personal finances is to make it look small, that you feel poor, so you work harder again. Try to make it easy for you to invest and save, but try to make it hard for you to spend money,” he shared.