This crazy inflation has really affected most people, including myself. In the Philippines, it’s like having a salary of Php 20,000 is no longer enough to live comfortably even for one person. Also, saving money is really difficult nowadays especially if you have bills to pay. In my case, when I start saving, somehow I always end up spending it because of unexpected expenses. Right now, I have a work-at-home job and I’m earning just enough for food, rent, and transportation fees when my daughter and I commute to take her to school, which is just one tricycle ride away, plus I give allowance to my son who also commutes to school. So long story short, it’s hard for me to save.
So the question is, is it too late for people like me to save especially during these hard times? I looked at some interesting articles online that could help us give some insight. Here are some tips worth reading:
1.) Finish paying off any debt. According to an article from Forbes.com, if you have high-interest debt, finish it off once and for all during your 40s. All it's doing is holding you back. Right now, that’s exactly what I plan to do – finish all my debts, especially from Shopee so I can start focusing on my savings goals.
2.) Be honest. At first, I thought I can get rid of coffee so I can save some money. I know to myself that I cannot work without coffee so I really need to set aside some bucks for it. Another example is face-to-face classes. Times were different when my kids were still having their online studies. I did not need to compute their allowance and transportation expenses. Now, since face-to-face classes have been implemented, I failed to compute these expenses beforehand. Knowing your real expenses can help you set realistic financial goals.
3.) Learn a new skill. At my age, I am actually starting to feel like my current skills can be learned by fresh grad employees which makes me feel kind of depressed sometimes. So this year, I plan to learn some new skills, but I’m still working on what particular skills they’ll be.
4.) Avoid lifestyle inflation. Okay, this is new to me, but it’s also an eye-opener. While you can spend more on some goods like food, and drinks, and occasionally treat yourself to a family vacation, it's crucial to avoid letting prices get the better of you. Don't spend your entire budget on enhancing your lifestyle meaning if you know your salary is just enough, don’t spend money going to coffee shops and eating out every day when you know that you can’t financially sustain it. When you let your lifestyle inflate, your net gain is zero. So the bottom line is to maintain your simple lifestyle.
5.) Start a retirement fund. Considering you still don't have a retirement fund, I believe it's never too late to get one since we still have 20 years (or less) before we retire in our 60s. Though the contributions are higher compared to individuals who are in their 20s, it’s never too late to get one.
6.) Get a side gig. If you really think your current job can’t give you higher pay then it’s time to find another side gig or a part-time job to sustain your finances. You can also start a small business if you have the extra money. Having a passive income is a necessity.
There are still a lot of things we can do in our 40s. Some have started a business in their 40s or even in their 50s or 60s and became successful. As for me, what I need right now is extra cash to sustain my expenses so I believe I’ll be looking for another side gig. What about you? Tell me in the comments below what your plans are or if you have suggestions.
Financial literacy is really important!
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