How to Save Money in your 40s

 

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.  

To Buy or Not To Buy a Car

There is probably a time in our lives, if we're lucky, that we ask ourselves this question especially when we have kids or when we're working with a steady company. Do you need to buy a car?  According to Bloomberg, buying a car online can feel like jumping off a cliff into a sea of sharks, which is very true especially if you know nothing about cars. 

Emergency Kit Must-Haves For Each Family Member

Photo from redcross.org

Here in the Philippines, we would often receive the loud alarm in our mobile phones from National Disaster Risk Reduction and Management Council (NDRRMC) whenever there's a disaster going to occur near our area. And when I hear the alarm, I initially panic. In the past, we've received those alarms when there's a typhoon moving towards us or an earthquake nearby. We’ve already got our fair share of typhoons, earthquakes, volcanic eruptions, and most especially flood. It is inevitable that these natural disasters would happen again, the vital question is when. So before these disasters strike, we need to be prepared for them to prevent fear and panic that could lead to more harm. 

Make Money In Real Estate

Back in the 90s, I remember my parents buying properties in certain areas in the provinces and they said it was an “investment.” They said they could sell it at a higher price after 5 or 10 years, which is true actually. Some properties they were able to sell at a higher value, but there are some properties that they sold without earning any profits.

Carina Advisors Helps Make Debt Payment Easier

Do you have multiple credit cards that you have to pay monthly? Carina Advisors can make debt payment easier. 

Being in debt or even owing money to someone is inevitable, even back in our elementary days, I admit that I myself have borrowed money to one of my classmates and then of course, I pay them back as soon as I got my milk money or my school allowance. As we grow older, this process has become more complicated because our needs have become more sophisticated and complicated.  

Choosing the Right Car Insurance for You

When purchasing a car, it is mandatory to have your car insured here in the Philippines. It is for the car owner’s own protection and financial security.

One of the Best Finance Solutions For Your Family's Future

Financial literacy seems to be a thing nowadays which is actually good. People are starting to become aware of the importance of saving money for their future. Unfortunately, It wasn't like this during the 80s or even the 90s.

Requirements For a Self-Employed Loan

Photo by Alexander Mils on Unsplash

People had lots of reasons why they would want to have a loan. If you’re self-employed, it’s mostly because you want to grow your business or simply because you need more money to cover your expenses.

If you were to apply for a loan in Social Security Service or in SSS, it would be easier to check if you’re eligible. You can simply log into their website, click “E-services”, then click “Apply for a Salary Loan,” which is the quickest loan a working individual could get. Right then and there, the website will check if you’re eligible for a loan or not. I just checked mine and it seems I’m not yet eligible for a loan because I haven’t completed a contribution of 6 consecutive months within the 12-month period. I completely understand this because I just started contributing 2 months ago as an voluntary member.

It’s a completely different process for banks or other financial institutions for self employed loans. According to CEO World , if you’re self-employed, banks would usually require 1-2 years of being self-employed and you need to submit to them the proof that you are. Lenders require personal and/or business bank statements with 12-24 months of deposits.  

Aside from bank statements, you would also need a good credit score. iMoney suggests that you get a good credit score if you have a good credit history. Having a good credit history, to summarize it, means if you had an approved loan before and you made sure to pay on time and keep your debts low, then you surely have a good score. Of course, missing a payment is sometimes unavoidable, so all you have to do is catch up and try not to miss a payment again. If a lender saw this in your credit report, explain to them that you underwent a bad time and you provide them with proof. It might increase your chances of getting your loan approved. iMoney also mentioned that having a good credit score isn’t a quick fix. You’ll need to be consistent, and to keep up your good credit behavior over many years.

Another common requirement that a lender would require you is asset documentation. Self-employed individuals need asset documentation to qualify for bank statement loans. Lenders would also want to know how you can pay them back once you don’t have any cash in your bank account. Your assets such as your bank assets (savings account, checking account, money market, certificate of deposits, etc.), motor vehicle assets, real estate assets, insurance policies, and even burial documents are included in your list of assets which the lender would review. Lenders want proof that you use finances from a quality source to put money down.

No matter what your reason is, having a bank loan (no matter what type) is a risk for both the lender and the borrower, and we really can’t blame the lenders if they want to fully check your financial credibility because in the end, they’re the ones who would suffer. As a responsible borrower and an individual, we do our best to pay them on time and be transparent with the lenders to prevent bigger problems.

If you have questions or concerns, let me know through the comments below. 

Ways to Make Money From Home

During my younger days, I used to work in an office where I worked 8 hours a day, 5 days a week, and it was pretty exhausting. Not only do I have to work 8 hours a day, but I also have to deal with the daily struggles of commuting.