Simple Ways To Maximize Your Family’s Savings
Just 32.8% of Filipino families have some form of savings, according to a survey from Bangko Sentral ng Pilipinas. Their survey results also revealed that these individuals were able to put aside at least 10% of their household income each month. However, this is a far cry from the 30% that experts advise Filipino households save every month. So, other than making savings on your household bills, how can you increase your family’s savings?
The Entrepreneur reports that 19.9 million Filipinos are saving their money informally. This means their cash is being kept in places such as the home rather than in financial institutions. In total, just 9% of the population have savings in a bank account. However, there are benefits to holding such an account in your name. By stashing your savings in a bank account with an interest rate, you’ll automatically earn free money. The higher the interest rate, the more you’ll gain. This extra money in your pocket will go a long way in keeping your kids in new clothes and covering their schooling costs, so it makes sense to store your cash in a bank account rather than under your mattress.
31.7% of the Filipino population have an outstanding loan, and many more are believed to have other outstanding debts in their name. Having debt can prohibit your chances of saving 30% of your monthly income as the majority of your spare cash will go towards paying back what you owe. It’s, therefore, wise to clear your debts as it will make it easier to increase your savings and will prevent charge-offs from being placed onto your account. Thankfully, when these marks are impacting your credit score, there are things you can do to remove them, such as paying them off.
Review your food expenditure
The top reason Filipino families are unable to save is because they don’t have enough cash left at the end each month, according to ABS CBN News. Yet, they also report that the nation loves to splurge on food. Come payday, 26.2% of individuals spend more on food than they do throughout the rest of the month. It’s easy to see why as food provides the perfect opportunity for families to bond. But, there are ways to do this and spend less. Rather than throwing leftovers away, have fun as a family making unique and tasty meals together. And, when you’re in the supermarket, make a game out of who can source the cheapest ingredients.
The majority of Filipino families aren’t saving as much money each month as is recommended. But you can turn this around by signing up for a bank account, paying off your debts, and cutting back on your food costs.
We have a section on recipes and meal planning in our website, i would love you to check. This will be very helpful in mapping out meals and grocery lists. We also have the month-long P100 recipe meal plans you can check out that could help in staving off food budget costs of the family. Thanks again for stopping by, and till next post!
A happy homemaker is a Happy Pinay Mommy!
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