My Starting Monthly Salary Was Php6,500 -- and I Survived!

Yes, Php6500.

I remember this was my monthly salary when I started training with a pharmaceutical company back in 2005. I shared a room with a co-trainee at the back of SM Sta. Mesa and rode the G Liner bus everyday to Bonaventure. Our office is located in front of Greenhills, San Juan.

Php6,500 net, plus free lunch, no more and no less. 

Looking back now, I can hardly imagine how I was able to survive city living with such a small amount for two months before we were deployed. 

Now let me cite a few of my super tipid tips during that time:

1. I went home to our province only once a month. No matter how much I miss my family, and since that was my first time to be away from them, this was one sacrifice I had to make.
2. I shared a small room, which was rented, with a co-trainee to save on household cost.
3. We took the bus everyday to and from work. It was not very convenient, but it was the cheaper alternative compared to taking the taxi.
4. I stayed at my aunt's house in Kamuning on weekends to save on food.
5. No shopping. No signature coffee. And minimal dining out.

As the Tagalog saying goes, "Habang maiksi ang kumot, matutong mamaluktot." And because I have no credit card then, I lived within my means.

And as Robert Kiyosaki says, "If your pattern is to spend everything you get, an increase in cash will just result in an increase in spending."

I cannot agree more to this. Yesterday, I was exchanging messages with a client. He told me that he wants to look for a job with a higher pay. Right now, he earns a six-digit salary. I told him to be cautious when his income increases, because that may result to an increase in spending.

This happened to me last year pre-covid. My business was doing very well that I earned my biggest income by far since I began working in 2003. And because I list down all my expenses up to the smallest detail, I realized that a big chunk of my money went to miscellaneous (read: UNNECESSARY) spending. 

Then covid came, my productivity went down and so did my income. Although I have my emergency fund and passive income sources that sustain me, I wish I knew better then and made wiser money decisions. 

This pandemic taught me that anything can happen. And it is always best the we are prepared for the worst.

How did this crisis affect you? Share them with me in the comments below or you can email me at financialplanningforpinoys@gmail.com.

Sixteen years later after my Php6,500 salary, I am now married, with two kids, 30+ lovebirds, two dogs, and supporting my retired parents. I am part of the so-called "sandwich generation." And with all these expenses, I also need to save and invest money for my retirement years. I made a decision that the sandwich generation in our family will end with me. I build my golden nest egg through my Insular Life insurance + investment policy.

Today, I no longer list down all of my expenses in detail. Every time income comes in, 10% goes to tithes and 20% for my retirement. I now use an envelope system wherein I allocate a certain amount per expense. Believe it or not, this pandemic has decreased my spending significantly! 

How?

Because I have been working from home, my usual Php15,000 monthly allocation for gas and toll before is now down to Php6,000. 

I used to have my car's maintenance check every 5,000 kms which happens every other month. Now, my car has not even reached 5,000 kms since its last PMS almost a year ago! 

Also, we used to go to the mall every weekend and enjoy dining out. Now, I have began home cooking and I am amazed with the savings from this new habit. One meal for our family of four at our favorite resto costs Php1,000 more or less. We went to the market last weekend and spent only Php4,000 for our meals for 5 days!

And with this increase in savings means an increase in investments. I encourage to keep increasing in financial knowledge and continue seeking opportunities to grow your hard-earned money. Look for an instrument that will teach you the discipline to set aside of your income every paycheck. That is what my InLife policy does. Talk to your trusted Financial Advisor and do some serious financial planning with him/her.

 

Be very blessed!

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