Stretching Your Salary Loan by Adjusting Your Spending Habits

December 3, 2019

When you apply for a salary loan in the Philippines, you are likely to be approved by most lenders, providing that you don’t have any serious outstanding financial problems or unpaid debts. This type of loan is designed to allow people who are struggling to make ends meet to cover their essential expenses and live comfortably while they wait for their next pay cheque to come in. This guide explains a little about how you can make salary loans last a little longer.

Plan Meals

This is a technique many working families use on weekly basis, so they can avoid overspending on food. Instead of buying something from the supermarket each day, shop in bulk with the idea of planning specific meals. You can also “batch cook” and freeze or refrigerate portions of certain types of food in order to make things last longer. Doing this can save a surprising amount of money and can also help you to eat more healthily. Food budgets vary considerably in the Philippines, but it is definitely possible to eat healthily and enjoy a few little treats every now and then without breaking the bank. Drawing up a planner of daily meals can help, as can compiling a collection of recipes.

Pre-Book All Transport

The savings you can make by pre booking transport are absolutely vast. Season passes and tickets for bus travel may seem like a large outlay initially but over the course of year, you stand to save up to a third or more on the total amount you spend on getting from A to B. Similarly, flights and train travel can be significantly cheaper if you plan well in advance. A good way of motivating yourself to do this is to calculate the specific amount you will actually save as this can provide you with real, tangible incentive. Salary loans are expensive and ideally there to be used as a last resort, but that can often mean covering things like travel costs. Instead of buying single tickets, think ahead. Plan and book as much of your transport as you can well before you travel. That way you can avoid having to use a second salary loan or credit card to make up the deficit.

Shop Second Hand

Second-hand shopping used to be something that attracted a bit of a stigma, especially from those who like to show off their wealth. This attitude is starting to change now and providing you do some preliminary research and understand how to avoid getting ripped off, you can often find everything you need for a tiny fraction of the price you would expect to pay for something brand new. This doesn’t necessarily have to involve using pawn shops or other second goods stores, either. Remember that sites like eBay, Amazon and many other ecommerce platforms have a wide range of second-hand goods, many of which are available from reputable, registered retailers. Things like clothes, games for consoles, electronic equipment, components and spare parts for household equipment can all be picked up very cheaply. Similarly, selling unwanted items you no longer use on second-hand marketplaces can also help you to generate extra income. If you’re in a position that where you need to use payday loans, options like this should always be considered before you decide to take out any more credit or apply for other forms of non-income-based funding.

Control Impulsive Spending

The impulse to spend is strong in today’s society, whether you live in the Philippines or other parts of the world. The feeling that we need to be buying products all the time comes from advertising and the culture that dominates much of the media. Though consumer spending in the Philippines isn’t quite on the same scale as the USA, the UK or Europe, loans and borrowing are still regularly taken out by people who don’t really need them. When making financial decisions, try to avoid going with gut feelings and think through the consequences of borrowing carefully. Though nobody expects you to live without any kind on enjoyment or treat items, most people should be able to significantly reduce what they spend on items they don’t really need by exercising a little self-discipline and care. It can be challenging at first but once you’re in the habit of saving money, rather than spending it recklessly, you can actually begin to enjoy being frugal. One of the main things to remember when telling yourself that you can’t have that second drink or that new pair of shoes you don’t really need, is that this won’t be something you have to do forever. Once you don’t need to borrow anymore, you can go back to enjoying impulse purchases without worrying quite so much.

Have an entertainment and social budget

This step can be particularly hard for impulsive people or those who enjoy being spontaneous, but it can be a big help when it comes to making salary loans go a little further in the Philippines. Planning for nights out, meals with friends, trips away and things like cinema or concert events is far easier to do when you set yourself limits and stick to them. The amount you will need will obviously depend on your lifestyle, but if you are a single person or a young couple, the chances are that you’ll need more than somebody with a family and children to think about. In either case, allocating yourself a reasonable amount at the start of each month means that you can avoid that inevitable feeling of dread when you check your bank balance after a period of lots of social activity. You don’t have to force yourself to be a recluse, but it does make sense to think carefully about how much events and social occasions are likely to cost so that you can put some money aside well in advance.