Silver Lining Part 1

With the cost of practically everything going up these days, everyone is looking for ways to scrimp, save and stretch their ever-shrinking budgets. With that in mind, here are some thoughts I would like to share with everyone.

First, don't panic. Yes, things are bad and it looks like they will get worse before they get any better. However, one of the worst things you can do is panic and start making decisions rashly and without design. OK, now that you've caught your breath, let's take a look at some of the other things you can do these days.

List Expenses
If you're not already doing this, then this is the place to start. I know that some people find this tedious and somewhat O.C. but you may just be surprised at how much you end up spending on "little" items on a regular basis. Forget Starbucks (as even they are shutting down over 600 stores) and list down each and every purchase on a weekly if not daily basis. Some common expenses that we tend to overlook since they are so "small" are the following:
1. Pirated DVD's, CD's and VCD's. Yes, they are a cheaper alternative than actually going out to see a movie but if you make a habit of purchasing 3 to 4 discs every time out, you might actually be spending close to a thousand bucks before the month is over. Especially if you go for those "TV-Series" DVD's.
2. Cigarettes. Aside from being bad for your health, your shrinking purchasing power is another good reason for you to quit. Think about it, let's say you buy per pack and smoke one pack per 2 days. In 30 days, you would consume roughly 15 packs and at 30 bucks a pack, that comes out to about 450 pesos a month. The amounts can get even higher if you actually purchase on a per stick basis. For example, if you smoke 8 sticks a day at about 2 pesos per stick, that comes out to 16 pesos a day or 480 pesos per month.
3. Cell Downloads. Seriously. At 10 pesos or more per pop, this is something that can quickly get out of hand. Keep downloading songs, tones, ringbacks, MMS pics and celebrity updates and you will soon end up spending hundreds of pesos on something that is not really necessary. (And yet, a recent study showed that a significant number of Filipinos would choose feeding their phones over their stomachs.)
4. Cable TV / Internet. I know, I know. This sounds like overkill but hear me out. Ask yourself, how much do you truly use these services on a daily basis? 2 hours? 4? 18? And yet, you will be paying about a thousand bucks per month for each or both of these things.

Prioritize and Streamline.
Now that you have that list of stuff you spend on; the next step is to prioritize and streamline them. Put another way, now is the time to ask yourself which expenses you can and cannot do without. Continuing our previous example, let's say that you're figures come out like this on a monthly basis:
1. DVD's / CD's : Php 400
2. Cigarettes : Php 450
3. Cell Downloads : Php 200
4. Cable TV : Php 800
5. Internet : Php 999

Now ask yourself, which of those is the most important to you? The least? For example : If you find yourself watching pirated DVD's most of the time, why not give up the cable TV? Or, if you have a fast internet connection, why don't you give up the cable and DVD's and just download your favorite shows online? There are sooooo many sites where you can get the latest movies and TV shows for free. Yes, it will entail some tough choices, but if you do it this way, you will be able to make a more informed choice as to what stuff to spend on.

Well, it's lunch time so I'll continue this post later.
Have a good day everyone.