Living alone means to shoulder all the expenses alone too. The inflation rate in the country is no joke, as reported by Philippine Statistics Authority (PSA), the inflation rate in December 2022 which is 8.1 % climbed up to 8.7 % last month, January 2023.
Well, there are two ways you can fight the inflation rate: number one is to reduce expenses, and number two is to increase income. But in this article, we are focusing on reducing expenses. You might not know about cost-cutting strategies, or you might not just don’t have the drive to execute it yet. Nevertheless, here are 6 cost-cutting strategies you might find beneficial if you are currently living alone.
1. REDUCE HOUSING COSTS
Rent is presumably the greatest eater of your monthly income. How much do you spend on the monthly basis for your rent? Like for example, if your monthly rent is P10,000. Perhaps, you could look for a cheaper apartment for P5,000. An apartment for that price is already pretty decent, right? So, if you found an apartment for P5,000 a month, that’s P5,000×12 months. You will save up to P60,000 for one year.
Read: How to cut down electricity monthly bill
2. CUT BACK ON TRANSPORTATION COSTS
Grab? Angkas? P200-P400 for transportation each day? Imagine, spending P300 a day for a month (20days) costs you P6,000×12 months, you are expensing for transportation for P72,000 per year. Perhaps, if your worksite is near at your house, you can opt for an e-bike or bike, or if it’s farther, you can just buy a motorcycle, both for around P30,000-P40,000. So, P72,000-P40,000, you will save up to P30,000 in a year.
3. TRIM HOUSEHOLD EXPENSES
Trim your expenses in food. This might be difficult for us as Filipinos always say “Magtipid na sa lahat, ‘wag lang sa pagkain” which is basically correct but not to the extent where groceries consume all your budget. You can cut down your junk foods consumption, or in general, simply cut down unnecessary or unhealthy foods. If your “merienda” is P200 each day, you can cut it down to P100 daily. P100x30=P3,000X12 months. That’s already P36,000 in a year. Why buy a P100 sandwich, if you can choose a whole tasty bread for an alternative for P70.
Read: Top Fast Food Hacks That Can Save Everyone’s Pockets
4. REASSESS INSURANCE COVERAGE
Technically, there are whole life insurance and Variable Universal Life (VUL) insurance. Term life is like insurance for your house or car where you have to renew it annually. In simpler terms, if you renew, you’re covered, and if you didn’t, then you are not covered. This insurance is more affordable and perhaps the insurance agent doesn’t explain about this much because it will cost you lower, meaning, the agent’s commission is also low.
5. REDUCE ENTERTAINMENT EXPENSES
Why eat or order food outside if you can just cook for yourself? Why use Netflix if you can use free entertainment apps like LokLok, BiliBili, or YouTube? Why travel abroad if you can visit travel destinations here in the Philippines?
6. AVOID UNNECESSARY BAD DEBT
If you currently have bad debt, list down all your debt and try to eliminate all of them. On the other side, if you have no debt as of the moment, do not attempt to take out a loan especially if you are uncertain about your job and business. This is not the time for you to overspend or buy big ticket items. If you can live without it, then, delay the purchase.