Money Tips for Single-Income Families

Updated: March 15, 2024

The Department of Labor and Employment National Wages and Productivity Commission mandates that the daily minimum wage for those in the National Capital Region be 573 to 610 pesos.

This translates to an income of a little over P12,000 per month for NCR, where the minimum wage is already the highest. So imagine if you live in other parts of the country. Raising a family with P12,000 would surely fall short, especially if you have two or more children.

This is why most Filipino households have more than one income earner. Both parents work or have at least a sibling who lives with them. Sometimes, they have a home-based business to augment their income.

However, for others who only have one breadwinner, making ends meet every month becomes a daunting and stressful experience. If this is you, then here are some money tips that can help improve your family’s finances.

Know your cash flow.

How much is your take-home pay? How much are the household’s monthly necessary expenses? Any attempt to budget your income is futile if it’s never enough for your family’s essentials in the first place.

By knowing how much your monthly living costs are, you’ll have a stronger grip on your wallet and avoid spending more than you can afford each month. Knowing your cash flow is always the first step to improving your family’s finances.

Review your essentials.

Revisit your list of necessary expenses with a more critical eye, and check if any of the items are actually non-essential costs. We often get used to a simple luxury that we start to believe to be a necessity, such as expensive salon visits, cable TV subscriptions, and gym memberships.

By removing such items or replacing them with more affordable alternatives, you can free up more money for more important or urgent expenses—such as building an emergency fund, doing your own home repairs, or setting aside money for your child’s school tuition.

Work on paying off your short-term debts.

If you have personal loans and credit card debts, you must give them priority in your budget and create a debt-payment strategy that will eliminate them as soon as possible.

Understand that you’d need to make some sacrifices today if you want to succeed financially in the future. Every bit of unnecessary cost that you can eliminate will help and go a long way in making sure that you have enough money to pay your utilities, make your rent, go to work, and buy food for the family.

Secure financial protection.

Having an emergency fund can help you avoid going into debt when unforeseen expenses occur. But for unexpected circumstances such as the death or disability of the sole breadwinner, life insurance is the best tool to protect your family from a financial disaster.

The future is unpredictable, but we don’t have to worry and be afraid of the bad things that might come. By securing financial protection, you can focus more on your and your family’s health and well-being.

Create financial goals with your family.

Talk with your family and decide on your financial goals together. It’s always an inspiring and hopeful experience to dream with your family. It is even more heartwarming to work together and think of ways that can help achieve them.

Your family is the most important thing in the world, so you work hard every day. We hope that these financial tips can help make your efforts worthwhile.

What to do next: Click here to start your financial journey with IMG Wealth Academy

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