Budget your money

In Chapter 2, Juan found ₱2,000 a month with no clear job. Now he turns his numbers into a plan.

Step 2: Find a realistic savings amount

Juan looks at his wants first and makes two small changes: shopping from ₱4,000 to ₱2,500 (saves ₱1,500), and eating out from ₱3,000 to ₱2,500 (saves ₱500). That frees another ₱2,000, so he can save ₱4,000 a month, or 16% of his pay.

The family-support dilemma

Many of us help with our parents' household bills, a sibling's tuition or padala to relatives. That support is part of our values, so it belongs inside the budget, not outside it.

• Set a fixed monthly amount and treat it like an essential bill.
• Decide it before payday, and tell your family the amount and the date.
• Keep a small, separate buffer for true family emergencies, so one request doesn't wipe out your own savings.
• Review the amount when your income changes, up or down.

When income isn't predictable

Freelancers, commission earners, business owners and OFWs between contracts can't budget around a fixed salary.

• Budget on your lowest month in the past 6 to 12 months, not your best.
• Send all income to a holding account, then pay yourself a fixed "salary" from it each month.
• Save a set percentage of every payment the day it arrives.
• Aim for a bigger emergency fund: 6 to 12 months of expenses.

Tough choices: when good goals compete