CHRISTMAS has begun in the Philippines, and with it also comes the inevitable seasonal pressure to spend a big chunk of our hard-earned money in one go.
Conversely, Dr. Sanie Doda and Shkelqim Fortuzi wrote in their article “Impact of Saving for Personal Finance,” that saving money is a positive financial behavior that can have a transformative effect on the household and the family’s well-being. That said, let me share some practical advice to help you enjoy the holidays within budget.
Needs versus Wants
PEOPLE tend to overshoot their monthly budget expenses, which is why it’s important to discern your needs from your wants to let you make clear-cut decisions when spending.
In an article written by the Forrit Credit Union, “needs” are described as items that are necessary for survival: food, water, and clothing. “Wants,” on the other hand, are enjoyable things that make life a little more comfortable—branded clothes or a concert ticket, for instance.
Evidently, needs come first and to make sure these are met, start by determining and writing down your daily living expenses. Next, make a weekly list. And, finally, come up with a monthly list of your priority expenses. The monthly budget will help in carving out your priority needs and in figuring out if there is an excess amount for your “wants.”
Always ask yourself: “Do I really need this item to live and function?” An answer in the affirmative verifies it’s a “need” and if it’s in the negative, then it is a “want,” an expense you can shelve for another time.
Set aside an amount for savings
ONCE you have determined your needs and wants, you can now plan your monthly budget and allot a certain percentage of your money for savings. Though it may sound like a cliché, this piece of advice honestly works. The amount you set aside for savings is up to you—what matters more is consistency, setting a goal for the amount of savings you’d like to have, and establishing a time frame for when you want to reach your target amount for savings.
Let your savings work for you. It will come in handy for future expenses, which can include travel, education, or (knock on wood) a medical emergency. Your savings can serve as a motivation to be more diligent about your personal finances and to save more. Certainly, you’ll feel a sense of great fulfillment once you’ve reached your goals.
Make moments matter
THROUGHOUT my work in the Department of Budget and Management, I had the privilege of joining Secretary Amenah “Mina” Pangandaman in local events.
In one gathering where she was also interviewed, I heard her answer the question on how much one must budget for special occasions such as Christmas. Her reply was simple and resonated with me: “Spend time with the people who matter to you, be it with your friends or family.”
Prior to my work in the DBM, from 2019 to 2023, I was posted in Singapore, and when the pandemic struck, it resulted in restricting travel from 2020 to 2022. To make things worse, I was not with my family during my stint. The stress and challenges I went through were exponential.
But the blessing here—if there was any—was that the pandemic made me realize the importance of spending quality time with the people who mean a lot to you. As Sec. Mina said, it does not matter what is on the table during the celebration, simple food will fill the tummy. What matters most is being with your family and friends—spending time with them. Being with your loved ones during milestone celebrations will fill the soul and create core memories. This is what living a happy and fulfilled life is all about.
Discipline and determination are key factors in developing positive financial behavior. The outcome of the advice I’ve shared will depend on the person’s available resources and choice of priorities. Results will definitely vary per individual. And it’s alright to start with a small budget, but make that big and bold move to start the sacrifice. You’ll surely reap its benefits in the future.
Happy Holidays!
PR Matters is a roundtable column by members of the local chapter of the UK-based International Public Relations Association (IPRA), the world’s premier association for senior professionals around the world. Wilford Wong is an IPRA member and is currently working as an Undersecretary of the Department of Budget and Management. He carries with him over 20 years of experience in Corporate Communications, Business strategy and Public/stakeholder.
We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.