#PINNED: Spending habits of young Filipino professionals that should be kept in check

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While earning your own money is a thrilling part of adulting, handling it smartly can be challenging. Should you buy that cool item you have been eyeing for years now or set aside the money for more important expenses that may arise? Whichever you choose in every financial decision making, it will affect your path to attaining financial freedom. To guide you, here are the spending habits you need to keep in check:

1. Living beyond your means

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You probably heard of the 50-30-20 budget plan, wherein 50% of your income should be spent on necessities, 30% on wants, and 20% on savings and investments. You can adjust this based on your priorities and preferences, but make sure to follow your set budget. This may be a bit of challenge at first, but you will be surprised by how much you can save in the long run.

2. Frequent food delivery

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Many are currently working from home. This means that you now need to prepare your meals, unlike before when you can just buy from the cafeteria or nearby restaurants. Sadly, not all are blessed with brilliant cooking skills, and the convenience of food delivery may lead you to the frequent use of the service. While it can easily satisfy your cravings, it can also risk your savings. Now that you are always at home, this can be the perfect time to develop your cooking skills.

3. Thrill of online shopping

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Midyear sale, end-of-season sale, flash sales - you immediately checked out the item because why waste a good deal? But is it really a good deal if you buy it, and then leave it unused just like your other purchases? A common advice is to have a cooling period. If you still see it as a need after a few days, then buy it. Remember to evaluate first the item to avoid impulse buying.

4. Paying for unused subscription

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There are a lot of “cheap” paid subscriptions right now, and it can be really tempting to avail. Once you give in, you may end up with all these subscriptions left unconsumed. It may appear cheap as you are looking at the monthly fees, but leaving it to accumulate for years may eventually create an impact on your finances.

5. Keeping up with everyone

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Just because someone from your circle gushes about the newly released gadget does not mean you have to have it too, especially if you do not really need it. Try to focus on what you have and appreciate it. It will be futile to always keep up with what is “in,” as nowadays everything just comes and goes.

6. Not rewarding yourself

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The previous items are all about expenses; however, you may be the polar opposite as you try to save every peso. While this is commendable, you should not forget to treat yourself for your hard work. Restricting yourself for an extended period of time may also result in splurging which can be even more expensive than enjoying the little things from time to time.

The first step in tracking these habits is to recognize them. By doing so, you may be able to determine better actions and eventually develop better habits. It is a long learning process, but it is something everyone has to take to attain financial freedom.