4 steps to prevent ‘petsa de peligro’

posted January 30, 2021 at 07:20 pm
by  Manila Standard Lifestyle
A study by the Bangko Sentral ng Pilipinas revealed the majority of Filipinos live from paycheck to paycheck—running out of money days before the next payday. Hence the term “petsa de peligro” (which translates to day of danger) is commonly used to describe that critical period.

4 steps to prevent ‘petsa de peligro’
Low on funds before payday—again? Financial experts strongly emphasize the importance of budgeting and living below our means.
Financial experts assert it is possible to be in a much more financially stable position regardless of the date on the calendar if we: 

Learn to budget. One of the biggest mistakes employees make is not knowing where their salary goes. When budgeting, Axa Philippines suggests listing down all monthly expenses such as utilities, food, transportation, and others, and make sure the total amount of these items are well within the salary for a month. 

Live below your means. After being aware of where each peso goes, cut back on spending—remove items on the budget that you can do without and redirect the amount to savings. “The key to cutting back is to challenge yourself to spend at least P500 or P1,000 less every week on groceries or negotiable expenses,” says the insurer. 

Make savings automatic. Try to follow the formula of “income – savings = expenses.” That means setting aside money for savings first before spending. Setting up an automatic transfer from payroll account to savings account makes this possible and easier to do.

4 steps to prevent ‘petsa de peligro’

Have a financial goal. Whether it’s building an education fund or setting aside money for a dream travel destination, it’s important to find purpose in cutting back on expenses to serve as motivation. To help reach that goal, Axa offers Goal Getter, an investment and life insurance plan with an initial investment of P10,000 and can be topped up with P5,000 every month to reach the minimum required investment of P50,000. 

Topics: Bangko Sentral ng Pilipinas , “petsa de peligro” , Axa Philippines , budgeting
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