[INFOGRAPHIC] 5 Luxuries You Can Live Without to Save More Money

Need a little help with your money management? Let’s start by cutting down on your luxuries to make space for your necessities and improve your financial habits. Here’s a more in-depth way of how you can do it. 

1. Overpriced Coffee
   
   Today’s young professionals run on caffeine, and one of their favorite stops is Starbucks. Coffees are costly. Yet, it’s one of the last things people cut back on to save some cash. You might think this is just a small spending habit, but it’s not.
   
   There’s a concept called the “Latte Factor” that points out the discretionary costs people spend here and there, which can add up to a significant amount over time. Because of this, people miss out on what could have been a good opportunity to save more or grow their money. Here’s a table to illustrate:
   
   
   If breaking your coffee addiction is impossible, you could invest in a coffee brewer and make your own cup and bring it to work. It costs less but can still offer quality taste, especially if you have good coffee beans. Another option is to find another café that serves quality coffee at more affordable prices. Or, you could always opt for three-in-one coffee mixes on petsa de peligro days.
   
   
2. Netflix subscription
   
   Netflix is arguably the best streaming service out there. Statistics show that by 2020, Netflix will have over 296,000 subscribers in the Philippines. Thanks to the service, many Filipinos can watch their favorite movies and TV shows, and discover new titles on demand. Now that Netflix also streams Filipino films, it will indubitably retain its following and possibly gain new subscribers. Is it worth the cost, though?
   
   Presently, the standard Netflix plan in the country is at P460 monthly, while the basic plan costs P370, and the premium plan is P564. It’s cheaper to share the cost among five friends or family members.
   
   
   You could unsubscribe from Netflix to really save, or borrow your friend’s account. But if it’s not possible, at least share the plan with other people to save big time. That extra P5,412 can used to pay for unexpected expenses and other necessities. Better yet, you can put the money in a savings and emergency fund.
   
   
3. Gym membership
   
   It’s always tempting to sign up for a gym membership every start of the year to activate your New Year’s resolution. But is the membership and month-to-month package worth it? This can be challenging to justify, especially if you’re a gym rat, but for those who don't work out regularly, this easily becomes a non-essential.
   
   
   Instead of enrolling in a gym and attending monthly sessions, you can exercise outside (i.e., jog) and supplement it with at-home exercise videos that won’t cost you a penny. You can purchase basic workout equipment to intensify your exercises, but those little expenses are still reasonably and significantly cheaper than working out at a gym. While you’re at it, make sure to eat the right food your body needs to maximize your physical health.
   
   
4. Eating out
   
   Eating out is one of the small luxuries in life that people tend to overlook. Additionally, more and more restaurants are popping up here and there, which entices people to dine and try out new food places. However, an innocent invitation to “have lunch outside” can put a dent in your bank account in the long term.
   
   
   
   You can save a lot by making your own meals at home and bringing them to work. If you want to change your eating habits, save time, and save more cash, you can try meal prepping. This means preparing all your meals—could be breakfast and lunch for work—for the whole week every Sunday, so you’ll only have to grab your meals and go every workday morning.
   
   
5. Buying only branded products
   
   No one will walk up to you and check the tag on your clothes, so there’s no need to give in to social conformity to keep up with other people. A branded shirt can easily cost you a couple thousand pesos, and trendy sneakers can set you back up to P6,000, if newly launched.
   
   Often, people take advantage of their 13th-month pay to reward themselves with their “wants.” It may make you feel better at first, but do check if your bank account can afford to uplift you with these “wants” because sooner or later, you’ll want more.
   
   
   
   Go for simple clothing, shoes, bags, and other products. As long as it’s made of good quality materials and cheaper compared to branded products, that’s money better spent. Check out lesser-known brands. Many offer excellent products from clothing and shoes to gadgets at a low price. Alternatively, you can go thrift shopping where you can score branded finds for a cheap price.

Make Smarter Financial Moves

Rent, utilities, bills, transportation, food, healthcare -- these are only some of the monthly expenses people have to pay for regularly and can’t live without. These are the things you should prioritize over unnecessary costs like the small luxuries above. When you get your finances and priorities in order, that’s when you can start to enjoy a healthier financial status.

Eliminating these small and relatively unnecessary costs can give you the opportunity to spend on more valuable investments like a life insurance savings plan, which can help you prepare for a healthier, longer, and comfortable future.

Care to be more enlightened about how you can save more and manage your finances wisely? Talk to one of our Bancassurance Sales Executive at any of our 900 BPI branches to learn more!