A budget plan is a list of where your income goes. It will help you track your expenses and be mindful in case of overspending. It shows the detailed flow of your money the moment your earnings come.
How consistent and mindful are you of your budget?
Personal or business, either way, needs a budget. So, let us look at a single professional’s budget plan! This is from the perspective of a female professional who is living independently. She is the one managing her own money-earned.
5 Components of a Filipino Female Single Professional’s Budget Plan:
1. Source of Income. Her salary is the main source of income. Sometimes, can do a side hustle. However, most of the times salary is the only way to use in paying bills and other expenses.
2. Mandatory Expenses. These are government contributions namely SSS (Social Security System), PHIC (Philippine Health Insurance Corporation), and HDMF (Home Development Mutual Fund) which her employer abides as mandated. (Disclaimer: Female Private Employee)
3. Monthly Bills. Rent, electricity, water, and internet are the single professional’s consistent bills to pay. Internet is included because nowadays most Filipino female professionals work at home.
4. Savings & Investment. For her, savings comprises an emergency fund and retirement fund as one, and plan to separate them later on when her side hustle keeps going. Bottom line, setting aside a portion of money for savings must be a single professional’s top priority. In her late 20s, getting insured was the wise decision she made to be financially responsible. She’s advocating it to other female single professionals especially those who are still in their early 20s and working. She started to invest in a low-budget amount. Did you know that you can invest for only 500 pesos? Modified Pag-ibig II is her startup investment which you can begin with if you are a beginner in investing.
5. Allowances & Wants. This pertains to petty expenses like transportation whenever she needs to go out. Furthermore, unexpected expenses and wants are part of her allowance. Yes, you read it right, she considers wants to be part of the budget. It is because she believes after hard work she deserves a self-reward.
The above budget plan components show the essential lists of what you can allot a budget from your salary. It also explains the basic budgeting plan a female single professional can keep.
How about yours? Feel free to share.