According to the Asian Development Bank (ADB), poverty declined slowly over the past four decades owing to the great income inequality in Filipino society. While employment opportunities exist in the country, the fact remains - many Filipinos struggle to own a house or break free from the vicious cycle of renting (eats a huge chunk of monthly savings), worsening traffic, and low income. Despite this situation, you can still mitigate factors that you can control by following a frugal lifestyle.
 

1. Search for nearby, quality and rent-to-own house

If you’re a minimum wage earner or earning just a little above a minimum wage, it will help if you go for affordable rent in an apartment, condo or single detached subdivision and weigh the factors essential for safe and quality living. If you can afford to settle down for a rent to own condo, single-detached or row house within metro manila or the nearest outskirts (Bulacan, Cavite, Laguna, Rizal), then go for it. Make sure that your house has transport accessibility. Renting a housing is a temporary solution but if you’re going to work in the same place for more than 2+ years then it’s better to settle down for rent to own housing.
 

Factors to look for when renting a house

If you work for the long term (2 to 10 years), it’s advisable to look for a rent to own property such as a row house, single detached or condo unit. Renting a house is only a temporary solution but in the end, it’s a waste of money because after renting 5 or more years, that property will never be yours. Instead, look for affordable and nearby housing. Most row houses are priced less than single detached.

You can also save money by choosing for foreclosed properties (PAG-IBIG has a comprehensive list of foreclosed properties). Finding an affordable rent to own housing near the business and working centre (Ortigas, Makati, Eastwood Libis) is not easy unless you already own a property or have a well-off family because of high property values within the metro manila and the nearest outskirts such as Cainta, Rizal, Bacoor, Cavite and Tungko, San Jose del Monte City, Bulacan.

3. Reduce wants and keep your needs.

Wants refer to things that you wish to have but not absolutely necessary to live. Needs are things that you need to survive. You can reduce your cost of living by reducing wants. Here is the table of wants versus needs.

Basically, if you’re a caveman or living in a rural area, your only needs are food, water, clothing and shelter. But because you’re now living in an urbanized society, such needs are more than such four basics. The needs below are adjusted for urban living conditions.
 

4. Save money for tomorrow

The future is both exciting and frightening because you’ll never know if you are heading to a utopian or dystopian society unless you possess a future-telling power. If you don’t have money when crisis knocks at your doorstep, you’ll go broke. You may never know if you can depend on your relatives. Saving money for an emergency fund can help you cover during these future plans and unfortunate situations:
 

You can save money safely by:

• Saving in a stable bank  - Separate your checking from savings accounts for steady savings.
• Saving in a cooperative - A cooperative shares its profits to members and help them during emergency needs.
• Investing in insurance - Find a stable insurance company and get a suitable plan.
   

5. Get a side income

Earning a side income, a part-time or freelance can earn you extra money while working a full-time job. It includes selling your products and services.  Advances in the internet and technology made working at home possible. Capitalize on your skills and creativity. Here are the side income ideas. A reminder, make sure that your side income is not in conflict with your full-time job which is the main focus of your time and effort.