Updated on December 27, 2007
Common Goals of Fresh Graduates and Yuppies
I wish someone had told me or shown me back in college that I should have skipped the weekly movie trip to Glorietta and saved and invested that allowance. It turns out, what I planned for straight from college and into my first job here in the Philippines is very limited compared to what’s expected of me and, in effect, my financial goals and my supposed budget.
Into my first job where I received quite a large salary for an entry-level, I was conscious of spending for the following expenses:
- emergency fund (3 months worth)
- Starbucks coffee every day; Nescafe Ice at Mini-Stop when cash on hand runs out P500/week
- My share for some lunch and dinner dates with JP at Greenbelt or Powerplant Mall P1,000 – P2,000/week
- Nice corporate attire from Black Shop and Zara – because it’s an “investment” at least P5,000 per trip
- Snacks at McDonald’s or Goldilocks or the canteen extra P300/week
- My Smart postpaid mobile P800/month
- SkyCable bills at home, prepaid for 6 months P700/month
- PLDT (DSL Internet and Telephone) bills at home P3,000/month
That shouldn’t have been that much but how come my savings weren’t significant?
- I spent for what I “needed” (wanted) and then saved what was left over.
- I left the money in a separate BPI account, which I could easily access online. So I used it anyway if I wanted to buy something expensive.
- Cut down the take-home treats for those at home (because I have a job! Share the blessing!)
- I should have decided with my parents which bills I’m expected to share with and the maximum amount I can contribute for: utilities at home, groceries at home, parents’ and aunt’s long-term health care fund, medium-term investments (mutual fund or UIT) for my younger sisters’ education
- And then, after family obligations, that’s when I can think about splurging for myself and investments for my house or car or retirement, etc.
I didn’t even have my own credit card then, that would have just made my money management a total mess. I can’t begin to imagine how other yuppies I see taking lunch at Greenbelt everyday and using credit can sleep sound at night.
Now you should too open your eyes to the REAL medium-term financial goals for yuppies. It’s not just saving for your wedding or your first child’s education. You have to map out also how you’ll provide for the family that raised you.