7 Tips from a Gen Z Power Budgeter

So you’ve been earning money for yourself — congrats! While this is a major milestone, reality soon kicks in, and you realize that adulting gets expensive. It’s easy to feel like your paycheck disappears overnight or that you won’t have enough to spare for the fun stuff. 

So we chatted with Mariz Soria, Product Integration Lead for the BPI app and her family’s breadwinner, to get the real deal about budgeting. Below, she shares what she does every payday and how she balances her family’s needs while living her best life.

1. Make payday your pay-your-bills day.

Mariz spends the day paying off her monthly dues as soon as her salary gets credited. “I don’t pay them on their exact due dates. When the money comes, that’s also when it goes out,” she says. Since she gets paid every 10th and 25th of the month, she divides her monthly bills by the date their deadline is nearest, usually paying off the biggest amount first. This can include your credit card bills, loans, utility bills, or investments. 

This can help ward off temptation and overspending; as Mariz adds, “I don’t get delusional that I have a lot of money.”

2. Divide your expenses into non-negotiables and variables.

Non-negotiables include bills and your savings. As a breadwinner, Mariz’s non-negotiables include her parents’ insurance plans and a financial goal, such as building her family travel fund and saving for a downpayment for their house. She says the amount left is what you can spend on groceries, health, transport, or leisure until your next payday.

3. Track your budget and check it daily.

Different methods work for different people: Mariz uses a spreadsheet she built over the years, while she knows others who use budget tracking apps such as Money Lover.

“I view my budget almost daily, track my expenses every end of the week, and edit it every payday,” she explains. It’s alright if you don’t update your tracker immediately after every expense — what matters is that you always have an idea about how much money you can spare. When Mariz wants to buy new shoes or join a spontaneous trip, she pictures her budget before deciding.

4. Keep your emergency fund out of sight.

As you build up your savings, another smart financial goal you can work towards is an emergency fund. While this can vary depending on your earnings and needs, Mariz advises setting a minimum amount that you can aim to exceed every month. She keeps it in a separate account she doesn’t use for anything else. “It works well for me when it’s out of sight and out of mind, so I don’t get tempted.”

5. Use credit cards to extend your cash.

Mariz uses her credit cards to pay for almost every expense, including online shopping apps. “It’s easier to monitor, you get rewards, and it’s disputable,” she says. It’s also flexible — Mariz usually defers her major expenses, like groceries and medicines, until after she receives her statement. 

For example, if you receive your statement on January 25 and then pay for groceries on January 30, you won’t get billed for the groceries until your next statement on February 25, which you can pay on its due date on March 8. This gives you more than a month to settle your balance for the groceries.

6. Create separate funds for expensive seasons, like Christmas.

When you track your budget regularly, you start to build a record of your cash outflow over the months, and you can spot which seasons show spikes in expenses. You can then build separate funds in anticipation of these months, like a Christmas fund or a back-to-school fund if you’re supporting any students in your family. In the paydays leading up to these seasons, setting aside certain amounts to build up the fund would be helpful.

7. Gone over budget? Adjust your budget for next month.

As much as we try to anticipate our expenses, things don’t always go according to plan. Mariz subtracts the excess expense from next month’s leisure budget. This is most effective for people like Mariz who don’t have extra sources of income or large investments. 

Budgeting can be daunting, but the right information and habits can be your key to a life of peace of mind. Go for it!

Want more financial tips? Read more by visiting NEXT by BPI Preferred’s The Program, a content hub for your financial fitness.