We Filipinos place a lot of importance on taking care of our families. And for breadwinners, familial duties often come with heightened pressure to provide even when funds come up short. While it’s true that loving our families means prioritizing their comfort, health, and safety, we must remember that we also need to prioritize ourselves. Sometimes, that means not milking all of our income dry for the sake of our loved ones. 

As breadwinners, we are the ones bearing the brunt of financial responsibility in the household. Still, that doesn’t mean we have to give up on investing in our dreams and spending for ourselves. If you’re the hardworking provider of your family, here are some tips on how to balance your familial responsibilities with some well-deserved financial freedom.

Explore Ways to Augment Your Household’s Overall Income

Being your family’s main provider doesn’t have to mean shouldering everything by yourself. If your household has older children or stay-at-home adults,  you could ask them to help make ends meet by getting side hustles or starting a small business. If funding is a bit scarce, you can check out external sources such as quick cash loans Philippines-based small business owners, micro-entrepreneurs, and freelancers favor. Such vehicles can help relieve some of the financial burdens while your family is still working to establish an additional income stream.

On a related note, you can monetize the resources that you already have to expand your household funds. Real estate, for instance, is considered an investment that could get you continuous, long-term returns. If you have extra space in your property, consider leasing it out, turning it into a homestay, or offering it as a rentable events space. Whichever option you choose, you can earn money from your existing property to secure passive income.

Set Your Boundaries

This may be easier said than done, but you don’t always have to give in to your family’s financial requests. Filipinos are usually hesitant to discuss money matters with loved ones, but you also need to draw the line when your family’s spending goes overboard. Make sure to set clearly defined limits for necessities, but provide enough wiggle room for personal expenses. You can start by sitting down with your family, discussing your current financial capacity, and letting them know of your household budget allocation plans.

Of course, you should anticipate some qualms from your loved ones. How you will work through your family’s situation is up to you, but need to be firm but reasonable in your decisions. For instance, you could remind family members with bad spending habits that they need to be wiser in their actions to avoid the depletion of your family’s resources.

Apply the 50-30-20 Technique

The 50-30-20 method is a common budgeting technique designed to help you better categorize your spending. Here, 50 percent should be for your needs (utilities, rent, and school fees), while 30 percent is reserved for your wants (gadgets and out-of-town trips). Lastly, 20 percent of your income should be funneled into your savings.

With that in mind, you should understand that the 50-30-20 rule is merely a guide to keep you from going over your budget. How you go about categorizing your expenses primarily depends on factors such as your income, the size of your family, and their specific needs. Nevertheless, this technique can help you measure how much of your monthly income you can keep for yourself.

Sign Up for an Insurance Plan

Taking care of your family’s finances entails anticipating needs for emergency spending. Filipino families are also typically multi-generational, which means you may also need to provide for elderly relatives who have their own set of needs and everyday risks that can eat up your funds. 

That said, you should consider applying for a variable universal life (VUL) insurance plan. A VUL insurance plan combines the life insurance benefit with the option to allocate your plan’s cash value to investment options. In addition, you may want to designate minors in your household as beneficiaries to ensure sufficient coverage for the entire household.

Consider Low-Risk Investment Options

Similar to an insurance plan, investment options can ensure the availability of cash in the long run. You may want to check out low-risk investments such as money market funds, time deposit accounts, and bonds that may offer a higher rate of returns compared to traditional savings accounts. Low-risk investments also tend to be liquid enough to provide you with access to your money if you need to pull it out.

However, you may be eyeing the high rewards that come with high-risk investments such as cryptocurrency trading, initial public offerings (IPOs), and some mutual funds. Investing in these options can deplete your funds if you funneled an amount you can’t afford to lose. As such, it would be ideal if you brushed up on the fundamentals of high-risk investments before charging into the field head-on.

Tailor Your Saving and Spending Habits around Reality

Lastly, you should be realistic when it comes to your metrics for saving and spending. While it’s ideal to not be swayed by the pressure to make indulgent purchases, it wouldn’t be wise to let yourself miss out on life due to fears of overspending. 

Ultimately, the keys to ensuring a healthy budget for you and your household are balance and knowing your priorities. As much as you would want to buy a new car or the latest gadgets for your family, your income may only have room for cheaper yet still workable alternatives. On the other hand, you should also treat yourself or use your money for a much-needed solo trip from time to time. In a nutshell, everyone in your family must have enough financial self-awareness to know when your saving or spending goals are impossible to achieve.

Providing Without Depriving or Overindulging

Breadwinners are worth everybody’s admiration and respect for exemplifying hard work, dedication, and love for their families. If you’re the household’s main provider, you’re already aware of the burdens thrust upon you—often involving loves ones older or younger than you. Still, that doesn’t mean you have to throw your life away and stop spending for your needs. In the end, it takes a whole household that supports each other to smoothly stay afloat while still being able to enjoy a comfortable life.