Petsa de Peligro: How to survive

Petsa de Peligro, one of the common expression we heard especially from employees out there. In Layman’s term, it’s a financial warning on the end of month.

What is Petsa de Peligro?

Petsa de peligro is a Spanish term means “day of danger”. But for us as a Filipino, the meaning is somewhat different, it means that the budgeting of money is in danger, or you are now nearly out of money before you receive your next payslips. Typically, it occurs during the period between two successive paydays, such as the 10th and 25th of the month (assuming regular paychecks on the 15th and 30th), when there is a shortage of available funds for daily expenses while the next paycheck is still several days or a week away.

Causes of Peta de Peligro

Excessive or impulsive buying – Also known as “one day millionaire”. This happens when a person received his/her payslips and then sudden impulse of buying things that he/she needed. One of a good example is going to vacation, eating at the restaurants, buying gadgets, and etc. without proper budgeting and planning of financials. This type of mindset also co-related with the term of YOLO (You only live once) where you can buy anything because you can only live once but the truth is, you suffer more because of the consequences.

Low salary – The harsh truth is low salary, In the Philippines, many households run out of money or tight in budget because of meager salary. There’s also unexpected expenses like hospital bills, unexpected dine-out, repairs, and medicines. Living below it means is really hard because you have nothing left of your savings.

Trust me “It is hard to budget when there’s nothing left in your salary”

Debt payment – One of the culprit if the debt mostly are credit cards/mortage/ and etc.  Credit cards can help you, or drown you in debt, depends on how responsible spending you are. Debts are your obligations to pay usually at the end of month and there’s a harsh penalties when you missed it.

Lack of savings – If you only have 1 month of savings to live (without working hence) that’s also called Petsa de Peligro. Having a big savings means you have a little worry because you have enough cash for emergencies. Example, you have savings of Php 200,000 and you have unexpected expenses of P20,000, you have nothing to worry, but what if you only have P30,000 savings and you need to pull-out P20,000? You can see the difference.

Lack of knowledge in budgeting – One of the main reason is lack of knowledge in budgeting, people are confused between needs and wants. You should identify which are needs (like foods, water, electric bills, medicines) and wants (like latest gadgets, 50″ televisons, Playstation 5 and etc.)

Tips on how to survive from Petsa de Peligro

Avoid fastfood/restaurant – As much as possible, avoid eating out/delivery of fastfood or restaurants, why? Imagine paying  as much as 10x than cooking at home which is cleaner and healthier? Usually, the dining out are one of the biggest percentage of expenditures, this is proven because I am tracking my expenses.

Avoid hangouts – I didn’t say to avoid at all cost but if possible, you can gently say “pass” to them on hangouts. This is related in dining out in restaurants.

Live within means – Be serious on this part, pay only what you can afford, to increase your purchasing power, what you really need is to find another income like businesses, blogging, side-gigs, or part-time.

Set financial goal – It will start as budgeting your income/expenses, investments, delayed of gratification, and etc. Example, your goal is to save Php20,000 a month, if you continuously do this, you can save like Php240,000 a year.

Save until you can – As much as possible, start saving a money, little by little the money will grow.