A lot of people will tell you that saving money is an impossibility for them, especially if they are earning just the minimum wage. But someone on minimum wage was actually able to save Php1.3 million – and she’s sharing her secret to serve as inspiration for everyone.
It all started with Php20,000 she saved up to start an online buy-and-sell business. Within just 7 months, the money in her bank account had become Php120,000! Several months later, it has turned into Php1.3 million! It’s really amazing what one can achieve if you just put your heart and mind into what you are doing.
But how did she do it?
The netizen, who asked for her name to be withheld when she shared her story with financial literacy Facebook page PESO SENSE, revealed that with her minimum wage, she made sure to stay strict with her budget.
She earns Php12,000 a month. Because they only get paid once a month, it was easier for her to budget the money, she said. She gives Php3,000 to her parents, keeps Php2,000 for herself as allowance, and pays Php2,000 in bills. Then, she saves the Php5,000 in the bank.
But in 7 months, the Php5,000 would only total to Php35,000, right? Well, this lady is wise. Knowing she couldn’t save a lot of money on minimum wage alone, she decided to use part of her earnings as capital for business.
She became a reseller of various items. This allowed her to earn a lot of money without having to put up a lot of capital. As she earned money, she would use this money for added capital instead of spending it. Sometimes, she wouldn’t immediately pay the original seller but use the money as capital for more business; however, she makes sure to pay up within the seller’s deadline to keep her good record.
As her earnings grew, she would use the money to buy goods on a wholesale basis. This meant more earnings for her because she gets to but the items for huge discounts and could earn as much as 70-100% on the mark-up.
With guidance from PESO SENSE on how to save money, she was finally able to save more than Php1.3 million in her bank account. Isn’t that amazing? She’s probably the only minimum wage millionaire out there, eh?