Skiddoo Philippines Inc

When Salary Increases, Do You Upsize Your Lifestyle?

Many Filipinos, OFW’s and locally-based alike, are easily tempted to buy more things they “want” upon receiving news that they will either be given a raise or at best, be promoted. They haven’t gotten the money yet but the shopping spree usually happens ahead of it, usually using borrowed money.

Just because you received that 10% salary increase this year (wow) you will find spending a little more easier this payday weekend. While inflation increases most likely every year it doesn’t justify your rationale to inflate your lifestyle too. Wouldn’t it be more prudent if we address our debt issues first?

We recently interviewed around 30 OFW’s in Saudi Arabia who either got promoted or received salary raises in the past 6 months. Our correspondents asked them if they were able to keep their levels of spending as it was half year back before they got their raise. A surprising result of only 3 persons were able to answer “Yes” and that they have not increased their spending despite the windfall.

The rest have increased their monthly spending and upgraded their lifestyle but are ignoring their debts. Some are even borrowing more.

Upsize, please?

Why Is It Easy To Give In To Upsizing?

Many of us encounter this when we dine in our favorite fastfood restaurants. The service crew personnel would always ask us if we want to “upsize” our order as it would seem to be a lot cheaper than a regular one.

First of all, eating out at fastfood chains isn’t healthy at all (my cardinal sin!). Secondly, it’s actually more expensive to eat out than to prepare one at home no matter what the fastfood chains tell you in their ads that their meals are affordable. Thirdly, shelling out “a little more” do really sound very easy and affordable right now because you just received a windfall. Not because it is really cheap.

It’s simply called marketing magic. It’s sleight of hand. A mind play. All you have to do is nod your head and believe.

Why do need to buy your kids more expensive toys when they were enjoying the ones that you gave them when your salary was smaller?

Why do you have to upgrade your cable TV subscription to Platinum when you didn’t even get to watch the rest of hundreds of channels when you were just subscribed to a Silver plan?

Why do you need to buy a used car when you are used to just taking the train or the jeepney without complaining back then?

Spend on things that are important not on new things that you don’t actually need now. Save and invest a big chunk of your salary increase for you and your children’s future.

Gratification will come as soon as you are totally financially healed.

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Join the OFW UsapangPiso Facebook Group to learn how to plan your finances the right way and how to grow your money in various financial instruments and investment vehicles such as stocks, mutual funds, UITF’s, bonds, money market, real estate, and others.

Rock your way to abundance!


P.S. 1. Are you an OFW who’s been looking for a investment placement where your money could grow higher than your time deposit accounts? Are you outside of Metro Manila and would like to start investing in mutual funds but have no personal advisors to help you out? Click here so I can help you open a mutual fund account NOW! .

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P.S. 3. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at if you have any questions. Click here to join!

P.S. 4. My co-author/illustrator Des Feliciano and I have just launched our “The Adventures of Pepot Kuripot and Dora Gastadora” comic book! It’s arguably the first and only personal finance-influenced comic book in the Philippines. SOLD OUT online! But you can still grab your copy yourself at The Pantry at 07 in Makati City and ilovemilktea in Las Pinas City. Soon to be available at National Bookstore and Powerbooks! Email for more details.

P.S. 5. If you are based abroad or just outside of Metro Manila and has been itching to learn more on how to jumpstart your business dreams, join me and my friend, serial entrepreneur Ginger Arboleda, as we take you through a series 2-hour webinars (for 11 Saturdays) that will help you focus on the technical skills and specific things that you have always wanted to know about in order to grow your business. We have come up with 10 sessions with 11 expert lecturers (with 1 FREE session if you enroll in the full program) that will make you a stronger and better entrepreneur. Register here to join the Enter Entrepreneurship Webinar Program now!

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P.S. 2. If you have friends who are struggling professional musicians and artists, please invite them over to attend our FREE Personal Finance Management Seminar for Artists and Musicians focused on improving one’s behavior towards money and how to properly manage it. This is happening on October 26, 2013, 3PM at The 70′s Bistro in Anonas Street, QC. They can text 0916-3624596 or email for reservations. Visit for updates.

12 thoughts on “When Salary Increases, Do You Upsize Your Lifestyle?”

  1. Pingback: BurnGutierrez.Com
  2. dapat bilhin ay asset not liabilities…
    Foe me I always pretend not to have received an increase. I put te increase to my investment and continue with my current lifestyle which is to live simply…
    If anyone can see my personal CP, i expect only two reactions: laughter or pity… hehe…

  3. Very good guide in considering inflation on salary increases. Marami kasi sa atin ang hindi nakakaalam sa indirect effects ng inflation sa ating lipunan. Minsan nga yung iba, around 5% lang ang increase sa sweldo pero napapasobra pa yung gastos jan.

    P.S. Ako din guilty sa fastfood! :p

  4. Pingback: BurnGutierrez.Com
  5. Burn I always read you column because its so good.

    Common Mindset kasi ng tao na pag may increase he needs to buy more kaya nga nagkakaroon ng rat race.

    For me nothing wrong with Up Sizing yes we need to treat ourselves sometimes hindi yun puro invest and deprieve of what we wanted BUT… the big BUT is the money we should spent ay dapat galing sa “kurot” principle na tinuro sa investing.

    Example: If I earned 100k in my stocks, I will allocate 1k to 3k max to eat somewhere fancy or buy this expensive clothes that I’m eyeing the long time na.

    Base on experience you should have a goal and reward para mas lalo ka maging motivated na mag invest. The more you earn in your investment, gradually the reward for your self becomes higher. aka reaping what you sow in a proper financial way. Most people wants to be rewarded naman right.

      1. great read as always :)… thats the best way to Invest talaga if sometimes you reward your self hindi ung ang dami mong kinita sa investment mo but you can’t feel a portion of it :-)

        1. “Teach those who are rich in this world not to be proud and not to trust in their money, which is so unreliable. Their trust should be in God, who richly gives us all we need for our ENJOYMENT.” – 1 Timothy 6:17 :)

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