It is a sad reality in the Philippines that many people are living below poverty level, earning just the minimum wage or even much lower than that because their agencies are still getting a cut from their already low wage rate.
This is the reason why many don’t also have a bank account or savings at all.
But one woman on minimum wage broke this wrong notion that minimum wage earners have no future or have no chance in breaking the Php1-million mark in the bank. A lot of middle-income workers don’t even have Php1 million in their bank accounts but this woman has Php1.3 million! Wow. How did she do it?
According to the woman who chose to remain anonymous for obvious security reasons, she earns the minimum wage, receiving the entire Php12,000 once a month. She uses this to her advantage by budgeting the money, giving Php3k to her parents, paying Php2k in bills, setting aside Php2k for her allowance (she’s lucky that the office is just walking distance from her house), and putting Php5k in savings.
Of course, that amount of money could not bring you Php1 million in just a few years, if you keep it in the bank.
A wise reader of PESO SENSE, a financial literacy Facebook page, the woman used the money she saved to start a business. With just Php20,000 as capital, she started a reseller business. As a reseller, she did not need a lot of capital to start a business but was able to quickly grow her capital.
Once she became a trusted reseller, her suppliers allowed her to only pay them back when the items were sold out. This gave her a chance to grow the money even more because she didn’t immediately pay the suppliers but used the profits to buy stuff at cheaper, wholesale prices which she could sell at higher profits; but she made sure to pay the suppliers at the designated deadlines to keep her reputation as reseller.
With this technique, she was able to grow her money so quickly that within just 7 months, her Php20k turned to Php120k!
Now that she has a higher capital, she was able to buy more supplies at wholesale prices, giving her better profits. Some months later, she was able to hit the Php1-million mark on her savings account. She recently posted her updated savings account, now amounting to Php1.3 million.
Who would have thought a minimum wage earner could have that much in her bank account, eh? Good job!