January 2018 payday is an entirely different day for employees who have long been suffering the brunt of substantial tax deductions over the years. For the first time, workers are expected to receive a substantially larger take-home pay. Some will be pocketing Php3,700 while others are assumed to take home a significant chunk of their compensation, depending on their income and marital status.

After everything that’s been said about the tax reform law, one thing is for sure: A better budget plan is required to regulate the impact of TRAIN on every Filipino home. Realigning and improving your budget strategy will help you keep up with higher taxes imposed on some consumer goods and services.

Here is how you can live your life wisely after the implementation of TRAIN and reduce the new law’s negative impacts on your budget.

  • Avoid sugary drinks
avoid sugary

Excise tax is a significant part of the tariff package and living healthily by avoiding sweetened beverages can save you a lot of money. If you refrain from drinking soft drinks every day, you are already keeping both your body and pockets healthy. You can save as much as P32 daily while protecting your body against threats of heart attack, diabetes, gout, obesity, and related diseases.

  • Quit smoking
quit smoking TRAIN


You’ll never know how much money you are burning with every pack of cigarettes until you realize that the TRAIN law has increased the price of each pack to as much as P32. A pack of cigarettes now can already buy two kilos of rice and feed a family of four in a day.

  • Reorganize your home
reorganize your home TRAIN


Rearranging pieces of furniture, getting rid of old junk, and recalling old appliances can help you save electricity. Look for ways to arrange items inside the house to provide more space and help regulate ventilation. This will reduce the use of cooling appliances like electric fans and air-conditioners. Consider replacing old refrigerators and other devices with new ones which are more energy-efficient and eco-friendly.

  • Fix your route
fix your route TRAIN


Should you need to use your car to get to work and drop your kids at school, try fixing your daily schedules to find a more cost-effective itinerary. Starting your travel early can reduce the risk of getting stuck in traffic. Compute how much money will be spent on fuel when you use your car against the cash you pay for public transport. Making practical decisions can ease daily spending without compromising your convenience and comfort.

  • Live within your means
live within your means HERO


Having a bigger take-home pay doesn’t give you the license to splurge unless you have all basic needs covered. It is too early to upgrade your lifestyle without making a check-and-balance of your earnings and liabilities. In any condition, living the life you can afford is the best way to prevent financial issues in the future.

  • Pay your debts
pay your debt


There is nothing sweeter than living a life without obligations haunting you. This 2018, you can use your additional take-home pay from reduced tax dues to pay previous debts including those you owe from credit cards. This will also save you from paying high-interest rates that add up to your other financial obligations.

The TRAIN law is yet another challenge that Filipinos need to understand, accept, and overcome. We are the masters of our own pockets as we are the makers of our economic rise and fall. Living your life wisely and spending your money responsibly are best practices that will save you from monetary problems in the future and help you maximize the benefits of the new tax law.


Diana Fernandez

Diana Fernandez

A journalist by trade, previously a writing coach to budding journalists in the Philippines and a business writer in the Middle East, Diana is passionate about providing relevant, engaging, and informative content to help Filipinos choose the right financial product.