Most people follow the same formula when they get paid: Spend what they need, then save whatever’s left.
But according to Joffre Enrico Dominguez, a veteran finance professional and Registered Financial Planner, that formula is exactly why so many people can’t seem to build savings—no matter how much they earn.
“It’s not income minus expenses equals savings. It should be income minus savings equals expenses,” Dominguez told Financial Adviser PH. “That one change completely transformed how I save.”
Why saving last never works
For Dominguez, the difference isn’t just about arithmetic—it’s about discipline and mindset. When you wait until the end of the month to save, chances are there’s nothing left.
“Expenses have a way of expanding to match your income,” he explained. “That’s why even people earning six figures still feel broke.”
This is known in behavioral finance as Parkinson’s Law of Spending—and it’s one of the reasons even high earners fall into the paycheck-to-paycheck trap.
The saving-first strategy that actually sticks
Dominguez shared with Financial Adviser PH that he didn’t always follow this rule himself. Early in his career, he saved what he could—but it wasn’t consistent. It was only when he flipped the formula that his finances started to stabilize.
“I decided to treat savings like a bill—non-negotiable, due every month,” he said. “Once it’s set aside, then I adjust my expenses around what’s left.”
This strategy is now a core part of his financial literacy talks across the country, especially in underserved communities. He teaches that you don’t need a high income to save—you need a strong habit.
The 3-step system to flip your budget
Here’s the method Dominguez recommends to anyone trying to adopt the income-minus-savings-first approach:
Decide on a fixed percentage to save
“Whether it’s 10% or ₱500 a month, make it automatic and consistent.”
Treat savings like rent or electricity
“Make it non-negotiable. You wouldn’t skip rent—don’t skip savings.”
Adjust your lifestyle—not your goal
“Let your spending adapt to what’s left. That’s how you build financial control.”
“Financial discipline isn’t about what you earn—it’s about what you keep.”
In his interview with Financial Adviser PH, Dominguez emphasized that building wealth doesn’t begin with a salary bump. It begins with self-control and clear priorities.
“If you wait for a big income to start saving, you’ll never start,” he said. “But if you build the habit now, even a small income can grow.”
Why this matters for your future
Dominguez has helped train thousands of Filipinos—from private companies to government agencies—and the feedback is often the same: no one ever taught them to think this way about money.
But once they adopt the saving-first mindset, things start to shift. Petsa de peligro becomes less frequent. Emergency funds start to grow. Financial anxiety starts to fade.
“It’s one of the simplest financial rules out there—and one of the most life-changing.”
If you’ve been saving what’s left, maybe it’s time to flip the formula—and put your future first, not last.
