Relationship Between the Personal Factors and Budget Success Among the Professionals in Metro Manil

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DETERMINING THE RELATIONSHIP BETWEEN PERSONAL FACTORS AND BUDGET SUCCESS AMONG PROFESSIONALS IN METRO, MANILA

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ABSTRACT Budget success of an individual consists of savings and following the planned budget. The study focuses on determining the personal factors which affect budget success, specifically the relationship between demographic and spending profile with budget success. The study further identified the different effective spending and saving practices that enable an individual to manage his finances effectively. The researchers hypothesize that there is no significant relationship between the personal factors and budget success. In gathering the data, the researchers used a checklist questionnaire and elicited feedback from 200 professional respondents of varying background, selected using purposive sampling method. Correlation analysis method revealed that there is a significant relationship between the income level and budget success.

Keywords: Budget success, personal factors, demographic profile, spending and saving practices ______________________________________________________________________

DETERMINING THE RELATIONSHIP BETWEEN PERSONAL FACTORS AND BUDGET SUCCESS AMONG PROFESSIONALS IN METRO, MANILA

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Budgeting plays an essential part in an individual’s day to day living, thus it influences people’s pattern of lifestyle including their spending and saving habits. As finance students, the researchers came up with this study about budgeting which is necessary in attaining effective saving and spending practices. Most people find that they can save regularly by having a well planned budget that helps create money for savings. By setting spending goals, people look for ways, on how to achieve budget success. Many people believe it is only the capability of an individual to spend and save that determines his budgeting success. This paper attempts to answer the following questions: Main Problem: 1. What are the factors contributing to the participants’ budget success? Sub- Problems: a. What is the demographic and spending profile of the respondents? b. What is the level of budget success in Savings c. Relationship between Personal Factors and Budget Success. The objective of the study is to determine which demographic factors and spending practices contribute to budget success. This study hypothesize that there is no significant relationship between the demographic and spending practices and budget success.

DETERMINING THE RELATIONSHIP BETWEEN PERSONAL FACTORS AND BUDGET SUCCESS AMONG PROFESSIONALS IN METRO, MANILA

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Commonly used demographics include race, age, income, disabilities, mobility (in terms of travel time to work or number of vehicles available), educational attainment, home ownership, employment status, and even location. Demographics are frequently used in economic and marketing research. On the other hand, spending practices show the manner how individuals buy goods and services in the satisfaction of their needs and wants (Business dictionary) thus spending associates with saving, how you spend shows how you save. With proper budgeting, individuals attain budget success. According to an article which appeared in ‘God, Money And Me,’ budget success is defined as spending within the limit of the planned budget or having the discipline to live by the plan that you set in your budget, resisting the urge to spend money that you haven’t planned for, and being faithful to save, give and invest in the areas where you have strategically planned to do so. In short, budget success depends on the savings and by following the planned budget. According to Average Joe, (Feb. 22, 2012) in Budget tips and money management, “Taxes are part of the things that lessen the income of employed, which make them tighten their belt more to meet the needed obligations and to save up for future use.” Once you take control of your financial future, you’ll reap the benefits of sound...
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