My financial mistakes

As per my blog description "Learn from my mistakes...", I write this post with my worst financial decisions and experiences in mind. Because I didn't really have my own money until after college, I decided to start my post with my first job.

Young life - early 20s

I knew the concept of saving money, but it was far from my mind. Akala ko kasi in order to save, my personal (and very young life) would need to sacrifice fun. Andun na rin ang serious case of self-denial. I was not earning a lot but I sure spent money.

My first job as a systems programmer earned me a mere P8k a month in the late 90s. As in! What the hell was I thinking accepting that low-paying job? Despite that, may natutunan din naman ako although I knew I could've gotten a better job. That time kasi I was desperate to prove my marketability. Ang angas ng attitude ko. I got that job 2 months before my graduation rites.

I worked more than 8 hours sometimes and my senior manager was sucky. Sobrang jerk, palibhasa family-owned kasi yung company. I was tethered to what I realized was an unfair 2-year contract. I stuck it out until 1.5 years and I left. They didn't go after me because they knew so well that I didn't get anything from that contract, which was training. All of the things I learned were the result of doing my day-to-day work. Money-wise, I still was stuck in my student attitude. Ang kaibahan nga lang may sweldo na ako. Papasok ako sa work, labas after to catch up with friends, gastos dito, gastos doon.

Image by alancleaver_2000 via Flickr

Next job was a systems engineer and I started receiving P13k. I gained knowledge sa company na yun, lalo na ang makibagay sa mga katrabaho kong iba-iba ang personality at agenda. At one point naging issue pa yata ang sweldo ko kasi mas mataas sya sa isang middle manager. Care ko, halata namang mas may capability ako sa kanya. I left that job because they made half of that small company redundant. They chose staff who "knew" the ins and outs of how they ran the business. Ginawa kasi nila ako at ibang staff na consultants to customers overseas. We learned that we were paid $2,500/month pero $1,500 lang nakukuha namin. Wala naman silang binabayarang expense namin dahil sagot ng client. Unfair pero ganun talaga.

It was during this employment na sobrang magastos talaga ako and careless about money. Nanakawan pa nga ako one day after I cashed out my check! I lost about P50k. Hanggang ngayon napapangiwi pa rin ako sa memory na yun. Ang katangahan ko kasi iniwan ko ang small bag ko sa isang bag deposit area. Sa dami ng mga bags don, at paulit-ulit ko namang ginagawa yun, ewan ko ba bakit sa araw na yun pa ako nadukutan. It was a day of resolution not to trust anybody with money, except for my family (and now my husband) who I know will not take advantage of me.

After that depressing incident, I made sure na bawat sweldo ko naka-deposito agad sa account ko sa Manila. Tinitira ko lang ang allowance ko for the month. I was dating someone at that time and he was so kind nung nalaman nya ang nangyari. Hinahatiran nya ako ng pagkain dahil ayaw nya raw akong magutom dahil wala na raw akong pera. That time kasi lagi nya akong nahuhuling nakatulala. Iniisip ko kasi kung sinong hudas ang gagawa ng ganong kasama! I won't forget nice people like him. I was very grateful talaga. I was blessed to have had people like him during that time. Di ko sya nakatuluyan pero we're still good friends.

Maski may naipon ako I incurred credit card debts of P30k maybe 1 year after that incident na binayaran ng parents ko. My savings at that time was invested somewhere by my parents. Kinausap ko sila at sinabi kong yun na lang ang bayad ko sa utang ko sa kanila. Ang masaklap pa non, they cashed it out and they handed it to me. All in its glorious US dollar money! Di ko na alam san nila in-invest, siguro sa isang US Dollar term deposit. Muntik na akong maluha pero sabi ko na ayoko nang hawakan dahil ibibigay ko rin naman sa kanila. Naawa ako sa sarili ko. Ano bang ginagawa ko sa sarili ko? Parang wala akong pagpapahalaga sa pagod at panahon ko. Umiyak din ako that day pero in the privacy of my room. I just had to cry it out tapos after that ok na ako. I will just have to change my attitude towards money.

Getting a bit older - mid 20s
  
Third job I started at P23k. Malaki laki na. This was nearly 4 years after I graduated from college. I was starting to be more aware of my spending pero wala pa rin akong masyadong ipon. Magkaron man, nagagastos ko ulit. Second year into my employment, I set up a savings account that I religiously put P5k every pay day to. By the time I resigned, I had some money na and I was earning P35k.

Getting mature - late 20s to early 30s

Fourth and current job, I got better. By this time I had already moved abroad. Kaso dito ko na nakasama ang mister ko. Nung kami pa lang 2, madali pa ang pag-iipon. Nakakapagtabi kami ng at least $1,000/month. Mas marami pa sana kung di kami masyadong pala-enjoy ng sarili tulad ng nood ng sine, kain sa labas, trip dito, trip doon.

Alam ko rin na may student debts ang mister ko pero di ko naman akalain na tumataginting na $42k pa ang natitira! Lintek! Ilang taon pa bago namin mabayaran yun? Sa ngayon nasa $35k na sya. Hay, isa to sa mga plano kong patayin in 5 years time.

Anywho, like I mentioned before, ang mister ko iba ang attitude sa pera. Laking hirap sya, tulad ng nanay ko. Sabi nga nya, 2 lang kalalabasan mo pag galing hirap ka -- either money hoarder ka (my nanay) or mawaldas ka (tulad nya). Oo nga naman, di ko naisip yun. Akala ko tulad ng nanay ko ang lahat ng laking hirap.

Isang gabi, habang kumakain kami ng hapunan, tinanong ko sya kung magkano ang balanse ng credit card namin na nakapangalan sa kanya. Di nya raw alam. Nainis ako lalo na nung makita kong $4k ang balanse! Ggrrr! Gastos naman naming 2 yun pero kasi ang binabayaran nya lang non is puro minimum payments. We had used the card to finance setting up our apartment. Yung area rug na binili nya was $1k pero meron namang $400 lang. Ewan ko ba bakit ang hilig nya sa mamahaling bagay pero ayaw naman magtipid sa ibang bagay. Two days later, I sat him down to discuss money matters and came up with a plan.

Ngayon, iba na ang ugali nya. Nakikita na nya ang value ng panahon at pagod nya, lalo na pag umuuwi syang iritable dahil sa trabaho. He knows that he still has the tendency to spend money kaya ang ginawa naming sistema is to deposit our salaries to one account and to have a set allowance every week.

Maski may system na kami, life takes over and bad habits prevail. Nagkautang pa ulit kami. Di na namin mabayaran in full ang nagamit namin sa credit card dahil nagka-anak na kami. Ang gastos ng diapers at formula. In 6 months nag-daycare pa kami dahil balik full time work na ako. Ang daycare namin is $800/month non, ngayon $900/month na! More ggrrr!

Yung compact car namin pinalitan namin ng mas malaki pero mas luma. Luma nga ang lakas naman sa gas. May mga problema pa! Hinayaan ko kasing mag-decision yung asawa ko dahil wala nga akong alam sa cars. Bumili ba naman ng v8 engine! Palpak na namang decision. Pinalitan din namin sya ng mas bago-bago ng konti after 10 months at wala nang problems, kaso dahil hybrid mas napalaki ang car payments namin. One and half years na lang bayad na yun. I can't wait!

We were in a cycle of horrible, horrible financial situation caused by our poor decisions. Ayoko nang ganito! Ayokong magtrabaho para lang magbayad ng utang! Wala na akong inisip kundi san ba kami makakatipid. Nakakapagod tumitig sa budget spreadsheet namin para lang tanungin ang sarili ko kung san ba kami pwedeng di gumastos. The budget keeps screaming at me na puro raw sya bayad utang!

It is because of this that I have decided to start a blog. I want to really have a form of accountability to the public even if it means outing myself. I also want to share my lessons learned and some good stuff on living a frugal lifestyle. Ngayon, I think twice about buying every little thing. I'm kuripot na. I have very strong opinions on money now. I regret so many financial decisions in my life. I told my mom about it too. Sayang yung panahon na di ko inipon lahat ng pinagkakitaan ko. Naging masaya naman ako pero hindi ko matodong enjoy dahil sa mga kapalpakan ko rin. Pero ganun talaga ang buhay eh. I just have to make it better every single day, for my future and the future of my family.

The pasalubong syndrome

Image via Wikipedia

Having lived overseas for 4 straight years, I still feel rooted in the Philippines. I don't exactly call myself a balikbayan, but I am considered one when I fill out the arrival form on the plane before the descent to NAIA.

Before I travel to Manila on a short vacation, my brain whirrs incessantly about what to bring home, aka pasalubong. I buy specific things for each family member. Luckily, I don't have a lot! I only consider about 10 people and that should be pretty easy, right?

It can be a dilemma! For one, some of the things I want to buy are already sold there. The only thing that I buy that has significance are cheeses -- cheddar, blue, etc. Dalawang family members ko ang crazy for cheese! And another thing, how much pasalubong is enough?

I try to kill the pasalubong syndrome in me because I go overboard sometimes. I once packed 20 kgs of nothing but food -- cheese, wine, chocolates, candy, clothes, even muesli! My family has traveled a bit, especially me and my sister, so they already have preferences for things from overseas.

Pagdating ko pa sa Pinas, my mom likes to go to DFS. Ewan ko kung anong attraction meron sa kanya ang DFS at kelangang mabisita nya yun pag may kapamilya syang nag-travel overseas maski short 1 week business trip lang. So, effectively, pasalubong pa rin yun.

I've not really expected anything from people who travel overseas or who are balikbayans to give me something on their return. My rationale is it's not the things I'm given that I want, it's the person that I want to see. Tsaka I don't want to add to the pressure. I want them to feel that it's perfectly acceptable that they don't give me any pasalubong. I understand din kasi what it's like to live abroad lalo na nung puro business trips pa lang ang ginagawa ko. Para bang may unspoken pressure from people at home na mag-pasalubong tayo.

Pasalubong is something I have to save for and at the same I set an amount that I'm willing to spend. I just can't justify it sometimes, yet I do it and, admittedly, I like doing it lalo na pag nakangiti na yung little cousin ko about a cute dress I got her. I probably shelled out $700-1,000 on pasalubongs for just 1 visit to Manila. I know that that's NOTHING compared to others. I'm not kuripot. I'm just practical, realistic, and honest. I've never considered it as validating my asenso-ness.

Paano pa kaya yung konti lang ang kinikita tapos nagpapadala pa ng remittance habang nasa abroad sila? I wonder kung gaano kalaki ang ginagastos nila for pasalubong lang. Who started the trend anyway?

It's kind of a love and hate thing for me. I don't like having this societal pressure to give. Never have. I remember one time I traveled for 2 weeks on business, pagbalik ko sa work hiniritan ako ng officemates ko ng pasalubong. Hindi naman ako nag-bakasyon ano. Nagtrabaho ako. Kung meron man akong pasalubong, hindi para sa inyo.

My point is that maybe we should not expect it or ask for it. Filipinos working abroad don't work just so they could give you pasalubong. Maski malaki pa ang kinikita nila compared to those in the Philippines, ang ginagastos nila sa bansang kinaluluklukan nila ay ang local na pera rin. Buti sana kung presyong Piso rin ang tinapay don.

I'm curious about what other Filipinos have spent on pasalubongs on one visit. Do you think what I spent was too much or too little? Do you think it's mean of me to blog about this practice?

Do you value your stuff?

Image by KPY via Flickr

When you buy new things, how long does it take bago yun magmukhang luma? If it still manages to stay in near mint condition after 1 year, then good for you!

My husband and I had plenty of arguments on this topic. He argues that stuff is stuff, that they are just things. I strongly disagree. Stuff means money spent maski pa regalo sya.

You buy things for multitude of reasons, such as:

- to improve your life
- to make your life convenient
- to entertain or make you happy
- to give to someone

The worst reasons to buy new things are to replace broken ones or when things get stolen.

Why I value my stuff?

I value the things I buy because I value the money I spend to buy them. I hardly splurge, and even then they are usually on stuff that I or my family can use. I don't like spending on things that just take up space and gather dust, like figurines. Pati nga picture frames ayoko eh.

Things have shelf life and I accept that fact. What I don't accept is shortening the shelf life, intentionally or intentionally. Gadgets like entertainment things, eg. Xbox or Wii, can last a long time, pero kung di pag-iingatan masisira lang.

Kapag di inaalagaan ang mga kagamitan, mauubos ang pinag-ipunan ko sa kakapalit ng mga yon. Hindi ko na mabibili ang mga bagay na gusto ko pang bilhin, di ako makakapag-ipon ng marami, di ko mapaghahandaan ang kinabukasan ko at ng pamilya ko.

Ang OA no?

Actually, hindi. Sa sobrang dami ng technology at sa sobrang bilis ng evolution nito, sinong makakapagsabi na di ako bibili ng latest version? Pero dahil maingat ako, pwede kong ilaan ang kikitain ko sa future para naman sa ibang mga bagay na gusto kong makuha or maranasan. At kung gusto ko talagang palitan, maibebenta ko pa yung luma.

I told my husband about my sentiment. Dumating sa point na paulit-ulit na ako (read: nag?). Ang latest nyang I-don't-give-a-rat's-ass moment is nung tanggalin nya ang protection ng iPhone nya dahil ang kapal daw ng pakiramdam sa kamay. Ang kainisan pa non, sya ang may gustong bumili ng protection na yun para raw magtagal ang iPhone nya dahil alam nyang maiirita lang daw ako kapag nagasgas yun agad.

When you care for your stuff, you value yourself. You respect the money that you earn. You also value your future.

Grocery budget challenge

Image via Wikipedia

How much was the biggest amount you've spent on groceries in 1 visit?


I have been proactively monitoring our grocery spends. Minsan we go crazy with grocery shopping! We start with produce, which is good, pero when we get to the aisled sections there's so much marketing campaigns we get sucked into.

Ang budget namin for our small family is P4,500 a week. That includes food and non-food (eg. toiletries, diapers, cleaning materials, etc.)

Madalas noon we found ourselves overspending on non-essentials like blue cheese, ice cream, biscuits. You get the idea.

It's not to say never to buy those things, but I realized that we can include them in the budget so long as we follow suggested serving sizes. So if a packet of biscuits says a person should only have 2 per serving, then we adhere to that. The more we ate, the more we spend. The more we gain weight din. Ew.

I came across a budget challenge of P650 a week on food. Akala ko noon di ko kaya pero this week I was able to do it!

Here's how to challenge yourself.

1. Check your pantry. I bet ang dami mong stock ng kung ano-ano. Planuhin mo ang meals for the entire week based on what you have in your pantry. Bilhin lang ang wala or make do na wala.

2. Cut down on ingredients. Necessary bang 10 patatas ang ilagay mo sa Afritada? Baka naman pwedeng 5 lang? Ilan ba kayong kakain? Gaano ba karami kumain ang isang tao sa bahay nyo?

3. Buy produce in season. I think Pinoys are quite good about this, especially pag Mango season na! However, if you want to cook a meal that requires broccoli, substitue it with cauliflower (or broccoflower) instead. My mom told me mas mura raw daw sa Pinas ang cauliflower.

4. Eat only what you need. You need to be aware of the calories you should eat based on your age and sex. Kung di kayo calorie-counter tulad ko, what I do is to compare my portion to the size of my fist. Yun lang dapat ang kakainin ko dahil my stomach has the size of my fist.

5. Limit buying of manufactured food. Your budget challenge must not include buying junk food, fizzy or alcoholic drinks. Substitute with water (ice cold at that!) when you would otherwise choose iced tea. Make your own healthy merienda.

The Challenge

I challenge you to live on P1,500 a week on food. :) Just try it.

To rent or to buy?

Image via Wikipedia

My husband and I rented for a while before we decided to buy a property. Buti na lang we bought a property within our means and can pay for the mortgage payments that was less than our rent back in the days.

Renting vs. buying a property has drawn many an argument. Parang liberal vs. democrat. :)

Renting property

When you rent, that's the only out-of-pocket expense you have towards housing. Ang mga repairs ay responsibilidad ng landlord.

Ang downside ng renting is that your payments may be increased yearly, depende sa agreement nyo ng landlord.

Another downside, for most people, is that the property you're renting will never be yours unless it's a rent-to-own set up.

Many would argue that renting is a waste of money. I don't necessarily agree with this logic.

Buying property


When you buy a property, unless you paid for it in cash, you are subject to interest rates. By the end of your loan term, you will have paid a significant amount in interest charges.

Apart from mortgage/amortization, meron ka pang property tax taon-taon.

Sa iyo pa ang gastos ng repairs.

You are most likely required to have life insurance if you have a mortgage. You will also need to have home (and contents) insurance for peace of mind.

Image via Wikipedia

Ang upside ng owning a property is that it is/will be yours after a certain time. You can do anything you want to it in agreement with the laws and legislations in your locality.

My take on it

Even if I'm now a property owner, I still think about life as a renter. When we weren't happy in the place we rented, we could easily look for a better place to live. I didn't worry about problems that required fixing. Kelangan ko lang i-report sa landlord namin.

I wish we had a lot of cash or we had won the lotto para we could've bought the house in full. It's painful to see the total interest charges we pay every year. Paliit naman ng paliit, pero interest pa rin.

Should you decide to buy, never take on a loan that's more than 20 years. If you can cut it down further mas maganda. In fact, any wiggle room you have could be paid towards your home loan if you want. That will further shorten the life of your loan.

Should you decide to keep renting, set aside a certain percentage of your net pay towards your first home deposit. The higher deposit you have, the more equity you will gain.

May emotional attachment din kasi ang magkaron ng bahay. It's pathological in my opinion. Iba pag may-ari ka na. Iyong iyo na ang tirahan mo.

It all boils down to your values and current situation. If you are drowning in debt at the moment, it's better to put it off. If you're the kind who likes flexibility, by all means rent. After all, you can't take it with you to your grave. You can't ensure your kids will want to live in the same address either.

Maski ang reasoning mo is that you're paying towards owning a house, don't forget that interest charges are from your pocket too. That's wasting money pa rin in my opinion. We are actually considering selling our property and rent for a while. That will be an ongoing topic here for sure!

What about you, what's your take on this topic?

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My budget categories

I thought I should share with you what my budget categories look like. If you have better ideas on how I should categorize them, do tell!

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Income

Total Net Income (including bonuses)

• Husband's net salary
• My net salary

Other Income

• Borrowed from savings
• Others (gifts, etc)

Total Income = Total Net Income + Other Income

Expenses

Discretionary 

• Food grocery
• Non-food grocery
• Kid's stuff/toys/classes
• Allowance (husband)
• Allowance (mine)
• Withdrawals

Debts

• Credit Card
• Car Loan
• Student Loan

Home

• Mortgage/Rent
• Property tax
• Home and Contents Insurance
• Life Insurance
• House supplies/appliances
• Maintenance/Improvements
• House help

Transportation

• Gas
• Car Insurance
• Public Transport Fares
• Parking Fees/Permit
• Registration
• Maintenance

Savings

• Kid's College Fund
• Savings 1
• Savings 2
• Bonds

Bills

• Electricity
• Water
• Cable
• Internet
• Daycare
• Tax due
• Bank charges/fees

Leisure

• Dine-out/Take-out
• Travel
• Entertainment (eg. Movies)

Medical/Health

• Medicines/Tests
• Doctor/Dentists visits
• Personal Care (eg. Spa)
• Clothing

Miscellaneous

• Gifts
• Electronics
• Charity
• Cellphone load
• Others

Total Expenses = Discretionary + Debts + Home + Transportation + Savings + Bills + Leisure + Medical/Health + Miscellaneous

Wiggle Room = Total Income - Total Expenses 

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If you are right on track, your wiggle room should not be negative. Kung negative man, it's simply screaming at you to cut down on your expenses.

Other budget templates or software allows for the inclusion of interests earned from savings as part of the Income category. I don't do that. I simply roll it over. I have a separate tab in my spreadsheet that tracks our savings. Unang-una (at nag-iisang dahilan), di naman ganoon kalaki pa ang interests ng kapiranggot naming ipon.

As you may have noticed, I categorized Clothing in Medical/Health and not in Discretionary. You'll learn as move towards frugal living that clothing is necessary to your well-being. It means shopping nonstop for clothes is not necessary for you to live, unless artista ka. :)

It took more than a year before I finalized these categories. I started with 2 simple categories: fixed and variable expenses. It went on like that for some time until I itched to get more details out of our spending. You decide what works for you. My expenses are different from yours in certain aspects.

Remember that living on a budget does not mean limited ways to enjoy life. The point is to live within your means and to find value and to be happy with what you have.

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Ang maayos na bahay ay mabait sa bulsa

Is your house a mess? Did you know that a messy house can cost you money?

Initial test

Pumunta ka sa kitchen and check kung ilang piraso meron ka ng isang bagay. Tingnan mo rin kung madaling makita ang kaibahan ng dining area sa living room area. Tingnan mo rin kung gaano karaming bagay ang hindi mo ginagamit, tulad ng phone book, na nakatabi pa rin.

Sort the mess

You don't have to sort the entire house in one go, unless you have plenty of time and a lot of assistance. Do one room at a time. I suggest starting with the kitchen. Itapon ang mga bagay na wala nang pakinabang sayo at sa iba. Kung pwedeng ipamigay, mas maganda.

My mother likes to store statements and statements of utility and credit card bills. It's for her sanity because she really validates her statements line by line. Pero meron din syang specific drawer para sa mga yun, so ok lang. She purges them up too. She only keeps a year's worth.

In your case, how often do you purge unnecessary documents? Baka naman you're like my sister who still has letters from classmates from elementary school? People like her are called hoarders.

Na-experience mo na bang bumili ng isang item na alam mong meron ka pero di mo matandaan or mahanap kung saan mo sya huling nakita or naitago? You will not have this problem if you have specific areas for things.

Set zones or areas

The living room is mainly for entertaining guests and the dwellers of the home. As much as possible, try not to eat there. You have a kitchen or dining area for that. Pilitin mong gawing sala ang sala, kainan ang kainan, tulugan ang tulugan.

Di mo naman kelangang bumili ng mga lalagyan to be organised. You can use boxes, say, for entertainment gadgets -- Wii remotes, cables, DVDs.

Set 10 minutes every day as your clean up time

Many people dread the weekends kasi iniisip nila that's the only time that they can clean their house, do laundry, in addition to going out. Every day, you can do bits of sorting for only 10 minutes.

• Check your pockets for tissues or receipts
• Take out unnecessary things from your car
• Linisin ang banyo bago kayo maligo
• Hugasan mo na ang plato pagkatapos mong kumain, wag lang iwanan sa lababo please.
• Check your bags or purses for unnecessary stuff
• Check the fridge for things nearing expiry dates

Have a small place?

Maski maliit lang ang bahay mo, pwede ka pa ring mag-set ng zones. Actually, mas dapat nga gawin yun due to lack of extra space. The smaller the house, the less stuff it must have. Never think na the more things you have, the more asenso you are. Ang pagiging asensado ay hindi nasusukat sa mga nabibili mo.

Got things that are of use that you don't need anymore?

Give them away! Meron akong kamag-anak na hanggang ngayon nakatago pa rin ang mga baby clothes ng mga anak nya -- her youngest is in Grade 1. I know. Hoarders nga. Siguro it runs in my family pero so far 2 pa lang sila. My mom and I have tried convincing her to give those away, pero walang epekto. Anyway, there are charities that accept old clothes, old toys, and kung meron lang tumatanggap ng old boyfriends, bakit hindi? :)

You can sell them too! Andyan ang eBay, Sulit, Wahoy, and many more.

Why do you hoard?

Pag magulo ang bahay mo, most likely ayaw mo magtagal don. So lalabas ka, gagastos ka, to attain the entertainment you want. Kung walang order ang mga gamit mo sa bahay, paulit ulit kang bibili ng mga items na meron ka naman na kaso di mo lang makita. Kung magulo ang kusina, tatamarin kang magluto so mag-o-order ka na lang for delivery or kakain sa labas. Pag magulo ang bahay, the people living in it are prone to accidents big or small. So gastos yun kung mangyari man.

Sorting your house is an ongoing process. Like losing weight, the challenge is to really maintain your met target weight. Pag maayos na ang paligid mo, do bits of sorting every day. Like I said, at least 10 minutes. Make it a habit and it will pay off.

Remember that where you live is where you relax, so make it as relaxing for you as possible.

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Sandwich generation

Image via Wikipedia

Interesting to find this post on Frugal Pinoy's blog. I've always wondered what the generation is called and now I have a name for it!

I don't know many people who are in this generation, but I know a couple.

My friend

She lives with her mom and pays for their rent. Her father died when we were still in college. He used to support all of them, so when he died my friend and her older sister had to replace him. Her sister hasn't really stepped up to the plate. Sabi ng friend ko hindi consistent ang Ate nya magbigay. Hindi rin naman sila malaki kumita. Four years ago, ang sweldo ng kaibigan ko was P16,000/month lang and I think yung Ate nya was earning within that boundary din.

Ngayon may anak na ang friend ko. May sari-sari store ang nanay nya as one of their sources of income. Konti pa lang ang naipon ng friend ko. Lalo na ngayong may anak na sya mas mabagal na lalo ang pag-iipon.

My office mate

Ang office mate ko naman sinusuportahan nya ang tatay nyang may sakit. Her dad requires regular prescription and since wala namang insurance ang tatay nya, fixed monthly expense nya ang magpadala. Nasa kanila na rin nakatira ang parents ng asawa nya. Meron silang anak. Last time ko syang tinanong about retirement funds, wala pa rin sya. Sana ngayon meron na.

Gusto sana nilang bumili ng bahay pero para makaipon sila ng malaking deposito, panahon din ang kelangan lalo na sa current situation nila.


Hindi ako part ng Sandwich Generation. Buti na lang my parents have prepared for their retirement. They are both retired now and they're still in their fifties. Their source of income is mainly from rental properties. Marami rin silang savings and some investments.

I don't know how I'd juggle the expense of providing for my parents and for my family at the same time. Siguro sobrang tipid ang gagawin ko. Makakalabas pa kaya ako? Makakapag-bakasyon pa kaya? Yung office mate ko hindi nya alam kung kelan sya ulit makakabisita sa kanila dahil malaki nga ang gastos ng pag-uwi sa Pinas.

Nabago na ng parents ko ang destiny namin sa pagpe-prepare ng retirement nila. Ulit-ulit din nilang sinabi noon na ayaw nilang umasa sa amin. Ayoko ring umasa sa anak ko. Ayoko syang pahirapan. Gusto ko syang umasenso pagdating ng araw.

Kayo ba part ng Sandwich Generation? 

Allowance

One of our fixed expenses is allowance. Pareho kami ng asawa ko ng allowance amount, which is P3,000 for 10 working days or 2 weeks (based on the exchange rate as of writing).

I call it sanity money. Personal money yan, walang pakialaman kami ng asawa ko. Bahala kami kung san namin gagastusin. Di namin sinasama ang pamasahe dyan. Pamasahe is another expense na dapat may budget kayo.

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Dyan namin kinukuha ang pang-gastos sa mga personal activities or events na gusto naming gawin, such as eating out or inuman with office mates or friends. Kung nag-yoyosi ka, dyan mo rin kukunin. Kung bumibili ka ng coffee, sa allowance mo rin sya kukunin. Manicure, pedicure at facials ay dapat sa allowance rin hugutin. I don't consider them to be in the Health category.

Pag may budget na kasi kayo, lahat out in the open eh. Pakiramdam ko wala akong ma-enjoy na para lang sa sarili ko, ganun din naramdaman ng asawa ko. So ang ginawa namin ang mga sweldo namin sa isang joint account pumapasok tapos we transfer our allowances to our respective accounts. That way, there's a feeling of independence and control.

Minsan pag wala na kaming wiggle room at isa samin gustong bumili ng take-outs for dinner or kumain sa labas or manood ng sine, we offer to use our allowance. KKB kami ng Mister ko. :)

Having an allowance has truly helped me and my husband to enjoy the hard-earned money we bring to the table. Kelangan din naman i-enjoy ang pinagkakitaan natin no!

Kayo ba may allowance? Magkano?

Wiggle room in your budget

I advocate for a zero-based budget and this post is to further explain it.

Despite the best attempts to allocate every peso to savings and expenses, may konti pa ring natitira - from P5 to P500. Just consider that extra as your wiggle room.

May mga times na bigla na lang kayong magpa-planong manood ng sine or di kaya ay naimbita sa birthday party. Since hindi naman sya emergency, hindi dapat sa savings kayo kukuha ng pambili. Ang extrang pera sa budget nyo will provide you the room to wiggle without harming your budget.

I usually allot P1,000 wiggle room, which is the difference between Total Income minus Total Expenses. Dati kasi I followed the zero-budget style very strictly. In the end, feeling ko tuloy para akong mummy na ipit na ipit. I learned to give the budget this wiggle room but it took me awhile to realize that. Marami rin akong in-experiment at adjustments na ginawa sa budget.

Kung 14th of the month na at suweldo na kinabukasan, tina-transfer ko na ang tira ng wiggle room (kung nagamit ko man) sa savings. As I mentioned before, dapat walang matira bago pumasok ang susunod na sweldo para your lifestyle is set to live within your means.

Magkano ang wiggle room nyo sa budget?

Magbaon ka!

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Naalala mo pa ba nung elementary student ka pa lang? Diba araw-araw kang may baon. May lunch box ka pa at lalagyan ng tubig? Kelan tumigil yun?

College na ako nung natigil na ang pagdadala ko ng baon. Naging full time money allowance na sya.

Masarap mag-lunch out lalo na kung masasarap din ang niluluto sa cafeteria, food courts or sa mga restaurants malapit sa school or office. Pati nga Jolly Jeep ang sasarap ng mga ulam! Yum!

Ngayon grown up ka na, nagbabaon ka pa rin ba lalo na sa work? Kung oo, magaling! Buti ka pa! Ang hula ko, 3 of out 10 workers lang ang nagbabaon. Maraming nagsabi sakin non na mas mura pa raw kumain sa labas kesa magbaon. Ano sa tingin mo?

Kung may tira ka ng ulam mo the previous night, maiging ibaon mo na lang kinabukasan. Una, nauubos mo ang tira kesa masira lang. Pangalawa, nakakatipid ka pa.

Di naman kelangang tira ang ibaon mo lalo na kung ikaw yung tipo na ayaw kumain ng repeats. Maghanda ka ng sandwich or salad. Di rin kelangan na marami kang baon na pagkain, lalo na ang kanin. Nakakaantok sya sa hapon at nakakatamad ng magtrabaho.

Sa office ko maraming nagbabaon. Madalas ang kinakain ng mga office mates ko ay salad, sandwich, leftovers, or noodles. Yung iba prutas at raw vegetables lang ang kinakain like carrots, celery, at kung ano-ano pang healthy foods.

Kung di ka nagbabaon at kumakain ka sa pinakamurang kainan na makikita mo, usually unhealthy sya. Ang 1-pc Chicken Joy value meal ng Jollibee is P84 na. Multiply it by 5 days a week and you're already spending P420, wala pa ron ang extra rice! Alam mo bang sa buong taon ng pagkain ng Chicken Joy meal ay tumataginting na P21,840 yun?!

Sana maisip mong magbaon maski twice a week para maumpisahan mo ang pagtitipid. Sa P21,840, marami ka nang mabibiling pagkain para may maibaon ka rin. Mapipili mo pa ang healthy ingredients and you will have control over your portions. Malay mo, mag-lose ka pa ng weight.

Paano ba mag-budget?

Tulad ng sinabi ko, a budget is a plan, hanapan mo ng panahon para gumawa ka ng budget.

Mag-set ka ng budget or pay periods. Ang examples ko are based on kinsenas-katapusan so the periods are 1-15 period and 16-31 period. Ang idea ng pay periods is the same as loading a balance to a prepaid cellphone. You spend what you have.

Ito ang mga simpleng steps para makagawa ka ng budget.

1. Alamin ang papasok na pera (income)

Isulat mo, or i-type mo sa spreadsheet or document ang mga pumapasok mong pera. Examples are sweldo, renta (kung meron kang properties), regalo or remittance.


2. Alamin ang palabas na pera (expenses)

Examples are renta, amortization sa bahay, kuryente, gas, bayad sa kotse, grocery, school tuition and fees, sweldo ng mga kasama sa bahay, baon, pamasahe, sine, kape, cellphone bills or load, internet, cable, regalo, etc.


3. Alamin kung kelan pumapasok ang pera (pay dates).

Kung kinenas-katapusan ka, alamin kung kelan ang exact dates ng sweldo mo.


4. Alamin kung kelan lumalabas ang pera (due dates).

Sa fixed expenses, usually monthly to. Sa variable expenses, tulad ng Starbucks coffee or nood ng sine, mag-set ka ng schedule kung kelan ka usually bumibili ng mga ito.

5. Isama mo ang savings sa expenses.

Oo, true ito. Isipin mo na lang na gastos din sya. Kung hindi mo kasi isasama, makikita mong marami ka pa palang pera. Pay yourself first. Itabi mo na agad bago mo gastusin.


6. Add the total expenses and subtract from the total income.

Simpleng math lang yan. Kung ang kuryente mo is due in the first week of the next month, ilaan mo ang bayad sa 1-15 period (sweldo from katapusan). Kung ang cable falls in the 3rd week, ilaan sa 16-31 period (sweldo from kinsenas).

7. Desisyunan kung ano ang pwedeng itanggal sa budget.

Kung di mo pa kayang di manood ng sine or itigil ang pagbili ng Starbucks coffee, by all means isama mo sa budget kung may malaking tira ka pa after mo gawin ang #6. Kelangan mo ba talaga ng Php1,500 cellphone plan? Baka naman pwede ka na lang mag-prepaid for Php100/week.

Ang sikreto sa successful na pagba-budget ay dapat walang matira kahit piso sa araw bago ka sumweldo. Ang tawag ko rito ay zero-based budget.

Ibig sabihin nyan ay bawat piso mo ay nakalaan na. Ang sweldo mo ng akinse, dapat hanggang katapusan lang ng buwan. Yung katapusan mong sweldo, hanggang akinse lang.

Maski Php100.00 kang natitira, ilaan mo sya sa ipon or ibayad sa utang mo. Wag mong i-roll over or carry over ang tira sa susunod na sweldo para masanay kang mabuhay sa sweldong natatanggap mo. Pag ni-roll over mo kasi, lalaki ang next pay period so feeling mo marami kang pera, which is not exactly true.

Sa ganitong paraan, mababago mo ang paraan ng iyong pag-iisip. Kung nagne-neto ka ng Php15,000 kinsenas, sanayin mong mamuhay sa ganong kalaking pera lang. Ang kagandahan pa nyan, pag lumaki ang sweldo mo sanay ka nang mamuhay sa mas maliit na kinikita. Mas marami ka nang maiipon or mas malaki na ang pambayad utang mo.

Ang budget ay isang plano

Image by A Long, Lone Run via Flickr

Noong medyo bata-bata pa ako, nalilito ako sa meaning ng budget.

Merong definition sa dictionary, pero sa araw-araw na pakikisalamuha ko sa mga iba't-ibang tao na may iba-ibang definitions, ang nabuo kong meaning ay -- budget is money left in your pocket.

Mahirap din na wala rin akong actual experience about managing my own money dahil ang parents ko palaging andyan to guide. Gusto pa nga nila na sila ang mag-ipon on my behalf. Bibigyan ko sila ng pera na sila ang magtatago, either by investing it or just saving it, pero di ko rin ginawa yun kasi gusto kong matuto.


Bago ako natuto, marami rin akong ginawang walang kinalaman sa goal kong maging financially literate. Andyan yung gumamit ako ng gumamit ng credit card tapos ang tagal bago ko mabayaran, nood ng sine, shopping, hang out sa Starbucks, puro gastos.

Noong nagka-asawa na ako, naging aware na ako sa labas-masok ng pera namin. I started tracking our spending, as in lahat! Down to the cent talaga. Noong nagka-anak naman kami, mas naging kuripot ako.

Nagkaroon din kami ng utang na hanggang ngayon binabayaran pa rin namin. Ang kaibahan nga lang ng ngayon sa noon ay naka-focus na kami sa pagbabayad ng mga kautangan namin. Dati kasi pinagsasabay ko ang bayad-utang at pag-iipon. Medyo mahirap sya lalo na pag may mga anak kayo. Mahirap sya dahil di mo maibigay ang full focus mo sa 1 bagay. Marami rin akong natutunan dahil marami rin akong in-experiment para marating ang financial literacy ko ngayon. Hindi ako financial adviser pero marami akong opinyon.

Ang una kong natutunan sa pagiging independent, lalo na sa pera, is that a budget is a plan.

Nagba-budget ako for the entire year. Alam ko na ang paydays sa buong taon. Ang sweldong pumatak sa January 1 ang nilalagay kong sweldo sa buong taon. Ina-adjust ko na lang pag may increase or bonus man.

Ika nga,  

If you fail to plan, you plan to fail.

Totoo yon! Kung hindi mo alam san napupunta ang pera mo, or kung san pupunta, wala kang control sa isang bagay na dapat may control ka.


Ang kalaban mo ay ang sarili mo lang. Hindi mo pwedeng sisihin ang advertisements kung bili ka ng bili. Ang pera ay nasa kamay mo, wala sa advertising agencies.

Noong nagsimula na akong mag-plano, nagulat ako! Sa buong taon may estimate na ako ng mga lumalabas na pera to pay fixed expenses, tulad ng kuryente, daycare, grocery, gas, insurance, pamasahe, at minimum credit card payments. Ang laki! Doon ko na-realize na kung may matira man, konti na lang. Ibig sabihin lang non is either ipunin ko yung tira or gastusin ko sa mga variable expenses -- tulad ng panonood ng sine, shopping, regalo, bakasyon, at kung ano-ano pa.

Ang una mong maa-achieve sa pagplano (or pag-budget) is awareness. Di ka pala ganon kalakas kumita kung ganon ka rin kalakas gumastos. Marami kang magiging tanong, like:

• Magkano kaya maiipon ko kung di na ako bibili ng kape sa Starbucks?
• Pwede kaya kaming magbawas ng grocery budget?
• Ibenta ko ba ang mga gamit na di nagagamit at gumagamit ng kuryente?
• Kelangan ko ba ng 2 kasama (katulong) sa bahay?
• Kelangan ba naming mag-kotse araw-araw?
• Magkano kaya kung mag-jeep or mag-MRT/LRT na lang kami?
• Kelan na lang kami pwedeng kumain sa labas?
• Magpapakasal pa ba kami ng bongga?

Di rin ganoon kabilis baguhin ang financial life mo kung di mo muna pag-iisipan kung bakit ganon ka na lang gumastos. Shift in paradigm talaga sya.


Sa una medyo mahirap lalo na kung sanay ka to experience the finer things in life. Pero ang totoo nyan, nagpapaka-totoo ka lang.


May budget ka na ba? Kung wala, may plano ka bang gumawa ng budget? Kung meron, anong mga natutunan mo?