How much does your Hobbies Cost You?

Few days ago I came across a TV program that discussed about hobbies and their cost. In my own personal belief people need hobbies to take away stress. It may be painting, watching movies, traveling, cooking, baking, gardening, etc. (Yes, include shopping!)

Asking yourself how much it cost you on a monthly basis is a really tough question especially when you are enjoying the hobby and not minding how much money you put into it.

As far as my hobbies are concerned, I managed to put up a not so definite fund for each. For instance, my husband and I love traveling. Since I am in charge of our monthly expenses, I am setting aside a few thousand pesos each month for this hobby. Whenever we (I) feel the urge to travel, I usually look at our Leisure Fund and plan according to the amount indicated there. Sometimes we would join a bike ride, sometimes we would climb mountains or sometimes just chill out at the park. Traveling to us doesn’t necessarily mean boarding a plane or going to a place 3-4 hours from our house. For us, traveling means “going out.”

Other times I would try to cook a special dish. (Yes I love cooking!) If the dish is expensive then I can schedule it on a special occasion then adjust the budget for other dishes within the week. We have this mentality that we cannot just get what we want all at the same time. Sometimes we have to do some tradeoffs. For example we will buy tuna/salmon and cook it for lunch or dinner; we would have ginisang sitaw at kalabasa for the next day just to balance the cost. Of course my husband would not feel that I am getting stingy because I would serve generous portions of ginisang gulay.

Sometimes we will be spending more on our hobbies. But the thing is we know how to adjust. If we cannot afford it at the moment then we will probably save for it.

Maintaining our sanity is one reason why we have hobbies. But always bear in mind that our hobbies should not be the reason why we will put ourselves in difficult financial situations. Let’s have a sense of consciousness/awareness on things that are important and are more important. Setting priorities and smart goals will help us get into a healthier financial shape.

Till next time.

Time and Money Relationship

Many are asking me, Millette how can I become a millionaire? At my rate of saving right now, when can I become a millionaire?

I always say, let’s put it in Math. Hey, everybody can do math. If you can’t then you will not become a millionaire.

I prepared a simple presentation on how we can relate money with time.

I can’t do X-Y analysis here cause readers will flood me with those “what-is-she-talking-about” comments.

Here it is:

In the presentation above, I assumed that you want to retire by the age of 60 (But you can retire earlier if you wish to.) and that you are saving in a facility which earns 12% per annum.

If you are 25 years old right now and wants to have 10Million by the age of 60, you should be saving 24000 pesos per year or 2000 pesos per month or 67 pesos per day.

If you are 55 years old right now and doesn’t have savings at all then FREAK OUT! Cause you nees to save and invest 4500 pesos every day or 134000 pesos every month or 1.6 Million every year.

You see. If you are going to procrastinate saving and investing then you’ll end up saving more per month. So why procrastinate? Save now!

~till then

Money Doesn't Make a Man

True enough. It is not the most important thing in this world. You can have a simple life without having so much money in your bank account. You can live a day without having a fat wallet. You can survive a week with only a few hundreds in your pocket.

Money can't make a man. It simply cannot. You can be a man or a "manster" depending on how you use it.

Because money simply can't buy happiness. True happiness comes from within. The level of contentment you have determines your happiness.

Happiness means having a meaningful life. A meaningful life means having a life following Jesus. And Jesus's way is becoming a servant. And becoming a servant means sacrificing for others. And sacrificing for others mean enduring all the pain. And these pains will keep you strong as a person. And being a person means being a man.

But sacrificing doesn't mean you have to be poor. Jesus is not poor. It can be manifested by the robe He wore. A priest told me that.

I love brother Bo's quote on money.

He says, "Money is not the most important thing in this world. But money affects the most important things in your life."

For example your health. Health is wealth. You have to take care of yourself. You have to nourish your body with nutritious foods. But we should always remember that most sickness comes when we are old. That is why we have to prepare. Without money you will not be able to go to the hospital and see a doctor.

Having a lot of money doesn't necessarily mean you have to boast about it. If you are wealthy, it is your responsibility to share it.

There are two ways to share. One, give money to the needy. Give donations. Give gifts. But giving doesn't solve the problem. The second way of sharing is teaching them. Teaching other people how to have abundance is better than giving them money. Donations can only last for a few days while education can give them lifetime abundance.

Do not be a slave of money. Always remember that money is not your boss. Spend some time to execute a financial plan but don't overdo it. Your time should be well spent. Time lost is lost forever. Time should be spent with the most important things in your life - your family, friends and of course God.

Money is just a tool in accomplishing your financial goals. But it cannot determine you as a person.

Man should be the boss. He makes financial decisions. He makes the calls. Money should follow him. Money should move according to his decisions. It should not be the other way around.

See? Money cannot make a man. Because it is man who makes money.

~till then

Time is Non-refundable

Time is non-refundable. This is one lesson I learned with my mentors.

One tick: Grade School

One tick: High School

One tick: College

One tick: Working

One tick: Married

One tick: Children

One tick: 50’s (no retirement fund)

One tick: 60’s (still working or is supported by children)

One tick: Death

Did you ever ask yourself, "what happened to my life for the past years?" Am I saving enough money for my family? Am I investing enough for my retirement?

Saving money should not be delayed. It is a responsibility we have to take. It is a must that we save money before it’s too late.

If you will not plan and just let time pass you by then you will probably have the same cycle above.

Most people people don’t plan to fail. They just failed to plan.

~till then

Lust of Money is the Root of all Evil

Will you oppose me if I say, “Lust of money is the root of all evil.”?

Lust is defined as an intense longing or craving of something. If you have an intense longing or craving for money to the extent that you will do anything to have more of it then I think you have a problem.

Money alone is not evil. Money is a tool we use everyday. We use it to buy our needs. We use it to trade. We use it to help other people.

Money can be good or bad depending on how you use it.

I oppose the people who say love of money is the root of all evil. Love is a positive word. You can love money because it is entrusted to you by God. But never lust for it. Remember, money is not yours to keep. Money is entrusted to you to help the needy, to keep your faith to God and to make your life more pleasant. What was given to you will be taken back at the end of times so use it wisely.

~till then

How I became a saver from being a spender?

I was 24 years old when I finally realized I am not saving enough for my future.
I read books and articles about saving money and apply it for quite some time but then I lose the drive whenever I see something from my favorite stores.

I was raised in a mindset that having branded things will make me look and feel good. There was even a part of my life that I compute everything I wear before leaving the house. I loved going to those "branded" shops. It made me feel good. Typical shopaholic huh! hehe. I realized I was like this when I attended a Christmas party and amazingly I can tell the brand and the price of the dresses of the ladies. I can even tell where to buy those items. hahaha...

A sad event made me realize that branded shoes, watches and dresses can't help me at times of emergency. That is why from then on, I promised myself I will save every peso I can and be financially independent before my 35th birthday.

Here are the small and big steps I took in order to achieve my goal.
1. I modified the way I think. Being rich is not equal to brands.
2. I freed myself from debt.
3. I save money regularly. I started small but I know I will end up BIG.
4. I have a clear goal in mind whenever I save.
5. I learn the art of investing money.
6. I changed my environment. I affiliated myself to a community that will help me reach my goal.
7. I freed my closet from the clutter I accumulated and start living simply.
8. I cancelled my gym membership.
9. I moved to a lesser expensive house.
10. I put up my own business.
11. I have a partner who helps me reach my short term and long term goals.

Now I am 25 years old and I am happy to say that I am now saving and investing regularly, I continuously build up my emergency fund, I already have my long term health care plan, I already have 4 mutual funds, I am into stock market also and I have a business of my own.

~till then