How to get by with 150Php

Every working wife should know how to reduce expenses and increase savings.

As a part of everyday life, my husband and I are committed to reducing our expenses so that we can divert our hard-earned money to more satisfying experiences. We love to travel!

I am keeping my part of the deal by spending only 150Php a day. I know it would be a challenge since there are a lot of nice things a wife could think of. But since I have committed to help my husband build our “dream” house, then I also need to cut off unnecessary expenses. How I do it? Details are listed below.

• The power of commute – I take the public transport every day. We could have afforded to buy a car but we are delaying it because we would like to invest our money to more important things. I am not saying that a car is not important. But in our case it is still manageable to commute. Daily commute – 80Php
•  Lunch box – I work hard to really get something healthy so I opted to bring my own lunch. The fact that I know what’s inside my dish truly sets the standards. Daily expense – 0Php
•  Avoid malls – Malls are there to temp me to spend. So as much as possible I stay away from malls. If there are times that I want to buy something, I deduct it from my monthly allowance.
• Snacks – I usually have my fix by visiting the grocery store near my workplace. The fact that it is cheaper and I can get to choose what I want from a variety is a plus. Daily expense – I keep it under 50Php.
• Coffee – I really don’t fancy coffee shops so I’m not spending much on this. We have a free flowing coffee in my workplace so I get my coffee from there. It’s still the same coffee anyway. J

After a day’s work, I get satisfaction from the fact that I spent less than 150Php. I know that I could use my money in buying our tickets to our next destination or experience something new. I could also save the money and give it to the needy when necessary.

Btw, don’t get me wrong. I also splurge money on my travels. So I get the reward of my sacrifices from time to time. Catch my travels and escapades here. 

Don’t forget to invest for the future also. Just don’t overdo it. It’s not hard to enjoy today at the same time prepare for the future. 

Till next time. ^_^

How I made my first 100 Thousand Pesos?

I was searching for some files in my laptop when suddenly I encountered a list of blog articles that I should do (in the future.)

The title above caught my attention so I decided to do it right away.

At my age (I’m already 27), a woman who has not yet reached this stage (having 100k) is surely going through some struggle with her finances. Shoot! Compare yourselves to me because I am just an average lady who works for an average company that gives an average salary. I have not gone abroad to work (nor was sent by the company for an onshore task.)

Fortunately, with my passion to become a winner, I strived hard to achieve where I am today in terms of finances. 

My first hundred thousand was a no joke. I had to follow a lot of rules, curb my longing for fabulous things and incline on simpler so as not to stress me to my road to true riches. 

How I did it?

1. I first implanted a vision that I am holding a hundred thousand pesos. I pictured myself smiling while holding the money. (Of course you should be happy.) 
2. Then I drew out a plan together with my mentors. They showed me how to do it the right way. Slowly but surely they said.
3. After planning, I needed to execute it. I needed to save a constant amount each month. And so I did.
4. Then sustaining it is the most crucial thing. You have to be addicted to the feeling that it’s good saving money. You have to feel the pleasure in between the pain. You have to know that sacrificing at an early age will yield a better result in the future.

After a few months I realized I was rhythmically in sync with the habit. And then a few months later I already have a few thousands. The story goes until I had my first hundred thousand. 

Was it hard? Yes, at first. But you’ll get there in no time. It’s never too late. Start saving and investing today!

I am now looking at my first million. Hmmm.. Sounds great isn't it?:)

~Till then.

Taking Care of Things

We all know that a lot of money can be saved when we take care of our things. We don’t have to change appliances every now and then if we know how to maintain them.

Here are simple tips to follow for appliance care and maintenance.

Refrigerator

• Do not put the refrigerator too close to the wall. A 4 inches distance will be fine to allow heat release from the condenser coils.
• Do not place your refrigerator near the stove.
• Do not place your refrigerator in direct sunlight.
• Do not place hot foods inside the refrigerator. Allow it to cool first. Preferably at room temperature.
• Defrost regularly.
• Open the refrigerator doors only when necessary.

Television Set

• Switch off television set when no one is watching.
• Do not place anything on top of the television set.
• Unplug it.
• Do not use standby mode because it uses 10% of the television consumption when it is turned on.

Microwave Oven

• Make sure that the microwave is clean before and after using.
• Make sure to set the proper time and temperature.
• Uncover the food storage before putting it inside the oven.
• Do not use foil or plastic as this may cause fire.
• Use glass pans.

Rice Cooker

• Cook just in time for meal time so to avoid prolonged usage of keep warm option.
• Unplug the power cord when not in use.
• Clean the heating element. Remove all foreign objects.

Stove

• Maintain cleanliness of the stove.
• Turn-off the gas tank after cooking.
• When using electric stove, unplug it five minutes before the meal cooks. The heat from the coils is enough to cook it.

Personal Computer/laptop

• Buy energy efficient computers and laptops.
• Switch off the monitor of your computer when in standby mode. Computer monitors consume electricity while in standby mode.
• Choose the right monitor size according to your need.
• Unplug the unit when not in use.

Air Conditioner

• Install air conditioners in a cool area.
• Insulate your room.
• Make sure that the thermostat is functioning correctly.
• Check the filter once a month and replace it when needed.
• Regularly clean the condenser of your unit.

Electric Fan

• Clean your fans regularly as they tend to accumulate dust. Your fans will produce cooler air when clean.
• Unplug when not in use.

Washing Machine

• Maximize the use of your washing machine. Use proper amount of water corresponding to the volume of your clothes.
• Use proper amount of detergent.
• Wash and dry it every after use.

Clothes Iron

• Iron clothes in batches.
• Iron first your pants, then your blouses/shirts. The heat of the iron is enough to iron small pieces like handkerchiefs even if it is unplugged.
• Do not overheat the iron.
• It is better to iron at night or when the weather is cool. Irons are more efficient at this conditions.

~Till then

How NOT to break your bank account on Christmas!

I got this tip from a friend and I was so amazed because I did not feel robbed when I shop for Christmas presents.

The tip: Save a portion of your monthly income for your Christmas presents.

It may be a hundred, five hundred or a thousand pesos depending on the amount you choose. For as long as you commit to the plan nothing will go wrong on Christmas.

For the past 11 month I was able to save more than enough for the kids and I am so happy I can give away extra cash for charity.

~Till then.

Going Back to the Basics

Most people think and act in complicated ways. Last week I was solving a math problem. I searched for formulas which I think can solve it. The formulas were so complicated and I ended up not solving the problem. And then I took a break and refreshed my mind. Then suddenly I realized I complicate things too much and forgot the basic equation.

That scenario can happen in real life especially in our finances. We think in complicated ways and we forget to stick with the basics. We want shortcuts. We want instant.

For example, a person wants to get rich. He wants it so bad that he is willing to do anything for it. Then a certain organization offers him answers to his quest and he agreed to be part of it. He sold things for the organization and earn a lot of money from it. He earned more than enough that he felt he was having so much and began spending the fortune. He spent so much and then one day he found himself back to square one.

What did he forget? Obviously, he forgot to save and invest. He was clouded by the emotion of having too much that he feels it is alright to spend too much also. He forgot the saying, “everything that goes up must come down.”

If you are at the peak of your career or starting to go to the top don’t forget about the basics. Save and invest for the future. And stay invested as long as you can.

~till then

It is really not a matter of how much you earn

It really makes me sad when I encounter somebody who earns a lot (more than what I earn means 'a lot' for me) but who just saves in a bank and who thinks banks are the greatest investment facilities. I have nothing against banks. It's just that I don't recommend it as an investment facility. Mind you, banks are not investment vehicles. They are just there to cater for our emergency funds.

Let me ask you, how much is the salary of a manager? 50 thousand? 80 thousand? 100 thousand? Or even higher. No doubt their salary is way way bigger than mine. But let me tell you, the sad part when you earn more is you intend to increase your lifestyle to suit your status. The mindset goes like this, "Oh, I didn't have a good time when I was an 'ordinary employee'. Now that I'm a manager I should enjoy a lot. Anyway the company is there to feed me." And there goes the spending.

On the other hand, if the manager is a saver but is afraid of other types of investments like mutual funds and stock market then there is still a problem. Let me show you a computation so that you will understand. For example, the manager can save 50 thousand pesos per month but puts his/her money in a bank earning one percent (1%) per annum. The employee, on the other hand, can save 10 thousand pesos but puts his/her money in an investment facility which earns twelve percent (12%) per annum. Let us assume that the manager's age is 40 while the employee is 25. The manager has 20 years more to save while the employee has 35 years more before retirement. (Note: I am assuming that they will both retire at age 60.)

From the table above, it is clear that the 'regular employee' who saves lesser than the manager has a whopping 58 million pesos worth of retirement fund while the manager who saves in a bank has a retirement fund of 13 million pesos.

It only shows that, it is not important whether you have big money or small money. The thing is, you regularly save and invest in the right vehicle. Thirteen million is not bad. But if the manager knows the right facility then he could have accumulated more.

~till then