How to Organize

The best way to make everything work is to organize things before it happens. That’s the reason why we have wedding organizers, event coordinators and career planners.

Today we will talk about organizing our lives through organizing small details in it. The technique written here is not only applicable to finances but also to everything.

6S Technique

Popularized by the Japanese

1. Sorting

Distinguish between those things that are needed and not needed. Keep only needed materials and throw away all unnecessary items immediately and properly.

Another thing is to donate the things that are not needed.

2. Set to Order

Put things in right order in designated areas with labels. Use the right storage facility for the materials involved and organize according to frequency.

3. Shine (Cleanliness)

Problems are more visible when everything is neat and clean. Clean as you go.

4. Standardize

Follow standards in lay-out and purchase of any furniture and accessories.

5. Sustain

Ensure that gains are held and continue to be made.

6. Safety

Follow safety procedures at all times. Report any unsafe conditions immediately. Make safety a priority at all times.

Image Sources:

• http://bloghop.info/wp-content/uploads/2010/06/safety.jpg
• http://www.lowesforpros.com/sites/default/files/Ross_BR_sustain.jpg
• http://www.tfsi1.com/images/i_2.4-Filter-Standardization.jpg
• http://www.landscape-painting.org/wp-content/uploads/2011/03/clean-is-green.jpg
• http://1.bp.blogspot.com/_ASd3nWdw8qI/TSW_oEYD8sI/AAAAAAAAAXE/6s12GNV-t_0/s1600/notes_Jan_06_Main.png
• http://www.dimensionsguide.com/wp-content/uploads/2010/10/jigsaw.jpg

My Laptop Turns Four

I’m really happy my laptop turns 4 years old. It still runs, not as fast as the latest, but still can do what I want it to do.

Paul and I bought it when I was studying for a post graduate degree.

I told myself few years back that my laptop will be replaced after 5 years. But now I am changing my mind. I will use the same laptop until its tenth year or until it cannot function properly whichever comes first.

Today I need to replace the keyboard because a panel has not been working for months already. It’s quite expensive but can be done.

Six years is a very long time to save for a more powerful replacement. I am foretelling that laptops will not be a hit anymore. We will all be invaded by tablets. And I am starting to save for it as early as today.

~Till next time.

Credit Card Debt

You might wonder why I don’t discuss much about credit card debt in my blogs. That’s because I don’t really have anything to discuss about it. As much as possible I don’t want readers to incur credit card debts.

But still I feel the urge of giving something to you regarding this matter.

I have lots of friends who are digging themselves into credit card debt. They treat it as an easy way to get money. They have the motto “I want it NOW!”

But then one will realize that getting yourself in deep debt is a burden physically, emotionally and psychologically.

Here are a few steps to follow to avoid irresponsible consumer debt.

1. Do not use cash advance

The cash advance is there to mindset people that they have cash and it's ready to be splurged. Once you get the cash advance, the interest starts to tick.

2. Do not max out your credit limit if you cannot pay it in full on cut-off date

Use your card good as cash. Pay everything on or before the cut off date.

3. Avoid unnecessary expenses

4. Do not carry your credit card when you intend to shop

Most of the times people overcharge themselves because plastic is convenient. Oftentimes they miscalculate.

5. If you have an outstanding credit card debt, DO NOT borrow anymore.

Settle your debt first. Stop the urge.

6. Compute

Oftentimes people forget to compute. Your cellular phone has a calculator. Use it.

7. Pay On-time

Saving Effectively: Pretend You are Paying for a House and Lot

If you have problems in saving money, here’s a tip: pretend you are paying for a house and lot or a car.

Many people are more effective when they are paying for a loan or a mortgage when saving money. It makes them more disciplined.

Applying it to the concept of saving money, pretend you have a mortgage amounting to 1M. This becomes your target savings. Then decide how many years to pay. Of course the longer the period you pay the smaller the monthly amortization but the higher the interest rate. Luckily in saving money the higher the interest rate the better.

Let’s pretend you don’t have any money to start with. But you plan to have a house and lot after 10 years. To start with you are required to give a down payment amounting to at least 10 percent payable within a year with no interest. Then the succeeding payments will be distributed over the remaining 9 year period at an interest rate of 6% (per annum).

Selling Price	1,000,000.00
Down Payment	100,000.00
Monthly Down Payment	8,333.33
Remaining Balance	900,000.00
Monthly Amortization	6,526.67

You may think that the computation is crazy because the monthly amortization is lower than what it should be. Actually it is. The difference of the monthly amortization presented to you by your real estate agent and my computation is their gain which translates to money working against you.

Now you can foresee that it is easy to accumulate one million Pesos in a matter of 10 years.

~Till then

Mid-Year Review on Finances

I made it this far. I am congratulating myself for a job well done. I really am doing very well and I think I deserve a pat on my back.

I was inspired by an article sent by Paul when we were still starting to manage our finances. The guy in the article saved 180,000Php in a matter of 9 months. He was just starting from work then. This guy really has discipline when it comes to handling his finances.

I am just your average employee. I earn what an average employee earns. I was not promoted nor had a big bonus recently. I made it possible through properly saving and investing my money. I stayed motivated and stayed focused on what I had to achieve this 2011. I didn’t have to go abroad to have this much in so little time.

No I was not penny pinching. Actually I had a total of 3 out of town trips already which includes a Mt. Pulag climb, a trip to Sagada and a camp-out in Calaguas.

I also have to pay my house rent and the city services.

What’s most exciting was the recognition I received from Paul when he found out how much I saved. A treat awaits, I think.

Now I can easily say, “Hello house and lot.”

This mini success I offer to the Great Lord for blessing me and my family good health and wealth. If you do good to other people, you will really be rewarded. Proven!

~Till then.