Wednesday, January 30, 2013

Tips In Managing Your Finances


Hi everyone! It's time for another post with some tips and tricks to share.  I was a bit overwhelmed with a positive response that I got from the comments of my dear co bloggers and friends on my post, "Tips and Advice in Getting Your Dream Home" on my home blog and I am glad that my post was able to serve it's purpose, and that is to inspire everyone to save and build their dream home without necessarily going into debts. I've also laid down to you the virtues that I adopted in life that enabled me to fulfill my goals.  

Now, I want to share with you  some of "my personal tips" about how I'm able to manage my finances to achieve my goals. Some of these may sound simple but it works well for me, and I hope to you, too. :)

Here are some of the things that I learned to practice that enabled me to strike a balance in managing my finances:

Be easy on the gadgets. I know that many of you will react to this but please give me an opportunity to explain my point. It is my guiding principle to make a list and sort out what are liabilities and assets.  For me, asset is something that appreciates in value over time and brings you more income while a liability is just the opposite.  Something that depreciates in value and will not contribute in building your assets.  A gadget becomes a liability when you just buy it because of "urge" or just to to be "in". For example, It's very seldom for me to upgrade on my mobile phone.  I don't buy a new phone every year although with the amount of salary that I have, I can very well afford to do so. I have laptop but I don't have a tablet.  Again, I can afford to buy, but I don't.  I always weigh the necessity of going for things before I decide to buy.  A cellphone is a cellphone as long as you can call or text.  If I can already use my Android phone and laptop to visit the social networking sites, type some documents, keep some files and blog, then why do I still need to have a tablet?  I would rather invest that money so it could earn some income.  The income I derived from that invested amount of money is the one that I'm going to use to buy a gadget should I really feel the need to have one.

I set up a budget every month and I stick to it.  Sometimes, I even managed to save some amount from my allocated budget.

I make it a point to save  a certain percentage of my salary every month. In fact I  keep an envelope for "savings" and an envelope for "emergency fund".  I do it so that my savings will remain intact even there is a sudden expense in the house that I am confronted with.

I think of ways to reproduce my savings.  I am not a fan of bank deposits as the interest that you could get from there is very small, but I still keep some for "emergencies" and for my personal fund.    

I continually find ways to earn extra.  This is so because I wanted to "fund" our family vacations and occasional shoppings out of the extra income.  This way, I would just need to add up a little from my fixed monthly income.

When I was working in the Philippines, I tutor my own kids and I support them all the way in their studies. I focus on training them during their foundation years. I want them to become achievers. I purposely did not get any educational plan for my two kids as I have a different agenda. :)  I succeed at it.  Both my son and daughter were scholars and we were able to save a lot from their yearly tuition fees. The money that we allot for their supposedly tuition fees were deposited on their own personal account. I told them that that will be their own personal savings which will be theirs until they become adults. I also took that opportunity to challenge them to build up their savings by telling them that all the money that they could save from their school fees will not be taken back from them but will be a part of their savings account and that will be theirs. Both of them worked hard to build up their savings.  My daughter was a consistent scholar from grade 1 to 6 at Montessori and so with my son in another private school. That's how I am able to teach them about money matters at an early stage.

But please don't get me wrong.  I never deprived myself and my family of a comfortable life.  I still give them a bit of comfort and luxury but it is well planned and organized.  My kids used to get whatever they want but in a timely manner and under certain conditions.  I treat them out and send them for trips abroad as what other families would normally do.  

The key to everything is balance. We have to do everything in moderation and we need to exercise self control at all times.  That is, if we are serious to manage our life and finances. And again, everything is a result of determination and hard work!  If you work hard, then you will reap the fruits of your labor in the end.


36 comments:

  1. Napa-ouch ako sa gadget hahaha. Awat na ko at naeenjoy ko na ang mga gadget na ngayon ko lang naeenjoy finally.

    Im truly admiring u for ur tips. Talagang pinagkukunan sa sariling experiences kaya nga ba nattuto ako sayo lagi. Indeed, hard work, self-control and determination is the key.

    Yet, as a Christian I'd like to add up one more tip. Giving the 10% of everything that we earn as a form of thanksgiving to the Lord for all the blessings that we continously receive is worth it. Maliban sa pasasalamat na ito, napatunayan kong lalo Nyang pinapagbubunga at pinagyayaman ang mga resources at income. As in iba Sya magbalik.

    Thanks for the tips sis! Gaya ng sabi ko kanina, tunay na dapat kang pamarisan sa iyong pagiging hardworking. Ikaw na talaga! Pagpalain ka pa nawa ng siksik liglig at umaapaw na biyaya.

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  2. Thank you Ning! I'm sorry about the gadgets ha. It's not directed to you. hahaha. I know marami masasagasaan but I just bring out my personal opinion naman and I don't anything against those who would like to enjoy life. I am just talking about about moderation

    You're right dear, giving back to the Lord is another key and there are many forms of doing it.

    Happy to hear that you get something out of this post. Good Luck!

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  3. Very sound tips. It's true, we only buy those that would give us value and not just buy things on a whim. It's hard to earn money so when we have to part with it, it should be for something worthy. I also agree with Rona on the 10% tithes. I also do that. One of the non-negotiables yun for me.

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  4. wow, really speaking from your experience, very detailed hahaha...i admire you how you shrewdly manage your finances...i learned excellent points

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  5. You are so right about gadgets. Sometimes, my phone is on silent mode kasi luma na while my officemates with income lesser than me have iPhone 5 na. But keribells lang. sis how do you reproduce your earnings? I did UITF with BDO and earned. Yung variable life insurance ang palpak. Do you do stocks by the way?

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  6. Naku kaya ako it takes almost 6 years bago ako bumili ng new cellphone tapos un mura lang. hehe... I would love to have high end gadgets kaso iniisip ko kelangan ba talaga. Un tablet lang ng anak ko and ung netbook ang talagang pinagisipan namin bilhin last year. This year still thinking if DLSR is needed. Hehe. Malaki ba earnings sa UITF with BDO. We have a saving account kasi with BDO and my son does too.

    Mommy Maye
    www.momaye.com

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  7. I believe in establishing an emergency fund. I just hope na nafillup namin ng hubby ko this year. And I do the saving up, kahit sobrang hirap magbudget.

    Your post truly inspires me in budgeting our money.

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  8. Gadgets are really quite a waste of money sometimes. WE do have quite a few at home but I don't go for the latest models and go for those that suite our purposes most as it helps save $$.

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  10. i will save a lot of money for my dream home.. hehe thanks for the tips..

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  11. I am Ok na with #1, and so I will really try to do the rest this year. :D Thanks for sharing!

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  12. thanks for sharing this great tips.. I am not good when it comes to managing my finances and it's my goal this year to save some for the little one.. I hope your tips will help me achieve my goal..

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  13. I am starting to create a budget monthly and sticking to it. I hope by the end of thus year we have greater cashflo and lesser debts. Thanks for the tips.

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  14. We really need to save extra money. Ngayon nga kahit medyo hectic ang trabaho, we still try to finish at least 1 crochet item per day for extra. when it comes to gadgets, I agree with you. ganun din sa mga damit. Hesitant pa rin kami bumili ng mga branded kasi alam ko na mahal at meron naman iba na pwede kahit mura lang. Buti na lang may free uniform kami sa work at least tipid sa damit.
    With what Mommy said on DSLR, planned pa rin yun and beside mbaka bumili na rin kami kasi 5 years old going 6 na yung digicam na nabili namin before we got married. hehehe

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  15. Your post reminds me of Ikea's founder, Kamprad. He is considered the richest man in Switzerland. Despite his riches, he continues to live a frugal life. :)

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  16. Thanks for the tips. Honestly, I'm planning to get a new phone, but after reading this post, I'd rather not. :)

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  17. thank you so much for sharing your financial tips, i've learned a lot

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  18. Thank you ladies and Alan for all the comments and inputs in this post. I just want to encourage you all to save and save and save. We feel more inspired kasi pag alam nating may pinuntahan yung ating pinaghirapan. Sometimes, we get easily tempted sa mga nakikita natin sa ads and from our circle of friends but if we try to exercise a little bit of discipline and self control, we can learn to live by. For me, ba yung luxuries sa reward. I call it a luxury if you but it on an impulse kahit di kailangan and when you upgrade your gadget para lang makasabay sa uso. If we buy gadgets because we really need it and it could help us earn from it, why not di ba? The question that we have to ask ourselves when we have the sudden urge to buy is, "Will it make me a lesser person if I don't get that gadget now?" I we plan to have something in the future like a dream home or a business, then we have to start building our savings now. Yung paunti unting ipon lumalaki din ng di namamalayan. Let's take it from the story of the ants.

    Good Luck everyone. :)

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  19. @ Marie, Hi Sis! I'm not doing stocks right now. Very risky kasi and besides, I am not an expert when it comes to that. I don't venture kasi ito something pag di ko kabisado. I reproduce my savings by creating an income out of my savings like investing sa properties. I just start small, then go big pag nakatsamba. I'm always on a look out for investments. I do a lot of researches and I choose kung ano yung kaya ko. Golds and properties are sure investment, madali kasi mag apprciate yung value nya.

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  20. I am glad my husband is the one who knows how to save a lot!!! And he definitely is good with money matters...he has the old style Chinese blood in him. I usually choose highest end things like the Acer Ferrari which I had for 5 years but which I used less because of battery problem...needs to be plugged always, thus, no longer portable. Then, I have a Macbook Pro I7 last 2010 and which I believe I will be using for so many years more. I feel this is no longer a luxury because I use it everyday of my life! I changed cellphones not because I want to change but because my son would need a new phone and I give him my old one! What is important is also to live within your means!

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  21. I was happy that my son also keeps a big chunk of his baon and I realized he really had a lot of savings! I initially thought of lowering his baon, but when I found out he saves, I didn't lower it anymore. He has his own hidden shoebox then at a later time, he puts it in the bank.

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  22. Wow! Napanganga ako. lol! I guess the key to all these is self-control. I wish I could do the same. :-)

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  23. This post will remind me and will push me to save up more instead of buying and getting unimportant things. thanks for sharing. :)

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  24. I already read a lot of tips and tricks to save money but why I don't have a single centavo on my account. (Oh, I still have P20 btw. :)).. The ways plus discipline is also needed. ^_^

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  25. Really good, sensible tips. Doable too if I only had discipline :) I'm also looking for ways to add to my income. Blogging is one of them although doesn't really earn so much :)

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  26. Thank you for your tips. I wish I was money wise earlier in my life, but it's not too late for anyone. So far may savings na ako, and I look forward to building it up and looking for more investment opportunities.

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  27. Thank you for sharing these tips! Im currently doubling my savings this year and already found ways on cutting back :)

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  28. Excellent tips and I like your common sense approach to life too. :-)
    Eliz

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  29. This post came at the perfect time, Krizza. I'm just starting to invest on stocks, where I can place my "retirement fund." As for the gadgets thing, I grade myself "A" on that kasi I rarely buy new gadgets. :-)

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  30. Finding ways to earn extra is always on my list as well. Great post!

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  31. Those are great tips! I do most of them as well. This early, I'm also starting to look for schools that offer scholarships. My daughter is quite smart and I do believe she can be granted a scholarship.

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  32. I do not also fond of buying new gadgets. I am contented with what I have as long as they still serve their purpose. But I have to work on the monthly budget. This is really a challenge for me as I also support my parents and my income is not that big too.

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  33. I postpone buying gadgets unless I really need them.

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  34. thanks for the tips. i think it always boils down to discipline and consistency. :)

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  35. With the current economic circumstance it is really hard to stand along with the financial criticism. Setting up a budget is one of the most effective ways of having a smooth drive. This post is impressive.

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  36. I always have problem in money management. I am never been able to save or invest my money in a profitable way. These tips are very helpful to the poor souls like me.

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