It is always the number one rule to "walk the talk". So for today's blog I'm gonna reveal how am I really doing my own financial planning. My way is actually one of the old, traditional, mostly advised ways of organizing your money and that is, the envelope method. I don't use the traditional envelope though, literally speaking. Let me start with a brief discussion about it.
The one I'm using is similar to the one in the picture below, although mine only have 5 divisions.
I basically do the same thing as the one above, I label each division with my own categories. I have five categories, namely:
1. Bills/Groceries - under this falls electricity bill, water bill, internet bill and budget for the groceries.
2. SSS- Insurance - includes payment for my SSS as a voluntary contributor and payment for my VUL insurance.
3. Mutual Funds - I make sure I allot a portion of my salary to my own investment for my retirement.
4. Fun Times - budget for our family/couple's dates! (its a must!)
5. Myself - a little reward for myself. (e.g. budget for new clothes, spa, cosmetics, etc)
So here's how it goes, being a housewife and a financial advisor, I make sure that everytime my husband hands me over our family income, it will be budgeted accordingly. The first four categories would be filled on my organizer and the "Myself" part would be the last one to be filled. There are some months wherein the "myself" would be left with nothing. And for me that is just OK. Because for me, its not a good thing to always give yourself all the luxury even if you can afford it. Delayed gratification is a big help in saving money. I make sure that I only buy things that I need and not just want. There's a lot of difference there.
The key here is to stick to the budget. Well, there will always be times when I have to spend more that what is really allotted but then that is OK, I just make sure it does not happen most of the time.
So, there. I hope my little "sharing" has gotten you motivated to do a simple financial planning for yourself. Even a hundred peso every payday could go a long way if you'll have the discipline to save it rather than spend it for a cup of coffee. In any activity you want to achieve, discipline is one of the keys. And make sure you also have the discipline to start it Now.
Stay Positive and Pass it on!
2. SSS- Insurance - includes payment for my SSS as a voluntary contributor and payment for my VUL insurance.
3. Mutual Funds - I make sure I allot a portion of my salary to my own investment for my retirement.
4. Fun Times - budget for our family/couple's dates! (its a must!)
5. Myself - a little reward for myself. (e.g. budget for new clothes, spa, cosmetics, etc)
So here's how it goes, being a housewife and a financial advisor, I make sure that everytime my husband hands me over our family income, it will be budgeted accordingly. The first four categories would be filled on my organizer and the "Myself" part would be the last one to be filled. There are some months wherein the "myself" would be left with nothing. And for me that is just OK. Because for me, its not a good thing to always give yourself all the luxury even if you can afford it. Delayed gratification is a big help in saving money. I make sure that I only buy things that I need and not just want. There's a lot of difference there.
The key here is to stick to the budget. Well, there will always be times when I have to spend more that what is really allotted but then that is OK, I just make sure it does not happen most of the time.
So, there. I hope my little "sharing" has gotten you motivated to do a simple financial planning for yourself. Even a hundred peso every payday could go a long way if you'll have the discipline to save it rather than spend it for a cup of coffee. In any activity you want to achieve, discipline is one of the keys. And make sure you also have the discipline to start it Now.
Stay Positive and Pass it on!
