Managing my Budget

If I was born rich, I wouldn't have to budget. My blog for today is about budgeting. Let me define BUDGET. The simplest definition is-- an estimate of income and expenditure for a set period of time. Modesty aside, Tony and I have a good flow of income every month. BUT we still have money shortages, no savings and it feels like I am so poor.

One night, my cousin visited me for a Financial talk. It feels awkward talking about personal things with her but when she bid herself goodbye that night, I went to bed feeling better because I learned something new about SAVINGS. Do not get me wrong, I can eat at restaurants, buy the stuff that I want. I am living a comfortable life. I worked my whole life after I graduated college, lo and behold I am as broke as I was before.  What happened?

I love budgeting. I list down my expenses to make sure I know where my money is going and I am also hoping that  I can save. For a time, my savings worked. I opened a savings account but it wasn't enough because eventually, I had to pull it out. It didn't multiply coz I was merely saving and it neither helped me secure my future.

I will share a few bullets of my bad practices that prevented me from effective saving.

• I spend more than I earn.
• I dont stick to my budget.
• I look back to my expenses instead of looking ahead.

Right now, I have found a  system that's so far is the best. It worked for me and I couldn't be more thankful to my cousin Ate Ana for sharing this to me!

• Write down your expenses and projected budget.
• Once you get your pay, withdraw all your money.
• Allocate funds for each expenses and put it in an envelope. Eg. if my budget envelope for GAS  is 2000, I have to make sure my gas will last until the next payday. Otherwise, I will have to ride the PUJ.  
• One of my envelope should read as  FORCED SAVINGS. 

Right now, Tony and I am planning on investing on Life Insurance and Educational Plan for Cassie. This is on the works since we're also planning on maybe going to the US to work and live. I just hope and pray that with God's guidance and mercy, He will help us by giving us hints on which path is best for us. 

I hope this short blog will help. I would love to see you truly save too!!