MONEY MONDAY : Week 4 of the 52 - week money challenge

I have a confession to make... I failed to put my 4th installment to the 52-week money challenge last Friday in my jar (which I keep in our office). I attended to a 10am meeting, a lunch meeting that lasted for almost 5 hours and had to finish something that was needed first thing on Monday. Left the office a little after 8 pm and was already waiting for my shuttle ride home when I realized that I totally forgot about my jar. 

So, the following day, after a little gym-pigout  session with my cousin Ken at Glorietta, I went straight to the office to work on something with our finance department and at the same time update my jar money.Today, I placed my 5th week installment since I will not report for duty for the rest of the week. January is almost over, and I can almost smell the next payday. I revisited my budget, or as I call it my money envelopes and it looks like financially speaking, January has been a good month.

I saw this interview with a former beauty queen and she explained that she uses money jars to manage her budget. Since jars are a bit bulky and I do not have tons of money to place inside, I decided to modify it and use an expanding envelope instead. 

I prepared a total of 9 envelopes, each representing an expense that I have to allocate money for, with a corresponding index card to monitor the flow of cash. Then I bought one of those expanding envelopes and labelled each division according to my expenses. So every payday, I withdraw everything from my bank account and divide my earnings. 

MORT - MORTGAGE

The amount of money I set aside for the monthly amortization of my housing loan.

BILL - BILLS

That portion of my salary that I set aside to pay for my share in our electric bill.

DINE - DINNERS/ COFFEE

I would allot a small amount. Something I can spend for little coffee chismis nights with my friends or any of those little unplanned dine outs. 

PEFX - PERSONAL EFFECTS

Toiletries, foodstuff, pens, books,  gym expenses... anything I would like to buy for myself... a dvd of a movie and some chips to have a movie marathon with my nephews.

BDGT - BUDGET

My 2-week allocation for my expenses to go to work.

MISC - MISCELLANEOUS / UNEXPECTED EXPENSES

food for our cat Motmot, emergency fund just in case anything in the house needs to be repaired or bought, little gardening hobby expenses... stuff like that. 

RTRE - RETIREMENT

The "thou shall not touch" envelope. I know I should have started with my retirement savings the moment I received my first ever paycheck, but it is never too late to start. This savings will ensure that I will have a lot of time reading a book while sipping an ice-cold glass of fresh juice when my knees are already too weak to walk while wearing 4-inch heeled stilettos.

TRVL - TRAVEL 

"Travel brings power and love back into your life" - Rumi

Last year, I spent money I don't have to travel. I availed of a loan and now I am in debt. I am still paying, and will continue to do so for the next 12 months for that 21 day- US trip 3 months ago.  I am not saying that I will never do that again, but this travel savings will ensure that my next travel will not make me think about selling my kidneys. 

SAVE - SAVINGS

Whatever money I have allocated for other expenses that I did not spend. 

I do not have a budget for clothes, bags and shoes... because we are given a clothing allowance, if there is something I really really really want to buy, I will wait until the next payday to see if there was anything left for me to spend.. or maybe use the money I have set aside for coffee nights to buy a new blouse. 

So there. That is how I budget my money.  modify it according to how you spend your money, maybe fewer envelopes? or a few more to cover car amortization, or if you are strict about tithing or for the kid's school expenses. It does help in making you aware where your hard-earned money goes. 

MONEY MONDAY : Week 3 of the 52-week money challenge

How's the jar so far? Mine got 75 pesos richer last Friday.

Last week I promised that I will share what I want to buy with my jar money. I initially planned to spend all my jar money to welcome 2015 differently. Like check-in with my family in a hotel, grab a sumptuous dinner ( buffet maybe) watch some fireworks and sleep in a room with really nice fluffy beddings and the softest pillows! But that was before I realized that the math wizard in me took a vacation and that I made a mistake in computing my year-end savings. I thought that after the 52-week period, I will have a little something over 26,000.00. After realizing my mistake, turns out I will have exactly 34,450! Now that may be too much to be spending on just one night. And besides, for me the highlight of this checking-in thing is me sleeping on the nice bed.

I had quite my share of duty travels. And if some might find it an opportunity to be able to explore a new place for free, I on the other hand consider it a treat to be spending time lounging around in my room. Remote control in my hand, and me tossing and turning on nice comfy beds. PERFECT! So instead of splurging all my savings on just one comfy night in a hotel room, I have decided to buy myself a new bed! 

The last time I bought a bed was 7 years ago. My mom picked a single bed for me.  I was used to sleeping on a king sized bed with at least 4 pillows but since I downgraded, I had to give up 1 pillow. In 2012, my mom upgraded her bed and I got to use her old queen size bed frame. My tita was kind enough to buy me a new mattress, unfortunately it was smaller than what my bed frame requires. Not complaining here, after all beggars can't be choosy. So for more than 2 years now I have been using this bed. And I think it is time for an upgrade. And that is how I will spend my jar money.  I have yet to go around to find the perfect bed frame, but as of now, what I have in mind is similar to this and I plan to have a picture of this bed frame pasted on my jar:

  photo grabbed from  classicmoderninterior.com

My cousin Carlo said it is important to have a reason for doing this 52-week challenge. And I agree with him 100%. You can't say that you are doing it "just because", because if you are, I am pretty sure that it will be so easy for you to just give up and not finish the whole 52-week. I think we all need to have something to look forward to, something we would want to have, for us to stay motivated to finish the challenge. 

Me, I am so looking forward to sweeter dreams and better nights, by myself ... or with someone (I swear I do not mind sharing) ... in 2015. 

I have hurdled 3 weeks... 49 weeks to go!

chinito - crushing

Maybe it's the kilig video that got me swooning, or maybe it's that very boyish and charming grin, but this guy is my replacement crush for Richard Poon.

got this photo from his Facebook page

I have seen 2 short films by Jubilee Project, their website simply states that they tell stories that inspire change. The first video I saw on Facebook and watched was this:

It aims to increase awareness for leukemia.  To encourage people to join a bone marrow registry for those who are battling leukemia.

But this next one was the one I liked more:

This was a major kilig short film for me. I watched it over and over and over! 

Nice looking guy with a very charitable heart! now that's my kind of guy... the fact that he is chinito is just a bonus.

Yes I totally agree that doing good is contagious.

Now excuse me while I go watch more of his short films. 

MONEY MONDAY: Week 2 of the 52-week money challenge

Why just 25 pesos?

Most of my friends are wondering why am I just saving money in my jar in increments of 25 pesos. As I have mentioned before, I am a rookie at saving and I do not want to fall short in the middle of the challenge and not complete it until the end of the 52-week period.

It may seem so manageable at first, 25-pesos for the first week, 50 on the 2nd and 75 on the 3rd week. Let's see how much I would need to put in the jar on a monthly basis :

The first 4 months are very manageable. Come May, I will need to save at least 1,250.00 per payday to ensure that I can put 2,500.00 in my Jar for that month. Before deciding the initial amount, I considered the following:

1, My monthly take-home pay. That part of my salary that I get to keep, what remains after all the government fund contributions (SSS, PAG-IBIG, Philhealth) and taxes (a.k.a. Napoles fund) has been deducted.

2. My fixed monthly expense : housing loan amortization

3. Bills.

4. daily allowance

5.entertainment allowance (movie, coffee with friends)

6.retirement and travel savings

7.Personal expenses (toiletries, gym membership, foodstuff)

After looking at my income and expenses, I concluded that all I can afford is to set aside for the jar is a saving scheme that increases by 25.00 increments. The savings is something that will be nice to have, but ultimately, my daily expenses and monthly obligations should be considered first. I did not consider my bonuses as they should not be part of my budget, after all, bonuses are not always guaranteed.  It will not be safe to assume that I will have a salary increase as it was only last October when the government ordered a wage increase. 

I also considered the following:

1. Increase in SSS and Philhealth contributions

2. possibility of a MERALCO increase

3. possibility of a fare hike

These additional expenses may or may not happen, but in the event that it does, it will be totally beyond my control. So to be on the safe side,  I choose to allot more that what I am normally spending to these expenses than to allot that money for my 52-week challenge. 

A cousin of mine, Lara, told me that she will do it in increments of 50.00 but will do it the other way around. She said she will do it this way because she expects to receive  the holiday bonus pay this January.  So for the first week, she will place 2,600.00 in her jar, 2,550.00 on the 2nd week and 2,500 on the 3rd week. By the end of January, she will be having 12,500.00 in her jar!!! WOW! but I personally wouldn't want to do that. As it has always been evident that I am not one with commendable EQ level, I am pretty sure I will be tempted to spend the contents of the jar early on. But of course, that is just me. I still wished her luck and I do honestly hope she can finish the 52-week challenge. 

Next week, I will tell you what I am saving up for... and why it is necessary to know as early as now how you intend to spend your jar money!

MONEY MONDAY : Week 1 of the 52-week money challenge

I initially planned to buy a cookie jar for this challenge. So before I went home last Thursday, I dropped by the mall to find a suitable jar. As I was about to pay for a one hundred peso cookie jar, I realized that I shouldn't be spending for something that is geared towards me being able to save. I returned the jar and decided that I will just look around our house for a jar that I can use.

I found an empty coffee jar, removed the label around it and decorated it with washi tapes... and here it is:

Before I left the office last Friday, I placed 25 pesos inside the jar.  So that's week 1 for me, 51 more weeks to go.

I posted a similar photo on my facebook account and was pleasantly surprised that I was able to inspire some of my friends to do the same. A friend of mine suggested that I increase my weekly savings. But I declined and told her I wouldn't want to fall short in the middle of the challenge and not be able to finish it. See 25 pesos may seem to not be a lot, but come May, I will be needing to place at least 500 pesos a week, or set aside 1,000 pesos every time I get my salary on the 15th and the 30th of each month, that will progress to setting aside at least 2,000 pesos every payday come October. So before deciding on the initial amount that you will place inside your jars, please take a moment to see if that amount is workable.

Next week, I will post some ideas that my friends have suggested in line with this challenge. But before I say have a good week ahead, let me share with you the spreadsheet that I have prepared for a colleague's daughter. My friend expressed her enthusiasm to do this challenge too and I have offered to help her with her spreadsheet. She plans to involve her little girl Belay and requested me to make one for her too.

Happy Monday everyone!

The 52- week money challenge

I gave my friend Mikah a bill organizer, a dainty little notebook that aims to track her expenses, bill due dates and the like.I used to hitch with Mikah, and during those short 20-minute rides, we discuss everything from girly stuff, to her little Chesca's misadventures even personal stuff like our finances. It is my little way of doing my part in helping her achieve our goal of being more financially stable. I attached a simple note to my humble gift that read:

" Here's something that will help you reach our goal #savings #paychecktopaychecknomore #ococvirgo I LOVE YOU (with pikit-mata feelings) "

I too need to re-allign my spending patterns, more so now that I have grown-up responsibilities like paying our house's mortgage and giving my share for our electric bill payment. While browsing, I came across stuckathomemom.com . This 52-week money challenge got me curious and decided that I will give it a try.

Stuck at home mom prepared a jar for the money challenge. She saved a dollar for every week of the year. So for the first week, she placed a dollar in her jar, 2 dollars were placed on the second week, and 3 dollars on the third week. and as the weeks progressed, she added the equivalent dollar amount. 

She even provided this table to help track the progress of her savings:

After 52 weeks, she expects to save a total of $1,378 or something close to 60,000.00 in pesos (at 1USD= 43.50PHP). Being the neophyte saver that I am, I do not feel so confident that I can live up to the challenge of progressively saving 43.50 pesos every week. So instead I created my own table. which you can see below:

I plan to save 25.00 pesos every Friday starting on the first Friday of January. And as inspired by the stuck at home mom, I will also try to post a weekly update. I plan to post my updates every Monday, I intend to call it Money Matters Monday.I expect to get 34,450.00 the day after Christmas. I could use the money for our New Year Celebration as I intend to welcome 2015 with a bang!