Saving Money through Envelope System

Yesterday, I happened to read again my goals for 2015. In less than a month, we will welcome another new year na. I am reviewing my listed goals to see if I am able to reach them. For the first part let me share this.

One of my goals this year is to save more. Last January, we started with the 52-week money challenge. I am happy to share that we are able to finish not just one but four 52-week money challenge for Daddy and I, for Matt, for my Nanay and for my in-laws. We finished the challenge earlier because when we got an unexpected blessings, we prioritize to save for these money challenges. It also helped that we did the reverse of the challenge so by the middle of the year, konti na lang. But hey, we did different increments and starting amount. Just enough to make my in-laws and Nanay happy this Christmas.

Aside from the 52-week money challenge that we finished, I focus on managing our hard earned money. This year, aside from our regular works, we also earn well from our online shop and our blogs. I want not just to earn but to save as well. So I have tried many budgeting techniques but only the envelope system works well with us. 

So for months now, I kept several brown envelopes inside my wallet that makes it super bulky. Another thing is, the envelopes can easily be torn so I kept on changing it. Then, since I just kept these envelope inside my wallet, I always fear that it might get lost or stolen.

Fortunately, I saw one of the posts of Mommy Levy about expanding envelope. I immediately went to National Bookstore but there's no stock of a smaller one. Luckily, when we went to SM a week ago, I saw an expanding envelope but it's the last piece na. I bought it at 69.75 pesos only.

Expanding Envelope

No choice sa color kasi last one na nga, hehe. Pwede na atleast now I have separate temporary storage for the savings/bills payments/earnings. Temporary because it will be deposited to our savings bank account after.

Expanding Envelope

Medyo malaki sya for the money, as in papasok hanggang kaloob-looban but neat naman tingnan. Especially when you put the labels, which comes with the envelope.

Expanding Envelope

This is how I put the label.

Expanding Envelope

So how does the envelope system works for us. This is it.

For tithe, I get a fixed amount from our monthly income. God has been good to us that's why I also want to be a blessing to others.

Next is savings. This is where the 10% of our monthly income goes. I always get this first and hati hati na for the rest of the expenses. For me, mas magaan gumastos if you know you already have saved money.

You should also save for emergency fund in case something not good happens like when you lose your job (knock on wood, not) or when you have immediate or unplanned expenses. Emergency fund should be equivalent to at least your 6-month income. So it's for you to decide what's the percentage you will allocate for it every month or pay day.

Then for the tuition fee naman, actually Matthew's tuition was paid in full already. I am saving for the next school year na and I just divide the tuition fee in 10 months to get the monthly allocation. We can save much when we pay the tuition fee in full kasi and by saving for it monthly, hindi ka mabibigla once pasukan na naman.

Of course, we need a weekly budget. Finally, I am able to allocate a real budget. As in budget na heto lang ang gagastusin mo for the week. Before, what we are doing is we will do a month grocery but ending up over spending because weekly nasa grocery din kami. That's why I told myself why not we do it weekly. I know sayang oras but then we always go to market naman every week so a quick grocery won't hurt naman.

Okay, how do I allocate our weekly budget. Listen, aww read pala! First, list down the basic needs like food, toiletries, and others that you need for a week. For us, I divide it with what I am buying from the market and what I am buying from the grocery. Here, it's very important that you have weekly menu for the food and to buy list because that will determine what you will buy and will help you stick with the budget.

Maybe you are asking if I always stick with the budget. So far, I am sticking with the budget naman. Discipline lang talaga and don't over stocked especially meats, vegetable and fruits. Just buy what you need for a week. Promise you can stick with the budget.

Aside from the 4 above, I also allocate money for our house's monthly amortization and credit card payment. Maybe you are wondering why I don't have allocation for the other utility bills? This is because we are using our credit card to pay all our bills online, except for our water bill. That makes our bill list simpler basta always have reminder to pay the bills online.

Also, you will see I have two other spaces for our two shops. In here, I put the payments we received so that I know how much we are earning. 

Others naman will be saved for other planned expenses. Yes, we plan what we are buying now especially if we didn't need it just yet. Daddy and I agreed to only have one credit card installment plan per year. Or better if we can save for it then we'll buy it. 

This year, I must say we have been a wise spender and have avoid impulse buying. Next year, I hope our budgeting/expenses/savings will be better. 

So those are some money saving tips that I hope can help you too. Would love to read other saving tips from you too.

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My Goals for 2015 and A Better Me

The year 2014 has been a great year for me. God showered us with so many blessings but He gave us trials as well. I believe He will never give us anything we cannot handle so I always keep my faith on him. At the end of every trial, there's always something to learn. This keeps our faith even stronger and our self better.

And now that 2014 is over, I'll welcome 2015 with a happy heart and a stronger me. I will not make resolutions but instead realistic goals that I can achieve, especially with God's grace. So allow me to share with you my 10 goals for 2015.

Keep my strong faith in God. 

Like what I have said, we have experienced several trials in 2014. I am only human that sometimes I forget that no problem is bigger than God. So I learn not to doubt God and to trust him more. That's why I will do my best to keep my faith even stronger.

Share and give more. 

I must admit that I don't share and give more. I used to have this thinking that what we have is just enough for us. But I realized my heart is happier to help people and to see them happy. I also learned that I can share and give in so many ways if I really want to. Our available resources should not limit our capability to share, help and give more. Because if we really trust God, He will provide ways and give us back more than what we give.

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Ways to Teach Our Kids to Save Money

One of the changes I want to make on this blog is to have a regular post about topics I love to talk about. If you notice since Monday, I have a consistent daily post. This is because I am already following a specific subject each day to write about. I hope I can cope up with this change . So for today, I choose to write about ways to teach our kids to save money.

Start Early

The little boy on the photo is Matthew Andrei (and I bet you know him a lot, haha!) with his coin banks. This early, we are teaching him  to collect and save coins. We bought a Mickey Mouse Coin bank for him to put inside the coins. However, we want to make more organize and easier to count so we decided to separate collect and save the coins.

That's why you can see 4 other containers in the photo. We collect 5, 10 and 25 cents, 1 peso, and 5 and 10-peso coins. As of this moment, most are half filled. We are planning to deposit it on his own BDO Junior Savers account once all are full.

Open a Savings Account

Yes, Matthew already has a savings account. We opened one for him before he turned two, and all the money he gets go to his savings. We also allot a portion of our monthly salary to go to his savings account. Having his own savings account will be his security in case (but I hope God does not permits) anything not good happens us. Also, since we are saving for him since 2012, we used a portion of it to pay for his tuition fee. But as much as possible, we don't want to withdraw money from his account for just like what I have already said, this is his security fund. Here's how to open a BDO Junior Savers account 

Encourage them to save money by giving rewards

Giving rewards is a very good motivation. This is proven, especially with my son. When he get big or super stars for a good behavior, he will immediately have a reward in terms of pasalubong when we got home. You may match his savings so he will to encourage our kids to save money more.

Teach the value of saving

It's not enough to teach them how to save. Teach them the value and importance of saving money. My son will sometimes think we can buy him anything he wants. Earlier, he will have tantrums whenever he can't get what he wants from a store. But I always tell him it's not good to get whatever you want just like that. That he needs to wait to buy something he wants. He may not get my point right away and because he's just a little boy who badly want that something inside the store, but in time he got my point. So the next time we go to a store and he sees something he wants, I will just give him a gentle reminder that buying that is not our purpose or we will buy it some other time. Or better yet, he can save for it and he will agree.

With this, he will not just learn the value of savings but he will surely give importance to the things he buy from his savings.

Teach them how to share

Matthew sometimes refuse to give or share. That is especially when he's so jealous. But with a good talk, I can persuade him to share. That's a good sign.

Also, if he can save to buy what he wants, he can also save to share. This will be one of the values I want him to learn - to share.

Be a good example

You may not notice but our kids adore us. They are looking on anything we do, and they are listening to what we are saying, even if we thought they are not. So if you want them to do something, set a good example by saving money too.

Since Matthew is seeing us collecting coins, he got this hobby too. That's why when he saw coins around, he will get it and ask me if he can put it inside his coin banks. Even the coins inside my coin purse, haha!

One time when he saw my pink coin purse, he opened it. Then I saw a big smile on his face.

Matthew: Mommy, ilalalagay ko po ito sa alkansya ko ha. (I'll put these inside my coin bank.)

What can I say but okay son.

Those are just few ways to teach our kids to save money. You may have your own effective ways but make sure you will not just emphasize money. Always emphasize the value of savings, not just money but anything he can save like electricity, water, and food.

If you have something to add up, please feel free to comment down.

Weekend is here, so I wish you a great one with your family.

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Payday Friday + My Gluta- C Collection

It's Friday payday! At long last payday na, hehe... I am always looking forward to our 30th/31st salary. Mas maluwag kasi kami with expenses during the end of month. Almost all of our bills payment due falls before, on or just after the 15th.

However, it maybe weird but this time I am not excited with what are we going to purchase. Surely we will go the grocery or market to buy our basic needs. Usually, we go to the grocery on the 4th day of the month because by that day, Daddy Allan's credit card has a billing statement na. As much as possible, we buy all the things, food and others that we need for the entire month. Then we go to the market once a week to buy fish, meat, vegetables and fruits. In that way, we can get rid of unplanned purchase. 

Though I can't say we are strict with this because there are times that suddenly we craved for a food and we don't have ingredients at home for that. Si Daddy Allan pa, ang maisipan, hehe...

Before anything else, let me share first my Gluta-C collection.

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Our Monthly Family Expenses

Have you notice how easy money can be spent nowadays?

When I was a kid, I used to accompany my mother to the market every Sundays. From her I learned how to look for the fresh fruits, vegetables, fish and meat. I even learned how to haggle for the price. I remember that time, 500 pesos was more than enough to buy all that we need (food, consumables) for a week. We were 6 in the family and sometimes our extended family (my half-brother's family), joined us as well.

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