Were You Part of the Happy Savers Club?

I was a young child when my Mom opened a savings account for me. The Happy Savers Club was a promo of a bank meant to encourage young children to start saving. I don't remember when my Mom closed the account, but the last balance was 231 pesos, haha. She eventually opened a proper account for me.

My Mom was a banker. She retired because of me. I was a handful to take care of since birth and that forced her to retire. She told me her first job was a bank teller and she eventually moved to the bank's headquarters. She loved going to the bank and I was always in tow. That's how I learned and became comfortable doing banking errands. 

Mom's way of teaching was always practical. She used newspapers to teach me how to reach. I remember she'd have me read the headline out loud everyday. That's what she did with banking chores. She had me fill out the bank slips for my accounts. 

When she opened a new account for me after the Happy Savers Club, she told me to have a goal. I don't know when I declared that I was going to save for my future wedding. I mostly deposited gifts and savings from my allowance. The account grew very slowly. I eventually didn't use it for my wedding, I used it to pay for graduate school tuition. 

It was worth spending my lifelong savings for schooling. It really helped me progress in my career and helped me make smarter decisions for me and my family. 

#BeKind #StaySafe

Live Within Your Means

I was a teenager when my Kuya taught me this valuable lesson. He sat me down one day and told me to always weigh in whether a purchase is a need or a want. That was a good guide to live within your means.

 

Since then I learned to be cautious about making purchases, especially large ones. I purchased devices through installments and made sure to pay the bill on time. When I buy gadgets I make sure they would last a long time and I only replace them when they don't work anymore or are worn out. It also takes me a long time to decide whether to buy an item. 

I've wanted to purchase a second sewing machine for more than a year now. I have researched and canvassed what I want to buy. I have not bought it because there's so far no need (and space for it). I dilly dallied over buying a sewing machine for over two years, Sweetie bought it for me, haha. Well, it's still working, so I really have no reason to buy a new one. 

I think what also helped me was growing up with a Mom who lives simply. She only had branded bags because Titay would give it to her as a gift. Mom also rarely wore make-up and also usually got her supply from Titay, haha. My grad school professor explained it's a matter of putting it in proper perspective. Are you buying a car to get from point A to point B? Or are you buying a car to show off? 

Followed Kuya's advise and even when I moved to Singapore, I lived like I was still in Manila. I did that because I wanted to buy our own place. Looking back, I may have gone extreme because I was so cautious at spending. Good thing Kuya taught me another way to manage my money and since then I've been able to enjoy the fruits of my labor more. All the years of hardwork culminated in purchasing our dream home. 

One thing I learned in the last few months is to make sure you are surrounded with people you can really trust. We all worked hard and thought we were secure in the knowledge that we are able to take care of Mom. None of us touched the money our parents gave us because we allotted it to take care of her. What we did not know was someone else was spending it for their own lavish lifestyle. Envy, after all, is the root of evil.

#BeKind #StaySafe

The Quest for Financial Freedom

Many years ago Kuya gave me a challenge. He said I should be financially free by age of 50. And everytime we meet up for Japanese buffet he'd check on my progress. To be honest I only started thinking about it seriously two years ago. 

I'll tell you a secret, I did not like my finance classes. I seem to have done well though because I was offered to teach finance after graduation! I turned it down because it wasn't my cup of tea. That inspired me though to do better during grad school. I tried my best to understand what my professors taught. All I remember now is I had good marks when we were tasked to create a stock portfolio. 

That was the last time I really thought about managing money. Kuya kept reminding me though. The last time we had Japanese buffet he taught me how to properly manage my monthly salary. Here's the breakdown:

The breakdown totally changed how I budget my money. I had been on paranoid saving mode since I had heart surgery in 2013. That meant I was saving over enjoying and rewarding myself. It was a great guide for me to get me going to meet my financial freedom deadline.  

So as much as finance/investments isn't my cup of tea, I swallowed the bitter pill and started working on my future. I started with computing how much monthly expenses I have if I lived in Manila. After that I started assessing what I can invest on. They did teach most of it in grad school. There's stocks, mutual funds, real estate, UITFs, dividen pay funds, bonds and many others. 

The options are dizzying, but the first thing you need to determine is what kind of risk you are willing to take. From how I've been behaving I'm a low risk person. So I've been studying. I've been binge watching vlogs of Chinkee Tan, the Truly Rich Club, Fitz' Ready to Be Rich, Marvin Germo and many others. They all have one common advise, "Know and understand what you are getting into". Aside from watching videos I also do a lot of reading. 

I think I may meet the deadline earlier hrhrhr. 

P.S. Was this post useful for you? Comment down below if you want me to share more about how I'm working towards financial freedom. 

CB///348 #StuckAtHomeDay/Yr2/11 #StayHome #BeKind 

Left My Wallet at Home! Gaah!

Half-way to the hospital for my follow-up check-up I realized I left my wallet at home. I had taken it out of my bag last weekend and forgot to return it inside my bag. I realized I left it because I was wondering why my bag seemed spacious. I wasn't worried I won't get back home, I was annoyed I wouldn't be able to get some stuff at the grocery.

I didn't want to be late for my appointment so I just went to see my doctor. He was happy with my progress. I told his nurse I hope I didn't need to pay for anything since I left my wallet at home. She said not to worry since the fees and medication were going to be charged to insurance. Whew!

Just me and Mr. Cat today.

I really wanted to buy Sweetie some coffee buns. His favorite is from a bakery at the Bugis MRT Station. Luckily my coin purse was in my bag. I walked past the bakery to check the price and then went to the side to count my money. I managed to buy 4 coffee buns and skipped buying my favorite bun.

I was surprised to see that the MRT entrance into Bugis Junction is already open. I stopped in front of Cold Storage to just look longingly at what I wanted to buy (new flowers). I passed by Toastbox and saw they had my favorite bread. I hoped I had enough coins to pay for it. Luckily I did.

While waiting for my doctor I checked my bag if I had any money in the bag. I had my coin purse, but nothing else. I realized I probably had cash in my MRT card, in apps on my phone and there's Paylah. I have colleagues who go out without any cash (now I remember my manager owes me $20 since March). In Singapore you can go out and just have your money tied to apps or your cards, no need to bring cash. I follow a budget so as much as possible I don't use my credit card because spending tends to pile up if you do.

Before I went home I discovered my Starbucks app had some money in it. Of course, I got some dessert for me and Sweetie. I usually take a taxi and pay cash to help uncle taxi drivers. Today I had to take Grab going home since I didn't have enough money on me. Maybe I'll just buy the grocery items I need tomorrow after physiotherapy.

Going out without my wallet wasn't a disaster. I'm happy I was able to buy coffee buns for Sweetie. I just need to make sure I don't forget it again tomorrow!

CB//161 #StuckAtHomeDay/191 #WFH109 #StayHome #BeKind 

Broke Until 30

I was broke until I was about 30 years old. My salary all went to Miggy's tuition, upkeep and his toys (yup, he always got rewards for good grades). And I remained broke because I also saw myself through graduate school. My Tita had to help me pay off my schooling debts (thank you Titay). I was only able to start saving when I won 100k at the Ad Congress.

This was our wedding arras given to me by my Mom. It was from her arras when they got married.

I saved as much as I could growing up. I had a "wedding fund" which I eventually used to fund my graduate studies. I didn't ask help from my parents to fund grad school because I put them through so much already and they were still taking care of me and Miggy. So I made sure I provided for Miggy's schooling. While all my friends were going on trips and enjoying their 20s, I had to be prudent with my spending because I had responsibilities. Would you believe I was already in my 30s when I first went to Boracay? (And that was a business trip!).

After that super dry period I told myself I needed to save. I had to. I was 28 when my cardiologist told me that I needed to eventually have heart surgery. You can just imagine how worried I was, but with hardwork and many, many prayers things just worked out. There were also many angels along the way who helped me.

I think one of the things that should be taught early in school is financial planning. My Kuya gave me a challenge a couple of years ago -- to be financially free by the time I'm 50. The clock is ticking so I'm trying to work my way towards it. My Kuya gave advice last year on how I can manage my money better especially since we're an empty nester now (no more tuition fees to pay!!!).  Here's what he suggested I do (I compute it after setting aside money for tax) --

10% investment to build passive income
10% to upgrade yourself
10% to celebrate
10% keep for emergency
55% everyday expenses
Start at 5% tithing

What I like best about this plan is the amount set aside for celebrating. That helped me move on from the mindset that I'm still broke. I've been that way for fifteen years and it's been easier for me to spend for my boys than to spend for myself. I guess that's how it is when live in fear (I don't want to leave my family in a bind). Now that Miggy's done with school, I could relax a bit and enjoy my hard-earned money. Kuya's list is helping me better plan my future.

Eating at Jollibee is celebration enough for me.

It's never too late to start saving. I was a fresh grad when my Kuya taught me not to spend beyond what I'm earning. The only financial hole I fell into was my student debt. I was stuck in it for a long time. After I got out of it I made sure I did not fall into that trap again (well taking graduate studies eventually paid off). I've also disciplined myself to live within my means.

What about you? How do you save?


CB//160 #StuckAtHomeDay/190 #WFH108 #StayHome #BeKind 

Tipid Tips

I was only able to start saving when I was already in my 30s. I'm special because I had Miguel to take care of. I survived paying for grad school because my Aunt bailed me out of tuition fee-credit card debt. Since then I made sure that I would make sure I paid all my dues every month. My Mom also kept reminding me that it's important to have a good credit standing especially if you eventually need to get a mortgage or an auto loan. I've since completed payments for my tiny car and I hope to finish our mortgage soon.

Living in a tiny home helps a lot. When you don't have much space it means you should just buy the things that you will use. When I was living in a bigger place I tended to buy more groceries and my mother-in-law said that our pantry looked like a supermarket shelf. Of course, I then learned the lesson that you should only buy enough so that grocery items get used before it expires.

Here's what helped me become a spend-thrift:

1. Budget. Best to budget at the beginning of the year based on your expected salary. Allot payments for taxes and savings before other items. Travel and lakwatsa is unfortunately at the bottom of my list now because I have other priorities to focus on.

2. Live simply. Pope Francis keeps reminding us about this. All my expenses revolve around my family and what will make them happy. The only indulgence I have now is buying stuff for my hobby (quilting!).

3. Stop comparing yourself to others. Sometimes you end up buying stuff because you think you need it. And sometimes this is because you think you need an item to fit in. I know I'm different and oftentimes the odd person out. I have since embraced this and just live based on what makes me happy.

4. Think about your future and the future of your family. I always think about this and because I have a medical condition I want to make sure that my family will not have a hard time in the future if I get sick again.

5.  Identify what is important for you and prioritize your spending.

And make sure you don't let money take over your life. Have fun!

Managing Your Money

Whenever I slacked off in school my Mom would remind me that she won't be around forever. I have reason not to believe that because at 80 my Mom is stronger than me although I've been finally able to beat walking faster than her in the last few months. Her secret to her good health is gardening!

When I was younger I would feel bad whenever my Mom would tell me she won't be around forever. I eventually realized that she was telling me this so I would become independent and make the right decisions. I became a Mom at the tender age of 18 and you can just imagine how I thought my life was a huge disaster. I only thought about that for a second actually because I knew I had to plan because I had a little one I had to care for. My parents put me back on track (back to school). I took it as my salvation, finished two degrees and figured out how to earn for my son.

After graduation I took it upon myself to ensure I covered everything Miguel needed. His milk. His toys. Doctors appointments. Tuition. I still got support in the beginning, but eventually I managed. I remember I was the last person I knew who traveled to Boracay because I just didn't have extra money for traveling. My Kuya also taught me that one should just buy what you need and not what you want.

I read that one has to have savings. For many years I didn't have that. I was at some point in debt because I paid for my MBA tuition using my credit card (thanks Titay for bailing me out). The extra money I had I would buy Miguel nice toys (those expensive models you build) not for him to enjoy, but to learn (came in handy when he was into robotics). It was only in my 30s that I was finally able to start saving.

One important thing I learned is not to upgrade one's lifestyle because you had a salary raise. I remember when I moved to Singapore I managed to live on just SG$50 a week. I was able to do this because I eat mostly in the office and just eat at the Kopitiam. It's been almost 5 years I've lived here and I still buy most of my toiletries from Manila, eat at Kopitiam's only on weekdays and buy only what I could consume. It's hard and there are days I indulge too (but with a limit).

So how much should one save? I don't really know, but what I follow is I remove my savings from my monthly salary and then I set aside money for tax and then I pay my bills. I have a set weekly allowance which I try my best to follow (as I said it's very hard!), but with the money for savings, taxes and bills set aside I'm really forced to just spend within my means.

I only use my credit card when I buy appliances (I prefer to pay monthly at 0% interest) and to book flights. Pay everything monthly so you don't spend on penalties. One thing though that I'd really would like to do this year is invest money in something that can be a source of income when I retire (suggestions are highly welcome). My Kuya said that if I plan to set up my business I should start it while I'm still working. That's something I would really need to think more about since my energy is pretty much depleted with work and running a household. This part needs more thinking time :)

So in summary -
1. Save.
2. Be mindful of your spending.
3. Save first before you spend.
4. Do not use your credit card like it's a license to buy everything you need. Use sparingly and pay everything when the bill comes.
5. Invest (I'm still figuring it out).