budget

Sep

2021

Why You Should Set Fun Money in Your Budget

Reading Time: 3 minutes

It is important to track our spending so we know how to adjust our budget. Sticking to a budget takes a lot of discipline and determination. It will also help us reach our financial goals faster. With this description, budgeting may sound like a dreary process. With mostly people’s budget going to expenses, is there a more rewarding way to budget our money? Actually, there is!

While most of our income goes to our living expenses, we should also make a budget for fun and play. A “play fund” or “fun money” is what you use to indulge in things that you enjoy. This includes purchases that you do on impulse without ruining your monthly budget for the important things.

We Shouldn’t Deprive Ourselves

Sticking to a budget can be difficult at first. You may feel like you’re just working to pay off bills and life is no fun at all. Have you experienced craving for a specific food item but you can’t find it anywhere? Then you ended up overeating on other food items instead? The same thing will happen if you deprive yourself of some fun; you will feel so deprived that you end up over indulging in whatever takes your fancy at the moment. Setting aside fun money in your budget ensures that you don’t go overboard with indulging yourself. Think of it as a little reward for sticking to your major budget goals.

Guilt-Free Spending

Another advantage of having fun money or play money in your budget is that you don’t feel guilty about it. This is because you know that you’ve taken care of the major, more important stuff already.

Most of the time, we regret buying something on impulse. We know we have to make up for it on our next paycheck. We end up having to scrimp on the other items on our budget to seal the money leak. If you’re spending on what you like without the guilt, then you can truly enjoy the experience to the fullest.

Setting a Limit, Encouraging Discipline

Having a budget for everything means that you also set a limit on your spending. That’s why it is important to put everything in your budget including fun money. It makes it easier to track your spending. It also ensures that you don’t spend over what you can actually afford to pay with your actual income.

There is a saying that goes, “If you can’t buy it twice, then you can’t afford it.” So if that favorite pair of sneakers (even though you already have several pairs) has a price tag that’s way beyond your fun budget, then you need to discipline yourself to assess if you really need it or to save this month’s budget and add it to next month’s fun budget so you can afford the price.

Remember though that fun money in your budget is not your emergency fund. Household items that you actually need at home do not go under this budget. A fun budget is for things that you don’t indulge in regularly; things that you only do when the mood strikes you. These include experiences that you want to enjoy from time to time. Your fun budget can include a manicure and pedicure, a massage, trying out a new restaurant, or getting yourself coffee from your favorite cafe.

Of course, not everybody’s budget is the same. For some people, their fun money may be used for travel or gadgets to supplement a hobby. Your fun budget should just be enough to allow you to have fun experiences without living beyond your means.

Do you have fun money in your budget? What would you like to spend it on?

Updated. First published on Pinoy Smart Living on 2019.10.23.
Feature Image: Original Image by StockSnap from Pixabay.

Aug

2021

5 Reasons Why You Can’t Stick to Your Budget and How to Fix It

Reading Time: 3 minutes

Is sticking to your budget a big problem for you? Perhaps you are plagued by one or more of the common reasons why a budget is not working for you. Good news is, there’s a way to fix them.

1. Looking for Perfection

You want to create the perfect budget that will work for you personally so you keep crunching numbers; unable to decide what percentage to allocate for which category in your budget. Overthinking leads to analysis-paralysis hindering you from making any progress towards a solution because you keep going over the flaws in your budget system.

The Fix: Just create a budget and stick to it for a set duration. Don’t try to think of a permanent solution. Think of your budget as a work in progress and adjust it along the way as you learn more about your spending habits. Remember that it’s a system and it may have bugs at the start; so testing it in actual practice is the best way to achieve your ideal budget system. It might help to learn more about your money personality and make your budget accordingly.

2. Thinking It’s Too Complicated

Keeping track of your spending doesn’t have to be complicated. There are many applications on your computer or mobile device that you can use. You do need to test which one is the right fit for you and your lifestyle. But you really don’t want to test all of them do you?

The Fix: Keep it simple by going back to the basics. A pen and notebook is always handy so you can immediately jot down any expense you may have. This way, it will be easier for you to identify your money leaks. If you have to use an application, keep it as a back-up or a secondary method to monitor your expenses.

3. Indulging in Online Shopping

Online shopping is one of the easiest way to ruin your budget. All the sale items give you the illusion that you are buying them for cheap so you tell yourself that you can go over budget this time and just spend less on your next salary. But since you’re not paying in cash immediately or you’re paying via credit card, you don’t really feel how much it takes out from your budget.

The Fix: Always consult your budget. If it’s not in your budget, consider saving up for it. If it’s on sale, ask yourself if you really need it. Another solution is to take a break from your computer for awhile and think about it. You may realize that you can make do without it. Being aware of your spending helps you better stick to your budget.

4. You’re Good at Giving

Generosity is a good virtue but it is also most often abused. There are a lot of people who are frugal and are able to stick to a budget for their personal expenses but when it comes to their family and friends, they are unable to say no. This is especially true when it comes to giving gifts during birthdays for example, or when monetary assistance is requested by a relative or friend.

The Fix: Put “giving” in your budget. This way, you are still able to give them gifts or provide them monetary assistance and still stay within your budget.

5. Unexpected Events

Life happens and most of them are not in our budget. A medical expense, a job loss, a sudden change of residence, etc. Most people create a budget based on what they experience on a daily basis. They only see what’s currently in front of them and fail to plan for life’s unexpected surprises.

The Fix: Accommodate the unexpected in your budget. When creating your budget, make sure to include items such as quarterly and annual expenses. Also include in your budget a fund where you can stash a portion of your income for use during special occasions and emergencies.

We hope you are able to keep to your budgeting system with these helpful tips. There’s no right or wrong way to start your budget as long as you commit to following the system and tweaking it along the way. You might want to try out the money jar budgeting system and see if it works for you.

Updated. First revised on Pinoy Smart Living on 04.30.2019.
Feature Image: Original Photo by Kelly Sikkema on Unsplash.

May

2021

Common Sense Money Advice That People Don’t Follow

Reading Time: 3 minutes

Money has always been a top source of stress for most people. If not addressed, too much worrying about money can lead to serious physical and emotional problems. It can even result in a breakdown in relationships. How to solve money problems then? There are tons of financial advice that people probably already heard or read about. In fact, most of these advices are simply common sense yet one the greatest mysteries about life is that no one really follows them. It sounds so easy to do but for most people, it is very difficult to follow. Here are some of the common sense money advice that people don’t follow:

1. Spend Less Than You Earn

This rule is so simple. Just live within your means. Obviously, if you spend more than you earn, that will only spell debt. Even a grade schooler knows that if you subtract more than you add, you will end up with a negative number. You need to have financial discipline; otherwise, it will be very hard to create wealth. Avoid keeping up with the Joneses.

There are many ways to reduce your monthly expenses. It helps to have a budget. The money jar budgeting system is a good money management technique because it not only helps keep your spending in place, it also helps slowly build your wealth. If spending less is really not an option, then you need to look for ways to earn more money.

2. Understand How Credit Cards Function

How many people are buried in consumer debt simply because they do not understand how credit cards function?

Credit cards are very useful. With credit cards, you don’t always need to have cash. You can purchase anything without having to worry of paying them immediately. However, if you don’t have a basic understanding of how it works, credit cards can turn into your worst nightmare. Always remember that you are not using your own money when you purchase items using your credit card but rather you are borrowing the bank’s money.

Credit card companies use the power of compound interest to their advantage. Compound interest is a very powerful mathematical concept that you can use to increase your wealth. Unfortunately, it is a two-edged sword. If used against you, it is a sure way to financial bankruptcy. That is why understanding how credit card functions is a necessity if you have a credit card.

Unless you know how to manage your credit cards, it is better for you to refrain from using your credit card altogether. Use credit cards only in emergencies. Buying because it is on sale even though you don’t really need it is not a valid definition of an emergency.

3. Automate your Savings

One of the lessons of this pandemic is the importance of having a savings account. Life is unpredictable. Saving money can ensure financial stability in case of emergency.

Pay-yourself-first has always been the initial advice that wealth managers will tell you as the first step towards building your wealth. Unfortunately, most people would rather spend or pay everyone else first before themselves. Savings always comes last. Usually, people save using whatever it is that is left (if there is any).

The best strategy to avoid this scenario is to automate your savings. By regularly setting aside a fix amount through automatic savings, you will soon be able to build up your emergency fund. One of the wealth rules of the richest man from Babylon is to always save 10% of income.

4. Seek Help from Qualified Persons

If your financial woes are already big enough for you to handle on your own, then it is time to seek help from other people. If your problems are about money, ask a professional in financial planning to help you. If you cannot afford your own financial planner, then ask a friend who is an expert in handling money.Don’t just ask any friend.

The problem with most people is that they normally seek advice from friends or relatives who are close to them. However, they fail to consider if these people are also having financial problems of their own too.

Think of it this way, if you are in school and you are having problems with your Math subject, obviously, you will not ask your Filipino or Science teacher to help you. Instead, you will seek the help of your Math teacher or a fellow student who is good in Math because they are the ones who can help you.

Remember to always ask the correct persons for advice.

So, If you want to have a better financial life, it is best to follow the common sense money advice that people don’t follow.

First published in Pinoy Smart Living on 03.26.2019.

Photo by Monstera from Pexels

May

2021

Benefits of The Tithe and Giving Back

Reading Time: 3 minutes

Do you know the benefits of the tithe and giving back? The concept of sharing our blessings is a teaching that we often hear as children. Sadly, we do not practice this very much. As we grow older, we don’t often encounter such generosity from other people either. This is mostly due to financial reasons but also due to having a poverty mindset.

In fact, generosity in the form of a “tithe” or a giving fund should be a habit. The tithe should be part of our monthly budget. Here are some reasons why we should develop and maintain the practice of tithing.

An Attitude of Gratitude

Giving is an opportunity for us to share our blessings. It is an act of giving where we are also able to acknowledge and appreciate our own blessings. Whenever we give off ourselves to others (whether thru our time, money or in kind); we also feel a certain fulfillment. We feel an assurance that the world is not so bleak and gloomy after all.

Giving to another also carries with it a wish, a hope. You can even say that giving back is form of prayer. It is a prayer that things will become better for that person or organization that we intended to help out. In these moments, we also become grateful. We are able to be thankful that our own situation is not worse off. We feel gratitude that we are still capable of giving back. This is one of the benefits of the tithe and giving back.

Paying It Forward

The practice of tithing is a way to give back. We do it in exchange for all the kindness and generosity that other people have shown us in the past. It can also be a form of paying things forward. An advance to give thanks for the generosity and kindness of other people that we will encounter in the future. As you give; it gives the recipient the opportunity to grow. They can develop themselves into someone who can be capable of giving back the same way you did for them.

When you practice tithing, the amount you give helps the recipient to expand their options in their own self-development. When they succeed; they will also become capable of giving back to others the same way that you helped them along the way.

Turning Feelings Into Reality

When you are truly sharing your blessings, it should not be with a heavy heart. Tithing is as simple as giving away a certain amount to a charity, a person in need, or even a tip to a kind waiter. You should do so with a light heart and even a smile. If you can do that, then you are truly helping without expecting anything in return. That is how you act when you feel truly “blessed”.

You know that you attract more of what you focus on. If you feel generous, grateful and blessed; you will continue to attract more opportunities that will make you feel this way. Wouldn’t you want to feel this way most of the time, even all of the time? This will definitely help you get out of a poverty mindset.

These are some of the reasons of why you should have a tithe fund. These are the benefits the tithe and giving back. This is the kind of mindset and attitude you should have when giving. The next question is how much to give. In your monthly budget, it is recommended that you set aside 10% of your income as tithe. You will find this recommendation in the Bible as well.

Your tithe fund is where you get money to tip waiters, the stylist and her assistant at your favorite hair salon, the kind taxi driver, etc. This is also where you can take out cash for gifts or when a relative needs to borrow some cash.

Remember that a tithe is different from an offering. You can consider an offering as something extra aside from the tithe.

Updated. First published on Pinoy Smart Living on 2019.10.22.
Feature Image: Original Photo by Katt Yukawa on Unsplash.

Apr

2021

3 Types of Expenses You Need to Manage

Reading Time: 2 minutes

There are 3 types of expenses you need to manage in order to be successful in your financial goals. These can be applied to any items you have on your monthly budget. Identifying these kinds of expenses helps you schedule your expenses. In this way, you don’t fall victim to little money leaks that can ruin your budget.

1. Fixed Expenses

Fixed expenses are the types of expenses that you incur in predictable amounts and in consistent intervals. These usually happen monthly such as utilities, rentals, loans, insurance, subscriptions and credit card payments. These can also include your tithes, savings and investment funds if you add to them monthly.

Since these expenses occur on a regular basis, you can schedule them automatically. This one of the 3 types of expenses that is the easiest to manage in your budget.

With a fixed amount and schedule, it is easier for you to decide which expenses to reduce or remove. This allows you to maximize other items in your budget. For example, you can downgrade your mobile plan subscription. Then, you can add more to your savings or investment fund.

2. Periodic Expenses

Periodic expenses are similar to fixed expenses but they occur less frequently. These kinds of expenses can also be scheduled quarterly (every 3 months), bi-annually (every 6 months) or annually (every year).

The dilemma with periodic expenses is that they are usually necessary. That’s why it is hard to remove them from your budget. These expenses usually include maintenance costs. Examples include oil change for your car, car registration fees, annual membership fees and annual tax fees for a business.

Unlike fixed expenses, we tend to forget periodic expenses. This results in paying penalty fees which ruins your budget. It is very important to include these types of expense in planning your budget. The advantage is that you have more time to prepare for them.

3. Variable Expenses

The trickiest type of expense to manage are variable expenses. These types of expenses don’t occur regularly but they are still important. Variable expenses can be subcategorized into necessary and discretionary.

An example of a variable but necessary expense is gas for your car. This does not occur regularly but you have to budget for it when it becomes necessary. A discretionary, variable expense includes a new pair of shoes or travel funds. These don’t occur regularly but they are important for your well-being.

Discretionary expenses are usually items that you reward yourself with. Sometimes, they can be impulse buys which you incur because you are feeling down and you want to feel better. Your behavior and priorities will define what variable expenses you cut out or save up for in your budget.

Which type of expense do you usually have trouble managing? If you haven’t started budgeting, then the first step is to track your expenses. Then try out the money jar budgeting system and adjust as you need. This will help you control the flow of your money. It is also helpful to know more about the money lessons you didn’t learn in school. Get more financial inspiration for own financial goals with these books on wealth and success.

Feature Image: Original Photo by Sasun Bughdaryan on Unsplash.

Apr

2021

Money Leaks That Can Sink Your Budget

Reading Time: 3 minutes

There are little money leaks that can sink your monthly budget. Most of them are unnoticeable unless you track your spending. If you’re already budgeting but still end up overspending, then check out for these money leaks in your spending habits.

1. Transaction Fees

Late payment fees and other financial transaction fees can leak money out of your budget without you noticing it. These are small amounts that you don’t think will affect your budget that much. Once they accumulate, that’s when you realize they already ate a huge chunk out of your monthly budget. This applies to credit card fees, insurance fees, loan fees and online money transfer fees. Check your monthly statements so you can plan ahead.

TIP: Make it a habit to always check your transaction receipts for any hidden fees or charges. Also, pay your bills on time to avoid incurring late payment fees and other penalty charges.

2. Impulse Buys

Little purchases that you make several times a month won’t be little once added up. Especially if these items are just trendy for a time or they’re for one use only. That one cup of coffee a day can eat a big chunk of your budget. This is one of the little money leaks that can sink your budget. It can be avoided if you plan and list down what you’re actually going to buy in a supermarket, for example. The best way is to set aside a budget for it so you’re prepared for it. You can set aside money for fun that you can spend however you want.

TIP: Make a wish list of big and small items that you need and want to buy and set aside money for them. Don’t buy it if it’s not on your list and it’s not covered in your budget yet.

3. Discount Buys

Just like impulse buys, discount purchases are also a common cause of overspending. Sale items are often packaged attractively and the festive spirit of the “sale day” event makes it even more enticing. Making transactions online only makes things easier to splurge. Not all discounts are great buys though. If you’re buying an item only because it’s on sale or because you have a coupon, then you might be wasting your money.

TIP: Having a wish list and the budget to buy the item on that list is one way to avoid spending on discounted items that you don’t really need. If you get an item on your wish list at a discounted price, then consider it as savings.

4. Wasting Products

Sometimes we buy in bulk because of the huge discount. Then we find out that we’re not really fond of the product so we end up giving them away or disposing of them in the trash. Or they expire before we can use them so they end up in the trash. This is why a list of what you need to buy is important. It is also important to list down exactly how much you need so you maximize your use of the items. Subscriptions to services that you don’t actually use regularly is also a leak in your budget. So review your subscriptions and see which ones you don’t need or you can downgrade.

TIP: Preparation is key to ensure that you use up perishable goods before they expire. Meal prepping is one way to ensure that you don’t end up throwing away produce. It also allows you to control what you eat so you can choose to eat healthier meals.

Do sometimes feel that you are living beyond your means? These money leaks could be part of the problem. To ensure that you don’t fall victim to these little leaks that can sink your budget; become more aware of your spending habits. Learn how to discipline yourself so you can figure out how to spend your money wisely.

Feature Image: Original Photo by Andrea Piacquadio from Pexels.

Mar

2021

How to Look Expensive on a Budget

Reading Time: 5 minutes

Did you know that how you dress influences how you perform in life? Numerous studies show that how you dress affect your physical and mental well-being. If you look good, you feel good. If you dress well, you will exude confidence and this will simply affect how others perceive you. Whether you like it or not, appearances do matter. Thus, if you want to become successful, you need to dress the part. You need to learn how to dress for success. The good news is that you don’t need to actually wear expensive clothes to look expensive. Here are some secrets on how to look expensive even on a budget.

1.Wear Black

If you have been to Paris, London, Milan, New York and other fashion capitals of the world, you will be surprised that most people in those cities prefer to wear black. Black has been the symbol of power, elegance, luxury, and fashion.

Black is a neutral color. It blends perfectly well with any other color of clothing or accessories because it is very versatile. It will look good on anybody regardless of skin color or body shape.

Black is the most slimming of all colors. It is the most flattering. You can wear black at any time. You can wear it at any age and you can wear it for almost any occasion.
– Christian Dior

Black is simple and modern. You can experiment on different fabrics and styles without hurting your budget. The black pieces that you purchased more than a decade ago can still look good until today. You can wear it 24 hours a day. It works perfectly in the morning as well as the evening. You can never go wrong with black.

2. Wear White

If black is not your thing, then wear white. The color white is the color of perfection. It is pure and it looks clean. A white on white ensemble is simple yet it is chic. You can wear it on the street or you can wear it on the beach. You can match it with any other color. A white shirt or blouse paired with a pair of jeans still looks elegant despite its simplicity. Just add any accessories and you are good to go but don’t forget to wear nude or white underwear.

3. Use a Structured Bag

A bag is very useful. It is not only functional, it also completes an outfit. If you can spare a few bucks and do your budgeting responsibly, a designer handbag can be a form of investment too as long as you stick to the classics. If you visit some designer outlets in some parts of the world, you might get lucky and find your investment bag in outlets at a discounted rate.

On a budget? Fret not. It is possible to find a stylish bag that looks expensive without actually splurging. Forget about those knockoff designer handbags with big logos. Instead, opt for a structured bag. They are chic and timeless. The simple lines and hardware gives the added poise and polish that will complete your look. Use the structured top handle bag in the office and use the cross-body strap for a more casual look on the weekend.

4. Wear Pointed Shoes

Wearing pointed heels or shoes create an elongated effect. It instantly makes your legs longer making you look taller, slimmer and more graceful. They give a sleek, sophisticated and expensive look. It is also easier to dress it up or tone it down. A black pointed heel is a must have in every closet.

Pointed shoes can be paired in almost everything. If you are a woman and you are not fond of wearing heels, fancy flat pointed shoes on formal occasions will do the trick. If you are wearing casual clothing and you want to dress it up a little, pointed shoes will also do the trick.

5.Wear Clothes That Fit You

Fit is the most important aspect of dressing. Well-fitting clothes will complement your body. If you wear something too tight, not only will it make you uncomfortable, it will also make you appear fatter. On the contrary, if you wear something too big or oversized, you tend to be more relaxed. Although it will cover your true body shape, you will end up exhibiting a poor posture. You will come off as sloppy.

Unfortunately, most people buy clothes that don’t fit them, especially if the clothes are on sale. If in case you end up buying one, make sure to visit the tailor first and have it adjusted to your size before you even consider wearing it.

6. Don’t Wear Wrinkled Clothes

Going out looking like you slept in your clothes is a big no, no. If you want to look nice and expensive, you have to make sure that your clothes are properly steamed or pressed. Wearing wrinkled, dirty and sloppy looking clothes gives the impression that you don’t care or you don’t put importance to people that you are meeting. Put it this way, it will turn off prospective clients, your boss or even your date.

Well ironed clothes make them look more expensive than they actually are. Pressing your clothes before going out makes a lot of difference in your overall look.

7.Have a Signature Scent

Have you ever met someone that you are drawn to because they look so elegant and lovely because of their scent? A signature scent is a fragrance of a person that lingers in your memory that it becomes a part of that person’s very essence. Your task is to look for your very own signature scent. The scent need not be expensive. It can be a perfume, a cologne or an eau de toilette. The important thing is that it has to be scent that suits you. It has to be something that you like that will make you feel confident about yourself.

8.Choose the Right Materials

When it comes to clothing materials, choose the ones that are made of natural fabrics like cashmere, cotton, leather, linen, silk and suede. Unfortunately, not all can afford these materials because most of them come with a price tag to match. The good news is that there are some affordable clothing materials out there that look expensive. All you need to do is to look for these fabrics the next time you shop.

9.Add a Statement Piece

A statement piece always works in improving an outfit. You can use a scarf, a belt, necklaces, bracelets or other jewelries. If you have extra cash invest on vintage accessories or a luxury watch. Just choose something that will accentuate your outfit and bring it to life. Just remember not to overdo it.

10. Pay Attention to Small Details

Little things do matter. It is the finishing touches of an outfit that help complete your look. Here are some small details that you should pay attention to that people normally overlook:

Lining should be invisible.
Zippers should not be exposed.
Clothes should be correctly buttoned.
No loose threads on hems.
Threads should be the same colour as fabric.

First Published in Pinoy Smart Living on 01.28.2019.

Feature Image by Pixabay Images

Mar

2021

How To Reboot Your Finances

Reading Time: 3 minutes

What stage are you in in your financial life? If you are not happy with where you are right now, the good news is that you can actually reboot your finances once and for all. True, your financial woes will not disappear overnight but it will give you a chance to change your financial future. In the computer world, a reboot means the act of instantly shutting down your computer and restarting right away. The same is true with your finances. You can actually shut it down and restart right away. Don’t wait until next month, next year or when things start going well again. Do it as soon as the clock strikes zero o’clock . So, how to reboot your finances?

1.Abstain from Spending

The first thing to do is halt all spending at once. Unless it is a necessity, stop all unnecessary spending for now. A cup of coffee, a pack of cigarettes or a can of soda may be little expenses but it is actually these kinds of small expenses that is harming your budget. While you are at it, refrain also from using your credit card. Until you have fully understood how credit cards work, it is best to put your card use on hiatus.

Beware of little expenses, a small leak will sink a great ship.
– Benjamin Franklin

2. Track your Spending

The next thing to do is to track your expenses. Why do you need to track your expenses? The main reason why you should write down all your spending is for you to be able to identify where your money is going. Record everything that is going out of your pocket even small ones like a piece of candy, tips or parking fees. Don’t miss anything. Only through knowing will you be able to control your finances and eliminate bad spending habits.

3. Set Financial Goals

Now that you know where you are right now in your finances, the next thing to do is to define where you want to go from here. Thus, it is important to set your financial goals . Identifying your short-term, mid-term and long-term goals are crucial in your journey towards financial freedom. Your goals will help you make better financial decisions in the present. For example, you will not do an impulse buy on a new handbag that you see on the display window of a mall when you have an upcoming spring trip to Japan or New York for example.

4. Follow a Budget Plan

A budget is a financial plan on how you plan to spend your money. Since it allows you to plan your expenditures, following a budget will help you define your limits as far as spending is concerned. A budget will help you know if you can afford something or not. T. Harv Eker, best-selling author of Secrets of the Millionaire Mind introduced the money jar budgeting system. It is a simple money management system that will not only solve your finances but you can actually lead you to wealth accumulation.

A budget is telling your money where to go instead of wondering where it went.
– Dave Ramsey

5. Pay-off Bad Debts

Once you have your budget plan in place, you must first focus on paying off your bad debts. You see, not all debts are created equal. There is such a thing as good debts and bad debts. Good debts are money that you owe that can help you build your wealth over time. A housing loan is considered good debt. Money that you loan to use as capital for your business is also considered good debt. Bad debts on the other hand, drags you down. Examples of bad debts are consumer and credit card debts. Thus, it is important to prioritize paying off bad debts first.

6. Start Investing

Saving money alone is never enough. In order to grow your wealth, you need to learn to invest. As opposed to working for money, investing allows money to work for you. There are so many investment vehicles to choose from depending on your risk tolerance. You can invest in bonds, funds, stocks or stock options. You can also invest in real estate, jewelries, antiques, art pieces, even luxury watches and bags.

7. Raise Your Financial IQ

And last but not the least is you should make an effort to raise your financial intelligence. Financial literacy equips you with the knowledge and skills that you need to be able to manage money effectively. There are many things that you wish you learned in school. Unfortunately, most schools do not teach money management. Thus, it is up to you to fill the gap.

What are you waiting for? Reboot your finances now. Good luck!

Feature Image by Amit Karkare from Pixabay

Jan

2021

5 Big Ways to Save on Electricity in Your Home

Reading Time: 5 minutes

We use a lot of electrical devices and appliances in our homes and there are a lot of ways to save on electricity so we don’t get a shock when our bill arrives. Here are 5 big ways, and small ways often ignored, that will help you save on electricity in your home.

Save on electricity in your home in big and small ways.

1. Maximize Natural Means

Utilizing your home’s features to combat cold or warm weather issues will help you save on electricity costs in your home.

Curtains are not just decorative but are useful to control your house’s temperature too.

Close doors and windows to trap heat or cold air. Especially when using electrical devices in a room, be sure to close doors and windows to trap in warm or cool air when using a heater or an aircon unit.

Use your curtains and beddings to trap more heat during cold months. Your curtains serve as natural ventilation for your whole house so open or close them to help regulate temperature inside the home in different weather conditions. Use thicker blankets during cold months and thinner ones with lighter materials during hot months.

Let plants help with ventilation. Place plants indoors to provide shade as well as encourage natural air circulation inside the house. Plants can be placed in all parts of the house including the kitchen and bathrooms. They not only get rid of unpleasant smells but also generate a lot of oxygen to cool and freshen up a room.

Turn off electrical devices when not in use. A common and simple, but often forgotten method to save on electricity, is to turn off appliances when not in use. If you are going out of a room, make it a habit to switch off the lights and the aircon or heater especially if you will be gone for a while.

2. Resort to Low-Cost Alternatives (Whenever Possible)

We need to evaluate what types of appliances we really need to use. As much as possible, choose the option that will be less costly.

Do you really need to turn on the aircon unit or will a ceiling fan do?

Use a ceiling fan instead of the aircon unit if it’s not too hot. If you’re feeling hot in a room, evaluate if you really need to turn the airconditioning on or if a ceiling fan will do. If it’s not the height of summer, perhaps the electric fan is a better and cheaper choice.

Install a dimmer to control your use of light. There are rooms in the house that we access at different times of the day which means that we also need different amount of lighting each time. Install a dimmer to control the amount of light you use at different times during the day. This way you ensure that you only use the amount of light you actually need.

Use a power surge strip with switches. Plug common standby devices such as phone chargers into a power surge strip with individual switches. This way, you don’t have to unplug the charger each time. You can just turn off the switch instead.

3. Save Energy in the Kitchen

We have a lot of energy-sucking devices in the kitchen but there are lots of ways to tame these electrical vampires. The kitchen is an area where we can save big on electricity in our home.

Use your stove and oven wisely to reduce electrical costs.

Thaw food in the fridge to shorten cooking time. The night before, transfer food from the frozen section of your fridge to the cooling section to thaw them instead of leaving them outside in room temperature on the day you will use them. Doing this will help you thaw food while keeping them safe from contamination. They will be ready to cook when taken out from the refrigerator so you don’t have to wait for them to thaw, reducing your cooking time.

Allow food to cool before putting them in the refrigerator. Let food cool properly to room temperature to maintain your refrigerator’s temperature. When putting in hot food, this will cause your refrigerator’s cooling system to work harder to quickly cool the food.

Don’t put uncovered food or drinks inside the refrigerator. Condensation from uncovered food and beverages, especially when they are still warm and steaming will cause your refrigerator to work harder to maintain the cool temperature.

Keep your fridge full. If you have a lot of space inside because you have used most of your groceries, use bottles of water to occupy the space. Your refrigerator will use more energy to cool the empty space than if there was something inside to occupy the space.

Turn-off stoves and ovens earlier when cooking. The remaining heat will continue to warm the cooking vessel which will continue to cook the food.

Preheat the oven only when needed. Preheating is important for foods that take a long time to cook such as meat. Otherwise, preheating is not really necessary.

Cook with lids on. To further make cooking faster, cook with your cooking vessel’s lid on. This will maximize the use of heat and hasten cooking time so you use less energy.

Air dry your dishes. Instead of using the dishwasher’s dryer, opt to air dry your dishes instead to save on energy.

Plan and cook your meals ahead of time. Plan a meal preparation schedule once or twice a week so you only use your kitchen appliances during those times instead of every day.

4. Save Energy with Your Laundry

Washing clothes, like cooking, take up a lot of energy. Here are some ways to reduce electricity usage when doing your laundry.

Laundry can be such a chore but you can save big on electricity bills if you do your laundry right.

Wash with cold water instead of hot. This will not only prolong the life of your clothes but reduce your washing machine’s energy use too.

Use shorter wash cycles. Again, this is a way to preserve your clothes life longer and reducing energy cost at the same time.

If possible, air dry your clothes rather than using the dryer. The dryer in your washing machine is one of the biggest energy vampires in your house. If the sun is shining outside, air dry your clothes instead.

Use dryer balls. If you do use the dryer, toss dryer balls with your clothes to help dry the clothes faster. This will also help make your clothes softer and fluffier when you take them out from the dryer.

5. Practice Regular Maintenance Habits

To keep your appliances and devices in tip-top shape so they don’t become huge energy vampires; follow these tips to save more on your electricity budget for your home.

Clean and maintain your appliances to maximize their use and save money.

Regularly clean your appliances. Appliances can accumulate dust and gunk which will hamper their normal working condition. Regularly clean them to keep them in efficient working condition.

Stick to maintenance checks. Don’t forego scheduled maintenance checks especially for appliances with lifetime warranties. This ensures that potential issues will be readily addressed so you don’t need to spend a big amount for a replacement later on.

Get repairs done as soon as you detect them. When an issue has been detected, have the repairs, replacement parts or cleaning requirements completed as soon as possible. This will save you from incurring more expensive repair cost later on when the problem progresses and will save you money on buying a replacement for an appliance that has gone beyond repair.

We’re sure you have other tricks to add to these tips to save on electricity costs. Share them with us in the comments below or on our Facebook page. Your monthly budget will surely be looking great with more savings.

BONUS TIP: Track your expenses so you can see where you can save even more.

First published on Pinoy Smart Living on 2018.12.03.
Feature Image: Original Photo by Rodolfo Clix from Pexels.

Dec

2020

Avoid Overspending This Holiday Season

Reading Time: 2 minutes

It’s the Christmas season once again. Christmas is a big cultural and religious event as Christians all over the world celebrate the birth of Jesus. It is about celebrating love and joy with families, friends and loved ones. But, it has also become a huge commercial phenomenon as people spend so much money on gifts, parties and new things. Although Christmas celebrations and parties may be different this year compared to the previous years because of the new normal, it is still easy to fall prey to consumerism. To avoid starting the new year with piles of debt, here are a few tips on how to avoid overspending this holiday season.

1. Set up a Christmas budget and stick to it.

First of all, you should have created a plan even before the Christmas season even began. Plan on how much you can afford to spend on gifts, food, events, travel, decorations, clothing, etc. Once you have it, by all means stick to it. Don’t be tempted to buy a more expensive gift for your loved one just because it’s Christmas. If it is way above your budget, it simply means you cannot afford it.

2. Track your spending.

The easiest way to make sure you are spending within your budget is to track your expenses. Write down everything you are spending on a daily basis. Just record all the items you have spent and compare them to your budget. Do this on a daily basis. It will take some time and effort on your part but it will serve as a reminder to help you stay on track.

3. Be creative with your gift giving.

You don’t need to spend a fortune for your gifts. Be creative. There are so many Christmas gift ideas for less. You can give them something handmade or cook for them. It is kind of cliche but it’s the thought that counts. What is important is that you remember them during this holiday season.

4. Look for Deals.

Most stores over holidays deals this Christmas season. Buy these items because they are normally offered on discounted rates.

5. Pay cash.

Never ever use your credit card if you think you won’t be able to pay the full amount due in January. Instead, always pay cash so as to not get carried away with your purchases. Don’t be a victim of paying more than your actual purchase by paying fees and interests in your credit card.

6. Don’t overspend on yourself.

Once you are done with your Christmas shopping, go home. Don’t expose yourself to temptation by lingering in the store. The displays are there to lure you into buying them. By going home, you are preventing yourself from buying unnecessary things.

7. Entertain for less.

If you plan on hosting a Christmas party, skip those costly dinner parties by telling your guests to do potluck. Don’t put the burden of preparing for all the food yourself. And besides, until this pandemic is over; it is still not advisable to hold gatherings most especially if it is done indoors.

8. Get better deals after Christmas.

If you can postpone giving yourself or even other people a gift after Christmas, then by all means do so. Stores normally start selling items on discounts the day after Christmas because they need to clear their inventory for new ones for the coming year. By shopping after the holidays, you will get larger discounts for the items that you want.

First Published in Pinoy Smart Living on 12.04.2018

Feature Image by StockSnap from Pixabay