Tuesday, February 21, 2012

25 Days to Healthier Finances - Part 5

 
21) Prepare for the holidays.

Budget
- Gifts P2,000
- Food P1,000

Payment
- Monthly P250
- Daily P10

Past
- Gifts P500
- Food P500

Occasions
- Birthday P2,000
- Monthly P1,000
- Daily  P40

22) Discuss money with a friend or relative.

I talk money with my mother, brothers, aunt and cousin.

23) Do a financial review of your year.

Debt 0
Income 63
- Allowance 48
- Tutoring 15
Savings 18
Spending 45
Investment 120

24) Write down your ideal income and expenses.

Income P100,000
- Work P25,000

- Invest P25,000
- Rent P25,000

Expenses P60,000
- Food P20,000
- Clothing P2,000
- Internet P2,000
- Phone P2,000
- Water P2,000
- Electricity P4,000
- Housing P4,000
- Education P4,000
- Transport P10,000
- Travel P10,000


25) Make a financial plan for your future.

Wedding 200-400 once
House 1000-2000 once, 50-100 per year
Vehicle 800-1600 per 5 years, 100-200 per year
Travel  100-200 per year
School 50-100 per 5 years
Income 50-100 per year
Children 100-200 per year
Retirement 500-1000 per year

Saturday, February 18, 2012

25 Days to Healthier Finances - Part 4

16) Make a debt repayment plan.

I do not have debt.

17) Know the things you don't care to spend on.

- Night life
- Fast cars

- Cigarettes
- Alcohol

18) Pick a hobby you can monetize.

- Writing
- Reading

19) Quit an expensive habit.

- Buying lunch / dinner from fast food chains / canteens instead of bringing lunch / dinner
- Photocopying cases instead of reading them from the internet

20) Maximize customer loyalty programs.

- Mercury

25 Days to Healthier Finances - Part 3

8) Sell something.

- Books
- Magazines
- Computer parts
- Clothes

9) Level up your cooking skills.

I'm working on this one.

10) Read one personal finance book.

- The Millionaire Next Door 
- My Maid Invests in the Stock Market
- The Automatic Millionaire

11) Compute your net worth.

Assets
- Savings
- Stocks
- Bonds
- SSS
Liabilities
- None

12) Evaluate subscriptions

- Newspaper - Sunday
- Electricity - Monthly
- Water - Monthly
- Phone - Monthly
- Cable - Monthly

13) Start collecting loose change.

I use loose change for commuting.

14) Organize your financial paperwork.

Current records I have
- Tax  - previous income tax returns
- Personal  - birth certificate, transcript, ID
- Medical - certificates, drug tests
- Bank - pass books

Previous records when my parents were away
- Bills - phone, cable, light
- Bank - reports, credit card
-  Receipt - food, school, home

15) Carry only one credit card in your wallet.

I do not have a credit card.

Tuesday, February 14, 2012

25 Days to Healthier Finances - part 2

3) Learn about investment instruments.

Stocks: 20%Capital accounts: 13% - 16%
Savings accounts: 2% - 6%
Bonds: 3%


4)Automate your savings.


My capital and savings accounts automatically earn interest. These accounts do not have an ATM so I am not tempted to withdraw them.


5) Pick 2 no-spending days per month.


I choose February 20 and 27 as my no-spending days since I do not have class on Mondays.


6) Identify employment benefits.


I am not employed but I voluntarily contribute the minimum amount to Social Security.


7) Commit to learn new skills.


- Cooking
- Writing

Monday, February 13, 2012

25 Days to Healthier Finances

Hi! I'm following the 25 Days to Healthier Finances made by Celine Roque. Here are my answers to the first few tasks:

1) Define wealth and financial freedom.

Wealth is having more financial assets and passive income than living expenses. Financial freedom means having enough passive income that one does not have to work for money any more.

2) Fine-tune your budget.

Monthly budget
Food 2400
Transport 1000
Medicine 400
Cases 400
Phone 300

Total 4500

Expenses every semester
Books 1000-2000

Expenses every year
Christmas 1000-2000

How do you spend windfalls?
Save until I need the money for expenses.