I met up with friends whom I haven't seen in almost a year last Monday. It wasn't actually a good timing since I just came back from the province, went to the office in the morning, and met them up at 3 in the afternoon in Makati. With barely an hour sleep, I thought I could never catch up with the talk.
It is good to know however, that in one of our discussion we came into the topic of putting up a business aside from all the stuff we have shared like what's new and what we are up to these days.
I can say, we have been a little more mature with the topic of money matters. Unlike before, that it was almost like a taboo to speak about our finances. Where we could only hear either one of us always saying "wala akong pera" or "mahirap ang buhay". Well, it is true mahirap naman talaga ang buhay, but what makes it more difficult is the idea that we do not handle well our finances. Where we do not actually know how much is coming in and going out and worse when expenses are even greater than our income.
So how do we actually manage our income or salary for employed individuals? There are a lot of ways or method we can always adopt. There is the 70-20-10 rules. And more others which are applicable to some and may not be to others. Different strokes for different folks, right?
For me, as married with a year old little girl, it's been a little challenging than when I was single with no dependents other than my parents. Today, I have to consider my little girl's needs.
My salary comes in every 15th and 30th of the month. I enrolled the 10% net of the salary to auto deduct as a retirement fund from which the company offers a match of 3% on the first 3% of the 10%. This provident fund actually earns an interest which we can check periodically or upon request from our payroll. Nonetheless, I still keep a tracking excel sheet for my contributions and the annual interest it earns. While the 3% match up from the company is dependent on the number of years serve, it still a big factor for this retirement fund.
Since the retirement already is deducted from my salary, whatever is net, I allot at least another 5 to 15% for emergency fund (savings and time deposits) and investments (mutual funds, stocks, unit investment trust funds). Roughly 12% for our insurance. Around 5% for charity and tithes. The next 10% to 15% portion is for the monthly recurring bills such as monthly rental of our little space in the metro, gas, electric bill, and our postpaid plans. Around 20% to 25% goes to my parents and their needs. Our groceries and for the little girl around 20%. And the rest for personal stuffs.
Husband and I shared a lot of things but my salary is up to me to budget and the above partition is where my monthly salary actually goes to. Honestly, it is more difficult in actual than writing it in here. The range varies depending on the situation per month thus it is of great help tracking my own expenses by listing it down and by knowing the budget - the expected income and the actual. I made it in a percentage way kasi depende naman kasi yan eh. Whether mataas or low income earners tayo, it is still up to us how to budget ang sahod natin. At kung saan napupunta. What's important is, it is well planned and expenses are not beyond what we receive. And this is only about my salary, all other extra income, for the meantime goes to another form of investments or savings.
But as I repeatedly mentioned, this may work for me at the time being, but may have been different to yours. One way to finally have a budget plan that works for you or the one that fit yours, is to be realistic what is coming in and by knowing your expenses.
Just sharing. God Bless. :)
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