Tag Archives: emergency fund

4 Misconceptions About Money You Need To Know

4 Misconceptions About Money You Need To Know

1. Bad money habits.

No matter how big your salary is, you will never get rich if you have a bad money habits. Realizing that you have a bad money as soon as possible can make a big impact on your financial situation. Asses how you spend and save your money and if you think that your money is bleeding, plug it immediately and change for the better.
Before you buy the latest laptop in the market, think first if you NEED it or just WANT it. By prioritizing the things that you NEED, you will be spending your money wisely.
Avoid shopping just because there is a SALE and do not be an impulsive buyer especially when you are already struggling with your finances.
In other words, adjust your lifestyle according to what you’re earning. Budget your money and follow this simple formula: Salary – Savings = Spend. Prioritize saving money for the future instead of spending your income then putting your left over money to your savings.
Remember to create a budget and stick to it no matter what. Discipline plays an important role if you want to get rich. If you have any vices like smoking, drinking alcoholic beverages, or gambling then try to stop because like shopping, traveling or eating out often, these are also reason why you spend your hard earned money. Just think how much money you spend on your vices?

2. Think long-term.

Most people doesn’t think long term in their financial decisions. They usually savor the fruits of their labor and spend all their money then later on starts to borrow money because they don’t have any savings.

Are you familiar with this saying “Travel Now Pulubi Later”? There are people who love to travel but don’t have any money in their savings or emergency fund. Read our article about delayed gratification to know how it can help you.

Don’t get me wrong, there’s nothing wrong in enjoying your hard earned money, but I highly suggest that you think long term. You can still travel but make sure that you budget your money. You can try Budgeting With The Help of An Orange Envelope help you manage your money wisely.

Some of the long-term goals that you should start planning right now are:
a. Savings. This is one of the basic but most commonly disregarded by people. Everyone should start a savings account. If you need to help in choosing the best account you can read this article.
b. Emergency fund. You should save at least 3 to 6 months expenses. Just in case something happens like accident or loss of job, you can be sure that you have spare money for daily expenses, bills and to survive until you can get back to your feet.
c. Insurance which you can use if unfortunate situations happen in the future. It could be sudden death, disability, or accident.
d. Investment. Planning your retirement is also recommended so you don’t have to worry about money in your old age. That’s why you should start investing your money so that you will have more time to grow your money and use it maybe in future travel or for your retirement. Investment can also be used to secure your children’s college education in the future. Read our article about “Why You Need to Invest


3. Make a decision base on logic and not on emotions.

People can be easily be blinded by their own emotions. You should learn how to control your emotions and decide base on what’s logical and what’s best for you. Don’t decide involving your money when you’re angry, scared, or depressed. Your tendency is to become irrational or impulsive and can easily make the wrong decisions.
How many people have you seen spend their hard earned money on vices just because there are heart broken or sad? People who are emotional or under emotional stress are more likely to waste their money on vices, gambling, drinking and things that will make them feel good even to the point of emptying their bank account.


4. You’re living a lifestyle beyond your means.

Reality check, some people are show off! If you try to live a life of the rich even when you’re not then you should STOP! You do not have to pretend to be rich in front of your friends. If they leave you just because you are not rich then they are not real friends at all. Remember, money doesn’t buy real friends!

You also do not need to follow the latest fad like gadgets and fashion especially if you can’t afford it. Just be humble and live within your means and you’d likely to become rich.
There’s no doubt that money can let you have a good time but having more money doesn’t mean that you will have more fun. FUN is relative, what fun to you maybe not fun for me. Remember when you play with your friends when you were young and have fun even if you don’t have any money?

how much morning coffee costing you

How much your coffee actually costs you

A friend of mine who i haven’t get in touched with for some time suddenly asked me:

Besh! Kamusta ka na? When are you free? Lets have coffee.

Sounds familiar? Power!

No my friend, i wont fall to that kind of invite ever again!

Anyway, have you already had your coffee fix this cold and rainy morning?

Do you prefer your coffee instant or brewed from popular coffee shop so that its more “sosyal”?

Do you know how much your coffee costs you?

If you opt to buy one from popular coffee shop it will usually costs you around 150 pesos.

Meron dyan iba SB padin ang trip kahit na 200 pesos nalang ang laman ng wallet nya!

Its not good for you and your wallet!

how much morning coffee costing you

This is how much your coffee consumption actually costs you a year.

If you buy coffee everyday that costs 150:

150 Php x 30 = 4500 Php

If you buy coffee only once a week, it will costs you:

150 Php x 4 = 600 Php

If you only buy coffee to reward your self ever payday, it will costs you:

150 Php x 2 = 300 Php


Besh in a year how much do you usually spend on coffee?

4500 Php x 12 = 54000 Php
600 Php x 12 = 7200 Php
150 Php x 12 = 1800 Php


Now, multiply that by the number of years you are working and check out how much you already spent on coffee alone.

Partida na friend wala pa dyan ung mga extra coffee dates mo or yung times na nanglibre ka ng coffee, or ung nilibre mo ung long time no see mo na friend tapos dadalhin ka lang pala sa seminar for networking! Power diba?


Lets say you only buy coffee during payday and you already working for 5 years.

You already spent 9000 Pesos for coffee in span of 5 years.

How much your coffee actually costs you

Do you know that you can already use that money to start your emergency fund, open a mutual fund account or UITF fund or paying a bad debt?

So next time you crave for a cold or hot coffee consider these numbers and think if its something you really “want or need”.

If you want to be a true blue frugal pinoy then you have to aware on your expenditures, budgeting and making your money grow.

So ano mga besh, open minded ka ba? Coffee tayo?


Whats your 2015 Money or Financial Goals

2018 Financial Goals

My Financial Goals in 2018:Financial goals

1. Continue again my First Metro Asset Management, Inc. (FAMI) Save and Learn Equity Fund mutual fund.

2. Build a bigger emergency fund size so it will be sufficient again for my personal expenses of at least 6 months.

These were my Financial Goals in 2015:

1. Resume my regular contribution to my mutual fund account First Metro Asset Management, Inc. (FAMI) Save and Learn Equity Fund.

2. Enroll my payroll account to auto saving which will automatically invest in Balance Mutual Fund.

3. Plan for a small business i.e. Food Cart, Laundry Shop, Taxi and UV Express.

4. Complete my emergency fund target.


It is already 2018! Have you already started listing your financial goals for this year? Compare my two financial goals for 2018 and 2015. For this year, I am aiming for a simpler goals to make it more realistic.

I still remember how bumpy the road was for me on the last quarter of 2014. There were a lot of uncontrolled spending, unplanned trips and expenses during the Christmas season. Plus the fact that I started on a new job… So in short… I took the chaos route to financial doom. I lost track of my spending and I got a lot of bills to pay when January 2015 came.

Here in the Philippines, Christmas is one of the longest holidays that we celebrate. Once the “BER Months” (months ending in BER) starts, we Filipinos are already starting to set up our Christmas trees and you will see shopping malls setting up their Christmas decors. Aside from that, you will also hear Christmas songs played on almost all radio stations and even on TV.

So, while the rest of the country is listing their New Year’s resolution. Here I am, listing my Financial Goals for 2018.




How about you? Do you already have any financial plans or goals this 2018?

Maybe you can share it to us by commenting below.

Why you need to invest

I just saw this the other day and I find it really informative. Regardless of the company featured in the commercial, this video shows you why you should invest your money. If you already started saving and already have allotted money for your emergency fund then what you can do next is to check out different emergency fund investment options or to start investing.

Why? Because inflation can eat up a big portion of your money in the future. That’s why you need to put your money in high savings account or invest it via mutual funds, stocks or other investment of your choice.

Inflation is a general increase in prices and fall in the purchasing value of money. Meaning, your 100 pesos today will not have the same value in the future because of inflation. Prices of things will increase and your purchasing power will decrease. I remember when the jeepney fare was still less than 2 pesos (darn im old!) and now minimum jeepney fare is already 8 pesos and will increase to 8.50 by next month. One way to beat inflation is to invest your money so that the return will be equal or higher than the inflation rate.

Sun Life “Piggy Bank” TV commercial 2014

year 2013

What Did You Accomplish This Year?

year 20132013 has been a pretty good year for me, even though I got into an accident last month. I was able to reach my target goal of writing one article per week last month. Due to the accident and busy schedule I wasn’t able to reach my target number of articles this month. But because of that accident I figured out that I was able to reach my target emergency fund for this year. I dont know how much to save for emergency fund but I was able to save enough to and use it to cover my expenses for the accident and without it and my family’s help I think I will really have a hard time. Anyway, there’s still some money left in my emergency fund and I will start saving money again next year.

I think saving money for my emergency fund was really one of my biggest accomplishment this year because without it I don’t know how I will survive the money I need for that accident.

So what did you accomplish this year? Did you achieve anything that made you proud of yourself? It feels really good to be able to look back at the year and know that you have accomplished. No matter how big or small it is, give yourself a good pat on the back for achieving them!

I consider this year a good even though something bad happened to me last month. I learned a lot, I started something that I didn’t even imagine that I would do. I started savings, adopted Miriam Quiambao money jars systems, invested some of my money and realized the importance of having an emergency fund.

As I mentioned before in my previous posts, I’m already thinking about my 2014 goals. I hope to save more than half of my income and to get another side job so I can earn more. I also hope to start running again aside from other few additional personal goals like starting a small business.

Hopefully, I can motivate myself to reach my goals.

I want 2014 to be a good year for me so I will do my best to reach my goals. How? Maybe sacrificing a little bit of my fun activities and use my time for a more productive things.

We make our own decisions what kind of a year its going to be for us but whatever our decision maybe it can and it will surely affect our future. It’s really up to each one of us what kind of future do we want for ourselves, for our family and children.

So… what kind of year do you want 2014 to be? Maybe you can start building your emergency fund also or start checking out best place to keep your emergency fund.

13th month salary

How to Spend Your Christmas Bonus

13th month salaryChristmas is near and so is 13th month pay. Some of you may already receive your Christmas bonus but what do you usually do with this windfall money? Extra cash is always flowing during these season especially those who are working in companies here in the Philippines where business are required to pay their employees a month’s worth of their salary. Some companies are very generous in giving bonus because aside from Christmas bonus they also give other kinds of bonuses to their employees such as mid-year bonus, performance bonus or 13th month pay.

Employees always look forward receiving their bonus but some drown themselves from debt even though they haven’t received their bonus money yet which is a bad way to manage or spend your bonus money. I usually plan ahead on how I will spend my 13th month pay or I just put it on the bank first whenever I can’t decide on how to spend it.

6 Ways on How to Spend Your Salary Bonus Wisely

  1. Tithe – every time I receive a large amount of money that is won, received unexpectedly or salary bonus I usually allot 10% for tithe.
  2. Pay off debts – extra money can help a lot in cutting a huge chunk off your debts. After giving 10% for tithe you can use the remaining money to pay off your debts rather than spending it on other things that unless it’s really necessary. It’s easier to sleep at night knowing that you are debt free. Read our article “13 Steps on How to Eliminate Your Bad Debt” to give you some ideas on how you can easily pay off your debts.
  3. Pump up your Emergency Fund – If you don’t have any debt that you need to pay (kudos to you!) then this is the perfect time to build your emergency fund. Since you still have your salary, why not put the remaining 90% of your bonus to your emergency fund or allot 70% and spend the 20% for anything you want. What’s important is that you first put a portion of that extra money for your emergency fund.
  4. Retirement Fund – I believe that everyone should have a retirement fund. Starting your retirement fund as soon as you earn your first paycheck is a good idea. I wish this was taught in school when I was still studying because time is on your side when you start early.
  5. My want Fund – if you plan to travel, buy a car, buy your dream house, pay for children’s education, spend for wedding or buy any big-ticket item in the future, put a portion of your extra money on it in an investment account. This money can help lessen the big cost when you need it in the future. Plus you can also get a big discount when you buy these big-ticket items on cash.
  6. Share – What you put out into the universe will come back to you. If you have more than what you really need then why not share it to other people who needs it? You can share your extra money with the less fortunate people or community. You can start by donating to the victims of typhoon Yolanda (Haiyan).

If you ask me how I usually spend my bonus, after the tithe I usually pay any debt that I have, save part of it for my emergency fund and share it to my mom and our helpers.