How to Budget your Income

i recently downloaded an app called DEM (Daily Expense Manager) in my xperia phone and i'm so religiously updating it everytime i take away money.  It's so nice because it is in pesos and can have lots of categories.  I can easily see which one had the most expense and if i'm going beyond my budget.  When you only have enough to last you until the next payday, better take in charge in how you spend your hard-earned money. ;)  Then i got this in my mailbox a few days back and reminded to continue with what i'm doing.  Happy investing and saving! ☼ 

If you’ve been living from paycheck to paycheck, deep in debt and without a clear financial future – then I suggest you make yourself a grumpy saver now before you turn into a financial disaster in the future.

I hope these simple steps on creating a zero-based budget can help.

ZERO-BASED BUDGET PLANNING SYSTEM
1. Account all your income sources in a month. This is simple if you’re an employee. For entrepreneurs and freelancers, simply take the average of your monthly income for the past 3 to 4 months.

2. Track down all your monthly expenses – include everything – then categorize them into three types:

• Fixed expenses such as rent, mortgage payments, etc.
• Semi-fixed expenses such as electricity and other utility bills which fluctuate very little every month
• Variable expenses such as entertainment spendings and other regular expenses whose amount varies each month

3. Assign the exact amount from your income to fixed expenses first. Next, allocate part of your income to your semi-fixed expenses (try using the highest amount from the past three months). And lastly, budget what’s left of your income to your variable expenses.

4. The key here and what your main focus should be is to make sure that all your monthly expenses are covered by your income.


5. What if my income is not enough to cover all the expenses?

• First, identify which are necessities and let go of the non-essentials
• Then decide on specific things you will do to earn some extra income
• Moreover, find ways to lessen your costs in your necessities, i.e. save on your electric use

6. What if my income is more than enough to cover all the expenses?

• First, congratulate yourself because you’re actually living below your means.
• Then, assign the extra money you have to ‘Savings’ or ‘Investment Budget’
• Lastly, allocate some of it to ‘Luxury Expenses’ (you deserve the reward)

7. Adjust your budget until all your money has been “spent on paper”. Don’t stop until every cent has been assigned – which means your ‘Income’ less your ‘Expenses’ is equal to ‘Zero’ (thus the name of the system).

8. Review your budget status and progress once a week. Constantly work on how you can improve your system until it becomes a habit.

And that’s it – that’s how you do a zero-based budget planning system. It will be difficult at first but it gets easier as months go by, trust me.

Again, the important thing to remember, whether you’re doing the Envelope System, the Zero-Based Budget Planning System, or a combination of both – is to have a healthy mindset about what you’re doing.

Let go of envy and self-pity and have an optimistic attitude – know that someday, with enough patience and persistence, you will become smarter with how you handle your money, you’ll live without financial worries and of course, be happier than you are today.

Full text here of the blog

Paano maging member ng Truly Rich Club ni Bo Sanchez Be Truly RICH How to EARN by Working @ HOME

Paano gumawa ng account sa CitisecOnline

 step by step tutorial kung paano ko ginawa ang pag sign-up sa CitisecOnline at nag-umpisang bumili ng stocks.  O di ba parang feeling ko alam na alam ko na ngayon ang mundo ng stock market? hahaahahha masaya kaya magfund ng account at bumili ng mga nirirefer na stocks ni Bo Sanchez.  Sa video na ito makikita nyo ang form na ififill up nyo pagkatapos ay ipapadala nyo sa Ortigas, Pasig City kung saan ang main office nila.  Ilalakip nyo ang mga dokumentong kailangan tulad ng valid IDs at kung kailangan kopya ng inyong birth certificate.  

Pagkatapos ma approve ang pinadala nyong filled up form, pwede nyo na ngayon lagyan ng initial deposit na limang libo (5,000.00) piso at mag log-in sa kanilang website.  Pinakita ko rin dito na sa isang taon ko sa Citisec kumita ako ng mahigit sampung libo.  Not bad kasi ang pera ko na ganun kaliit pag dineposito ko sa bangko 100% sigurado ako na hindi tutubo ng ganun kalaki.  

Maliban sa kumita ang maliit kung pera sa CitisecOnline, kumikita din ako bilang affiliate member ng Truly Rich Club ni Bo Sanchez.  You see, tie up silang dalawa.  Hindi ka kikita sa stock market kung wala kang advise galing kay Bo kasi nga wala tayong alam pagdating sa kung paano laruin ang stock market. (talking about newbies sa stock market ha).

so kung gusto mong yumaman 10 years from now umpisahan mo ng magsave para sa future mo. ;)

have a great weekend.

Paano maging member ng Truly Rich Club ni Bo Sanchez
Be Truly RICH
How to EARN by Working @ HOME

Paano bumili sa Stock Market

Hola.  i found this blog really helpful especially if first time mo sa stock market at hindi alam kung ano ang gagawin.  nakaharap ka lang sa computer at alien ang lahat para sayo.  haahahahaha ganyang ganyan ako nung first time ko bumili ng stock market hanggang sa nasanay na lang.  it's fun doing it though ;)  click the link and see for yourself.

How to Buy and Sell Stocks


Paano maging member ng Truly Rich Club ni Bo Sanchez Be Truly RICH Work from HOME

Paano maging member ng Truly Rich Club ni Bo Sanchez

Aba ito na ang hinihintay mong mga sagot sa iyong tanong kung paano mag-umpisang yumaman. ;)  Click mo lang ang link na ito at voila! nasa tuwid na daan ka na patungo sa pagyaman. Dali umpisahan mo na ;)

Paano maging member ng Truly Rich Club

Be Truly RICH Work from HOME

How to Earn Passive Income

Now here's one i found in my facebook timeline today that i can't resist sharing agad-agad ;)  Sa lahat ng naghahanap ng trabaho, may trabaho, o magkakatrabaho. ;)



Henry Hungry is applying for a job.

He walks into this nice office and meets a well-dressed fellow behind the desk. Henry smiles and asks him, "Sir, is there a job for me?"

The Man Says, "I'm actually looking for a general manager. you need to sign a conract for three years. Interested?
"Hmmm. Sorry for being upfront, but how much will I earn?" Henry Hungry asks.

The man says. "I'll let you choose your salary.

OPTION 1: is I pay you P30,000 a month for 36 months.
OPTION 2: is I pay you one centavo on the first month and I double it every month for 36 months."

Henry starts calculating. "Option 2 is interesting. If I choose that, I earn one centavo on the first month, two cents on the second month, four cents on the third month, 8 cents, on the fourth month, 16 cents on the fifth month, 32 cents on the sixth month... after 12 months of working with you, I would have received a total of... sheesh, P23!Sir, I need the money badly. I choose Option 1 where I earn P30,000 flat each month. By the first year, i'd already have earned P360,000. And after three years, that would a total to P1 million. I definitely choose Option 1".

"Okay, if that's what you want." Then the man asks, by the way, if you choose option 2, do you know how much you'll earn by the end of three years?"

"I didn't finishing computing that option. It's too depressing."

The man Calculates in front of Henry hungry. "On the first month, you receive on centavo, on the second month, you receive two centavos..." He goes on and on, and Henry doesn't mind him too much.He's focused on the P1 million he'll be earning in three years. He feels pretty good about himself.

Finally, the man looks up and shows Henry Hungry the calculator. "In 36 months, you would have earned P680 million. You exchanged that for one million. I'm sorry, my friend, I can't take you as my General Manager. Your decision making skills are terrible."

Let me give you the figures...(see picture below/above )

There are only two types of income in this world: Linear(Active) and Exponential (Passive)

Linear Income is like a piece of bread. You eat and its gone. After that, you have to look for another piece of bread.

Exponential income is like a seed. You can't eat it at first, but if you plant it and whait for a while, you can eat as much as you want to.You have an infinite source of fruit if you keep on planting some of the seeds.

Many Filipinos today have only one income stream - their jobs - and jobs are linear income.

What is exponential income?

That's what a regular employee earns when he invests in mutual funds and stocks. (So you see everyone can earn exponential income, even employees).

That's what a NETWORKER earns when he/she builds a downline organization.

That's what a store owner earn when he/she branches out, hires other store managers, or sells franchises of her store.

That's what a distributor earns when he distributes his goods to various stores.

That's what a real state investor earns when she buys profitable rental property.

Exponential income - also called passive income - means earning for a very longtime from work you did only once at the very start.

Hey, income is income. Earn linear income when you can!But invest your linear income so you can earn exponential income.

Because if you want to be wealhty, you need to find a way to earn exponential income.


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How to Save MONEY

New Year na at tiyak ako, dun sa kakabalik lang ng trabaho ay ubos na ang budget bago dumating ang unang sweldo ng 2013 ;( how sad di ba?  kaya ngayong taon isa sa mga new year's resolution ko ay matuto kung paano magsave ng hard earned money.  Tamang-tama lang na nakita ko ang articel na ito kaya isishare ko din sa inyo.  Malay mo makapulot kayo kahit isang tip man lang at ng makasave kahit papaano kesa magising ka na wala pa rin. ;)

Saving money is important. We all know that.  But knowing is not the same as doing.

For some people, saving money is like going on a healthy diet.  You get inspired and start to do it, but after a few weeks, self-pity creeps in and you begin hating it.

If you usually fail at saving money or you think it’s really difficult to do, then here are some money saving tips that could help you.

1) Save first, then spend the rest.
At the instant you receive your income, immediately set aside a portion and put it in your savings account. After that, you can now spend the rest of your salary without guilt. This is what they call paying yourself first, which is easier and more fun to do than scrimping on your expenses so you’ll have money left as your savings until the next pay day comes. Try it, this really works.

2) Make saving money automatic.
How do you make saving automatic? There are several ways. One is to go to the bank that handles your company payroll account and ask if they have an automatic savings plan or if you can have one arranged. What this means is that whenever pay day comes, the bank will automatically deduct a fixed amount from your salary and deposit it to a separate savings account.


3) Make your savings NOT easily accessible.
When your savings account is just one ATM withdrawal away, then you’re more likely to touch it.  Make it inconvenient for you to get cash out of your savings.  Simply having a pure passbook bank account is a good start.  As for me, I have a BDO Optimum Personal Savings Account which only allows you up to three over-the-counter cash withdrawals a month (but unlimited deposit transactions).

The Filipino Paluwagan System provides a similar inaccessibility to your savings.  In fact, many Pinoys have recently started and joined paluwagans to “force” them to save money in light of the recent global financial crisis.


4) Always use cash.
When you always use cash, you’ll be more aware of your budget.  This will help you avoid accumulating debts and encourage you to live within your means.  Simply put, pay yourself first then always use cash.  Do this and you’ll end up with no credit and a savings account that you don’t have to touch to pay your debts.

5) Set a benchmark and a reward for saving money.
They say that you should save money for the “rainy days”.  Personally, I believe that’s a pessimistic (and vague) reason to encourage yourself into saving.  I find myself more motivated into saving money when I set a reward for myself whenever I reach a certain amount.

For example, I allow myself to guiltlessly splurge P2,000 on anything I want whenever I am able to increase my savings by P10,000.  Other times, I reward myself with a fancy dinner in a restaurant after every three No Spending Days.

If you like this article, please subscribe to Ready To Be Rich so you won’t miss the next article here. Thanks.
 Below is a way to earn more and invest your money wisely.  Just click on it.;)

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What will i do with my Php1,000.000.00?

i came across an article today that asked what if someone gives me one million what will i do with it? hmmmm.....interesting question that requires time to think and really think what if....? here are a few i can think of right now:

1. i will invest Php100,000.00 to my Citiseconline account (www.citiseconline.com)
2. i will invest Php500.000.00 to my Create Abundance community businesses (www.ca2020.net)
3. i will put in the Php200,000.00 as deposit for the agriculture land i have been desiring to have
4. i will divide the P100,000.00 as cause donation to AMA volunteer program (http://www.facebook.com/pages/Worcester-MA/Associate-Missionaries-of-the-Assumption/234330867775) and Cataract Foundation Philippines (www.cataractfoundation.page.tl)
5. i will divide Php50,000.00 to my siblings to start up their own small businesses
6. and lastly i will have the P50,000.00 for rest and recreation. First in my list would be to travel the provinces of Samar and Leyte, then visit Camiguin, and trek Mt. Kitanglad in Bukidnon

i can go on and on and on but basically i want my money to grow to be able to help more. ;_) what about you? what will you do with your one million?