Budgeting money is directing where your money should and shouldn’t go. Like a mother giving money to each of her children.

Why like a mother

Mother’s know best, she gives money mostly to her child whom she believes needs it the most.

It might be for his firstborn, who need cash for tuition fee. It might be for her daughter’s upcoming 18th birthday. It might be for her little one’s project at school.

Allocating funds depend on whom she believes needs it the most. That’s the concept of budgeting.

My budgeting strategy

This strategy is based on a budgeting app, where I input my semi-monthly income, additional extra money from any source and daily expenses.

The intangible amount should tally to my cash on hand, cash on the bank and the like. Basically, the amount in the budgeting apps should tally in the amount you currently have. Check it regularly. It’s worth it.

The budgeting app serves as a basis of how much money can be used in a different wallet (this wallet/s serves as the heavenly father, mother, children).

The list is as follows;

  • For allocation (Mother)
  • Tithing (Heavenly Father)
  • Pay Yourself First (First Born)
  • Emergency Fund (second born)
  • Personal expenses (third born)
  • and more…

For allocation (mother)

This wallet is where money initially goes. This serves as the starting point. When receiving a salary mother gets it first.

As the mother gets the salary she distributed it to heavenly father, and her child accordingly. And what is left is for the daily unplanned things to buy, unplanned events, unforeseen events that may happen that don’t need a large amount of money. (it is important to build up your for allocation wallet at least 5000 pesos).

Tithing (heavenly father)

Honoring our heavenly father by giving back at least 10% of our first fruit. 10% of our salary, 10% of business income after expenses.

This money is used to send love, to provide other people in need and to spread the god’s blessing. Share your blessing to others.

Where should you share your blessing? Share it to people, institutions, that you believe will provide a blessing to other people’s lives. Like the church, charity, and the like.

Heck, you can even give it directly to people you believe in dire need of money. Like, people with a sickness that need immediate attention. (there’s a time when a big portion of my tithing goes here).

Mind you, tithing is not a must. It’s a privilege to help. To spread the love. To spread the care. What you give might or might not give you more in return. So what, help anyway.

It is more fulfilling to see smiles on their face. It feels great to give a helping hand especially when you’re not burdened by what you give. For it is in your budget.

Pay yourself first (first born)

Here you allocated 10% of your income, it is used to make you grow. Grow in terms of knowledge and skills.

The more you know the more you earn. (lamang ang may alam.)

Focused more on growth it will harvest more than focus on growing your income in the long game. We are playing an infinite game. Growth first income follows. Income first growth does not follow.

You can use this fund to take seminars, taking courses, buying stuff like books, financial literacy materials and more.

Everything that makes you grow will make you think smart, practical and wise. In due time you will harvest what you sow.

Emergency fund (second born)

This fund is used as its name suggests emergency, it is used for emergency purposes. It is better to have buffer money in case an emergency happens.

It can be anything from having a family member sudden sickness or whatever uncertainty that might hit you.

When you have an emergency fund you wouldn’t have to thicken your face and borrow money.

Now, that you understand the purpose of the emergency fund, let’s proceed to how much should you save.

You should save at least 3 to 6 months of your salary.

When you are single, you should at least have 3 months of your salary. Single people don’t really in need of this money but it’s better to have this anyway. Better to be prepared than sorry.

When you are married, you should at least have 6 months of your salary. Married man or woman is in need of this much for unforeseen events that might happen especially when you have children. Again better to be prepared than sorry.

Personal expense (third born)

This fund is used for daily activities, here lies your food expenses, transport, groceries. All the necessities should be here.

How much should you allocate here? It totally depends on you. We all have different expenses on a daily, weekly or monthly basis. Better to record your daily expenses with a budgeting app. So, you’ll have the necessary data to back you up, to know your monthly expenses.

Additional wallets (children)

Goal wallet

This might a travel wallet, wedding wallet, child education wallet, child 18th birthday wallet or anything that needs necessary planning on your part or professional financial planners.

Retirement wallet

As its name suggests, retirement. Getting ready for your retirement. Many people retired rich end up broke because of their money spending unwisely.

Don’t be like them. Your retirement money should outlive you.

When is the best time to prepare for retirement? The best time is now. When you don’t need it.

Where should you put your retirement money? It should be into a financial instrument that can yields interest for you. Like mutual fund.

Mind you, you should just invest money you don’t need. You should not care if the market is high or low. Just invest as if you are losing money just believe in the company you are invested with.

Health care

Many retired people who retired rich end up broke due to their money outlived them. Living too long.

Their retirement money, Savings, and Investments accumulated over the long year of working ends up in hospital bills, medical prescriptions, medications.

This will most likely happen to you too if you don’t prepare yourself to have health care insurance as soon as you can. Key to remember insurances are cheap when you don’t need it.

I know of a health care insurance that can cover you for a long time.

If you are interested to check it out. Click here.

Life insurance

Don’t you ever think a possibility that you might die a sudden death? Dying too soon.

Just real talk. We’re all going to die.

But are you prepared? Prepared in a sense that the family you left behind will be not live without you. Without you who provide their needs.

What would you feel when you know that the family you left behind is struggling each day after you passed away? Does it pierce your heart? To think about what will happen to them?

For me, it is a painful experience, as if the world is telling you cannot provide for their needs at all. You are not a good provider.

What if, I can show you, an affordable insurance that can cater your needs to provide for your family? Would you kindly check it out?

If you answer yes. Click here.

Final note

Budgeting is a must, especially when you only have a small amount of it.

God gives more to good stewards. Those capable of managing a small amount of blessings is also capable of managing a big amount of blessings.

Start now. Be committed to budgeting your money, your financial freedom is on its way. You are taking the first step.

Every journey starts with a single step.

You will be amazed at your progress when you look back a year later. Who would believe that you can do save a lot just by budgeting?

You would feel proud of your accomplishments. Just like what my girlfriend and I did. When we did budget.

Hope this post, uplift your spirit and make you want to start budgeting.

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