Why you need to track down your Expenses

Photo credits: https://www.keepek.com/blog/

Have you tried tracking down your expenses on a daily basis?

Well, I "tried" and repeatedly failed in doing this task because it is literally tedious. I often feel lazy to do it. I've tried it countless of times already, my wallet bloating with receipts that I keep which I fail to record most of the time.

Beginning March of this year when I enrolled myself in the Registered Financial Planner (RFP) Program, I committed to religiously track my expenses with the following objectives in mind:

1. To know how much I am spending.
2. To know what I spend on.

The first step to CHANGE is AWARENESS.
And the only way to be aware is to JUST DO IT!

Before I took the challenge of tracking my expense, I made my Personal Financial Statement Sheet which reflected my CASHFLOW on a monthly and a yearly basis. Anyway, that's another story so let's proceed to the expense tracking!

The first few days was challenging because I had a hard time remembering what I spent on. I created an excel file for it and categorized my expense into the following: Transport, Daily Food, Eating Out, Clothing, Tithes, Grocery (Non-Food), Entertainment/Travel, Gifts and Business Expense. You can choose to follow this categorization or feel free to make your own. If you don't feel comfortable using MS Excel for this, you can download different expense tracker apps in Android or Apple App Store. :)

And then, I chose to spend 10 minutes every morning to record my expense and for two months now, I was able to acquire the habit of recording my expense so I want to share with you the things I've learned aside from achieving the objectives I had in mind:
 
1.  You will become AWARE on how much you are spending on a daily, weekly, monthly and yearly basis.

That is the most basic objective. It is important to know how your old ways of thinking and acting have gotten to where you are right now financially. When you become aware, you will know what to do.

2. You will know WHAT you spend on and where your money flows.

I was able to clearly see where I spend my money. I found out that sometimes, I spend on things that I don't really need or can do without. I'm not an impulsive buyer but there are certain things that we thought we can't live without yet with the right awareness, we can actually do.

Think about this: Where does your money flow? Does it flow outwards (expense/liabilities) or inwards (savings, investment, assets)? Do you know where it goes each month? What is your biggest challenge when it comes to spending?

3. You will know how to budget and use your money wisely.

When people hear the word budget, they cringe. Budget is not a bad word. A budget is a tool to help us manage our money because it clearly shows us how much money is coming in and where it is going. It is very essential for a great money management.

When I started, I became aware that Eating out and Transportation were the biggest slices in my expense pie. Cutting my transport cost to reduce my expense is not an option because it is a necessity so what I did was, I bring my own baon everyday so I would lessen eating out. I stopped buying the Php 35.00 Black Brewed Coffee in Mcdo so I could save even more. Between March to April, I was able to save an additional Php 4,000.00. I'm thrilled to save more! Yahoo!!!

4. You can distinguish WANTS from NEEDS.

Most of the time, what we want isn't what we need. We need only need the basic: food, shelter, clothing. But most of the time, we want EVERYTHING else. You think you need the latest mobile phone? What you need is a device that will help you to communicate. You think you need a car? What you need is to get from point A to point B. You do not need fancy dinners or someone else to prepare your meal like a restaurant chef. What you need is food to fuel your body in order to live.

Contentment is contingent in our attitudes, not on our bank account.
When you can easily distinguish a need vs. a want, you will be able to Simplify.

5. You will acquire the habit of successfully managing your finances.

I believe that having money is a blessing and God would want us to enjoy our money. We are only stewards of this blessing so the universal principle of management is: Until you show you can handle what you've got, you won't get anymore. It is not when you have plenty of money that you'll begin to manage it. It is when you begin to manage it that you'll have plenty. Being a good money manager means being cautious and aware of your spending habits.

Remember, the habit of managing money is more important than the amount.

The key is Involvement. When you commit 10-20 minutes per day to manage your finances, God will bless you with more. :)

May you be blessed!

"Now it is required that those who have been given a trust must prove faithful." 1 Corinthians 4: 2

"From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked." Luke 12: 48


Need help in managing your finances? Contact me for a free One-on-One Personal Finance Coaching. :)







 

My Journey to Financial Freedom Part 4

If the plan doesn't work, change the plan but never the Goal.

From Part 3 - Click Here

I've always believed that I'd become successful in network marketing so last June 2012, I decided to resign from my corporate job to do network marketing full time. I gave up 4 years of career in marketing when I tendered my resignation with high hopes of success in the business. 

But life has its own way of twisting you and turning you from the inside out, stripping you away of everything until you have nothing. Things didn't go well as planned and my finances - emergency funds, savings and existing loans went in a deep turmoil. In order to save what's left two months after I resigned, I decided to QUIT again from Network Marketing last August of 2012 to go back into the corporate world. Luckily, I got hired again in a multinational company, working in marketing for a year and then being transferred to sales for the past 5 months.


For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future. JEREMIAH 29:11
 

Breakdowns to Breakthroughs
 

Recovering from a deep financial breakdown and paying up huge business debts was never easy but it was a big turning point in my financial journey. As Brian Tracy said, If the plan doesn't work, change the plan but never the goal. I badly wanted to recover so I kept on educating myself about investing and how to improve my finances through books and seminars. I turned to Robert Kiyosaki's book "Guide to Investing." Back then, I already know a few about investing in stocks, mutual funds and real estate but I wasn't ready for it since I have high beliefs in the promise of a passive income from doing network marketing.

Around January of 2013, I decided to start investing in UITFs (Unit Investment Trust Funds) and also started searching for other investment options that could help improve my finances while paying off my debts. 

“The whole commandment that I command you today you shall be careful to do, that you may live and multiply, and go in and possess the land that the Lord swore to give to your fathers. And you shall remember the whole way that the Lord your God has led you these forty years in the wilderness, that he might humble you, testing you to know what was in your heart, whether you would keep his commandments or not. And he humbled you and let you hunger and fed you with manna, which you did not know, nor did your fathers know, that he might make you know that man does not live by bread alone, but man lives by every word that comes from the mouth of the Lord. Your clothing did not wear out on you and your foot did not swell these forty years. Know then in your heart that, as a man disciplines his son, the Lord your God disciplines you. Deuteronomy 8:1-20

When the student is ready, the teacher will appear

I became aware of Sun Life and their investment products around February 2013 because of their strong marketing campaign with Papa P (Piolo Pascual) but never really took action into starting an investment with the company. Last July, I got a message from LinkedIn from a Sun Life Financial Advisor and finally took courage to meet with her even if I don't really know her. I got my first VUL (Variable Unit Linked) Insurance+investment plan, a Sun Flexilink. Then an old friend from YFC who's also a Sun Life Financial Advisor contacted me last August for another Sun Life Investment and after our meet-up, I got my second VUL insurance+investment plan, this time, the Sun MaxiLink Prime and finally took the leap of faith to join Sun Life as a Financial Advisor. 

A Beacon of LIGHT

Life is indeed brighter than the sun when I became a Licensed Sun Life Financial Advisor. This opened an opportunity for me to carry out my personal life mission of being a contribution to our country by helping out my fellow Filipinos improve their lives through Financial Education in order to achieve Financial Freedom. 

But, I do not want to be alone in this journey towards financial freedom which is why I shared with you my life story. I'm a firm believer of Life Insurance, Investment and sound Financial Planning. I was not born from a well-off family and our family has gone through a lot of financial struggles for the lack of financial education and planning. I want to break the cycle. I know that we all dream of living a better life and we are in the constant search for the tools on how we can better improve our personal financial situation. 

As a Financial Advisor, I do not want to just sell to you the investment or the products that we have in Sun Life. Rather, I'd prefer to give you that ray of light until you see for yourself how bright your future can be if you will take the time to create a definite financial plan for your future and work on it to achieve it. I invite you to be on board with me in this Financial Journey by sharing with me your personal dreams and goals and see how we can make it happen. Feel free to contact me here. :) 

To my fellow Sun Life Financial Advisors, let's continue making a difference in the lives of our fellow Filipinos. For God, and our country, for a First World Philippines.


But seek first the kingdom of God and his righteousness, and all these things will be added to you. Matthew 6:33

 

We all dream of a better life. Unfortunately, not all of us have the resolve to do what it takes to make it happen. For those who do take action, I have realised how much hope investing can give.
For some, this could be their only hope to somehow feel the comfort of living.
During these encounters, I come to know how valuable the role of Financial Advisors to our client’s lives. To my fellow advisors, let us continue making a difference in today’s world.
- See more at: http://mutualfundphilippines.com/2014/01/mutual-fund-university/investing-light-end-tunnel/#sthash.0542gve6.dpuf

We all dream of a better life. Unfortunately, not all of us have the resolve to do what it takes to make it happen. For those who do take action, I have realised how much hope investing can give.
For some, this could be their only hope to somehow feel the comfort of living.
During these encounters, I come to know how valuable the role of Financial Advisors to our client’s lives. To my fellow advisors, let us continue making a difference in today’s world.
- See more at: http://mutualfundphilippines.com/2014/01/mutual-fund-university/investing-light-end-tunnel/#sthash.0542gve6.dpuf

We all dream of a better life. Unfortunately, not all of us have the resolve to do what it takes to make it happen. For those who do take action, I have realised how much hope investing can give.
For some, this could be their only hope to somehow feel the comfort of living.
During these encounters, I come to know how valuable the role of Financial Advisors to our client’s lives. To my fellow advisors, let us continue making a difference in today’s world.
- See more at: http://mutualfundphilippines.com/2014/01/mutual-fund-university/investing-light-end-tunnel/#sthash.0542gve6.dpuf

We all dream of a better life. Unfortunately, not all of us have the resolve to do what it takes to make it happen. For those who do take action, I have realised how much hope investing can give.
For some, this could be their only hope to somehow feel the comfort of living.
During these encounters, I come to know how valuable the role of Financial Advisors to our client’s lives. To my fellow advisors, let us continue making a difference in today’s world.
- See more at: http://mutualfundphilippines.com/2014/01/mutual-fund-university/investing-light-end-tunnel/#sthash.0542gve6.dpuflike to invite you to be on board, together, we can improve your current financial situation

 

My Journey to Financial Freedom Part 3

Doing the Real Thing: Entrepreneurship is not for the faint heart 

From Part 2 - Click Here

 

With the innovative franchising concept, I started doing Nu Skin last November 2009 and have learned a lot from doing the business. The products are great, stability wise, it really is a stable company as they are listed in NYSE and Forbes Top 500. I also have nothing bad to say about the company's mission, vision, core values and culture. In fact, being with Nu Skin for the last two years had been one of the greatest and most valuable business learning experience I've ever had. Allow me to share with you why I think Network Marketing is the greatest business school model ever invented.

On the first part of my journey to financial freedom, I’ve shared about earning extra income from selling cakes and pastries way back in high school. Growing up, our family has engaged in various food business. I recalled we’ve already sold meat (cold cuts), halo-halo, barbecue, fishball, quek-quek, burgers and hotdog, sago at gulaman and ice candy. None of it lasted for a year.

Food might be a commodity but it takes a lot of effort to create it and sell it to be able to raise a decent profit. That’s why the usual return of investment for a food cart franchise takes about 2-3 years (conservative) and depending on factors like location and customer traffic. Let’s also consider risks like spoilage and wastage, and profit takers such as labor fees, location rental fees, franchise royalty fees, permits and other overhead expenses. Plus, you’ll be like the self-employed because you have to be “hands-on” with your food cart and oversee everything or else your business will fail. :)

The Beauty of Network Marketing

The beauty of being in a network marketing business, the system is already there, you no longer have to develop the products because it’s already there. You don’t have to get workers because you work for your business. You don’t have to pay for overhead expenses, and it’s an easy start-up that requires little capital with high profit gain. What’s also good about it is you get to work with a team; you get to have business partners that enable you to expand the business even if you’re not really there on a certain location. You cannot expand a business without a team that’s why most businesses that run on a sole proprietorship usually end up closing down in a year because one cannot work and succeed alone. If you want to succeed faster, it’s best to do it with a team. It’s also like a business school where you get a chance to be mentored by successful people who have done it and succeeded.

So if you happen to be negative about the network marketing industry, ask yourself this,

“What do I really know about it?”

Because what you know about it right now is probably hindering you from seeing the opportunity behind it. Not everything in network marketing is about “recruitment,” it’s not even everything about BIG PAYCHECKS and EXPENSIVE CARS and whatever the “hype” and “deception” other networkers have placed in it. There are a lot of network marketing companies out there; you just really have to know what the right company is. So instead of being skeptic, do research on its background, its stability, its proven track record, the compensation plan, on the quality of the products, on the core values of the company. 

Learning from my previous experience in network marketing, I got in a “not so good” vehicle because of the lack of knowledge in network marketing and not consulting those who know about it. Everyone has their right to CHOOSE. If you’ve been invited to attend a “job opening” but never telling you the name of their company then beware coz it might be a scam. Why should you be ashamed of your company if it is highly credible? I’ve already learned from my previous experience and I AM NOT DOING IT AGAIN.  If I want you to be my business partner I will tell you straight to the point what my business really is. I highly value CREDIBILITY and deceiving people won’t help me earn that.

Quoting from my mentor, “If you want to get the best from the industry, work with the best in the industry. In the future, people will prospect for uplines, not for downlines. They will look for those who are successful in network marketing to mentor them.”

2009 to 2012 being in network marketing industry is probably one of the best years of my entrepreneurial journey, but the story doesn't stop there. 

To be continued. 

Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect. Romans 12:2

My Journey to Financial Freedom Part 2

Welcome to the Entrepreneurial World! - The First Failure

From Part 1 - Click Here

There were a lot of challenges within our family and my experience gave me the passion to serve in the business world as I literally hounded heaven for a clear answer.

Realizing that I would not be able to get to my dreams for myself, my family and my country if I would be working forever as an employee and would not even be able to help A LOT of people if I don’t have enough to share and solely relying on my paycheck, I decided to look for a vehicle that could get me to the real world of Entrepreneurship. Some say I could start a SMALL BUSINESS but I don’t see it as a fast vehicle to my dreams. I don’t see myself being able to do it ALONE. 

After I graduated college, I started to look for a job, with one vision in mind -- to SAVE money in order to raise a capital to start my own small business. I've been considering franchising a siomai and fishball cart back then.

It was September 2009 when my boss introduced me to Network Marketing. I was a “kidnapped invite” meaning, I was invited to this network marketing company without any knowledge that I would be given a business presentation. Being really enthusiastic about putting up my own business, I was an easy sign-up and invested around 24k half from a loan offered by my boss and the other half from my savings, without the knowledge and consent of my parents.

I went home with a bag of expensive supplements, seeing the look of HORROR in their faces telling me I’m crazy. Since in network marketing, there are various levels of income rewards, I was “coerced to invest and hyped” to upgrade my investment to what they call 3-business center, so I invested an additional 15K I loaned from my Tito, bringing the total investment to 39K in an understanding that the bigger I invest, the bigger the business and income opportunity. After 2 months of being “coerced to invest and hyped” to do the business, I got sick and tired of doing it. Why? Because of the following reasons (based only on my strong opinion and experience):

1.  These network marketers taught me to deceive people. I was told to “invite” my friends through deception. Let me quote their famous line: “Dahil ngauumpisa ka palang at hindi mo pa kaya ipaliwanag ang negosyo na ito, wag ka na magpaliwanag kung saan mo sila dadalhin dahil sigurado negative ang mga yan.” I was advised to invite friends to dinner but instead, bring them in for a “hyped up” business presentation. I was told not to mention the company name whenever I invite.

2.   I was taught to “coerce and hype” people and “recruit” them as down lines. I was taught to offer fake part-time jobs in order to recruit people.

3.   I lost some of my friends because of that “deceptive” way of inviting people to partner with you in a business.

4.   Binary network marketing schemes involve more recruitment rather than product movement.

5.   I got deprived of the PROPER business training I needed to succeed in this business because their trainings are usually limited to those who are already doing well in the business, those who are already called “top-earners.” That got me questioning how will those who don’t excel succeed when they don’t give proper training?

6.    Money is their only purpose. Desiring to be rich to be able to buy a house, an expensive car and other material stuffs is their driving force.

7.    My core values are not aligned with theirs.

I stopped doing the business. I felt I was a victim. It never worked on me and I got stuck in a bad business debt and it was the first time in my life that I ever felt broke. I've always been thrifty and "Kuripot" so having all of my savings wiped out from the initial investment and getting in a deep debt made me feel so sad. But I never blamed anyone because it was a personal decision that I abruptly made without consulting anyone who knows about Network Marketing. By the way, the company was USANA (Sorry for name dropping, I just had to!). Don't get me wrong, I see some friends who succeeded doing USANA business and I'm happy for your success and that you inspire others to succeed as well. But I also know some who quit. I also heard some of my friends who also became "victims" of their deceptive inviting strategy like giving a job opening in iAcademy, etc. (To USANA distributors, if you really believe in the beauty of your company, I urge you to stop the deceptive inviting strategy.)

 

It was October 2009 when I met a business community that teaches aspiring entrepreneurs to establish their own business in a non-traditional setting, think of a Masteral school minus the expensive tuition fees. I would say that I finally got what I have been looking for – a team of mentors and entrepreneurs whom I share the same dreams and vision. I finished their wealth courses that gave me insight on how I could properly handle my finances so I would be able to recover from a bad investment. I was also enlightened more about why Network Marketing is still a good business to start into despite the negative experience I’ve had. I was able to raise a 100K capital from zero using the art of leverage taught by my coaches and mentors. I enrolled in the Life Entrepreneurship Program and started my Stage 1 Innovative Franchising Business through another Network Marketing Company. Yes, you read it right. Another network marketing company. 

To be continued. 

Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers. But his delight is in the law of the LORD, and on his law he meditates day and night. He is like a tree planted by streams of water, which yields its fruit in season and whose leaf does not wither. Whatever he does prospers. Psalm 1:1-3

My Journey to Financial Freedom Part 1

The Eye Opener: Why I chose to be an Entrepreneur

Our journey in life is made up of thousands of stories. We experience different ironies leading us to where we are exactly as of the moment. It is good to sometimes look back and re-live the past so that we can further appreciate the present and be more excited to look forward to the future.

Allow me to share with you a portion of my life which started my call for Entrepreneurship and my quest towards Financial Freedom. This is kinda long so if you think this would only bore you, all I ask is a little of patience as this could be your story too. 

Way back in high school my sister and I would go to school carrying a paper bag of pastries from our family business – particularly brownies and silvanas. We would sell these pastries everyday to our classmates and schoolmates for Php10.00 each. For every box we finished, we would get a profit of Php70.00 per box.

So If I am able to finish 14 boxes in a week, I get a total profit of Php 980.00 per week. Not bad for an extra income of a high school student right? Well, that wasn’t always the case. Since I bring these pastries almost everyday, time came when my classmates have gone tired or “sawa na” in eating our stuffs so there goes the spoilage because I can no longer finish a whole box of pastries and it ends up going home with me which I could no longer resell the next day for fear of food poisoning. That’s food, therefore, it’s disposable. Goodbye extra income.

I'd say that life had always been difficult as different circumstances over which we have no control of happens all the time. Back then, my dad was offered with an early retirement and our family went through a complete financial loss. My parents engaged in small businesses in order to sustain our family's income. All of us were studying at a private school back then so imagine the difficulty of paying for our tuition fees without a secure financial coverage. I experience a time where my sister and I pass textbooks after class and just bought the work books, even buying old textbooks from students in a higher level just to help our parents save money. It was a time where I felt that God had stripped us away of everything.

When I went to college, I took a course on Entrepreneurial Management. We enrolled in a state university so that our college expenses would be minimal. We had to rely on our relatives abroad for us to finish our education and my sister and I were very fortunate to have been granted a 4-year scholarship from the parish.

Being fully aware of our financial status, I experienced growing up in one day, taking full responsibility to support ourselves and be able to contribute to our family expenses. I need a bigger income so instead of selling more pastries; my sister and I got ourselves employed at a famous Filipino  fast food chain as a cashier and dining crew. I can still clearly remember the fear I felt the first time I crossed the street ALONE and commuting ALONE just to get to and fro to school and work because I was used to being fetched by a school service and I wasn’t brave enough. I never thought I would experience these kind of things in real life as I've only used to watch it in teleseryes. 

During those times, I realized how important it is to have a sound financial plan in case anything happens as employment will never give you financial security, you can't rely on the government when you retire and it is hard to become a financial burden to your relatives.

I was a working student when I entered first year college. My job earned me an income of 3k to 4k a month. Again, not bad for extra income of a student that time, considering that inflation wasn't yet that high. :D I was a working student for 3 years and stopped only when I was already doing my feasibility studies during my Fourth Year. Since I studied in a State University with a very minimal tuition fee, I'm proud to say that I was able to support my own studies through my income as a working student and as a scholar. Juggling acads and work was definitely a challenge considering that I was also active in various extra-curricular activities and actively serving in YFC (CFC Youth For Christ). Through God’s loving grace, we made it through and graduated last 2008 with good grades and maintained our scholarship until our final days in college. :)

A few weeks after graduation, I got employed as a Retail and Marketing Coordinator and landed on the job that I wanted. My job gave me a clearer picture of how a traditional business works. My job made me aware of how expensive it is to put up your own store, to monitor sales, to handle people, to budget marketing and advertisements and how expensive it is. Being involved from the store construction and down to handling store issues and concerns on sales and marketing, it made me realize that if I put up a traditional business, it would take years to recover plus the hassle and headache of being in-charge in everything just to make sure it won’t fail.

 

Sure I landed on a nice job but my paycheck is still not enough plus I have to work on a weekend and I felt that I’m being robbed of the time that I should have been spending with my loved ones. Looking at my check list of dreams, I haven’t gotten anywhere yet. The list is still way too far from reality. How much longer can I wait when my parents are no longer getting any younger? 

To be continued. 

You shall generously give to him, and your heart shall not be grieved when you give to him, because for this thing the Lord your God will bless you in all your work and in all your undertakings. Deuteronomy 15:10