Frugal Living

1

Darn I did not get to save any dime this week. For one, my children’s school had a huge event and parents were asked to contribute for food. Not to mention that the children had to participate in a field demonstration and were required to wear some sort of costume.

Since we are new in the school, I was not prepared for this annual event and ended up coughing out for the expenses.

2

My son Ty turned 3 on the 27th and we celebrated by inviting some of his friends and cousins. The event was a ruckus but alot of the children went home with a full stomach and happier. And yes, the highlight of the evening? The lights went out at 6:30pm. We had to use tons of candles to light up the entire house, much to the excitement of the children.

Question: How much do you allocate for birthdays and other events?

3

We also attended a wedding in the morning of the 28th and thanks to the local government unit here, they managed to completely spoil our day by closing the ONLY road leading to the wedding reception by dumping soil all over the road.

4

I cannot wait to rest and put my foot up and sleep.

5

Yes, I failed to save anything this week.

This is just so Pinoy. One of the products that thrive most during economic downsturns is probably the sale of noodles. Don’t get me wrong, my children and I love noodles. We have the penchant though for QuickChow and Maggi Noodles than anything else. But the point is, mostly when things are harder than it already is, most poor families turn to noodles. This is also the same for the US, according to Consumerist.

Instead of preparing full meals, noodles are far cheaper. In the Philippines, compared to Campbell’s Select Chicken with Egg Noodles Soup at $1.32 a cup, a Maggi would be P6.00 a pack. A 6 peso pack would be able to feed 2 people or even a family of four especially if you are serving rice on the side. Noodles might have high MSG content, but hey, I doubt if the MSG content matters to people whose budget is so strained.

So have I resorted to noodle shopping? Honestly, I buy noodles by the bulk in Makro– P2 a pack cheaper more or less. I only cook noodles twice a week since I am concerned about the MSG content and hey, noodles might be convenient but I honestly think I am depriving my kids other nutirients. I’d rather serve them fish and rice with eggs in the morning.

What about you guys? Have you increased the budget for noodles? What are your take on noodles?

This is just so Pinoy. One of the products that thrive most during economic downsturns is probably the sale of noodles. Don’t get me wrong, my children and I love noodles. We have the penchant though for QuickChow and Maggi Noodles than anything else. But the point is, mostly when things are harder than it already is, most poor families turn to noodles. This is also the same for the US, according to Consumerist.

Instead of preparing full meals, noodles are far cheaper. In the Philippines, compared to Campbell’s Select Chicken with Egg Noodles Soup at $1.32 a cup, a Maggi would be P6.00 a pack. A 6 peso pack would be able to feed 2 people or even a family of four especially if you are serving rice on the side. Noodles might have high MSG content, but hey, I doubt if these matters to people whose budget is so strained.

So have I resorted to noodle shopping? Honestly, I buy noodles by the bulk in Makro– P2 a pack cheaper more or less. I only cook noodles twice a week since I am concerned about the MSG content and hey, noodles might be convenient but I honestly think I am depriving my kids other nutirients. I’d rather serve them fish and rice with eggs in the morning.

What about you guys? Have you increased the budget for noodles? What are your take on noodles?

After my marriage fell apart, I was shocked to the core to realize that I was penniless. Stripped of any access of our family account, I was almost to my knees when I knew that I should have prepared for this. But that was the should-have-beens. I am now separated from my husband and beginning to learn the basics of saving for the future.

Here are the basics of saving and how I managed to jumpstart my children’s fund and my very own emergency fund.

Make Savings A Habit

Saving should be a habit. The easiest way to save is to set aside a portion of your income regularly. Pay yourself first. Allocate the rest of the money as you do in an envelope system or whatever system you think works for you. In my case, I have an accordion file that I bought years ago from the bookstore. I slip in allocated fund for everything I needed to pay for the entire month. Each pocket is appropriately labelled, ie. labandera, electric bill, phone bill, transportation, children’s allowance, groceries, house rent, etc. As soon as any utility bill or services has been paid, I slip the receipt on the pocket as proof of payment, and later, the payment will be entered into my expenses log via Quicken.

Automate

You can check with your bank if they can set up your payroll account so that your savings will be deducted every payday. That way saving becomes automatic for you. In my case, since the rental of my house in Manila goes into my main account, I have authorize the bank to transfer a percentage of my income to my secondary account– the account where my debit card is connected. This way, my emergency fund is tucked away in another account, and the money in the debit card is my spending cash for the month.

Start Small

Start by saving an amount that you’re comfortable with from your salary – 5 to 10% is a good bet for a novice. Don’t be overzealous and set aside half of your pay immediately; saving is a skill that you have to develop over time. You would have to unlearn a lot of wasteful spending habits first before your nest egg can truly grow. I started my own emergency fund for P500. I have now increased my allocation to P10,000 per month. I am more earnest in keeping with my pledge so I can be free from financial anxiety.

Think Long-term

To sustain your progress, your savings program should have a purpose. Your mindset should be that the money you save now will be used for your expenses in the future: your child’s college tuition, your safety net should you become sick, or your retirement fund when you’re no longer working. Knowing that the money you are saving will be used for your family’s well-being will keep you on track and motivated.

Do you have other money saving tips? Share them here by making a comment or email them to me at frugal.pinoy@gmail.com

After my marriage fell apart, I was shocked to the core to realize that I was penniless. Stripped of any access of our family account, I was almost to my knees when I knew that I should have prepared for this. But that was the should-have-beens. I am now separated from my husband and beginning to learn the basics of saving for the future.

Here are the basics of saving and how I managed to jumpstart my children’s fund and my very own emergency fund.

Make Savings A Habit

Saving should be a habit. The easiest way to save is to set aside a portion of your income regularly. Pay yourself first. Allocate the rest of the money as you do in an envelope system or whatever system you think works for you. In my case, I have an accordion file that I bought years ago from the bookstore. I slip in allocated fund for everything I needed to pay for the entire month. Each pocket is appropriately labelled, ie. labandera, electric bill, phone bill, transportation, children’s allowance, groceries, house rent, etc. As soon as any utility bill or services has been paid, I slip the receipt on the pocket as proof of payment, and later, the payment will be entered into my expenses log via Quicken.

Automate

You can check with your bank if they can set up your payroll account so that your savings will be deducted every payday. That way saving becomes automatic for you. In my case, since the rental of my house in Manila goes into my main account, I have authorize the bank to transfer a percentage of my income to my secondary account– the account where my debit card is connected. This way, my emergency fund is tucked away in another account, and the money in the debit card is my spending cash for the month.

Start Small

Start by saving an amount that you’re comfortable with from your salary – 5 to 10% is a good bet for a novice. Don’t be overzealous and set aside half of your pay immediately; saving is a skill that you have to develop over time. You would have to unlearn a lot of wasteful spending habits first before your nest egg can truly grow. I started my own emergency fund for P500. I have now increased my allocation to P10,000 per month. I am more earnest in keeping with my pledge so I can be free from financial anxiety.

Think Long-term

To sustain your progress, your savings program should have a purpose. Your mindset should be that the money you save now will be used for your expenses in the future: your child’s college tuition, your safety net should you become sick, or your retirement fund when you’re no longer working. Knowing that the money you are saving will be used for your family’s well-being will keep you on track and motivated.

Do you have other money saving tips? Share them here by making a comment or email them to me at frugal.pinoy@gmail.com

According to Veronica Dagher from Dow Jones Newswires, ATM fraud is on the rise, and it is imperative to follow a few simple steps to protect ourselves.

Here are some tips to protect your money:

Do not use a strange looking ATM machine- Crooks can use skimming devices and keyboard overlays to steal your card information digitally. These skimming devices are usually attached closed to the card reader. Be wary of using ATM machines with parts that looked recently or crudely attached on the card reader and the keypad.

Shield your hand when entering your PIN- Sometimes, tiny cameras are installed closed to the new machines. Do not give the cameras a chance to pick up your PIN.

Check your balance regularly- Watch over your recent transactions and report unusual ones to your bank right away. The sooner you contact your bank, the better. Click here for the list of toll free numbers of banks in the country.

Avoid ATMs at isolated location- Think twice about using stand-alone ATM in a mall or convenience store. The machine may not be as secure as the one within a bank branch.

1

In preparation for 2009, I have been working on my budget spending plan. I am forecasting an increase in savings next year.

2

I have just realized I am spending P24,000 a year for a maid. I have just hired a day-time only maid for P2,000 a month. Looking at P24,000 a year for a maid is making me rethink about just getting by the household chores alone… the downside of this is a messier house and a meaner and stressed out single mom. Decisions, decisions…

By the way, how much are you paying for your household help?

3

My son is turning 3 on the 27th and I have budgeted something for his birthday. To save some cash, I have opted for a local cake maker instead of getting a cake from the city. It is a tad cheaper, not to mention it is more convenient since I do not have to ask anyone to get the cake for me.

I saved P300 getting a cheaper cake. Not bad.

4

My maid is already asking for an advance. She said she needed to pay for her electric bill. I gracefully turned down her request and told her that I have allocations every month and cannot accomodate out of the budget stuffs– including cash advances for hired help.

Unless ofcourse there is some emergency. (knock on wood)

5

Also on the 27th, is the Foundation Day of the school where my children are going. The children are going to do some dances and there is going to be a huge potluck. Financial downside to this was I totally did not prepare any allocation for the costume and contribution for potluck. Darn… I had to dole out P900 for their costumes. I took it from the budget allocated for the laundry woman payment for the next 3 weeks. I will have to move some cash around.

Nice to have an emergency fund.

6

I have contemplated and yes, I am opening another emergency fund. This time instead of opening it in a regular bank, I am opening an account in the local cooperative bank called FICCO which have higher interest rates than the local banks. More information on that after I visit them next week.

7

Electric bill came in today and it was P200 lower than last month. My electric bill here in rural Misamis Oriental averages P1,500. Not too bad considering my monthly electricity in Manila is P11,000. Oh, the savings you get for opting out aircondition use and just using a reliable electric fan…

What about you? Did you make any huge financial blunder this week?

Or did you manage to save more money?

Share your ideas, comments and stories with me. Email me at: frugal.pinoy@gmail.com

Have you noticed more sale mark everywhere? Aggressive marketing schemes are now on the works everywhere as the effect of deflation is beginning to manifest itself. Although prices of oil is in its fast decline, this is not exactly a very good sign since the decline is too fast– too soon. Companies are cutting down on costs. And cutting down on costs would mean removing redundant positions. Dell, Citigroup, and other big companies like GM had laid off thousands of employees and cutting production. This Citigroup lay-off news last week has caused their value to decline and has lost half of its value in a span of four days. If that doesn’t cause you to be wary and anxious perhaps the news that the costs of price paid for crops in the US has dropped so fast than the cost to grow them.

So what has the US economy has to do with us? Plenty. Because our local market relies so much on international trade, our economy will soon feel the ripple effect soon. That actually scares me.

So what can you do now?

Secure your employment.

If people who have steady monthly income feels the anxiety of the troubled market, then people who have nothing much will more than feel the pinch. But what else can we do? If you have a job, you better find ways to secure your job. If you are in the danger of getting laid off, get your act together and begin showing your boss what the company will miss if they kick you ass out. Or if you are already on the verge of getting kicked out, you might want to start looking around now.

And if you were already laid off, here are some ways to use those free time (other than looking for another job- that is..)

Increase your monthly savings and try to cut corners, especially if you are not Jessica Agbunag, the woman who just scored $2.4M in Las Vegas.

More people are actually holding on to their money. I am one of them. I am pledging 2/3 of my income to savings for next month. I know it is Christmas, but I have already done our Christmas shopping this November, and if there is anything that has to be settled, it would only be the utility bills, nothing more. I have already started an emergency fund, and next month, I am starting emergency fund number 2.

Teach your children how to save.

If you have the intention of cutting corners, then it is important that the family is supportive of your plans to curb expenses to the minimum at least until the recession is over. If you have yet to inform your family members yet, this is the time and the time for your children to practice saving. My daughter actually has started saving her own money now. She is 7 years old and gets P20 a day allowance. Her allowance includes her transportation fare which is P10, which leaves her another 10 for her snacks. I actually thought she is using up all of her allowance, but every Friday, I noticed she has more money in her wallet. I asked her and she informed me she only spends P4.00 for snacks everyday and she saves P6.00. That is 30% savings every week or P30 savings each week. Not only that, she has decreased her cell phone use. She gets P2/day of pasaload from me.

Cut down on your utility bills.

Begin with your electricity bills. Unplug unused appliances and do not turn on the lights during the day unless it is really necessary. I have some easy tips here to help you curb down your utility bills.

Secure your investments.

If you have come cash tied up in some fund held by insurance companies, you might want to find out fast if these investments are even insured, if not, you might want to pull them out now and put it somewhere safer. I am thinking a slowdown in car sales, luxury items, insurance, real estate as homeowners will be forced to downsized and tend to keep their money in. Anxiety and depression will build up so, doctor’s and pharmaceutical industry will probably remain okay. Oh, the suicide rate will probably increase too.

In short,

Things will become nastier soon. The earlier you start to get a grip of your own finances and secure whatever you have NOW, then we should be ok…

Have you noticed more sale mark everywhere? Aggressive marketing schemes are now on the works everywhere as the effect of deflation is beginning to manifest itself. Although prices of oil is in its fast decline, this is not exactly a very good sign since the decline is too fast– too soon. Companies are cutting down on costs. And cutting down on costs would mean removing redundant positions. Dell, Citigroup, and other big companies like GM had laid off thousands of employees and cutting production. This Citigroup lay-off news lastweek has caused their value to decline and has lost half of its value in a span of four days. If that doesn’t cause you to be wary and anxious perhaps the news that the costs of price paid for crops in the US has dropped so fast than the cost to grow them.

So what has the US economy has to do with us? Plenty. Because our local market relies so much on international trade, our economy will soon feel the ripple effect soon. That actually scares me.

So what can you do now?

Secure your employment.

If people who have steady monthly income feels the anxiety of the troubled market, then people who have nothing much will more than feel the pinch. But what else can we do? If you have a job, you better find ways to secure your job. If you are in the danger of getting laid off, get your act together and begin showing your boss what the company will miss if they kick you ass out. Or if you are already on the verge of getting kicked out, you might want to start looking around now.

And if you were already laid off, here are some ways to use those free time (other than looking for another job- that is..)

Increase your monthly savings and try to cut corners, especially if you are not Jessica Agbunag, the woman who just scored $2.4M in Las Vegas.

More people are actually holding on to their money. I am one of them. I am pledging 2/3 of my incoe to savings for next month. I know it is Christmas, but I have already done our Christmas shopping this November, and if there is anything that has to be settled, it would only be the utility bills, nothing more. I have already started an emergency fund, and next month, I am starting emergency fund number 2.

Teach your children how to save.

If you have the intention of cutting corners, then it is important that the family is supportive of your plans to curb expenses to the minimum at least until the recession is over. If you have yet to inform your family members yet, this is the time and the time for your children to practice saving. My daughter actually has started saving her own money now. She is 7 years old and gets P20 a day allowance. Her allowance includes her transportation fare which is P10, which leaves her another 10 for her snacks. I actually thought she is using up all of her allowance, but every friday, I noticed she has more money in her wallet. I asked her and she informed me she only spends P4.00 for snacks everyday and she saves P6.00. That is 30% savings every week or P30 savings each week. Not only that, she has decreased her cellphone use. She gets P2/day of pasaload from me.

Cut down on your utility bills.

Begin with your electricity bills. Unplug unused appliances and do not turn on the lights during the day unless it is really necessary. I have some easy tips here to help you curb down your utility bills.

Secure your investments.

If you have come cash tied up in some fund held by insurance companies, you might want to find out fast if these investments are even insured, if not, you might want to pull them out now and put it somewhere safer. I am thinking a slowdown in car sales, luxury items, insurance, real estate as homeowners will be forced to downsized and tend to keep their money in. Anxiety and depression will build up so, doctor’s and pharmaceutical industry will probably remain okay. Oh, the suicide rate will probably increase too.

In short,

Things will become nastier soon. The earlier you start to get a grip of your own finances and secure whatever you have NOW, then we should be ok…

Did you know that Meralco has begun refunding the meter deposit including interest in compliance with the Energy Regulatory Commission (ERC) Resolution No. 8, Series of 2008? According to the official Meralco statement, all eligible residential customers with small kilowatthour consumption shall be processed first. These are residential consumers who paid the meter deposit required by law from 1987 to 2004. These consumers will be notified in their electric bill of their schedule and where they will be refunded.

Here is another savings!!! Instead of spending your Meralco refund, you can include the amount to your growing emergency fund or whichever fund you choose. You can also use that refund to pay for your next month’s bill, and chalk your allocated monthly budget to savings (again)! There are just so many ways you can use that refund… the main question is, will you be doing the wise thing?

If you have more frugal ideas or even Meralco related stories, share it with me by making a comment below or sending me an email at: frugal.pinoy@gmail.com