Budgeting 101

Australia is the first ever country I travelled outside the Philippines. Before I came here, the first concern I asked my friend Elysha Gomez (who was by the way been here 3 years before me) is the cost of living. Lifestyle here in Australia she said is very expensive. On my first week of being here I got my first taste of the expensive living that she is talking about. I needed to cut my nails and, bless the people who gave our pre-departure orientation seminar they mentioned that nail-cutters are not allowed in the luggage, so I had to leave my dearest nail-cutter behind.  And I couldn't believe my eyes, nail-cutter here costs $5 each for the cheapest one, that's 200 pesos (you can have 10 pieces nail-cutter already in the Philippines for this price)! 1kg of rice costs $2, that's 80 pesos! Oh Sweet Jesus!

My first realization that needs immediate action: Redo my budgeting, or put it this way, start budgeting from scratch! My budget in the Philippines is 150% totally not applicable here in Australia!

So, for 6 glorious months (note: water consumption in Perth is billed every 6 months, gas is billed every 3 months, & electricity is billed every two months) I had to keep a list of my spending to find out where the bulk of the living expenses is going, which areas can I trim down, and whether is it really practical to work and live in this country for long, given the ratio and proportion of income versus expenses. Take note from the sample budget below that car is included because personal car is a necessity especially if you are working at graveyard shift or if you are living in areas like Kwinana where public transportation is not so convenient.

"The key to Money Management - First Step: Find out where your money is going now - B U D G E T !" - (from the book Making Money Made Simple by Noel Whittaker).

Here's a sample of simple budget breakdown that I did (Read: sample only)

BILLS & UTILITIES		WEEKLY ($)
Gifts/Donations/Tithes
Savings
House	Rent
	Electricity
	Gas
	Maintenance
Car	Petrol
	Insurance
	Roadside Assistance
	Registration
	Servicing or maintenance
	Loan (if there is)
Food & Grocery
Health Insurance
Life Insurance
Phone bills
Internet
TFC (The Filipino Channel)
Remittance to Philippines
Holiday Allowance (to Phils.)
Holiday Fare (to Phils.)
Kids	Uniform
	Tuition Fee
	School books & materials
Eat-out (Splurge)

Have you heard of the 10-20-70 principle? For people who are allergic to budgeting, this principle seems effective:10% allotted for tithes (giving back to God and its people), 20% pay for yourself to be invested in different instruments for you to enjoy on your retirement, 70% living expenses.

Another simpler technique or formula is this:

Income - tithes - savings = Expenses

This means you need to secure first your budget for tithes and savings before spending your salary.

 

"A man who both spends and saves money is the happiest man, because he has both enjoyments."

- Samuel Johnson

"If you don't plan how you'll spend your money, you'll also end up in the same place financially: you'll have nothing at the end of the day."

- Simplify and Live the Good Life by Bo Sanchez

The TrulyRichClub is guiding its members how to grow their money so that they could give back more to HIM. I dreamt of tithing back to HIM someday more than 50% of my passive income from my investments. Guide and Bless me and my Norlito Oh Lord!

How about you? What is your dream figure?

 

Novena to God's Love by Bo Sanchez

"Feast Declaration of Abundance"

 Today, I receive all of God's love for me.

Today, I open myself to the unbounded,

limitless, overflowing

abundance of God's universe.

Today, I open myself to God's blessings,

healing and miracles.

Today, I open myself to God's Word so that I

become more like Jesus every day.

Today, I proclaim that I'm God's Beloved,

I'm God's Servant,

I'm God's Powerful Champion,

And because I am blessed,

I am blessing the world,

In Jesus' Name,

Amen.

Journeying with Passion,

Net

I want to Invest! Where do I Begin?

Oopps! You're wrong! I'm not singing. I love songs but songs doesn't love me.

After reading and digesting all sorts of financial literacy books like Kiyosaki's Rich Dad Poor Dad, Stanley's The Millionaire Next Door, Bo's 8 Secrets of the Truly Rich, Colayco's Wealth Within your Reach, Zadel's Think and Grow Rich (Napoleon Hill), Whittaker's Making Money Made Simple,and many more, what's next? I want to invest where should I start? That was me and my Norlito's question.

"Study anyone who's great, and you'll find that they apprenticed to a master or several masters. Therefore, if you want to achieve greatness...you must apprentice to a master." - Robert Allen

So, we looked for financial mentors to guide us on our financial journey. My friend in Singapore Analyn Bontilao introduced us to the Truly Rich Club of Bro. Bo Sanchez. That time she is already invested and TRC made that big difference in her life.  We joined the TRC last October 2012. We also joined the International Marketing Group (IMG) Truly Rich Makers Team under the mentor-ship of Fely and Benj Santiago. Please click here to know more about IMG-TrulyRichMakers Team.
  
IMPORTANT NOTE: Invest only when you have

1.  Increased your Income (for OFW's like us, being abroad should have addressed this step,  otherwise find ways to increase cashflow).

2.Taken protection
     a. Long term and short term health insurance (me and my husband have taken the Kaiser Premium Health Builder of IMG for long term health insurance; and the Bupa Health Insurance here in Australia for the short term health insurance).

     b. Term Life Insurance (Most life insurance here in Australia have worldwide coverage,although there are lot of conditions to be met as most other local insurance do. My husband and I have BUPA Australia as short-term health care insurance so getting a Life Insurance from them would give a member a discount on the premium. Please note this is just an info, I'm not advertising for them. You can choose other Life Insurance providers). It is not necessary to get Term Life insurance if you are not a breadwinner or nobody depends on your income for survival.

3. Paid all debts (We can exclude property investment leverage here as they are good debts).

4.  Built Emergency Funds (equal to 3-6 months expenses for single and 6-12 months expenses for married. This is something liquid that you can access easily in case of emergencies). 

Yes there are membership fees my dear. But as mentor Bo said "Your money won't grow if you don't grow. Grow you and your money will grow too. So invest in yourself. In your self growth. And whatever you spend will be nothing compared to the profits you'll earn because of the quantum growth you'll experience. Get rid of the free lunch mentality. When you pay for something, you value it. And you learn more. You get blessed more. When it comes for free, many times, we don't value it. And we don't learn."

Australia is a beautiful place. Agree? But isn't it best if when we finally decide to reintegrate in our beloved Philippines we are not only taking home with us our pictures in the beautiful places of Australia but also having achieved Financial Freedom and Financial Independence and having escaped the rat race as the true reward and memento of working abroad?

Of course, no one wants to have photos abroad only as remembrance. Let's TAKE CHARGE of our own finances but be guided accordingly. Let's all target being financially-free. 

Journeying with Passion,
Net

Perceptions of “Being Rich/Wealthy”

I am still an employee who is still trapped in the rat race (8 hours job). I wake up everyday to rush into my source of active income (income that comes directly as a result of my own hard work, my skill, talent and time). Whether I feel like working or not I have to work because this is the only income yet that I have. When I stop working, money stops coming in. This is the price of having no passive income streams yet (passive income is generated by our earning assets and investments that does not depend on our active participation in terms of time, skill or talent). But agree or not, for people like us who did not inherit humungous amount of wealth we have no choice but to work to have active income while “slowly but surely” building our future sources of passive income (e.g. Mutual Funds, Stocks, Bonds, UITFs, small businesses, real estate,etc.).

Every day, to break the monotony of our work routine, me and my colleagues often discuss interesting topics not related to work (Ssssssshhhhhh! this is a top secret!) to at least alleviate homesickness. This is also our way of cheating ourselves to enjoy our job (well I guess if you enjoy the company of your colleagues and your boss at work there's no reason for you to not at least love your work isn't it?).

One question we tossed in the air is this: What to you is being wealthy means? (Sounds like a “Ms. World” questionnaire?)

These were the first things that came to our minds:

1. Driving Flashy cars.
2.Owning big houses in the states (as in sa states lang talaga? hahaha!).
3.Wearing branded clothes, shoes and accessories like bags, watches, etc.
4.Manny Pacquiao (What? Seriously? Did you also realize that Pacman is an epitome of wealth? You’ve got to be kidding me. Well, what can I say, he is able to make Philippines zero-crime-rate for at least a day when everyone (criminals, pick-pocketers, murderers, drug lords) are glued on the tube watching his fight).
5. Talks with glamour (Ouch! poor me, I'm a cowgirl type who talks like one of the boys).
6. Madami asawa (Lots of wives/husband)- (Ouch again! poor husband of mine, I’m the only wife he have ( Tee!!!haa!!!).

When I got home from work I retrieved my compilation of what wealthy really means as defined by financial literacy gurus. I have also included other terminologies that changed how I perceived my financial life. And these are what I got.

From Robert Kiyosaki’s Rich dad: "Many people think that being rich and being wealthy are the same thing. But there is a difference between the two: The rich have lots of money but the wealthy don’t worry about money.” As explained by Robert Kiyosaki, “while the rich might have lots of money, they also might have lots of expenses that keep them up at night. Or they might have a high paying job but have to get up to work everyday and have fear of getting fired or laid off.”

Robert Kiyosaki has defined wealth as being how long you can live off the income of your investments without having to work - how long your money will last to allow you to live without working. While Financial Independence is achieved when your monthly income is more than your monthly expenses.

Francisco Colayco in his book “Wealth within Your Reach” defines wealth as a condition where your present financial resources can support your lifestyle over a long period of time even if you do not work to generate income.

Financial Freedom happens when your wants and your needs are exceeded by your passive income. Financial Freedom is a state or a condition when someone’s passive income is greater than their work income and more than adequately covers their desirable lifestyle expenses at the same time.




And last but not the least, escape rat race means becoming financially independent from an employer.

Now, have you visualized which one would you like to be? Then, YOU have to ACT NOW! Come on, let's journey together.

As Brian Tracy said: “ Dream BIG. Live your life without limits. If you want to go somewhere else or be someone else, it is totally up to you to make the choices and decisions today that will eventually get you there. And there are no limits.”


Journeying with Passion,
Net

Joining TrulyRichClub of Bro. Bo Sanchez

I came from the humble and simple yet fulfilling life of the agricultural sector side of the Province of Ilocos Norte, Philippines. I’ve have grown up from a very loving family background. My three siblings and I had the happiest childhood so to speak. We have never felt “lack” as we were able to eat more than 3 times a day with foods naturally grown around us. We have a home filled with our laughter. We have the lake just down the hill for our endless swimming pool. We have wide backyard and fields to play around. We have the moon and the stars to light-up the night while waiting to drooze-off. We were trained early with the adage “Early to bed, early to rise, makes you healthy, wealthy and wise”. Life then was so carefree for me and my siblings. Life seems so uncomplicated and worry-free as all the basic necessities of life are just within our grasp almost all so cheap if not for free.

When we started studying in high school, reality started to haunt us. Accompanied by almost monthly non-stop natural calamities destroying the income-generating crops of my parents, financial struggle started to set in. This went for so long. As children, nobody ever discussed to us about saving extra money and investing. Seeshhhh! How can my parents teach us saving if they are having hard time making both ends meet? Yes, we were taught how to cut cost in every area of spending out of no choice but never did it occur to us to save and invest for the future when we were earning already after graduating from college.

And then on one faithful day, a dear friend replaced a lost book she borrowed from me with one written by Bro. Bo Sanchez, author of so many best-selling books. The book “8 Secrets of the Truly Rich” was an eye-opener to me. I finished reading the book in just one sitting devouring each essential passage and awakening messages. It ignited the sleeping “lamp” in me. It literally enlightened me about money. Bro. Bo says “Money isn’ t the most important thing in the world. But money affects every important thing in the world.” How’s that to you? We’ll, with all the financial experiences my family had during my school days, I’d say Bro. Bo is so right at that.

 

I have read this book soooo many times (looks overused isn't it?, haha!)

"8 Secrets" fuelled me and my Norlito the burning desire to start building a solid financial foundation for our family. We signed up for membership at the TrulyRichClub (TRC) and now applying all the financial literacy principles it is teaching us. Another good thing about this club aside from the financial mentoring is that we also gain spiritual abundance through the daily “GodWhispers” sent daily to our inbox. It’s as if all areas of our life are enriched. Bro. Bo cited the importance of taking out Term Life Insurance for bread winners so we took one. He also stressed out the necessity of building emergency funds equal to 6 months of expenses for rainy days; and paying all outstanding debts before investing. He also mentioned that the best time to prepare for retirement is NOW so a year ago we have started investing in mutual funds, UITFs and stock market and let it grow for 10-30 years from now (long term investing for our retirement). Bro. Bo and TRC’s battlecry is “Earn as much as you can, save as much as you can, and give as much as you can” and that the true value of wealth is in giving it away.

Join us at TRC and let’s learn together the building of blocks for a solid foundation on all aspects of our lives. This is the best time to start your exciting journey too. It is in your hands and not anyone else who will make or break your future. As Les Brown said, ”Accept responsibility for your life. Know that it is you who will get you where you want to go, no one else.”

Click here to join Bo Sanchez's TrulyRichClub or email me if you have questions on our journey with TRC.

Journeying with Passion, 

Net