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,

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