Do You Have A Budget?

 

People often will say they have a budget. You say you know where your money goes, and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every peso you spend for one month, and I mean every peso. I know of a lady entrepreneur who set a budget using several envelopes. Every day, this lady entrepreneur would set aside an amount for purchasing goods from the market, daily rental, etc. Whatever is left, she deposits in her bank account. This lady did not finish her collegiate studies. With no accounting background, she applied what she felt was practical. At 85 years old, this lady is a proverb in the bakery business. Her name is Julie Gandionco of Julies’ Bakeshop.

Here is a test, which she voluntarily shared with me. She called it a test to see what small items can be significant savings. You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.

That is how much you could have saved AND drawn interest in just five years. That, my friend, is why all of us need a budget.

If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.

The little things really do count. Cutting what you spend on lunch from 200 pesos a day to 150 pesos a day on every workday in a five-day workweek saves Php. 250 a week… Php. 1000 a month… Php. 12,000 a year… Php 60,000 in five years…. plus interest.

See what I mean… it really IS the little things, and you still eat lunch every day, AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.   

Set some specific long-term and short-term goals. There are no wrong answers here. If it’s important to you, then it’s the introductory period.

If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation to Japan… anything… then that is your goal and your reason to handle your financial situation now.

There is a saying that there is a will if there is a way.

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You may contact Armando “Butz” Bartolome for questions and more information.

Email: [email protected]

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Website: https://www.butzbartolome.com