the extra challenge that is budgeting

i am inspired to write this because there were other misis who were curious on how our household was able to save when only one of us is working and yet we can afford little luxuries like traveling. according to them, it is so hard nowadays to budget their income and to see some money left for savings. the truth is, our household is not actually an exception. i am doing the envelopes system and logged our expenses diligently to track where our money is going but at the end of the day, i still get headaches over managing our budget. it doesn't help that the cost of grocery items we usually buy, the diesel, and the electricity keep on increasing that's why i have to cut corners in some of our expenses to afford them.

am not sure if these tricks would work for you but let me share them anyway...

1. we keep aside our savings first... then the expenses follow. had it been the other way around, it's definitely, surely zero savings for us. temptations are everywhere especially when you live in makati where restaurants surround you and malls are just a few kilometers away from the house. how do we do this? jude has two deductions from his monthly salary which goes to their company's cooperative and company's stocks. aside from this, we started to invest last year in a club share which is payable for three years thru post-dated checks. so definitely we have to allot for this.

2. we work on a budget most of the time, if not always. we always set a limit for our eat-outs, shopping, trips, parties, etc. i work on budget which is not only our household can afford but is also comfortable for us to spend (capacity is not the same as willingness). even for our monthly expenses I set a limit for our groceries and allowances. it's nice to have yogurt and expensive fruits everyday but that would mean more thousands of pesos to add in my budget. and oh... we also set limit on the financial support we give. this must be tough to some but we chose to limit it if we want to realize our financial goals for the family.

2. we go for the cheaper alternative if possible. it was three or four months ago when i started to observe that my monthly budget for food and groceries was already small. but instead of increasing its budget, which is not possible anyway since our disposable income is fixed until jude gets another raise, i downgraded to  cheaper brands for products like detergents, theo's diaper, cleaning products, etc... but that is, if quality isn't an issue.

there's also a wisdom in surf's lumen advertisement years ago... why buy oranges when you can get vitamin c from dalandan? and that's what we do now... :)

3. if applicable, we buy second-hand items. we realized the practicality of buying second-hand items for some of the things we want for ourselves. tour yourself around our house and you'll find some things which we bought as second-hands but still in good condition and at very affordable prices. the kids' slide, the narra chairs, and this desktop am using right now are just some of the few.

4. i raid sales and buy much as i can. i don't shop much at divisoria especially for our personal things... why? because the quality of most items there really suck. there may be good finds but i have to spend hours to scour the alleys--waste of time! what i do instead is raid warehouse sales of branded products during christmas season.  thanks to my network as am always updated. and as much as possible i hoard from these sales, usually for a year-long of use. this really saves as a lot of money since i seldom buy at regular prices.

5. we avoid unnecessary expenses. - other mommies were scrambling to have tickets for disney live but i did not not bother--i found its rates too expensive! and since my kids had already been to disneyland why would i bother to see them here in metro manila? i also cannot find the reason why i have to pay php 500 to run when i can jog or run in the park without touching my wallet. these things are really waste of money if you ask me.

and oh, by the way, i seldom check the groupon sites. if i want to purchase something at a promo price, i ask friends to alert me. such sites are full of temptations so avoid it if i must! hehehe.

6. we indulge, but there were trade-offs for this. our family loves to travel and we do this as long as budget and time permits. no, we don't feel guilty for doing this. because we do deprive ourselves too of some things we want like watching concerts or musical plays. cirque de soleil was here in manila last july and i was like, "oh, i need to watch them!" jude already gave me the approval to book a ticket for myself (plan was i will be just going out with a friend) but i backed out since it will still take php 3,000 from our savings and we just came from a trip.

we also teach the kids the same thing. we also let them splurge in some things they like but it's always that they must let go of another thing.

7. generosity doesn't have to be pricey for us - i cringe whenever people declare after christmas that they made their loved ones very happy with their gifts BUT rant about their outstanding balance in their credit card bill/s. this made me ask:. do we really have to put ourselves in a financial mess just to prove that we love our family and friends?

8. we try to be money-smart - hmm... how should i explain this? it's like when we have arrears in our dues but we're not in a rush to settle it since it doesn't earn any interest over time. so what we do instead is we use that money first for other things which can bring savings for us in the long run.

in a nutshell, it's analyzing first the pros and cons of spending, especially one which involves a big amount of money.

this ends my list of wise-spending tips. budgeting for me is all about setting priorities. we listed down what values to us most and it's where we bring our money.

hope i was able to help. :)