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Showing posts with label Spending. Show all posts
Showing posts with label Spending. Show all posts
FOR PINOYS PERSONAL FINANCE Spending

9 Smart Ways You Can Spend Your 13th Month Pay this Year

Wednesday, December 14, 2016
This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

 It’s the time of the year again when 13th month is here. You may have a list of ideas on how you’re going to spend it but hinay-hinay lang kapatid. There’s nothing wrong in buying your wants with your extra cash but if you want a change then you might want to think again and become a wise spender. Here are 9 smart ways you can spend your 13th month pay and get the most out of your bonus this year.

Quick Review
  • I did a complete post All About 13th Month last year. Please read here >>>
  • Under Presidential Decree 851 also known as the 13th Month Law additional monetary benefit for employees from their employers must be given to enable a better Christmas and New Year celebration to the labor force.
  • According to www.payrollhero.ph all rank and file employees regardless of their designation or employment status who have rendered at least one month during the calendar year are entitled to a 13th month year. The 13th month pay shall be in the amount not less than 1/12 of the total basic salary earned by the employee within the calendar day.
  • In 2015 a higher tax exemption for 13th month pay was pushed. Employees whose 13th Month Pay is below 82,000pesos will not be taxed. However if your 13th Month Pay surpassed the 82,000pesos bench mark you need to pay 30% tax.
  • Basic salary includes the earnings paid by an employer to an employee for services rendered. This does not include allowance, monetary benefits or any amount outside the employee’s regular pay. For example Juan’s basic salary is 21,000pesos with 2,000 transportation and meal allowance. Only the 21,000pesos is considered in the computation of 13th month.
  • Here’s a sample of computation of 13th month pay based on different employee types:
    • If the employee completed one calendar year to the company he/she is entitled for an amount equals to one month of his/her salary.
Monthly Pay: 21,000
13th Month Pay: 21,000
  • If the employee is new to the company he/she is entitled for a 13th month as long as he/she spent a one month service to the company. The computation with be:
        Monthly Pay: 21,000
        Number of Months Served: 6
        6/12months x 21,000      
        13th Month Pay: 10,500
  • If the employee is resigned he/she is entitled for a 13th month pay depending on the number of months he/she served the company.
Monthly Pay: 21,000
Number of Months Served before resignation: 9
9/12months x 21,000
13th Month Pay: 15,750
  • If the employee have multiple employers he/she is entitled for 13th month from of his/her private employees with the same computation if he/she completed the calendar year, a new employee or a resigned employee. In case you are working in the government and works part-time to a private company you will only receive a 13th month pay from your private employer.
  • If you are on Maternity Leave you are entitled for a 13th month pay based on the number of months you rendered before you filed your leave. You will still receive two-month worth of salary.
Now that we have covered almost everything you need to know about 13th Month Pay let’s now reveal the smart use of 13th Month. Know that 13th Month happens only once a year so better to think wisely on how you’ll spend it. Here are my 9 smart ways you can spend your 13th month pay.
1. Buy/Spend for your hobby
We all have that one activity we excel at. Whether it be calligraphy, hosting, singing, dancing or blogging. Your 13th Month will definitely be useful if you invest on new tools or upgrade your existing equipment. Take for example buying a better camera for your blog photography. This will definitely make your blog stand out more. You can also use your 13th month to take online class or seminars that could hone your skills more.  Another tip for bloggers like me is buying your own domain. Being a .com can make your blog more professional and trustworthy. Pangalan.com is my choice of domain provider. It’s a portal made for Filipinos and I love that the customer service they provide. Their .com and .net is even on sale for only 299pesos!!!
2. Reward Yourself
You can also use your 13th month to reward yourself with something you have been eying for the longest time. There are a lot of sales happening around the metro and upgrading your wardrobe or shoe collection can be a good option. You can also get a laptop to get started with your freelance work or a better smartphone you’ve always wanted. There’s nothing wrong in rewarding yourself as long as there is right balance between everything.
3. Take a trip out-of-town or abroad
Cross one of your bucket list and go for a weekend getaway local or abroad. Many revealed how travelling can change your perspective in life. From my personal point-of-view the travels I did this year has been life-changing. I met new people and discovered a side of me I never thought exist. You can also devote yourself on a soul-searching trip with your 13th month pay. Try visiting www.travelbook.ph for the best hotel deals you can avail. Or book your next trip now in this form.
4. Start a side business
Now is the best time to make a business idea come to life. You can use your extra cash to open up an online shop, a homemade goods business or a franchise of your favorite snack or treats. Or maybe you can try a buy and sell business that’s easy to operate. It doesn’t have to be big already. Just start with the money you have and make it grow through hard work and determination. Read below related posts:

  1. Must Try Side Business Ideas for Pinay Entrepreneurs
  2. Small Business for 20-something
  3. 5 Business Ideas to Start this -Ber Month
5. Invest for your future
Another smart use of your 13th month pay is through investing. You can open a mutual fund, direct stock, UITF or any other savings account of your choice and become an investor. In my post How Do You Picture Your Retirement Age? I have mentioned how important planning for the future is. The best time to invest and make your money work for you is now. Below are recommended investment vehicle you can open with your 13th month pay:
  • Open a FAMI-SALEF account. This is the first account I have opened ever. It is my first taste on the investment world and what made me into stock investing. I have a post on the step by step process on opening one, a thorough guide on the new investor’s portal and updates on my investment as well.
  • Open other Mutual Fund or UITF account. I have reviewed a number of mutual fund and UITF you can choose from. Most of these accounts require 5,000pesos to 10,000pesos only as initial investment. Make sure to do your own massive research before investing. CLICK HERE to read my first impression posts on some of the best Mutual Funds and UITF accounts in the country today.
  • Open a St. Peter Life Plan. Last August I decided to invest in a life plan too just like my parents and I am glad to report to you that I’m done in my first year of paying. I have a detailed post on why I believe St. Peter Life Plan is an investment you can read here. In case you want to know more about St. Peter Life Plan or interested to invest too then send me a quick message at izza@savingspinay.ph I will forward to you the process on how to avail one.
6.  Save on your Emergency Fund
An emergency fund acts as money cushion to help in you in case of unwanted/unplanned situation. Whether it be sickness, death in the family, loss of job or other unforeseen events you have an extra money to use. In Dave Ramsey’s Total Money Makeover it is said that emergency fund should be equal to 3-6 months of your expenses.
7. Pay-Off Your Debt
If you suffer from high-interest debts then this can be a good chance for you to finally be debt-free. Go pay debts that have long been giving you stress like credit card or 5/6 and make sure not to engage with debt anymore. You can read below posts on debt-management:

  1. Here's a Strategy to Pay Debt Even with Low Salary
  2. SavingsPinay Debt Series | Day 1, Day 2, Day 3, Day 4, Day 5
8. Get a Life Insurance
If you want your 13th month to be ultimately useful for your benefit then why not talk to a financial adviser today and get yourself a life insurance. In case you already have one then you can use your bonus to increase your premium payment. Why you should get a life insurance? The main reason is because life insurance can replace your income if you die. Your dependents can still enjoy the kind of lifestyle they desire and your children can still fund their education thanks to life insurance. Life insurance is all about living a legacy and I know for a fact that it can be an intimidating financial decision to do. If you need expert financial advice you can contact Ms. Patty from Integra Financials at patriciamarie-o.aguirre@philamlife.com.ph or quickly give a call at 521-6300 local 4462. Tell her that you want to know more about Life Insurance and how it could benefit you and your family or future family as read in SavingsPinay.
9. Buy gifts for your parents, family and friends
The essence of Christmas is expressing gratitude to the people around you so what a better way to spend you 13th month pay than buying some presents to them. I remember the Christmas in 2013 when I bought a sofa for our living room. I felt so much joy to be able to provide one for my family. Until today we are still using the sofa. My eldest sister on the other hand bought a 21-inch flat screen TV for us which made everyone in the household happy. I suggest going to Lazada since they have a lot of gadgets and items for sale this season. You’ll definitely find one for each of your family member.
Final Notes from SavingsPinay
Personally I plan to divide my 13th month into three major expenses: emergency fund, new investment (direct stock) and rewarding myself. I have been super blessed with event hosting gig for the month of December and I can’t thank God enough for the talent He gave me. So far I can definitely conclude that this year is the best year ever in terms of my financial life. Now I can’t wait for 2017 because I’ll surely double (and even triple) my hard work.
How about you? Did you get your 13th Month Pay already? How did you use it? Or How do you plan to spend your extra money?

This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.
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Budget PERSONAL FINANCE Spending

Where Does Your Income Go?

Wednesday, September 28, 2016
This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

 Am I the only one excited for Friday pay day?! I bet most of us are looking forward to this also.
Today as a precaution for everyone I decided to create a post as to where does your income go. Here you'll find necessary guidelines and general tips on how your income should be distributed. Before reading the rest of the post I recommend checking the following related links:



Where Does My Income Go?

Every pay check I go over my 50-20-30 Rule of Budgeting Template and distribute my net income in the same manner. I have talked about 50-20-30 Rule of Budgeting on the blog and just last June I believe I finished revising the template and creating an e-Guide that will go along with the file. If you are already part of the SavingsPinay FB Community then you can download it for free under Files. If you are a newbie reader then please send me an email request at izzaglinofull@gmail.com for your own copy.

Currently my income is sliced on the following expenses.

First Paycheck (15th of the Month)

50% - Food and Transportation Allowance for the next 10-11 days of work
        - Monetary gift to my parents

20% - Savings
       - FAMI-SALEF Investment

30% - Relaxation, Toiletries/Other Personal Care, Book and Others

Second Paycheck (30th of the Month)

30% - Food and Transportation Allowance for the next 10-11 days of work

50% - Savings
       - Emergency Fund

20% - Relaxation, Toiletries/Other Personal Care, Book and Others

Notes:
  • I spend a lot on Food and Transportation since I work in Makati and my transportation alone is 120pesos back and forth. 
  • I have mentioned on My New Budget and Spending Tracker how I track my spending. I believe this what makes the big difference when it comes to managing your money. The ability to track everything you spend on a particular day. Once you have master this you will surely earn financial discipline that your future self will thank you for. 
  • My Second Paycheck (30th of the Month) is usually bigger than my first paycheck (15th of the Month) so I maximize it to go automatically on my emergency fund. How? I have two Metrobank Accounts, my payroll account and my personal account. I transfer immediately a dedicated amount from my payroll account to my personal account through online banking. READ: The Different Saving Funds You Should Own
  • I invest!!! If you still have no idea on how to invest I encourage you to check last week's post How to Invest for Beginners in the Philippines. I added a quick story on how I became an investor at 19 years old.
  • Monetary Gift to my parents. Actually my parents don't ask anything from me (from us) at all but if you still remember my 20-something panic I have this thing for my parents... I feel like there's so much they deserve and I want to do for them so badly. My gift isn't much but my hope is it could ease their financial burden somehow. 
  • Of course I need my relaxation and personal pampering once in a while. And by once in a while I mean once a week. To be honest this is a big loop hole in my finances and I know that I could save a lot if only I stop being such an impulsive shopper. If you go over my personal blog you'll know I had my mani-pedi experience at Let's Face It Trinoma, I also buy a new book every pay day and once a month I do some shopping. Last Monday's post on 4 Useful Tips to Live Within Your Means is a reminder for me to still live frugally no matter what. 
Do You Have Any Side Jobs?

Now aside from my income (salary) I also make extra money through the many side jobs I do. This isn't a surprise for those who have been reading SavingsPinay since the beginning. My side jobs allowed me to save more, invest more and share more. This is something I am always thankful for to God --- that He blessed me with such gifts that turned me into a money-making machine. My post All About Making Extra Money in the Philippines will prove you that there is soooo much ways you can earn extra income. 

Currently here are the hustles that let me earn extra on the side:
  1. Event Hosting for all Occasion is something started when I was 17 years old college student. I earn per event or special occasion I book.
  2. Wedding Planner/Wedding Coordinator is something I venture after a year of hosting. I have a passion in planning events and wedding in particular give me so much happiness. I gathered my own wedding coordinator team and have been to Tagaytay, Antipolo, Batangas etc.
  3. Makeup and Hairstylist for Special Occasion is something I offer once in a while. I do hair and makeup for brides, entourage, debutant and guests.
  4. Blogging. My blogs SavingsPinay and IzzaGlino both started as a hobby and now they manage to give me some side income. I earn through ad spaces, sponsored post, blog contents and affiliate marketing. I also manage to get clients thanks to my blogs since it became my online portfolio. 
  5. Freelance Writing. Writing has been part of my life since the beginning. I've been part of the school newspaper from elementary to high school. I took up BS Journalism in college and I currently work as a Technical Writer in Makati. It became apparent that I will become a freelance writer someday. It was the book So You Want to be a Freelancer that motivated me to enrich my writing skills and offer my service. Today, I work  part-time on an SEO Content Writing Service based in Bangkok, Thailand. 
The money I get from side hustle related to event from hosting, coordination and hair&makeup are all paid in cash so it is actually harder to keep. My next action it to open a passbook savings account in BDO since the minimum initial money I need to is only 5,000pesos. I believe having a passbook will ultimately help me track my earnings. My plan is to deposit my earning as soon as possible to my passbook savings account. 

All my Blogging earnings are still on hold since I haven't reached my payment threshold yet. It is actually harder to earn money blogging than I thought plus the fact that I only started getting serious in transitioning blog to business come early 2016. 

My freelance writing payments are well-kept on my Paypal account and I use primarily on online payments like buying this blog's theme of Etsy. 

What Should You Do with Your Extra Money?

If you have any extra money whether it came from a side job, bonus or unexpected gift then here are some recommendations on where you should invest it:


1. Save it


Excess cash can be used to fund your savings. Open a new savings account or use any separate account your have deposit it. 


2. Invest it

You can also choose to invest your extra money on a mutual fund or Unit Investment Trust Fund for example. These type of funds are perfect for beginners plus opening fee are most likely 5,000 to 10,000 pesos only. Below are some mutual fund, UITF and other investment options I have discussed on the blog:



3. Use it

You deserve a reward for your extra hard work so why not use the money to go on a much needed vacation. You can also save all your extra money to buy your bigger expenses like luxury items, car, downpayment for a house etc. 

Final Notes From SavingsPinay

Knowing where you income goes is important because it gives you so much awareness when it comes to your finances. I don't know about you but for me, wondering where my money went over the last pay day isn't cool. I want to know exactly how I spent my income whether it's from my salary or the extra income I earn on the side. 

My Next Action For You are as follows:


1. Answer where does your income go? Grab a pen and paper and list down the areas where you spend your earnings from bills to unnecessary expenses. This will lead you to create you budget and will soon become your basis in managing your money every month, week or day.

2. Find a side hustle you can earn extra money! This next action is actually life changing. It could make or break your ability to earn money. Do you have any skill you can offer to others? Maybe you are good in writing too then start finding freelance writing gigs now. 



This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.
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PERSONAL FINANCE Spending

4 Useful Tips to Live Within Your Means from Kyle

Monday, September 26, 2016
This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

 Hi everyone! Today we have an amazing article from our SavingsPinay Guest Blogger of the Month. 

Last week I received an inquiry from Kyle Kam whether I'll be happy to feature his post on SavingsPinay. I happily agreed knowing how this could add value to our readers. I have heard about MoneyMax.ph for sometime now and it's an honor that someone from the brand noticed the blog. Kyle will give us the 4 Useful Tips to Live Within Your Means.

Hope you enjoy the post that Kyle wrote for us!


You’ve probably received the advice “live within your means” before. The thing is that living within one’s means is largely subjective. Everyone has different set of financial circumstances, and therefore, living within their means will be largely different.

Between the differences in finances, there are a few principles when it comes to living within your means that still hold true, and here are some tips to show you how to live within your means.
Lifestyle traps

 The trap of lifestyle inflation is the biggest and least obvious one to spot and dealing with it is essential whether you earn a lot or less. The trend for most people is to spend a little more as their pay grades go up, rationalizing that it’s fine since they can afford it. There’s a difference between being actually able to afford it, and playing at being able to afford it.
The difference between the two is that you’ve actually got more income than you’re spending. If the case is you end up uneasy and waiting for payday, you can’t afford the lifestyle you’ve been trying to live.
Know your net worth

 Figuring out your net worth will give you a better understanding of how your finances are working for you. While your annual salary is a figure on its own, you’ll have to include other income streams in order to get your total net worth.

One formula for it – written by Burn Gutierrez – involves adding up your total assets, consisting of the following:
  • Add your: Savings + Retirement Accounts + Investments + Any Real Estate + Other Income Streams
  • Add together any outstanding debts you might have together. This includes constant bills, like credit card bills, insurance payments, loan payments and the like.
  • The sum from your debts must be subtracted from the sum of your total assets. If the result is negative, then at least according to Burn’s guide, you’re living well beyond your means.

Cash is king


 The thing about living on a credit card is that it’d be all too easy for you to rack up debt. Living completely on cash, or a debit card, ensures that you can only spend what you actually have.

A great many people think that a credit card is one way to prove that you’ve got the means – and there are times when a credit card is a great tool to have. That time is when you’ve got the financial responsibility to handle paying those bills full and on time every time.

Developing the habit of using only cash or debit means you won’t consider buying or spending unless you’re 100% sure that you have the money for it.

Success is relative


 A lot of things can define success, and much of it is just as subjective as the means you use to attain it. A large part of considering yourself successful comes from what you deem as the most important wants and needs in your life.

Figuring out what success means to you can allow you to make changes in the way you think about your money.

Overall


 Being able to live solidly within your means carries with it an understanding that there’s a time and place for spending your hard-earned cash, and a time for conserving and saving for whatever future goals you have.

A firm understanding of these will allow you to live within your means, but comfortably.

About our Guest Blogger:

KyleKam is from MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.

Final Notes from SavingsPinay:

Thank you so much Kyle for making this wonderful post. I know you've shared some valuable information to all SavingsPinay readers too. To anyone who'd like to submit a guestpost you just like Kyle you can send me an email at izzaglinofull@gmail.com or message me via SavingsPinay Facebook Group.

This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.
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