Finance Friday: 7 Ideal Summer Businesses You Can Start Today

At long last, summer break is here! It’s indeed great to finally be able to relax and get a break from school. However, there’s that minor fact that you won’t be receiving any allowance from your parents for the time being. Don’t despair though, because there are plenty of ways to make some money at minimum or no capital at all! It’s not even about finding opportunities anymore. You can actually make your own opportunities to earn money. Here are some ways how:

1. Cellphone Loading

This is probably one of the cheapest and easiest to manage business ideas for the summer. If your summer plans so far consist of staying home, go to the nearest loading center instead. Avail of a cellphone loading kit and you’re ready to start earning. Who knows, your cute next-door neighbor might come knocking one day to buy prepaid credits.

2. Merienda Stand

Sell halo-halo, fish balls, kikiam, and cheese sticks to the kids in your neighborhood. The ingredients are not too expensive and preparation is very straightforward. This is a fun venture to start with friends or family members. Got a blender? Sell fruit shakes in the afternoon. All you need to set up is a table, chair, and a small space! You’d probably need a cooler, too.

3. Garage sale

Rummage around your closet or around the house for stuff that you don’t really use anymore but those other people might be interested in. Collect old clothing, shoes, furniture, books, appliances, and even toys, and hold a garage sale! Schedule your garage sale in advance and put posters all over the neighborhood. Be creative so you get people’s attention. Come opening day, your garage sale will be a hit!

4. Online selling

There are ways for you to earn profit from the time you spend online. You’ll find plenty of people selling everything from clothing and accessories to books and pastries through Facebook! If you don’t have the inclination to hold an actual garage sale, you can definitely try selling goods and services online. If you’re into arts and crafts and would like to sell your creations, try websites like Etsy.com.

5. Car washing

Offering services such as car washing requires only your labor as capital. Offer to wash cars of family members or your neighbors for a cheaper fee compared to car washing centers. Washing cars can actually be a lot of fun. It’s a good excuse to play with water (lots of it!) under the sun—and you get paid in the process. Just make sure to ask the car owners if they’d like their cars washed any special way and adhere to those requests.

6. Tutoring

Do a little good this summer by offering tutorial services to kids. You can advertise online or have family and friends help you tell people they know through word of mouth. Offer tutoring services for Math, English, or Science. Play any musical instrument? Teach others how!

Tutoring usually pays well and you can bill by the hour. The best thing is you only need knowledge, a few reference books, and in some cases, minimal transportation allowance.

If you’re exceptionally good in English, you can try to earn by teaching English online. Websites like RareJob.com connects you with people around the world who want to learn English. All you need is a stable Internet connection. Register with the website and pass screening tests to get started immediately.

7. Sports clinics

Summertime is when a lot of parents look for activities their children might join in. If you’re quite good at any sport, offer to teach or coach young kids (or even adults in your neighborhood) for a small fee. How to get started? Advertise a free session and invite everyone to go! It will help rouse people’s interests and let them get a preview of the sort of things they can learn from you.

Have a productive summer by using your time (this is your most valuable investment) to earn some money! Starting a small business or offering your services gives you invaluable experience. When the time comes that you go looking for a real job or ready to start a serious business, your stint as an online teacher or an online seller will get you farther than you think.

If professional employment is a long way off, at least you can get some extra pocket money to buy that gadget you’ve always wanted or grow your personal savings!

This post is brought to you by:

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10 Money Habits to Leave Behind in 2015

Background image from exchangeratecalculator.com

Last time, I wrote about the things that I intend to not take with me in the new year. One of the things I wrote is this:

6. The mentality that being financially ignorant is cool
I've written personal finance posts for a year, but being the human that I am, I still succumb to temptation and forego saving and spend on unnecessary things. Looking at my account, which should've contained more, I learned that it is uncool.

But it is a little vague, isn't it? I thought about it yesterday and figured I should remind myself (and you) of the things we should stop doing if we care to have a financially independent lifestyle in the future. Here they are:

1. The One-Day Millionaire attitude

WHY: Because I've been like this and it has always led to buyer's remorse. Also, you won't have any money left for an emergency.

SOLUTION: Pay yourself (savings) first and give to the church or the community. Then pay all of your bills next. Invest some amount, and divide the remaining into categories of your budget. With the amount remaining, I doubt you'll still be in the mood to spend.

Source: popsugar.com

2. Disregarding emergency funds

WHY: Because so many people are unprepared for real emergencies, and this is the reason why so many people get buried in debt.

SOLUTION: Build an emergency fund by making an account (preferably without ATM) and depositing a certain amount monthly.

3. Spending so much to maintain an image or make an impression

Finance Friday: How Will You Spend Your Christmas Bonus?

It's December once again! For most of us, that means Chrismas is near. For many of us who belong to the employed sector, that also means more moolah!

This is the time of the year when many of us receive Christmas bonuses and 13th month pays. Unfortunately, since I am technically a freelancer, I don't receive these kinds of benefits. What I do is work double-time (since I am in charge of my time) so that I will have extra money for Christmas.

Last year (woah time flies!), I talked about suggestions on how to use the 13th month pay. It's an awesome post so please read it haha!

But what about the Christmas Bonus?

If you read my post about using the 13th month pay, I suggested that we donate 10% of it to charity. That's because I consider this regular income. It means that it's something expected so we can include it in a regular budget.

However, the Christmas bonus is not considered regular income because first, it is not always certain, and second, we may not know how much it is or when we will receive it. So I have a different view about it.

Finance Friday: No Cramming for Christmas!

"Christmas is not an emergency; it comes every year." - Dave Ramsey

Who else thinks Dave Ramsey is on point here? No one would oppose it because it's true: Christmas comes every year and, guess what, we know exactly when it happens!

But why do we wait until the last minute to prepare for it? I'm not taking about the decorations and the planning. We usually begin celebrating Christmas on September 1 (right?), and even before Halloween, some of our neighbors have already decorated their homes.

No, I'm talking about preparing for the spending.

A lot of people (like me) cram for Christmas. The result? Impulse buying, overspending, and buying either too many gifts or too little.

Since we all agree that Dave Ramsey is right (if you don't, feel free to tell us why!), I think there should be no excuse to cram. Since we know it's already the season to be jolly, we should have already started preparing for it. Financially.

How do we do this? Here are some tips:

What is "Rich"?

You must have have heard of this advice a million times already, but I'm going to repeat it to annoy you drive the point: Live within your means. Do not buy something you can't afford with cash.

With this in mind, what do you think first when you hear the word "rich"? I used to think that being rich is an unattainable status. Growing up in a middle-class family, I was raised to think that it was virtually impossible to be rich and that only a few "chosen" people can be rich.

However, as I grow up, I began to discover a new definition of being rich. Unfortunately, this definition still entails hard work, the same hard work required by my old definition of "rich. Fortunately, though, I discovered that the mindset that it was impossible to be rich is untrue. In my opinion, everyone can be rich in life.

Photo credit: www.tourism.gov.ph

So what do I mean when I say "rich"?

On Shopping and Leisurely Spending

Background image: http://www.funnelove.com/

Like any other warm-blooded woman,  I adore shopping. But I also write passionately about personal finance. Can I do both at the same time?

I don't see why not.

I have heard about spending diets where you shouldn't shop for a period of time; a fellow blogger, Edelweiss, does that. I am amazed at their willpower because I simply can't stop shopping.

You see, I have come to terms with myself that I will always like shopping. Blame that on reading Clueless books in 6th grade. For me, budgeting and saving will be futile if you feel you're being deprived. I think it will just cause burn out,  which leads to quitting.

Just like in a diet where you sometimes go on cheat days, I believe it's healthy to occasionally spend on ourselves, too.

Passive Income: How to Earn While You're Sleeping

Background Image: http://bodyonept.com/

To be honest, I only heard of the term, "passive income," a couple of years ago when I first started learning about money. Blame that on being raised by parents who believe money should not be publicly discussed and never receiving even a day of financial education at school!

But wait, doesn't my background sound familiar? Because if you're also a Filipino from a middle-class background and also got "traditional" education, you can probably relate. Right? Let's not fret, though, especially now that we understand how important financial education is!

So what's passive income?

This is basically a source of income that you don't have to consistently work hard for. In other words, this is income you get even when you're not doing anything.

Sounds great, right? Imagine not having to worry about your electricity bill because you know a source of passive income takes care of it. Work smarter, not harder, as they say!

Image: http://www.partnerswithvision.com

It's not surprising to know that if you want to achieve a level of financial independence, what you need to establish is passive income.

How Different is it from Windfall?

Windfall is money you didn't expect. For example, it could be from an inheritance or a donation or a tax return. Both are not immediate products of working. The difference between a windfall and passive income, however, is that the latter comes regularly.

In other words, it's almost like a salary that you get without lifting a finger. However, unless you have millions in your account that you can freely use to invest, please take note that passive income usually doesn't come right away. It arrives after years of work and investment (remember delayed gratification?).

Common Sources of Passive Income

What it Means to Live Within Your Means

Many of us have surely thought of ways to live a financially comfortable life. I know I have, and I have my reasons. But if we all have the same aspirations, why is it that only a few actually get - and stay - rich?

What separates those on their way to financial freedom from those who, let's just say, are on the totally wrong route?

The answer is simple - too simple actually. Those in one of the two groups live within their means.

C'mon. I must've heard of that a thousand times already. Can't you give me something new? A surefire way to get rich?

Unfortunately, no. You must have heard of the advice a thousand times, and the reason for that is that it works! Coupled with the practice of delayed gratification and having financial knowledge, the principle of living within your means is the surefire route to financial independence.

Why? 

Finance Friday: You Need an Accountability Partner

Image from Google

Left to my own devices, I would have probably wasted my money on beautiful but unnecessary things.

But I did not.

I may be a master of delayed gratification but that doesn't mean I have self-control of steel. To be honest, I think of shopping all the time! One of my favorite pastimes is online window-shopping where I admire beautiful things. Bags, shoes, furniture, books, homeschool supplies - these are only some of the things in my perpetual want-list. But I haven't given in to buying any just yet.

Why?

Because I have an awesome accountability partner: my mother.

Finance Friday: Tips to Practice Delayed Gratification

 

You may understand "delayed gratification" and what it means, but do you practice it?

A couple of Fridays ago, we talked about this secret key to wealth that we call "delayed gratification." We found out how it works and why it should be your ultimate mindset if you want to achieve success in your life.

Let's admit it. Living this kind of lifestyle is easier than done. But another cliché that speaks truth is this: it always seems impossible until it's done. Oh yes, it's hard, but it's not impossible!

In fact, if you begin taking baby steps now, I'm sure your future self will thank you. And me. Haha! Kidding aside, if you're clueless and don't know where to begin, fret not because I'm about to give you practical and doable tips:

1. Create a budget and maintain it.

I firmly believe that writing down should be the first step in reforming your personal finances. This does not only tell you how you can save on your finances but also show you how much money you really have after taxes. The latter is important in keeping in mind how to live within your means.

For more information on budgeting, please click visit this post: Why You Need a Budget.

2. Know the difference between needs and wants.

This is a no-brainer. I'm sure this is self-explanatory. No, a pair of Raybans is not a need.

3. Stop acting on impulse!

Finance Friday: The Secret Key to Wealth

So I guess many of us have already heard of the famous Marshmallow Test.

You know, the study conducted by Stanford University in the 1960s on 600 4-year old children. A child was given a marshmallow and was told that if she doesn't eat it right away, she'll have another one later.

Basically, the two options were these: one now or two later?

Image from Youtube

It sounds like a no-brainer, but to 4-year olds, that's tough. I mean, who wants to wait? But only 30% passed the test. Later in life, the researchers also discovered that this 30% are the more successful of the group. Interesting, right?

So what's the point I'm driving? Simple. The secret key to wealth is more than self-control; it's more than sheer will-power. The secret to wealth is this:

Finance Friday: The Social Climber

Photo: http://www.andbethere.com

The social climber, for me, is someone who "needs" to have the latest and the current best. She feels the "need" to upgrade her lifestyle to keep up with what's new. Thus, while she earns more, she also spends more and saves less, a decision that only she and her family will suffer.

If you're looking for a blog post that badmouths a certain social climber (or, well, gold-digger), I'm sorry; you're in the wrong place.

It's not that I don't write about gossip (which is somehow true).

It's because the social climber can be easily you. And me.

Now that I have your attention (I hope), come to think of it. Since you started earning money, how many times you have received a raise? From that answer, how many times have you upgraded your lifestyle? Once? Twice? Each time your income increased?

Because let's face it:

Social-climbing is dangerously easy.

I'm confident to ask you these questions because I am on the same ground. Just recently, I realized that on good months, I am now earning almost 50% more of what I used to earn last year. As a freelancer, I technically don't receive a raise. However, as Yuri becomes more independent from me, I am also able to do more work in a day. Hence, more income.

And I'm not complaining at all! I'm praising God for this increase in His provision! The problem is that there is no increase in my savings. On the contrary, there is a big increase in my spending.

Finance Friday: An Excerpt from 'Rich Dad, Poor Dad'

I wasn't able to prepare a full post for this week's Finance Friday mainly because I just discussed a "heavy" topic over the last couple of weeks: the emergency fund. 

Here are the two posts in case you missed it: Why You Need An Emergency Fund Right Now and The Emergency Fund: Tips on How to Build It.

Also, I've been stressing over our internet connection. It has been five days since the last day we had a connection. We've called PLDT twice already and still haven't seen any action. Hello, PLDT?

Anyway, last night, I was reading this very short e-book sent to me via email. It's called Managing Your Money, and it is written by Robert Kiyosaki. Yes, the Robert Kiyosaki who wrote Rich Dad, Poor Dad. 

Image from store.richdad.com

Unsurprisingly, it contained an anecdote from the latter, and I'd like to share it with you because it reminded me so much about our discussion on emergency funds. (I don't think it's illegal to do so since this is just a mini-book that is shared freely over the internet.) Here it is:

I remember asking my rich dad about the habits of the rich. Instead of answering me outright, he wanted me to learn through example, as usual.

“When does your dad pay his bills?” rich dad asked.

“The first of the month,” I said.

“Does he have anything left over?” he asked.

“Very little,” I said.

“That’s the main reason he struggles,” said rich dad. “He has bad habits. Your dad pays everyone else first. He pays himself last, but only if he has anything left over.”

“Which he usually doesn’t,” I said. “But he has to pay his bills, doesn’t he? You’re saying he shouldn’t pay his bills?”

“Of course not,” said rich dad. “I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government.”

“But what happens if you don’t have enough money?” I asked. “What do you do then?”

“The same,” said rich dad. “I still pay myself first. Even if I’m short of money. My asset column is far more important to me than the government.”

“But,” I said. “Don’t they come after you?”

“Yes, if you don’t pay,” said rich dad. “Look, I did not say not to pay. I just said I pay myself first, even if I’m short of money.”

“But,” I replied. “How do you do that?”

“It’s not how. The question is ‘Why?’” rich dad said.

“Okay, why?”

“Motivation,” said rich dad. “Who do you think will complain louder if I don’t pay them—me, or my creditors?”

“Your creditors will definitely scream louder than you,” I said, responding to the obvious. “You wouldn’t say anything if you didn’t pay yourself.”

“So you see, after paying myself, the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of income. The pressure to pay becomes my motivation. I’ve worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don’t start yelling at me. That pressure made me work harder, forced me to think, and all in all, made me smarter and more active when it comes to money. If I had paid myself last, I would have felt no pressure, but I’d be broke.”

“So it is the fear of the government or other people you owe money to that motivates you?”

“That’s right,” said rich dad. “You see, government bill collectors are big bullies. So are bill collectors in general. Most people give into these bullies. They pay them and never pay themselves. You know the story of the 98-pound weakling who gets sand kicked in his face?”

I nodded. “I see that ad for weightlifting and bodybuilding lessons in the comic books all the time.”

“Well, most people let the bullies kick sand in their faces. I decided to use the fear of the bully to make me stronger. Others get weaker. Forcing myself to think about how to make extra money is like going to the gym and working out with weights. The more I work my mental money muscles out, the stronger I get. Now I’m not afraid of those bullies.”

I liked what rich dad was saying. “So if I pay myself first, I get financially stronger, mentally and fiscally.”

Rich dad nodded.

“And if I pay myself last, or not at all, I get weaker. So people like bosses, managers, tax collectors, bill collectors, and landlords push me around all my life—just because I don’t have good money habits.”

Rich dad nodded. “Just like the 98-pound weakling.”

I haven't read Rich Dad, Poor Dad yet, but now I'm interested. What are your insights on the excerpt above? I'd love to hear them!

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The Emergency Fund: Tips on How to Build It

Hey there! This is Part 2 of my "talk" about emergency funds. If you didn't read the first part last week, I suggest you read it first to understand why I'm insisting you create one. Just click here.

Okay, ready?

I am no financial adviser nor am I saying that I'm doing so well with my finances. I'm just your regular, info-hungry 20-something mom.

I'm also just your regular working gal who finds it so tempting to spend all of her income on shopping. It's a monthly struggle really!

But that's just the thing. Many of us don't really need the credibility of finance gurus. Most of the time, we just need someone who's on the same ground as us., someone who experiences the same "temptations." I'm as average as one can get, so you can be sure that what I am saying is not only relatable but also practicable!

I admit that out of all the non-negotiables in my budget (check this post for more about non-negotiables), I find it the hardest to allot money for the emergency fund. It just looks so pointless because I don't know what I'm saving up for or why I need to do it.

But I also have to admit that during times of emergency, I praise God for his imparted wisdom and for convicting me that, yes, an emergency fund is necessary.

I already wrote a post detailing the reasons why one should have an emergency fund, so let's go straight ahead to the practical tips and how-to's. Here are some of the commonly asked questions about emergency funds and my attempt to answer them.

1. How much should I save?

Why You Need An Emergency Fund Right Now

Wow, it had been a while since I last wrote a Finance Friday post! I planned on writing one last week, but Yuri and I were both sick which didn't inspire me to write.

This was also a busy week as some of our relatives arrived in the city and we got busy touring them around and generally making them feel welcome. Just last night, they were up late because Mama was teaching them how to bake macaroons and her famous moist chocolate cake:

 And my toddler found a new friend in his cousin:

To be honest, I still wouldn't have gone around to writing an FF post if I didn't get to read this interesting post about Jesus having an emergency fund. Interesting, right?

This leads us to the topic of the day: emergency funds.

If I can categorize my friends into those who are financially "okay" and those on the brink of getting broke (I really can't, but this is hypothetical), I'm sure the main dividing factor would be the emergency funds - or the lack thereof.

You see, it is considered "common sense" to set aside some amount of money for the rainy days; however, only a few actually do it.

Unfortunately, even Christians can belong to the "other" category. I have many Christian friends who are buried in debt simply because they don't have an emergency fund. In fact, I'm still waiting for a Christian friend to pay back the debt she has owed me for 3 months now.

Before I proceed, let me clarify that I am not pressuring her to pay me because, praise God, we still have just enough to get by. This is just for illustration. Now, the reason she borrowed money from me for the first place was because of a medical - you guessed it - emergency. She is young and single, was working full-time then and was earning a good amount of money, but in the time of emergency, she had nothing to cover the expenses with.

The debt could have been avoided had she begun an emergency fund prior to the emergency.

Finance Friday: Tithing FAQs

I made a mistake.

I made a very recent (this week-ish) mistake in tithing, and this honest mistake led me to write a follow-up post about it. 

Another thing that led me to write this post about tithing were the questions I received from last week's post, and, hey, that's a great thing!

So last Friday, I talked about the reasons why we should want to tithe. Take note that I continue to highlight “want” in my statements. The message I want to relay is this: tithing should be more than a mere obligation. It should root from a deep desire to serve God. Thus, we should want to do it.

I just want to clarify that, before anything else, tithing should be done willingly and not begrudgingly. Perhaps the Filipino phrase, "bukal sa loob," describes it best.

What was that mistake I made? I want to talk about it later in my post, so if you're patient enough, please read through this entire thing first hehe. I promise I'll make it worth your time.

You see, tithing is not like ordinary saving where you take a portion of your income and take it somewhere else. It is something that you need to mull over and pray over. I am, in no means, an expert on tithing but I want to help you (and my sole reason is to bring you to God). To do that, let me share with you the questions I received about tithing.

1. Can I tithe to charity organizations and not the church?

Please, please, please, if you have deeper Biblical knowledge about this, correct me if I'm wrong! What I know is that in the Bible, tithes are meant to be the means of livelihood of the church-workers before anything else. What I understood is that even though tithes are also given to charity, they are, before anything else, meant to feed the church-workers and their families. This means the priority is not charity though it is included.

However, I understand that many are still not rooted to a church. Frankly, I am not yet rooted to a particular church (but let me clarify that this is because of circumstance and NOT by choice). My tithes don't have a regular recipient but I do give to a certain charitable institution sometimes. Now, let me clarify that this institution is run by a Christian church, which means my tithes do benefit the church-workers, too.

In a nutshell: I think that yes, you may give to charity, but to fulfill the Biblical purpose of tithing, it should be one run by a Christian church.

What if God is prompting you to give to an individual? Let's talk about that later.

2. Can tithes be less than 10% of my income?

I am not the best person to answer this because I can be legalistic. However, I want to try. If we base it on the Old Testament, I guess the answer is no. This is because in many verses about tithes, God specifies 10% and not just any portion of the income.

Leviticus 27:32
And concerning the tithe of the herd, or of the flock, even of whatsoever passeth under the rod, the tenth shall be holy unto the Lord.

But God is a gracious God and, while He is also just, I feel He would favor Grace over legalism. If you're not used to tithing, I guess you can begin with a smaller portion of your income. Keep in mind that the keyword is "begin." You should eventually be used to tithing until you can give the Biblical 10% - and even more! Don't make stealing from God a habit!

Also, if you commit to give a certain amount to God, remember that this is a regular commitment and not a one-time thing. Again, don't make it a habit to steal from God because the only one who will reap the disadvantages is - wait for it - you!

In a nutshell: 10% is the Biblical standard, but I guess (I'm not sure!) you can begin with a smaller amount. However, you should aim to give what the Lord requires and give whatever you commit to give regularly.

3. What if there's nothing left from my salary to tithe?

Finance Friday: On Tithing and Why You Should Want to Do It

I admit that the topic I chose to write about might be quite heavy especially for those who do not share the Biblical mindset. I wouldn't force you to tithe, but I hope I can encourage you. For Christians, though, who already regularly tithe, this post should serve as a reminder of why we need to keep doing it.

So let's get started?

I began tithing when I first became Christian around 4 years ago. Then, for some reason only God and I know, I stopped doing it after a year. I look back to those times with regret because I know I wasn't able to give back to God what belongs to him. I wasn't fully blessed because I was stealing.

Wait a minute. Stealing? Well, yes, but let's get to that later. I don't remember when exactly I started tithing again, but I profusely thank God for allowing me to regularly tithe now. Now, I know I'm not stealing from His Kingdom anymore. And you know what? It feels great.

If you want to know the reasons why I tithe, please read on because here they are:

1. Tithing is a necessity.

If you belong to God, you need to offer. It's as simple as that. The Israelites in the Bible were God's people, and they were required to offer for a myriad of reasons. Was this a burden to them? The answer is not stated in the Bible, but I tend to believe that they would feel honored to have such intimate contact with the Lord.

Also, like what I mentioned above, not tithing virtually means stealing from God. You see, ten percent (10%) of all we earn automatically belongs to God. I'm not making this one up; this is Biblical. Why? Because everything we are able to do is because of God, that's why. We wouldn't land a job if not for God-given skills. We wouldn't manage a business if not for God-given skills. We wouldn't be able to do anything well without His sustenance. That's why a portion of what we earn is His.

Malachi 3:8
“Will a mere mortal rob God? Yet you rob me. “But you ask, ‘How are we robbing you?’ “In tithes and offerings.

Think about this: you wouldn't want to steal from Davao Light (or Meralco), would you? We regularly pay our bills each month because, hey, electricity allows us to work. And yet electricity sometimes fail us. On the other hand, God never fails and is always perfect, so why do we steal from him?

2. Our tithes keep the missionaries, the church-workers, the poor, the orphaned, the widowed, the abandoned old and the abandoned young alive.

A common response I hear when the topic is tithing is this: If God is Almighty, why does He need my money?

If you're wondering where the tithes go, they go to the church. Just like how the Israelites' tithes go to the Levites (their priests), ours also go to the church-workers who don't have jobs like us because they work full-time for God.

Numbers 18:21
“I give to the Levites all the tithes in Israel as their inheritance in return for the work they do while serving at the tent of meeting.

Next, they go to charity, just like how the Israelites' tithes also go to "the fatherless, the widowed, and the so-jouner."

Leviticus 23:22
"'When you reap the harvest of your land, do not reap to the very edges of your field or gather the gleanings of your harvest. Leave them for the poor and for the foreigner residing among you. I am the LORD your God.'"

God wants to bless the workers of the Kingdom and the less fortunate, but money can't fall from the sky. God chooses to bless people through other people who are regularly giving. Basically, what we tithe keeps these people alive.

3. Tithing is the only thing we can test God on.

Finance Friday: Why You Need to Budget

Background image from http://www.moneymanagement.org/

Okay, scratch that. This isn't really about budgeting. Well, we're still gonna talk about personal finance, but I'm loosely using the term "budget" to refer to handling your money correctly.

So why do you need to handle your money the correct way? I mean, why bother if you're going to get paid in another two weeks' time? This is precisely the mindset that you need to get rid of - unless you want a paycheck-to-paycheck lifestyle. In Filipino, isang kahig isang tuka. Unless that's precisely your plan (seriously!), please consider these reasons why you need to handle your money wisely beginning today:

1. Because you owe it to yourself.

Let me tell you a secret: budgeting or handling money wisely isn't as restrictive as it sounds. Sure, it can be hard at first especially if you need to get rid of many bad money habits - they are, indeed, a bad habit to break. However, it's called financial FREEDOM for a reason.

a. Because you shouldn't have to worry about money.

I haven't achieved that ultimate status yet, but this early, I'm already reaping little rewards here and there. For example, I don't have debts of any sort. If one of my stuff at home breaks (such as my blender, my camera, and Yuri's crib, well almost), because I have a little bit of cash saved, I can easily replace them. No debt or installment plans needed.

b. Because you don't need to keep up with the Joneses.

For me, the best part about instilling good money habits is never having to worry about paying for something I don't afford. I don't anymore bother with keeping up with the latest trends and gadgets because I try to live within and below my means.

c. Because you need to be faithful with little before you can handle the large.

Apart from that, if you aim to live a more comfortable life, you need to be faithful with the finances you are handling now (Matthew 25:23). I believe we get even more blessed if we achieve the right amount of wisdom to handle the upgrade. Now it's no wonder why lottery winners lose all their money so fast: they haven't gone through the test of being faithful with little.

d. Because what you are in the future depends on what you do NOW.

To be completely upfront, I've never heard of anyone with bad money habits who became truly successful in life. There was never a gambler or a squanderer who lived a truly successful life. And before you tell me about tycoons and politicians, what I mean by "true success" is personal, financial, and relational success. The works. If you want a bright future for yourself and for your family, the first step begins now.

It's very liberating once you realize you're not a slave of money after all. Au contraire, money should be your slave! And this is a benefit you should not deny yourself.

2. Because you owe it to other people.

Have you ever heard of the saying, "Live simply so that others may simply live?" I never understood this saying until I got into personal finance. Slowly but clearly, I began to understand it. We are stewards of God's blessings. We often say this but don't take it to heart: God blesses other people through us. How? Through the money we earn!

It was a "duh" moment for me. Some people need to depend on other people just for their basic needs. Fortunately, many of us are blessed to have more than what we need. Unfortunately, the extra money we have goes to financing our wants.

Congratulations! You just made Henry Sy even richer!

Think about this: how many people could have been fed by the money you used to buy the latest iPhone model or for that payday shopping spree? One? Twenty? The number doesn't really count; what counts is that we selfishly prioritize upgrading our lifestyles over feeding a hungry mouth.

Mark 10:21
Jesus looked at him and loved him. “One thing you lack,” he said. “Go, sell everything you have and give to the poor, and you will have treasure in heaven. Then come, follow me.”

It's so sad when God's blessings do not go to those who really need them. That's why the call toward wise money management should not be ignored.

3. Because you owe it to God.

Finance Friday: How to Make a Budget Plan

Because we all need to plan our spending and saving!  I have yet to meet a person who doesn't want to save money. In fact, it is rare to meet a person who doesn't need to save money. Well, maybe Gretchen Barretto, but that's beside the point. I bet (metaphorically speaking) Henry Sy's grandsons also save money.

However, it is even rarer for me to find someone who is actually saving money - consistently, faithfully. More often than not, we do not have a lot money left at the end of the month. Instead, we have a lot of month at the end of the money.

Why? Because we fail to make a budget and keep it. I'm not at all a finance or a budgeting expert, but I've always been interested in budgeting. I've done this since I began earning money 6 years ago, and I find it therapeutic (just like writing and listing). Keep in mind, though, that making a budget is different from keeping it, but that's another topic for another day. Today, let me teach you how to make a budget plan.

1. Identify your sources of income.
The first thing you need to do is note your income, which we will later divide into categories. But before that, you need to answer this question: is your income fixed or not? If it is fixed, you also need to work with fixed amounts. If not, like mine, you can work with percentages, which are more flexible (except for the non-negotiables, which we will discuss later). If you have multiple sources of income, and praise God for that, identify all of them.

2. Note the fixed non-negotiables.
After you identify your income and whether it is fixed or not, begin listing your payables. Begin with the fixed non-negotiables. I am using this term loosely to refer to payables with fixed amounts and need to be paid regularly. For example, internet bills and mortgages incur the same amount every month. For both fixed and non-fixed income, you need to list these categories using fixed amounts. Here's an illustration:

3. Note the fluid non-negotiables.
After the fixed non-negotiables, you need to list the more flexible payables. Take note that this doesn't necessarily mean you can choose not to pay this category. I would discourage you from doing that. What I mean here are the payables without fixed amounts. Examples are tithes, donations, and savings for emergency and retirement funds.

Why would I discourage you from skipping this category? Many of us follow the notion of saving what is left from our salary. The formula we usually follow is this:

Income - expenses = savings

This is wrong, wrong, wrong! Ask yourself: when was the last time you were actually able to save somethibg from what was left of your salary? Usually, this never happens because before the month (or kinsena) ends, we've used up all the money already. Not incorporating a savings category into our budget is one of the reasons why we can't save at all. In contrast, the formula we should follow is this:

Income - savings = expenses

See the difference? Now, for people with fixed income, you should cite fixed amounts, too. However, for people without fixed income, I recommend using percentages. In my case, I usually allot 10 - 15% for savings no matter how much I earn. In tithing, a good guideline to follow is to give 10% of what you earn, but if you can give more.praise God! Here's another illustration:

4. Create a "debt" category.
If you have a debt or are paying something on credit or installment, create a new category for that. Cite the amount you need to pay per month plus the interest if applicable.

5. Create a "flex money" category.
I got this idea from The Simple Dollar. You see, no matter how meticulously you track and budget money, there will always be times when you need to pay something you didn't account for. For example, one day, a package from the US arrived here and the postman asked me to pay P50 for it. I certainly didn't know about that! This category allows you a bit of freedom and flexibility and prevents unnecessary stress because it allows you room for unseen expenses which are not necessarily life-and-death. (Keep in mind that this is different from the emergency fund).

6. Identify your short-term saving goals.
Next, you need to create another category for an item or a vacation you're saving up for. You should create another entry for this because this doesn't fall under the long-term savings illustrated in number 2. For example, I usually begin saving up for Christmas in September. You can do this when you're saving up for an iPad or to go to a summer getaway in Siargao.

7. Create a "leisure fund" category.

Finance Friday: How Will You Spend Your 13th Month Pay?

Okay, I actually don't receive 13th month pay. Nor a Christmas bonus. Much less a 14th month pay. That's just one of the perks of working from home, I guess. In fairness to my job, we do get bonuses from time to time, but they are not as regular and certainly not certain like those received by people working 8-5 jobs.

However, I do notice several people talking about their 13th month pays over Facebook already. Cue in music: It's the most wonderful time of the year! Which leads me to ask this question:

Since I can't really ask you that question, I'll just try to answer the question myself. Now, what will I do if ever I receive a 13th month pay this year?

Let's assume that I work for the government and receive yearly bonuses and nth-month pays. Or we can just assume that out of the blue, Uncle Henry Sy gave me a sum equivalent to a 13th month pay. I like the second scenario better. Anyway, I'm getting ahead of myself. What would I do if I receive that sum of money? Let's assume that I will be receiving 20,000. Here is my plan:

1. I would donate 10% of it to charity. That's P2,000.

This is considering that I have already tithed from the month's actual salary. Actually, this is a no-brainer. It's easy for us to move on, but our brothers and sisters from various places in Visayas still need a lot of help. Why not spare a small amount to help?

2. I would save 20% of it to add to our emergency fund. That's P4,000.

We're still growing our emergency fund and let me be the first to tell you that it's hard. Hard but not impossible. The emergency fund is an essential fund that anyone should have to be prepared for, well, emergencies. Others call it the security fund. If I happen to receive a 13th month pay this year, I would certainly contribute a part of it to our EF.

3. I would spend another 20% for myself and for gifts. That's another P4,000.

I won't pretend that I don't drool over mall displays or repeatedly visit online shops to "window shop." No. Apparently, it's a hard habit to break. So it's expected that I'll be spending a little amount to treat myself and others. A new blender would be nice as well as a planner...

On the other hand, knowing me, I'm pretty sure the entire amount would just be spent on Yuri-stuff.

4. I would invest the remaining 50%. That's 10,000.