Finance Friday: God Increases

Photo: http://www.amendesigns.com/

If I could describe my general mood for the past weeks, I would say it would be anxiety. I've been worried and stressed over many things that I also failed to spiritually connect to God on many occasions. It really is true that worrying is the opposite of faith.

I worried about many things: the length of time it has taken for my camera to be fixed, the lack of payment from a friend who borrowed money from me, and the problem regarding my house loan.

Money sure knows how to make the world go round.

Now, faith. Faith is what is what should have made my world go round, but I succumbed to worrying. Because of this, I almost did not hear the prompting of God within me.

My primary problem - concern - is the housing loan. As a little bit of background, we're almost done paying the equity. In a few months from now, we should be starting paying the amortization.

However, to do that, my application for bank financing must be approved. You see, I'm currently on my "single mom stint" now. Even if Job financially supports us, it is my name that appears on the papers. Long story.

So anyway, to apply, of course I need to submit work-related documents. I had problems securing a contract from my current "work provider." While I did have a contract I signed 3 years ago, I was advised I couldn't use it because of some legal changes in the system.

Okay, I could live with that. The problem is that I no longer received updates about an alternate document I can submit to the bank. Worse, my follow-up request was not met so well (I actually wrote about it here). Uh oh.

My mom, who is also my real estate agent (shameless plug: Davao Real Properties), scrambled to find another way. She tried to get me officially employed by her real estate office; unfortunately, that backfired. We tried other ways including talking to the developer himself but they didn't work out the way we exactly planned.

I wanted to question God on why this blessing was becoming a burden. I was so sure He wanted to bless us with a home, but why was it so difficult?

Photo: aelbow.tumblr.com

Now, this same developer is opening a new subdivision with the same low-cost units. The location is different, farther from the one we originally bought from, but it's good in its own way because it's near my parents' house (where we live now) and even nearer another lot my parents bought.

What made it a practical option is the fact that in this subdivision, the developer offered 5-years 0% interest cash payment scheme. In other words, I don't have to go through bank financing anymore. In other words, I shouldn't have anything to worry about!

On top of that, it's not officially open yet so there are still many corner lots to choose from. Perfect, right?

But I didn't want to consider it because, I don't know, maybe I was ready for a change in environment? Maybe it was because I really wanted to be neighbors with George? Maybe it was because I wanted to transfer to my own home right away?

As opposed to the original house and lot we were paying for, where we can transfer within this year, we would have to wait for around 3 more years in this new one. And that was a major con for the impatient me.

Impatient. Patience. Wait. Wasn't God teaching me a lesson about that? Isn't it one of the ungodly traits I should remove, one of the reasons behind this waiting season?

Upon that realization, I began to have an inkling of what God was directing me to do. One morning, my mom told me that the bookkeeper had trouble fixing my ITR (for some reason!). In addition to that, the developer offered to have us pay the balance for 5 years instead of just 4 years because we had already paid for a year for the previous development. Because of that, our monthly payment became lower than what it should have been.

Right then and there, I made the decision to transfer. Yes, I wasn't able to consult Job about this one, but there was nothing he can do, too, and time literally was running out for my parents to still grab a good lot. Most importantly, I'm sure God will talk to him Himself.

Yes, there's a bit of belt-tightening involved. I couldn't name figures here, but compared to what we were paying previously, now we have to pay almost 50% more. That's huge but the reward is a lot that would be more than 20% bigger than the original one. On top of that, it's a property that would be completely ours in just 5 years.

Wow. I'm amazed myself at the turnout of the events.

Sure, there are moments when I ask myself if we could pay that bigger amount every month but God reminds me not to worry. He is in control, and He is faithful.

The point of this post is to tell you that God increases. A lot of us might know this on the theological basis, but it's hard to see it work in the practical daily life.

Here are the ways God increased me during this ordeal:

God increased the problem with the original subdivision; at the same time, God increased the "potential" of the new subdivision. It's like He lowered the old option to raise the new and better one.

Photo: http://missindeedy.wordpress.com/

God increased our income, and as a result, we increased our giving. Since God cannot be outdone in giving, He increased our income even more. Because of that, He gave us the provision to be able to follow His plan about our address.

God increased the amount of money we need to pay for every month, but He also increased the land's size. Oh it's still very little compared to what you may be thinking but God will increase it over time!

God increased what we have to pay for every month; at the same time, it increases self-control and restraint and would increase our knowledge on personal finance.

God increased the time we have to wait for this house to be built; thus, He is also able to increase what patience and fortitude (???) we have inside.

God increased the anticipation we must have and personal sacrifices we must make but He also increased the provision to go through it and the reward to look forward to. God increased the season of planting and, by faith, I claim He will also increase the harvest.

Photo: http://year27.com/

God increases. I increase in God. Siksik, liglig, at umaapaw.

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Finance Friday: Why You Should Track Your Finances

I'll tell you a secret.

The only way to achieve prosperity is to be conscious of every penny.

Oh diba, it rhymes? Haha!

Well, unless you're the heir of Henry Sy or plan to marry some millionaire dude. But you and I know that's not what I mean.

Photo: brucegerencser.net

I was supposed to write about the importance of building an emergency fund when God made me realize that, hey, all the blog posts in the world wouldn't make these people tithe and save if they're not aware of their spending habits.

Without stressing the importance of tracking money, it is hard to know what your true money habits are. Then you'll be forever trapped in the web of lies that tells you you can't give or you can't save because you don't have enough.

Thus the domino effect of not tithing and not creating an emergency fund.

Thus the absence of prosperity and the presence of a poverty mindset (which, again, keeps you from giving). It's a vicious cycle!

It might seem like such a small detail, but tracking where every peso is spent goes a long way. Trust me. Here are the things you need to know.

1. What is money tracking?

Simple. As the name implies, it's the act of tracking your money. It means being conscious of your spending, giving, saving, and, in some cases, borrowing.

2. Why should I track my money?

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: Are you broke? I'm not! (Praise God!)

It's been more than a week since the Christmas Season has formally ended (sorry, I don't celebrate Three Kings). How are you doing? I mean, financially? Like you, I always hate to see the holidays come to an end, but I used to hate this time even more because it means the end of spending, which is equal to the beginning of reality. For me, reality used to mean being broke (bankrupt!) just like what I wrote about in this post last year. What a sad way to end the Christmas Season!

Another thing that makes it even sadder for me is that at the end of December and at the beginning of January, there are virtually no essays to review. In my job, no work = no pay. If I feel broke at the end of December, I would have to wait a long time before the flow of money improves again.

That was last year. Well, to be honest, I still experience the same bankruptcy factors. I still spent a lot last month for gifts; in fact, I spent more than last year. There are still very few, virtually zero essays to review this year. However, I don't feel broke. I'm not broke at all!

First, I worked harder and I worked longer hours.

During the month of November and the first half of December, there were a lot of essays coming in. We might not have your 13th month pay and Christmas bonuses, but we have bonus schemes that allowed us to earn more if we reviewed more essays. I took advantage of this time because I know I will surely spend a lot on Christmas - and the dry season will be coming next.

During this time, I barely took a break and worked harder. Of course, I still worked within my usual 8:30 - 5 schedule, but I did not allow myself to have idle moments. I was tired all the time, but I knew I would not have any during the dry season if I didn't work my arse off.

If you're wondering how I blogged daily, well, I have already established a routine that worked for me!

Proverbs 10:5
He who gathers crops in summer is a prudent son, but he who sleeps during harvest is a disgraceful son.

Second, I was faithful in setting aside money monthly for my emergency fund.

I had begun establishing an emergency fund late last year, and I don't have much yet. However, it's wise to set aside regularly because in time, it will be enough. Now, no matter how much the fund contains, it allows me to have peace of mind knowing that I can dip into it if I encounter an emergency. I'd rather have a little amount set aside than have nothing at all!

Proverbs 30:25
Ants are creatures of little strength, yet they store up their food in the summer; 

Third, during the time when I had plenty, I set aside for the dry season.

I mentioned above that there were times when I earned a lot because I worked a lot (remember, no work = no pay!). Please take note that I didn't spend all of what I earned. Aside from my regular savings for my emergency fund, I also set aside a little amount to tide me over once the dry season begins.

It was hard knowing how many sales there were during the Christmas Season, but I only spent for Yuri and not for myself. Okay, so that wasn't really sound advice but I could not resist buying for Yuri! I also refrained from availing expensive services that are not urgent (read: salon). While it was hard, especially since my feeds were filled with photos of other people going on shopping galores and makeovers, now that my dry season has begun, I don't regret not spending too much!

Proverbs 21:20
The wise store up choice food and olive oil, but fools gulp theirs down.

Fourth, I was faithful in tithing - praise God!

Finance Friday: The First Step in Investment

I've been reading and talking about investments for a year now. I still fondly remember how I first stumbled upon the wonders of stock investments early January this year. Since then, it was as if a light bulb turned on. Why aren't we all doing this? I was so sure I would invest in stocks, but I felt as if it wasn't yet the right time.

I spent the first six months of this year doing pure research. Yes, all I did was read, read, and read. You see, before you take any big step, you should know a lot about it. Don't follow blindly. It might seem like a good step, but without arming yourself with knowledge, you're bound to fail.

I also read a lot of Christian books to  abound in God's wisdom and to remind myself that yes, prosperity is God's plan for us, but we are called to prosper not to hoard riches but to be a blessing to others.

Then, we (Job and I) spent the next six months of the year forming our emergency funds. Based on the research I have done, it is unwise to invest all of your money without setting aside funds that you can dip into in case of emergencies. Without having emergency funds, it is very likely that you will withdraw from your investment, which impairs the power of compound interest, and this defeats the purpose of long-term investment. Thus, there is a need to set aside an emergency fund before investing.

Tip: If you don't know what the terms "stock," "emergency funds," "compound interests," and "long-term investment" mean, do yourself a favor and postpone investing. If you don't know the value of saving and living within (below is better!) your means, postpone investing. If you believe that banks are the only way to go, postpone investing.

First, do your research. Again, I studied personal finance and investments for almost a year, and I'm not done yet. Also, know that investing is not "easy money." As mentioned in Proverbs 13:11, "Dishonest money dwindles away, but he who gathers money little by little makes it grow."

I would add that if you are not tithing regularly, then you should postpone investing. However, I'm saying this from a Christian point of view. Tithing really helps in developing the character, and I believe God designed this to prepare us to be a blessing to others when we prosper.

Anyway, this month, we knew we were prepared to take the first step in investment. COL Financial is a highly-recommended company where ordinary individuals, like you and me, can easily invest in stocks even without huge amounts of money at hand. In fact, you can easily open an account with just P5,000, a far cry from what people used to need to invest.

So this is it! We're finally beginning the journey toward financial independence and a financially-independent retirement hehe. Before we end this post, let's review what you need to do before you invest: