What I Do On Payday

Payday is almost done (for some). How well did you do? 

So, its payday, what have you been eyeing out to use your money for? The gorgeous shoes that you can't wait to wear with your friends? How about that cute little summer dress that you've already imagined an OOTD shot at the beach? Have you been dreading to get a new bag, because your bag can't handle all the loads? Or are you excited about that new gadget you've been watching from the tv ads?

Your money's coming!! 

How can you just not think about that top, shoes, bag, gadget, make up, or whatever it is?? I mean, It's all you've ever wanted!! 

You know you'd totally look gorgeous, handsome, perfect, pretty, cute, cool and all other stuff you can think of having that item with you! 

IN YOUR ARMS! Or on your body, feet, or hands. :P

I'll have to admit, from that point in time of wanting something, I have thought of hundreds of stuff that I want to get my hands on!! 

You feel me??

Most, if not all people think that way. I used to think like that, though I still do, but after reading and learning from different people about dealing with money, I've come to realize that I was actually doing it wrong. We all have to admit that most people's mentality about money isn't quite helpful. They always keep on saying that you better have a nice job to have a nice future, you have to keep your money in the bank or try doing the lotto once in a while because you'll never know your luck and all other things about handling money. Yeah okay, and then what? What do you really do with it? How should you really look into it? How are we supposed to think about money, salary or debt?

 The difference of how I think,

     BEFORE: "I can't wait to get my money so I could buy that (insert item here)!!"

     NOW: "I need to know how much I'll get to know how much I'll set aside."

The way I think about getting the money before made a HUGE difference of how I handle my money today. 

Okay Cath, what am I really supposed to do?

We're almost there. 

Here's a few steps on how I started handling my money this year and how it kept me take control of it:

1. List all your bills and/or debts
   • List ALL and I mean ALL necessary bills that you need to pay monthly. Having a list of every bill means that you are being aware where your money should be spent first. You don't really want to get a pile of bills and a few notice of disconnection, right?
   • Example: tithes, savings, investments, rent, electric bill, water bill, Internet bill, phone bill.

"Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. (‭Luke‬ ‭16‬:‭10‬ NIV)

1. Specify percentages or amount per bill
   • In this part, percentages and/or amount is something that should be taken automatically from your salary. Not by any government entity or other person, but YOU. Hooray! At least you really know where your money goes. Just kidding! :P
   • I use percentage and amount for my list. 
   • Example: tithes 10%, savings 10%, investment 10%, rent 2000, electric bill 500, water bill 100, internet bill 500, phone bill 500. 
   • You may change the percentage or amount depending on your own preference and convenience.
2. Prepare a cash envelope
   • You just need a simple cash envelope. No need to be formal if you're trying this one for the first time. :)
   • Your envelopes should correspond to the number of bills that you have.
   • Each envelope needs a label and a paper or post-it where you can take notes of any changes in the amount.
   • I usually update the notes with dates and the current amount.
3. Your expenses
   • Your expenses or your pocket money, is the remaining amount from your budget. 
   • The equation: SALARY - ALL BILLS = POCKET MONEY.
   • At this point, you may be a little surprised. :P Awareness is the key. :)
   • My expenses are usually spent on transportation, food, and other stuff.
4. Make adjustments every now and then
   • Your favorite part is here!!!
   • If there are things or items that you really want to buy and save for, you can create an additional item in your list specifying your target. 
   • Example: tithes, savings, investments, rent, electric bill, water bill, internet bill, phone bill, bag, laptop.
   • You can use percentage or amount on your target depending on how much you can save for it or how fast you want to get it.

A few tips and reminders while trying it out:

• This is not proven effective, but this helped me in handling my money since the start of this year. So far, so good! :)
• Cash envelopes are temporary cash compartment, keep it safe.
• When a salary arrives earlier or in cash even before I blinked (oh! How I wish everything comes that fast!), I try my BEST not to use it yet until I have allocated it in my cash envelopes.

Here's a list of books and people that helped me be aware financially. Hope this will help you too!

• Rich Dad Poor Dad by Robert Kiyosaki
• For Richer and For Poorer by Chinkee Tan
• My Maids Invests in the Stock Market by Bo Sanchez
• Francis Kong
• Anthony Pangilinan
• Maricel Laxa-Pangilinan
• Bo Sanchez

Why spend money on what is not bread, and your labor on what does not satisfy? Listen, listen to me, and eat what is good, and you will delight in the richest of fare.(‭Isaiah‬ ‭55‬:‭2‬ NIV)