How To Save Money Every Month

I just can't let this article pass us by. So I am re-posting it here. Here's some practical ways we can save on money monthly. I love what Moneymaking's idea to stop bringing your credit card for a month. I feel this is a real challenge to all of us. There's a false security in bringing our credit card with us, in our wallets, isn't it. We often tell and even convince ourselves that we might need it, "just in case". So we end up using it. If there is a supply, we usually create the need.

Well, here's what I want to focus on: what activities should we do. My friend from Fiji, Savenaca, always tells me, "No more theories, theories. Just do it!" So here goes:

1. Stop bringing your credit card. At first, you will feel very restricted but you will slowly realize where you are spending money on. It’s amazing that we remember our purchases so much better when we pay in cash.

Save Money on Gas Tip

I have learned something new last week. Gas is a big part of my expense since I use my car (Corolla GLi) in all my travels. I am thankful for that car, a 1994 model, which I faithfully keep on top condition, thanks to my friend Chief Ruel of Exalta Car shop in Banawe, Quezon City.

Now back to my discovery. Usually when I fill my car with gas, I just let the gas attendant fill it up the way the used to do. They press on the "automatic" mode and let the pump to its work.

I learned that when they do that, the gas pumps the gasoline and the "air" together so I get less gasoline in effect.

My dear friend, Adel, shared with me that I can save money on my gasoline expenses by asking the gas attendant  to fill my car using the "pure" way or "Puro" in tagalog. The next time I went to my gas station, I asked the attendant to fill it pure. I noticed that they press the pump slowly and taking their time doing it.

What they are doing was making sure that no air or less air is mixed to the gasoline. To better imagine what I am saying, when I fill my car with a P1,000 gasoline, the "automatic" way takes less that 2 minutes. But when I request to fill my car the "pure" way, it takes them some 5 minutes to fill the same amount of gasoline.

As a result, I save money with more mileage added to my car somewhere in the vicinity of 20 kilometers.

Why not try it yourself and see how much you can save. Surely the savings will help you reduce your debts.

Here's to our debt-free life,

Jimmy

Photo credit:
http://www.gettyimages.com/detail/photo/man-holding-petrol-pump-nozzle-in-high-res-stock-photography/BB1111-001http://www.flickr.com/photos/rmgimages/4882451256/sizes/m/in/photostream/

The Battle Against Unbearable Debt

How can one win over unbearable debt? This is a big question I keep asking myself when I hear our overseas workers' financial struggles. Even before leaving for work abroad, they are already in deep debt but there's this nagging hope that their problem will soon be over.


Guess what? After working for 3 years, most come back with nothing and the worst part is they are still in debt.


Benjamin Pimentel's article on How overseas Filipinos can win the battle against unbearable utang (debt) clearly explains the reason why many of our OFWs end up deeper in debt compared to their goal  of eliminating debt, which is the very reason why they leave to work overseas.


I would like to cite a portion of his article that I believe is the key to getting out of this unbearable debt:

"OFWs should and must undergo financial literacy to protect and harness their money which is more often lost and squandered," he said.

Let's affirm a key premise here: Overseas Filipinos perform a vital role by sending money back home to help their families. But there¿s also a growing need for families to find better ways to manage funds coming from abroad.

And we're not talking about totally avoiding debt. In many cases, as I've noted, debt is necessary to meet a need.

But there's such a thing as smart debt and dumb debt. Worse, there is unbearable utang - debt that becomes so overwhelming that overseas Filipinos end up wearing themselves out as they find themselves trapped in a vicious cycle.

Charito Basa, an OFW advocate based in Europe, listed four general principles for overseas Filipinos and their families (which actually applies to everyone in this time of crisis):

Have a budget and stick it to it no matter what

There'll be special requests from family and friends that will tempt migrants to deviate from their budget," she says. Be firm. People will eventually understand that they are doing it for the good of everyone."

Save first, before spending (not the other way around)

Set aside a fixed amount for savings. Charito recommends at least 10 percent of one's income. She and Tony Ranque point to the tested formula for sound personal finance management: Income minus Savings equals Expenses.

Saving a portion of your income is a must, not an option," Tony says. If you cannot develop the habit of savings which is founded on discipline, force yourself to save by getting pension plans and other types of pre-need plans."

Have insurance (health, education, retirement, pensions)

When done through reputable companies, insurance plans can guarantee that needs are attended professionally and that funds are available when most needed," says Charito.

Stay away from "get-rich-quick" schemes

This rule also applies to everyone.

My experience tells me that most of our OFWs are not financially literate. This, I believe, is the main reason why they end up poorer that when they first left for work abroad. They just can't find time to educate themselves in money matters because they are too busy running after the money.

The painful reality is when their contract is finished, in a few months, they're broke again or you see them lining up to apply for work abroad again.

So, how can our OFW win over this unbearable debt? Maybe you have a better suggestion we can all use. 

To our debt-free life,

Jimmy

Photo credit

7 Worthy Resolutions To Commit To In 2012

Hi there. I have been away for a while. Japan is now in winter season. Visited our Filipino workers around Takamatsu in Kagawa-ken. It has been a fruitful monitoring. Just by seeing them and being where they work, brings joy and refreshing to these precious people.

Together with the industrious lady welders in Takamatsu

At the highest point in Tsuda, Kagawa-ken

With the lady Chicken Choppers

On my way back home last January 17 on PR 407, I was reading an article on the Philippine Star. This particular article caught my attention because it speaks to retirees, of which I am within its zone!

Took this photo at the Kansai Airport on arrival

But I believe the resolutions mentioned by AP can be applied to younger ones too. The author mentioned Seven (7) resolutions for retirees in 2012.

Although I can go on retirement mode, I made a conscious decision not to retire yet because I feel that my best days are still ahead of me. There's no time to stop doing what I am called to do.

Now, let me give you my take on this article.

First of the resolutions mentioned is the call to get disciplined about money matters. The best way to do this is to set up a formal budget and stick to it. Being thrifty without a plan only goes so far when unexpected expenses arise, especially at an age when health care costs can start to mount. How true this is.

Attack your debt. The top priority is to pay off credit card debt. After the card is zeroed out, use only one card and pay off the balance monthly. If an emergency expense leads to a balance, don't let it linger or it will erode retirement savings. Having only one credit card is a very practical suggestion indeed.

The other resolutions include:
1. Invest in dividends-paying stocks
2. Get your estate plan in order
3. Be more generous
4. Check into long-term care insurance possibilities

The last one is especial to me: Stretch your body and mind. The author says we need to choose daily pursuits that keep you physically, mentally and socially engaged. Physical activity helps us to live longer, feel better, depression free and keeps our mental skills sharp. I take physical exercise as a necessity for my body that's why I play badminton and brisk walk at least three times a week.

I can't help but notice the mental sharpness of Justice Cuevas and Senator Enrile in the current impeachment trial of CJ Corona. They are in their 80s yet they are still sharp as ever. This is also the main reason why I blog!

What about you? Do you feel you can use these resolutions for 2012?

To our debt-free life,
Jimmy

The Power of Words

The last leg of our tour was Shenzhen, China. From Hong Kong, we took a train to Lu Wo, the last station at the border of shenzhen, where our tour guide was waiting.

I can still remember, the words our tour agent from Hong Kong told us on the bus going to the train station. After briefing us on how we will go to Shenzhen, he briefed us on what to expect in Shenzen.

The warning he gave us was this: In Shenzen, there are many pickpockets. So we need to carry our bags in front of us, always. Also, we must not place our wallets in our back pant pockets. The pickpockets can get it in less than 2 minutes. Scary.

Susan, our tour guide in Shenzhen

I was thinking, why do we still need to go to Shenzen? If all we do will be to watch for our belongings. There would be no more time to enjoy the city and shopping at ease.

When we arrived at the shopping center, our local tour agent, Susan, told us the same thing before alighting from the bus. Gosh.

As a result, my wife and I went to a well known department store, which we felt was a safer place to shop. We spent our time going around the store instead of shopping outside where pickpockets would go.

Finally, after spending some time, we ventured out and went to other well known, branded stores. But in the end, we told ourselves, why not just wait for the others at the McDonalds while drinking coffee.

So we went to McDonalds.  Guess what? Lo and behold, we saw most of our team there too. They were waiting for us and avoided shopping by consoling themselves that the items they saw can also be bought in the Philippines anyway. We were all scared and avoiding the pickpockets.

You will appreciate the power of words. Sometimes we don’t realize that the words we say are powerful. If  our tour guides were able to sow fear in our hearts, we can do the same on a positive note. Their words, which created fear in our hearts, caused us to avoid the crowded places where pickpockets abound. This, however saved us some money. A blessing in disguise?

Words are powerful. Whenever we speak positive words, we are blessed. The Bible declares “out of the abundance of the heart, the mouth speaks.” The words we speak determines who we are.

So I say today, I am blessed to be a blessing. My best days are ahead of me. I am going to live a debt-free life! Fear has no place in my heart except the fear of God.

So be careful with what you say. What you declare will happen!

To your debt-free life,

Jimmy