My Finances

In line with my attempt to fix up my finances, last April, I started logging all money related data into an excel sheet. This will definitely allow me to see where my money is going. And having three months worth of data, so far, has given me a better idea of where am I wasting money, and how much am I really saving.

I separated my document into 4 categories:
1. Income
2. Investments
3. Debt/Obligation Expenses
4. Miscellaneous Expenses

My monthly "net" is computed as:
Income - (Investments + Debt/Obligation Expenses + Misc. Expenses)

What's left just goes straight to my savings account.

And what gets accumulated in my savings account eventually will be used for some "purchases" that I'd like to do some time in the future.

Now, I've only had three months worth of data, and I've been in Canada all those time, so it'll definitely be different once I am back in Manila. No extra Canada income and expenses for me!

Going back to my excel sheet, I've noticed a couple of things:

1. Miscellaneous expenses goes to shopping, food, and extra curricular activities. You only spend a few bucks here, and few bucks there, but eventually when you add it all up, it gets quite big. We have a tendency to scrimp on huge expenses, but when you list down all the mini expenses, it sums up to perhaps, an even bigger amount.

2. Investments and Debt Obligations take up majority of my monthly expenses. There are what we call good and bad debts, and my debt here is definitely not a good one. It's more of a luxurious debt for me because I wanted a car, and it's not earning me any money, but it's something I wanted, and I love very dearly. On the other hand, at least, I am still maintaining the consistency of investing monthly. I believe that if we want to prepare for our future, starting earlier is better. Thus, I make sure that I regularly and religiously "pay myself first" by setting aside money for my investments.

I used to be very thrifty and always saved a lot of my income. I realized how much of a "kuripot" person I am when I was about to go to Canada for the first time (this was way back 2008). When I was preparing, that's when I realized that I didn't have much clothes to bring over to Canada! Paulit ulit lang pala ang suot ko the whole time! That was a crappy feeling because normally, at home, we have someone who washes our clothes everyday. But in Canada, you don't do laundry on a daily basis! You do it on a weekly basis! Thus, what I needed was at least a week to two weeks worth of clothes! And you know how it is when you are cramming to buy clothes for yourself, you just can't find what you want/like when you need it!

My mom kept on reminding me that I am now earning my own money, thus I should start enjoying it! And so I started enjoying it, buying this and that but still on a controlled manner.

That is until late last year, when my spending habits went through the roof!!! Ok, I have to admit, that was a coping mechanism at that time.

Which is why early this year, I finally decided that I need to take some action and fix up my finances. I started diversifying my investments and I started my excel sheet. Well, I'm still spending quite a bit (I'm excused! I'm in Canada anyway!), but at least, I have some things fixed and aligned.

Hopefully I will continue to strive hard to maintain or even improve my financial standing. It'll definitely take a lot of work, but I think the important thing still to remember is that we still need to enjoy! There's no point working and working like crazy, earning the big bux but couldn't even enjoy the fruits of one's labor.