Speero's Journal

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speero
Posts: 4
Joined: Mon Nov 24, 2014 7:52 pm
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Speero's Journal

Postby speero » Tue Nov 25, 2014 12:59 am

Hi GRS!

I've been reading the fiscal journals on this forum for the past few weeks and I was inspired to start one of my own.

I am a single gal, 23, no kids, no debt, living in the Philippines. I've been working as a web developer for 4 years now.

I went to a public university. Worked part time to pay for fees, books, food and transpo. I had full time work in my chosen field during the last two terms in college. Changed jobs a few times and got decent raises. I lived with my parents until a year ago. So, I expected to have a larger chunk of savings by now, but I don't. And the worse part is, I'm not even sure where all the money went. :oops:

Granted, two years ago, I did put a sizable downpayment for a pre-selling condo which I plan to live in (once it's built anyway...) Half the time, this seems like a bad move because it's soooo far off into the future (2016), but other times I can't wait to own my own place!

I know I am doing better than most, but at the same time, I know that I can do better. I am starting this journal to keep myself accountable and to track my goals.

Some details, ($1 is approx. P40)

Monthly Income: P42,000 (after taxes and deductions)
Monthly Expenses: P32,000
- Parents: P15,000
- Rent: P12,000 (landlord pays for utilities, cable, internet and condo dues)
- Groceries: P3,000
- Cell Plan: P1,000
- Lunches: P1,000

Cash Savings: P253,000
- Payroll Account: P217,000
- Checking Account: P36,000
- Retirement Fund: 0 :(

No car
No mortgage (yet)

So there's 10k that goes unaccounted for each month. A part of it goes into savings, as I make sure the balance keeps increasing, but I should really track this diligently. I definitely spend too much on eating out and going to movies with friends and the b/f.

By mid next year, my sister will graduate and start working. My brother will go from a private high school to the same public college I attended. That means I don't have to pitch in over 1/3 of my income to my parents! Which frees up so much money for my saving goals.

So as 2014 comes to a close, I'm setting some small goals until the end of the year. This should put me in a better position to supercharge saving in 2015.

1. Track spending and set a realistic budget.
2. Open a savings account for EF, and an investment account for RF.
3. Beef up EF to 250k.
4. Bump up the auto transfer from payroll account to checking account, from 12k (rent) to 16k. This should help curb the frivolous spending, and...
5. Build additional 10k in checking account for RF in January.
6. Look for part time work, or another job that's more... stimulating.
7. Create a Christmas spending budget and stick to it!

Some other things to consider,
- Lease expires end of March. I need to decide if I will stay here (and in my current job) by January 31.
- Should I get a credit card? I pay in cash all the time, and more often than not, lose the receipts or stubs.
- Should I get life insurance?

I am so excited to start on this journey! I've never had a budget before so I really hope I can stick to one!

Apples
Posts: 177
Joined: Wed Jan 15, 2014 6:53 am
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Re: Speero's Journal

Postby Apples » Fri Dec 05, 2014 8:19 am

Hello! I just want to say good luck on your journey! And that I can't get over the large numbers when you talk about expenses and savings goals; dollar amounts are so ingrained in my mind it's really weird to see them listed in a different currency!

speero
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Joined: Mon Nov 24, 2014 7:52 pm
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Re: Speero's Journal

Postby speero » Mon Dec 08, 2014 10:12 pm

Posting a pre-payday update, because quite a lot has happened,

Our 13th month pay came in last Friday and I'm quite surprised with the amount. Usually it's 1/12 of the total basic salary received the entire year, which is the minimum. And since I got a raise mid-year, from P50k to P57k, I thought it would only amount to P53,500 pre-tax.

This year they based it off our current salary. After taxes, the actual pay was P48,360!

P32,000 went into my emergency fund while P10,000 went into my retirement fund. The remaining P6,360 was spent on gifts and other fun things for Christmas.

Here's where I stand now in terms of my 2014 goals:

1. Track spending and set a realistic budget.
I've been tracking my spending and a good deal of it goes into eating out and entertainment. I hang out every weekend with the b/f and watch a movie if there's a good one showing. I'm going to convince him to stay in every now and then, and maybe cook together or watch an HBO rerun. Here's the budget so far. I feel like there are too few items listed, which makes me worry that I'm missing something. I don't want to have an unexpected expense come up to derail my goals. :(

Gross: P57,000.00
Tax & Deductions: P13,632.09 + 581.30 + 437.50 + 100
Take home: P42,249.11

Expenses: P32,000
- Parents: P15,000
- Rent/Utilities: P12,000
- Groceries: P3,000
- Cellphone: P1,000
- Lunches: P1,000

Savings: P4,000
Various sinking funds: P3,000
Fun money: P2,249.11

2. Open a savings account for EF, and an investment account for RF.
Done! I opened a savings account in a different bank because it allows me to create several sinking funds from one savings account. All online and with no minimum balance or extra fees.

3. Beef up EF to 250k.
I modified this goal a bit because I freaked out when the balance fell to 29k after expenses. Instead, I want to have 200k of EF, while keeping 50k in my payroll account and 36k in my checking account. This way I can still live off last month's salary. With that in mind, I moved P160,000 to my EF, and then added the P32,000 from the 13th month pay.

4. Bump up the auto transfer from payroll account to checking account.
I decided to not do this, and setup an auto transfer directly to my retirement fund instead, beginning Jan 2015.

5. Build additional 10k in checking account for RF in January.
Done but invested in the retirement fund early, instead of keeping it in CA til next year.

6. Look for part time work, or another job that's more... stimulating.
I'm in talks with a local startup about a two-month gig, which could lead to a retainer contract. Still waiting for the results of my exam though!

7. Create a Christmas spending budget and stick to it!
Finished Christmas shopping over the weekend and still have slightly over P1,000 left. Whew! Glad to have that out of the way.

All that shuffling around was a little confusing... To recap:

Payroll account: 38,500 / 50,000 (77%)
Checking account: 24,000 / 36,000 (67%)
Emergency fund: 192,000 / 200,000 (96%)
Retirement fund: 10,000 / 10,000 (100%)

(as of 2014/12/09, rounded down to the nearest 100's)

speero
Posts: 4
Joined: Mon Nov 24, 2014 7:52 pm
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Re: Speero's Journal

Postby speero » Mon Dec 08, 2014 10:36 pm

Apples wrote:Hello! I just want to say good luck on your journey! And that I can't get over the large numbers when you talk about expenses and savings goals; dollar amounts are so ingrained in my mind it's really weird to see them listed in a different currency!


Thanks Apples! Best of luck on your journey as well :)

Indeed seeing a different currency is so weird. When I read the forums, I have to pause briefly to convert dollar amounts mentioned into my frame of reference. But most of the time that still doesn't work because the cost of living is so different, too.

speero
Posts: 4
Joined: Mon Nov 24, 2014 7:52 pm
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Re: Speero's Journal

Postby speero » Tue Dec 09, 2014 6:04 pm

Really quick payday tally. Added P8,000 into my efund and crossed it off the list!!

Payroll account: 52,200 / 50,000 (104%) --- a temporary high!! :)
Checking account: 24,000 / 36,000 (67%)
Emergency fund: 200,000 / 200,000 (100%)
Retirement fund: 10,000 / 10,000 (100%)

Just for reference, I get paid twice a month: P21,683.95 on the 10th and P20,565.16 on the 25th. The bulk of my expenses (P28,000 worth) are on autopilot and the transfers are scheduled every 5th.

I'm still on track to meet my goals for 2014. But the PA would dip down on the 5th, after expenses, then go back up when my pay comes in on the 10th.

fiddlefaddle
Posts: 257
Joined: Fri Jul 29, 2011 8:38 am
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Re: Speero's Journal

Postby fiddlefaddle » Wed Dec 10, 2014 12:07 pm

Hi Speero, I just wanted to say welcome to the forums. Looking forward to following along on your financial journey. :)
Fiddlefaddle's experiments in time management:
<a href=http://www.productivityguineapig.com/>Productivity Guinea Pig</a>


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