April 19, 2011

How to Budget your Money

Budgeting is not easy, it is a skill that every moms should learn so we won't live from paycheck to paycheck. Here are the tips that Edwin De Guzman shared during our BMW (Beauty, Money and Wellness) seminar. It is all about Budgeting. 

1. Get the whole picture. 

2. Record the whole picture – you need to record all unexpected expenses, annual or quarterly expenses, monthly expenses, weekly expenses and discretionary expenses. 

Unexpected expenses – home repair and maintenance and medical bills 

Annual or Quarterly expenses – Homeowner’s Association Dues, license renewals, insurance and property tax. 
Monthly expenses – bank loans, credit card payments, rents, utilities, internet connections, cables, and others. 
Weekly expenses – groceries, personal care, child support and transportation.
Discretionary expenses – books, magazines, entertainment, dining, vacation, travels and membership fees. 

3. Compute your monthly expenses. 

4. If expenses are over the income, you need to adjust your budget. 

5. Review your budget worksheet. Spot any errors and make necessary adjustments and re-total. 

6. If the expenses are still over the income, make new sources of income. 

“Do not wait for opportunities, you create opportunities” 

7. Always keep a savings balance for a rainy day. Ideal amount is equivalent to six months of your net income. 

8. Tithe or give back to God at least 10% of your income.


  1. Apir tayo Mommy Michi, I do this as well. It's important na we keep track on our expenses and adjust if necessary.

    1. Yes, tracking our expenses is really important. :)

  2. This is what I am trying to aim, the six-one year savings. Haha Thanks for sharing!! :) It was a great reminder. :)

  3. I'm the one who does our household budgeting and I do it on a detailed manner talaga. Meron pa akong computations on a google spreadsheet which is shared to my husband for transparency. Haha! I must say, I've already mastered the art of budgeting. I think it's a Mom's treasured talent din. Haha

    1. Wow, google spreadsheets. I only use small notebook to track our expenses. Yes, nagiging skill na yan ng mga wife pag nag-asawa.

  4. #8 is really a great practice sis, we do that too! My mother taught us to tithe ever since we were young. This is a really great advice. I only budget what comes during payday, I've never tried budgeting pa ung yearly talaga. We're still working on #7. Mayroon na kami ngayong at least for 3 months, konting push pa. hehe.

    1. Good for you, tithing is really important. About the yearly thing, meron tayo kasi binabayaran na minsan lang sa isang taon like Real Property Tax or yung iba insurances. Yes, push lang ng push sa pagsave. :)