How We’re Taking Charge of Our Finances

Although I’ve had my slip-ups in the past, I can say that I have been spending wisely more often than not. I am notorious for being the budget police because I record all our income and expenses. As in all of them–down to every centavo. Arjay kind of hates me for being that way because he can’t just buy whatever he wants. He’s a sucker for pets and gadgets. I am happy to report that this is now under control. LOL! And when he does buy something unplanned, he gets a sermon from me…with lots and lots of reminders why we agreed to plan our expenses in the first place.

Although it’s not very fun to have a budget police around, he is thankful, too, that I took charge of our finances because we were able to pay off our huge credit card debt two years ago, our expenses are controlled, and we have savings! We are also on our way to building our own house–all thanks to creating and sticking to a financial plan. All we have left to do is to invest on insurances–but we’ll have to review our financial plan to fit those in.

How did we take charge of our financial situation?

When Arjay and I got married, we were huge spenders. One kid + Two income streams + Living with my parents = Lots of unnecessary spending. It was six months into our marriage that we realized that we have no savings, no investments, and a huge credit card bill. That prompted us to evaluate our spending and create a financial plan.

The financial plan we created includes our income, our reduced expenses (we agreed to spend only on what is essential), the debt we need to pay off, the amount we need to save each month to acquire investments (i.e. a house and lot), and our savings. Once all these are set, we devised a monthly budget plan that is enough for our expenses, savings, debt, and future investments.

If you plan to pay off your debt in installments (like what we did), divide the amount into the number of months you plan to have to paid and commit to it. For instance, if you have credit card debt worth PhP12,000 and you plan to have it paid within a year, be sure to commit PhP1,000 a month to make sure that you’ll be debt-free by the end of the year. The same goes when saving for future investments.

spending trackerWhat really helped us stick to our monthly budget plan is MoneyBook. This is a free app you can download on your iPhone (I’m not sure if this is available for Android users though), which will document the flow of your money.

I absolutely love that aside from recording income and expenses, it also has a budget tracker. This wasn’t available when I first downloaded the app, but now it will show you how much of your monthly budget you have left! With that new feature, you won’t go over the budget for sure.

As you can see in the photo on the right, I have set our monthly budget to PhP36,799. This includes our groceries, bills, transportation expenses, and The Princess’ tuition. We’ve let go of all our credit cards already so we no longer worry about credit card debt! Yipee! We also shifted to automatic savings so we need not include that in this budget since our savings are automatically deducted from our income and sent to a separate account.

Super fast and super hassle-free, right?!

With all these things–spending trackers, automatic savings, etc.–easily available to us, taking charge of your finances is actually much easier now. All you need to do is take a step towards financial freedom and you’re already on your way there!

Have you taken charge of your finances, too? Care to share how you did it?

42 thoughts on “How We’re Taking Charge of Our Finances”

  1. Pingback: Expense IQ Android App | Mental Snapshots

  2. I should learn more about budgeting. It is really difficult if we have no savings at all. Mapupunta lahat sa utang ang mga sahod. We do have automatic savings account too, but unfortunately nagagamit din namin. We should really be discipline if we want to save.. Thanks for the enlightenment. 😀

  3. Taking charge of our finances is still something that we have to master. We’ve tried using Excel before but we eventually grew tired of updating it. I really hope this app is available on Android too so that I can try it out! 🙂

  4. still learning how to be a budget police..pero improving na kami! Dati sya naghahawak ng pera and BUDGET is not included sa vocabulary nya!! Pero ngayon, I do the budgeting pero hindi pa police level. Hopefully before the year ends maging strict na ako sa budget 🙂

  5. I’ll look for this app on Android, or something similar if there’s none. I really really gotta keep a tight budget since I’m so prone to impulsive spending, especially about food. Tsk.

  6. My husband and I were just talking about this. I regret that we do not have much savings yet, my son’s first year got us spending a lot, but now that I have a better paying job I’m pretty sure we’ll manage to take control of our finances soon. Will download the app and tinker with it, thanks for sharing!

    1. We have two automatic savings acct. Yung kay Arjay, salary deduction. Yung akin naman, I applied sa BPI. If you have a BPI account, go to BPIExpressOnline.com then enroll your main acct to BPI Automatic Savings. You can set the amount and how often you want money to be transferred to your autosavings acct. 🙂 This way, hiwalay money mo–yung sa main acct pang expenses, yung nasa auto savings pang savings talaga. Di basta basta magagalaw.

  7. Galing! I do all the budgeting for our expenses and savings but I think it’s my spending habit that really needs monitoring. Hahaha! I’m hoping to start my own online business pa naman and maybe also work from home na din. Hay naku!

    1. Haha! Controlling the spending is really the hard part, lalo na pag ang daming temptation everywhere you look. 😀 I work from home–it was my income that turned our financial situation around. Mahirap kasi pag isa lang income.

  8. When I was still single, I invested on life insurances, pension plan, college plans and life plans. I am glad I did because now that I have my own family, all our family income goes to food, bills and medicine (my kid is asthmatic). It is hard to save for the future now.

    1. That’s good! What my husband vowed never to invest on are educational plans. He’d rather use automatic savings for the kids’ school fund, which we started saving for when they were born. His family is a victim of an educational plan disaster daw kasi so he doesn’t want to risk it anymore.

  9. I need to do this! My husband and I are working on eliminating our debts this year but I do not take note of all our expenses. Makes sense, it’s hard to keep track if it’s not written down. I hope the app is available for android!

    1. I’m not sure eh if it’s on Android. I hope it’s available though since it’s super helpful. To think that’s the lite version pa. I’m not sure what they have in store for paid users.

  10. wow that takes a lot of discipline! which I don’t have, alas. numbers always make me feel iffy. but budgeting/financial planning is definitely a life skill one must acquire! good job!

    1. It does take a lot of discipline and sacrifice. We do have down times, like when we see other couples traveling almost every month. Ang iniisip na lang namin are our priorities now, which is a house.

  11. It’s super liberating to be debt-free. But, I dream of having our own home, and for sure, a loan would be needed. Haaaay! I need to work at home na talaga! Haha!

    1. Pangpalakas ng loob: We were able to acquire a lot without a loan. 😉 Nagtiyaga lang kami sa monthly plus, since we were paying off a lot, I worked doubly hard in my work at home job. It paid off! As for the house, that’s when we’ll apply for a loan. Mahirap na yan. Haha!

        1. It is possible to buy a lot without a loan. Careful budgeting lang talaga and we had to sacrifice a lot of our luxuries. 🙂 But building a house is a different story haha! Mahal na yan.

  12. Kat | Petite Momma

    Before we got married, we talked about how we were going to handle our finances, and planned together. It’s important that both partners have the same financial goals. For us, we both believe in insurance at ayaw namin ng utang. Fast forward, Hubby relieved me from my post as CFO (chief financial officer), sya na ang CFO now, as I became a full-time COO (chief operations officer) of the house 😀

  13. I think not most wife can be budget police like us. Kasi my mga hubby na they wanted to budget the money themselves. Pero that was really cool surpassing the downside of credit card usage talaga. Kaya I always tell myself na Credit card is for emergency use only and not to be used as a shopping buddy. Mahirap na malunod sa utang. Haha nice tip thanks for sharing!

    1. Yes, credit cards are only for emergencies–not for shopping. But we’ve let go of all our credit cards already. We have our emergency fund so when we do have emergencies, we can just use that money. Goodbye credit cards na kami! 🙂

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.