I know I have been promoting creating and staying within your family budget and saving. But, I have to confess… in my time as an advocate (advocate talaga?! LOL) of wise spending, I have been defeated by temptation a couple of times already. We are feeling the effects of these unwise decisions now.
Back in November 2012, Daddy A and I made a huge financial decision that left us almost penny-less. I didn’t write about it because I was, well, ashamed to have gotten into such a big commitment. What did we do? We purchased a membership from a hotel. It cost us a down payment of Php20,000 and monthly dues worth Php4,500 (until we pay the membership in full). I wanted to hit my head against a wall the day after we signed the contract, which was the only time I realized how costly the membership is.
Then again, since we’re locked in a contract, we might as well finish paying it and just enjoy the benefits of the membership – I will write that about in a different post. 😉
After buying the hotel membership, Daddy A and I agreed to control our expenses by allotting more of our income in our automatic savings account. From Php5,000 per month, Daddy A increased his capital contribution to Php10,000 per month. My automatic savings account, on the other hand, continues to deduct Php2,000 from my income. This way, we won’t be tempted to spend our money in a swipe.
Getting back to good financial shape has been extremely difficult since November of last year. Aside from purchasing the membership, we took a hard blow financially when I gave birth to The Little Man via caesarian section. We also have to worry about our monthly bills – mobile lines, internet lines, credit cards and the monthly payment of The Princess’ Magic English set worth Php13,000+ (one of Daddy A’s unwise decisions that, until now, we argue about because he didn’t consult me before buying it). Whew! That’s a lot. No wonder we have been burying ourselves in work just to earn extra income.
It has been a bumpy road for us, but we are truly trying our very best to be stable again. Aside from increasing our savings, we re-evaluated our lifestyle and lowered our budget. We can no longer afford impulsive shopping, weekly movie dates and even cheap eat-outs at fastfood chains when we feel like it. Everything needs to be scheduled beforehand now so we can incorporate it in our budget.
It is going to be a challenge – there are so many things we want to buy: the new iPhone 5 for Daddy A, the designer bag I’ve been checking out at the mall, clothes for Caleb and Kelly – but I’m sure we’ll learn to accept this new and simpler lifestyle. To financial freedom!