Disclaimer: I am not a financial expert. We are not financially stable. We are on our journey to financial literacy. So I just thought it’d be best to share what I learned along the way. Dito kasi sa Pilipinas, parang medyo taboo pa for majority of people ang money talks, right? It’s like those who can talk about it are only those who are rich? I don’t know, maybe it’s just me, or what, but others may say, “wow, galing na about sa money oh, mayaman na siguro to” you know what I mean? Pero if rich people talk about money openly, dapat siguro tayo ding mga mahihirap, ano, para matuto tayo. 🙂
Ok, moving on…lol! A few weeks ago, I started watching videos about finance and investing. The many blog posts I read about investments, insurances, and finances have challenged me to start learning about them. I am 28 years old now, I should have learned earlier but back then, I settled on the fact that we are poor and can never really invest. I was wrong.
On one of the videos of Bo Sanchez, he talked about the 10-20-70 principle of budgeting. I’m glad I am on the right track because I have been doing it already, I just didn’t know there’s a term for that. lol! But in all honestly, we were not diligent in doing it.
10% goes to tithes or offering (or charity to those who don’t practice the former)
20% goes to investment
70% goes to expenses
On the posts and financial videos I read and watched, I noticed that some have even more detailed budgeting than this. Some would change that also, depending on their needs. As for Dane and I, this is what we try to follow now, and more savings as much as possible. My mother taught me to tithe ever since I was a child so I take that with me everywhere I go.
Before Dane left for Saudi, they had a seminar where they were taught about the I-S-EX principle. Medyo bastos sya sabihin pero, it’s INCOME minus SAVINGS equals EXPENSES, hehe. For so many years, we never had savings. Or kung meron man, nagagamit lang din at ‘di talaga naiinvest or lumalago. Nawawala lang din sya as time went by. Either nagamit for emegency or kaya nagastos sa ibang bagay. Ngayon lang kami nagkaron ng opportunity na makapag ipon talaga, pero I can’t say na malaki na ang naiipon namin, sobrang liit lang compared sa iba na magaling magsave ng pera.
Does this principle work for us? Yes, both 10-20-70 principle ang I-S-EX work for us. Kasi, kung ano lang talaga ang matitira, yun nalang talaga ang pagtatiyagaan mong gastusin. I hope Dane and I will be consistent at doing this. Is it easy to follow, definitely not! And I can’t say we’re doing great at this yet ‘coz we’re just starting. Consistency is one of the hardest parts in following this principle. Thankfully now, we’re starting to save little by little. We’re also planning to invest in the near future but I don’t want to do it just yet.
Right now, I just want to be able to learn more about finances and investments. Ayoko sana pumasok sa isang bagay na hindi ko masyadong naiiintindihan. So more on learning for us first, for now. 🙂 I remember during the Q&A portion nung seminar namin about money matters, medyo nangangapa talaga ako sa terms nila and all, lol! I’m 28 and just starting to know about them. I’m a bit late kung tutuusin, especially compared to others, but better late than never, right?
How about you? Do you practice the 10-20-70 principle? If not, what principle works for you? I’d like to learn from you! 🙂