It’s Never Too Late to Start Budgeting!

It’s never too late to start working on your finances. This is what I always tell myself when I feel like I’m not doing well or when money is controlling me instead of the other way around.

In 2012, I first came across the topic of personal finance. I’ve been hooked ever since. Funny how I studied accountancy in university but never explored the field of personal finance before earning my own money.

Personal finance has been my guiding light to avoid money problems. I am not wealthy by any means, but I can pay the bills and enjoy little bursts of luxury (anything the budget allows).

I think this is one of the most crucial life skills every person should have. It’s one thing to know how to make money and another to be able to keep it—at least that’s what I’ve learned from The Psychology of Money.

Not to make it boring or anything, I’d like to share the gospel of being in control of finances, and it’s never too late to start—this year or any day for that matter! 😉

Gospel #1: Track Everything!

Tedious. I can hear your thoughts from here! 😂

It’s the foundation of all the other ideas you might get elsewhere. Tracking where your precious money comes from and where it goes is the most basic of basics. Knowing how it flows will paint you a picture of your financial health.

Before learning about personal finance, I had a vague idea of how to manage my finances. I just knew that I had to pay for things, and I paid them when someone or something reminded me. Not a good practice but cut me some slack—I was young! 😂

As I got older (and with more bills 🙃), I started using tools to track my finances. My system evolved from putting notes in a calendar to spreadsheets, and now to Notion.

Here’s what works for me:
• Calendar: Just your typical calendar, it can be on your phone, a small calendar notebook, or a full-fledged one. It can help with real-time tracking, and if you're someone who looks at their calendar first thing when you wake up, this is the best reminder.
• Notion Templates: Customizable for recurring expenses and savings goals.

Gospel #2: Know Your Non-Negotiables

These are the amounts that almost never change every month or cycle for both inflows and outflows of cash.
• Fixed Inflows: Salary or allowance.
• Fixed Outflows: Rent, mortgage, insurance, or subscriptions.

Here’s an example to help you differentiate fixed vs. variable expenses:

Expense Type Example Amount (PHP)
Fixed Rent 10,000
Fixed Insurance 2,000
Variable* Dining Out 3,000
Variable* Groceries 4,000

Listing these fixed amounts is the perfect foundation for budgeting. *Variable amounts can change when you budget

Gospel #3: Budgeting—the Actual Thing, Yes.

Being an adult can be hard, am I right? 😅 Who would have thought that so much work goes into just existing in this expensive world?

Budgeting helps you allocate every cent of your hard-earned money to keep the bills paid, fund emergencies, and support your lifestyle.

I follow a zero-based budgeting, but there are other methods like the 70/30 or 50/30/20 rule.

Here’s how zero-based budgeting works:

Category Amount (PHP) Percentage
Rent 15,000 30%
Savings 5,000 10%
Investments 10,000 20%
Utilities 5,000 10%
Groceries 10,000 20%
Entertainment 5,000 10%

This ensures that every peso is assigned a purpose. It might be challenging at first, but trust me, it’s worth it!

How do you currently budget? Share your style, maybe it's something we could also try!

Here's one I created from scratch (it's FREE!) that you can definitely improve and customise.