From the previous section of this series, I wrote about the ideas I gathered from different people feeding me with delicious financial literacy. But, I guess one of the important things to do is to apply what is learned. Practice what you preached – as the cliché goes. So, since somehow I am telling you: hey, there is a need to increase your funds – then I have to tell you what fits to my situation, somehow.
Personal Condition
I am currently trying to obtaining a degree in education on Mathematics as a fulltime student. I received some allowance due to, seems like, a study-now pay-later program. I also need to accompany some family members. Ending? It’s difficult to look for part-time job, still. I do not have the luxury of time, still. So, I have little options to increase my funds.
Cutting Costs
From the options I wrote on the previous section, Finance 2.0.0 Increasing Funds, cutting costs is the only thing I can do – and think of. There are some steps I developed. I based this from ideas I read on Peso Sense and project management. Basically, project management tells me that I need to know something before I decide. Thus, I know for certain that the first step is to monitor my expenses.
Monitoring Expenses
When I was still working, I used to wonder where my salary goes. Everytime I read my contract where my annual salary is written, I just cannot figure out where those money went. So, after about a year of being broke I decided to monitor my expenses.
On the very first month, which is on August 2016, I list expenses almost daily. Sometimes, I do it on weekends. The problem? I used to forget some details. Thus, there is still a large amount of money I am not certain where it goes.
Make a Decision based on my Expenses
With that, I saw the need to record my expenses daily. Sometimes, I jot it on my phone right after I let go of any amount – it’s a dramatic one, haha, it’s like I am separated from my pet dog. Kidding aside, this made me think before spending. I also have enough time to do financial hacking, especially if I can’t avoid eating in a fastfood or carenderia – value meal will not always give you optimum value. My expenses reflect my lifestyle – if it is in bad shape, then my lifestyle is in bad shape. If my lifestyle is in bad shape, then I have to reshape it.
Where Do Broke’s Money Go
Being broke for a couple of years – and monitoring expenses thereafter, leads me to some simple ways to cut some costs. For transportation, I usually planned ahead my route to save. A one-week tasks out from home can now be done in a day if the weekly schedule is carefully plan. I don’t go just somewhere on an impulse. On food, just like what was stated, I am doing financial hacking. If there’s an option not to include drinks, then I do ala carte or at least don’t upgrade on drinks. I also don’t fall into “value meal” or “upgrade for less” marketing, easily. If I have to go to malls or buy groceries, I just buy what’s on the list since those items are already carefully thought of. I also found a way to control myself in buying things in sale which I think I need in the future, say next month. I know for certain that sales, especially pay day sale will happen in the near future again, and again. Likewise, since I don’t have a job that pays me, then I know “pay day sale” is not for me.
Revisit my Expenses
After adjusting, there will always be room for improvement. I always check the biggest financial hole and try to adjust again, and again. The monitoring also shows my progress. It does not only give me an idea about my lifestyle or where to cut expenses, it also serves as my inspiration and motivation to continue the road to financial freedom, or at least away from financial disaster.
In A Nutshell
So, this is what I do to cut cost:
- Monitor Expenses
- Make a Decision based on my Expenses
- Where Do Broke’s Money Go – Implement what has been decided
- Revisit Expenses – to adjust further and to be motivated to move forward
Remember that whatever you do to increase your funds, your goal may not be attained for a short period. In my case, for nearly two three years I still adjust for the optimum financial life. Always go back to your reason of increasing funds. The more valid it is, the stronger your motivation will be. On the next section, here at sepchronicles, I will be sharing one of the humps of finances – debts. I will be sharing my ideas on managing debts (still uncertain if I’d go for eliminating debts, but there are similarities, anyway) and how I manage my own debts. See you on the next section.
