Money Tricks for the Homemaker

Frugality is not a bad word and so does being kuripot. It’s all about sensible spending and cutting down  on luho (luxury).  To ride out the tough times, squeeze that peso until Dr. Jose Rizal squeals.

So how exactly should we handle our money? Here’s a simple guide to your financial happiness. According to financial experts, only 10 percent should go to our WANTS (which includes travel, gadgets, clothes, etc.), 10 percent goes to EDUCATION (training, seminar, workshops), 10 percent goes to ASSURANCE FUND (Safety fund, HMO, Health fund), 10 percent goes to LIFESTYLE FUND (luxury living, cinema, spa), 10 percent must go to TITHES (church, charity, donations), 40 percent must go to HOME (Necessities, Food, Transpo, Bills) and another 10 percent is for YUMMY (young millionaire investments and business.).

Note: Percentage shown in each purposed are just examples, you may change it base on what you need and what you want. Just make sure that the total percentage is 100%. 

We have to pay our monthly bills before it's due date

The sad part is that in terms of financial priorities, 52 percent of young families place expenses such as cable and cellphone bills ahead of buying life insurance. Think about what matters most. 

Here are a few tips to be able to get by financially wise with some money tricks:

 Slow Down

If you’re feeling burned out, it could be that you’re trying to do too much fast. Pick a few frugal skills that you really want to work on. Then, master them before moving on to something else. 

Cut yourself some slack

Making the most of your money is one thing, but running your budget so tight that there’s no room to breathe is another. Build some leeway into your monthly budget, and those feelings of deprivation are less likely to creep up on you. 

Ditch the things that aren’t working

Doing things to save money that you absolutely hate? Then, stop doing them. There are lots of ways to save, so it’s okay to ditch the things that don’t seem to work for you.

Make frugality a game

Living frugally is only a chore if you make it one. Choose to look at tipid tricks as a game, and that’s exactly what they’ll become. 

Review Your Progress

When you’re working toward a monster-size financial goal, it’s easy to lose sight of the progress that you’ve already made. Set aside some time each month to review your progress, and renew your commitment to reaching that finish line. 

Have more fun (just don't overdo it)

Don’t get so caught up in your finances that you forget to have fun.

Treat Yourself

Frugal living isn’t about depriving yourself of the things that you love. Go ahead and treat yourself to the occasional dinner in your favorite restaurant or a new outfit. It may take you a bit longer to reach your goals, but your happiness is certainly worth it. 

Seek the advice of a financial advisor

Getting engaged, married or having a baby are all times when you might want to start seeing a financial advisor. A financial advisor can help you get the correct estate planning documents in place, as well as work through things like who will work when, what kind of childcare you can afford and when it’s time to start planning for college. They can also help you determine the terms of a prenuptial agreement (if there is a need for such) along with adjusting to a different tax status. Further, an advisor can push you to be more honest about your finances.

Diligence is another key talent that advisors offer. You may be hypermotivated this year to tackle your financial life, but financial planning is an ongoing grind. Just when you get the busiest—a new baby, new job, or new spouse—is when you’re most likely to need a pro’s guidance. Plus, as laws and regulations change and the economy shifts, you’ll need to make adjustments. 

A financial advisor can also be a backstop against cognitive decline as you age. Paying estimated taxes, keeping the insurance up-to-date, staying on top of required minimum distributions for retirement accounts, and serving as a line of defense between you and scammers who prey on the elderly are just some of the services an advisor can provide when you’re well into retirement.

Financial planning is for everyone.

Contrary to what most people believe, financial planning is for everyone. Think you can't afford a financial advisor? You might be wrong. There is a common misconception that financial advisors are only for the wealthy. Everyone should go to a financial advisor at least once. Paying for professional advice can be especially helpful as you begin to move down the backstretch toward retirement. While you may have amassed an impressive portfolio, you need an entirely different set of skills to strategically spend down that nest egg so that it lasts at least as long as you do. The healthier you are, the more that should be a concern. 

Get yourselves insured.

Give yourself that peace of mind. Protect your family and loved ones. Come to think of it, if your loved ones depend on your financial support for their livelihood, then life insurance is a must, because it replaces your income when it's time for you to pass away.