As I started to have a monthly review of my finances last January, it helped me a lot to assess myself especially on how I manage my finances. By means of this, I became more aware on where my money goes and at the same time come up with a plan on how to make it better. I feel like I’m managing a company which is my own self and review my monthly performance in line with my goals. I found this strategy very effective because I learned to be more cautious in spending my money. Although I was known to be a thrifty person ever since, I can say that I’m taking thing now more professional that before. At least, by means of doing this, I can manage and assess my finances well.

Like how I did it in my first finance review, this blog will be short, specific and concise which will be comprises of the following parts:

1. Savings. Are the amount I saved for each fund (Business, Insurance, Investment, Retirement, Emergency, Joint Account and Local Bank)
2. Expenses. Consist of the list of my expenses incurred for this month (Grocery, Leisure & family support)
3. Financial Plans for the Next Month. This part will be the financial targets for the next month that will serve as a guide for me to choose what I need to prioritize.
4. Ideal Budget for the month of February. This will be the ideal budget which undergo adjustment to meet the financial goals for the next month.
5. Summary. This will be the conclusion of my finances this month and the things I need to work on to meet my financial goals.

To do all of these things really requires big efforts. Because of this, I sometimes feel pressured and just wanted to shut down. There are times that I questioned myself if what will happen if I won’t be able to achieve whatever I plan for. In the course of aiming for an ideal life, I sometimes feel anxious of the things that may happen. The what if’s will always be there and I’m trying so hard to win over it. Gladly, I overcome that kind of situation by praying and assuring myself that everything will be ok in the end. I keep telling myself that I should not fear if ever I failed to reach something because it just shows that there’s a better one that’s reserve for me. I always think that whatever I do today are just tiny little steps that will help me to be closer to my goals. The challenges and failures are just common things that I’ll face throughout my journey and I should not take it negatively.

In terms of my finances, having a pro-active approach is my strategy to reach all of my financial goals. Rather than settling down to my current income, I need to use all the means that I have right now to be able to increase it. One thing that I always have in mind, is to not solely rely on my job since it’s temporary. It is way better to have multiple streams of income to cover existing expenses for any emergency situations like the pandemic. As I assess my current situation, there’s two ways on how I can maximize my investment which are the following:

1. Salary Increase through promotion/change of job.

Since I already reached almost a year and a half in my current company, I believe that this is the right time for me to look for a better opportunity. Now that I already started investing in real estate which requires big amount of capital, I also need to take any chance I have right now in order to maximize my savings capacity. I’d set a guideline for me in choosing the best offer in order to meet both of my financial and career goals.

I believe that the credentials I have right now are enough for me to step up in my career. Given that I’m already 26 years old, I need to be more eager and fearless to invest in myself. As long as I can follow my career plan, I believe that will have a chance to apply for a higher position next.

2. Make another stream of income that can provide me the means for my existing insurance/investment.

Since I have an existing insurance and investment which are payable for a fixed period of years, having multiple streams of income will be a good solution for me to settle all of those and focus more in building passive income.

Now that I officially started this goal of mine this year, it will be easy for me to continue it if only I can achieve both of these two things this year. I still have 10 more months to work on it and I believe I can achieve it by the end of this year. Like what I always have in mind,

“It’s now or never.”

“Making most of your time is way better than to live with regrets.”

“If it’s for you, no matter what happen it will be meant for you.”

For a recap of my financial goals this year, here are the illustration that will serves as your guide which is also mentioned in my blog “My 2022 Goals”.

Now, let’s see the status of my finances for the month of February 2022.

FEBRUARY 2022 SAVINGS UPDATE

In the report above, it shows where most of my funds goes. Since this month is the start of the renovation, the amount that I saved last year and these two months, mostly spent there. Even though most of my savings went there, I did a projected cash flow this year that will serve as my guide to manage my payments for my other savings such as retirement, insurance, investment and emergency fund. With that as well, I was able to identify the budget that I can offer to the second house that I planned to renovate this year. Now, let’s carefully review each funds progress for the month of February:

1. Business Fund. In this fund, I was able to secure already the amount intended for the renovation of the first house. It is expected to finish on March and hopefully can be rented out on April. For the second house that I planned to renovate, based on the projected cash flow that I made, we can start the minor renovation around July.  By that month, I can already secure the target budget and settled my existing financial obligations. As long as I finish my two projects this year and achieve at the same time the two things that can help me to maximize my savings capacity, I can eventually start my next year for a new goal.

2. Insurance Fund. For the month of February, I successfully paid the first half of my payment for this year and all what’s left is the second payment on August and the other insurance that I have. As soon as the first house renovation is done, I can secure the payment for both of my SSS and 1^st insurance on May. I just need to send around P8,000.00 in order to complete it.

3. Investment Fund. In terms of my second insurance/investment, I think that I can settle it on June based on the projected cash flow that I made. The second insurance payment will be good until October 2023 and hopefully by that time, I already achieved my financial goals for 2022.

4. Retirement Fund. My SSS or retirement fund payment which is P23,400/year will be source from the rental income of the first house that we renovated. As per our deal, the two months and one month deposit payment will be for my SSS contribution this year. Now that I already gain a source of income for this long-term savings, I can at least save more for my business fund. I will not think anymore for the payments since it’s already secured as soon as it will be rented out.

5. Emergency Fund. As of this month, I used up all of my emergency fund for the first house rental renovation. Due to this, I need to save up again for this year in order to be secured for any emergency that may happen. Based on the cash flow computations for this year, I can start saving up for this on August and complete it on or before November.

6. Joint Account Fund. Like I mentioned in my previous financial review, one thing that I will give up this year is my savings for our joint account. I tried to adjust my budget to at least give way for this but sadly, I can’t really push through with it given the projects that I have for this year. Despite of that, I can assure that by the start of the year 2023, I can secure an amount intended for this since I can’t neglect it anymore given the plan that me and my partner have for our wedding.

As I assess myself this time, I sometimes think who I was before. The priorities changed and the responsibilities became more vivid as I grow up. I slowly realized and understand the responsibilities of my parents and how hard it is to manage finances.

FEBRUARY 2022 EXPENSES UPDATE

In this month of February, I had an added expenses since I celebrated my birthday. I also did one adventure which is on my bucket list this year that’s why I added some amount for my leisure expense. Even though I spent a lot this month, I don’t feel bad about it since I gained memorable experiences that I will surely remember until grow old. I also learned a lot of things in terms of finances now that I already started investing in real estate. Even it needs a big capital to start on, it is still worth of the investment since there’s no chance of it to depreciate. It took me a year to save up the initial amount and now this month, I finally put it into good use.

I believe that this investment will greatly help me in my future as long as I consistently purchase a property and put it on rent. All I need to do in this period is to save up for the capital and make a yearly purchase (If I can really push myself). My target is at least to renovate our existing two-house rentals for this 2022, and eventually save up for my own rental property on or before 2025. The more I have a means to pay for my existing investment, I can maximize my savings capacity for my rental business. As long I successfully achieve my plan this year, I will have a means to pay for my retirement and 1^st Insurance fund.

“You can be young without money, but you can’t be old without it.” — Tennessee Williams

This will be a great yet challenging year for me. I will surely experience to be out of cash but I will always assure myself that everything is for my future. This will be the only start of everything, but one thing I promise is I won’t put into waste all the things I sacrificed and will sacrifice. I will promise to follow the intended budget I set and ensure that before the year end, I already achieved all my financial goals. To give you a glimpse on where my money went this month, here are some pictures that I took:

HOUSE RENTAL RENOVATION 2022

VALENTINE DATE

“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” — Joe Biden

Now that this month officially ended, I’m pretty sure that it will be another month full of happiness and challenges that will help me to develop myself. Whatever it will be, I will continue to have faith in Him and let my destiny unfold. I am confident that I will continuously stand tall and will not let my plans ends as a mere plan. I will surely make it all happen and once I look back in this blog, I can reminisce all the things that helped me succeed. I will take everything slowly but surely. I will continue to take baby steps until I achieve all of my plans in life.

FINANCIAL PLANS FOR MARCH

Now that the month of February already ended, I will now set my financial plans and target for the next month. I believe that setting a monthly guide will help me to know my financial priorities and prevent me from spending more than the intended budget. Within these two months of doing it, I can conclude how it greatly helped me to manage my finances well. Before assessing the financial plans, I have for the next month, I first review the status of my last month financial priorities. By means of this, I can have proper feedback of what I did for the month and at the same time can give me an idea on what are the areas I need to work on.

Upon doing these blogs about my goals status and assessments, I feel like I’m managing my life in a corporate way. It may look funny since my approach is so specific, but I proved this strategy very effective because in this way, I can motivate myself more. I always feel challenge and yet excited every time I set my monthly target and priorities. As I wake up in the morning, I can feel the excitement for the day, knowing I have another chance for me to do something for my goals.

My life became more meaningful this year.

Now to check my progress for the month of February and the plans I have for the next month, here below are the two illustrations of it:

1. Collect debt payment. Given the projects that I have for this month, I need to have the means for it to continue. After the deal that we had with my colleague, this month is the supposed payment period of her debt. This will be one of my priority this month in order to proceed on the next renovation that I planned for this year.

2. 200 Qar intended for two leisure activities. After setting the dates, I ended up having two leisure activities for this upcoming month. One is I’ll meet my cousin after two months of not seeing each other and the other one is the vlog that me and my boyfriend will shoot.

3. Settle 3^rd phase of Renovation. Another important thing that I need to do this month is the last payment that I need to send for the renovation. This last payment will be intended for the labor cost and other minor items that stills needs to be purchase. Hopefully, we can put it start to put it on rent within the end of March so that at least my Family can have the means for their other expenses.

4. Canvass 2^nd house renovation cost. Now that the first renovation will soon end, one of my targets this month is to have an idea on how much will it cost to renovate the second house rental. This is for me to know the amount I need to save up and what month the renovation will takes place.

With these financial priorities for March, it will guide me to make the right plan for the month of April. Hopefully, I can achieve all of it in this coming month so that I can move on to my next targets.

IDEAL BUDGET FOR THE MONTH OF MARCH

Given all the assessment, feedback and review for the month of February, this helps me to derive on the right budget for the next month. The projected cash flow that I also made, became my guideline on what’s the best fund that I need to focus on. There are savings that I adjusted and also postponed due to the renovation which is my top priority for this year. Despite of this, I believe that I can work it on for the rest of the year as long as my two major projects for this year will be settled. Here’s the adjusted budget that I did for this month:

If you’ll compare it to the last month’s budget, there are some adjustments took place and it’s because of the sudden changes for the house renovation. Before the start of this year, I planned to purchased my own house and lot and put it on rent. Upon assessing the situation, that choice is ideal but not practical. That’s why I end up using the existing properties that we have and renovate it so at least we can double the rental price. By means of this, I can settle my financial obligations to my family and at the same time earn a portion from it. With that amount, I can settle my retirement fund contribution and my 1^st Insurance payment that will help me to save more for my other funds. The only thing that I wasn’t expected is the amount needed for renovation. The budget that I have for the two house is supposed to be PHP150,000.00 each but it ended up that PHP250,000.00 is the minimum required amount for only one house! That’s why, there are some changes took place in my budget and there are funds that I need to gave up because of it.

Even though this year will be very challenging in terms of my finances, I believe that I can surpass it with a positive mindset that I’ll achieve the two major targets that I set. As long as I can stick to my plans, everything will eventually go well.

“A goal without a plan is just a wish.” -Antoine de Saint-Exupery

It’s another successful birth month for me! Despite of spending more than the usual budget that I have for leisure and needs, I was still able to gain unforgettable experiences. It was a very productive month for my finances since I officially started investing in real estate!

It was just a dream of mine to have a real estate business and now, I am slowly making it happen. Isn’t amazing? It took me so many years before I become ready but now that I already settled my long- and medium-term investment, I believe that this is the right time for me to invest in passive income.

I will still have a long way to go for me to achieve my biggest dream, but with these steps that I am taking, I believe that it would help me to achieve it in the near future.

“ALL YOU NEED IS THE PLAN, THE ROAD MAP, AND THE COURAGE TO PRESS ON TO YOUR DESTINATION.” – Earl Nightingale