Sharing is Caring: How I Manage my Salary 

We all have our own priorities in life. We can’t just tell someone to do a certain thing because it’s simply their own life to begin with. But one thing you can do is to share what you’re doing and it’s up to them on how will they apply it to their own lives.

So in this blog let me share how I manage my finances. But before I start, first thing I did is to make a goal which is to be done within two years. What kind of goal is that? That goal is to have an increase of cashflow. In my case since my source of income is my salary from my job, “promotion” is what I used to achieve it. So I always make it a point that every two years there will be a change on my salary (and it’s a must). Once I achieve it, I plan right away on where will that increase go. As of now, the salary increased that I’d received went all to savings.

Here’s my typical savings and expenses plan which I strictly followed since 2016.

1. 1st account: 10% of my salary. This account is intended for solely my investment. I secure a savings good for two years payment so if ever I’ll end up being jobless, I’ll still have the capacity to pay until I get a job. This account is fixed and I make it a point that I can’t withdraw and use it for anything other than insurance.

2. 2nd account: 30% of my salary. This account is intended for my 2nd investment (can’t be disclosed) which I planned to achieve within two years. As you can see it has a big part on my salary and mostly it comprises the increase I received through the years.

3. Local Account: 16% of my salary. This account is intended for my emergency fund and extra expenses. So if ever I have an emergency situation wherein I need to use my own money, I don’t need to take it from my savings.

4. 4th account: 10% of my salary. This account is intended for our future plans. This savings is not a must, whenever we do have extra is the only time we can save from this account. So it may seems an additional cash out from me but it doesn’t really feel that way.

5. 1st expense (Family): 17% of my salary. This is a fix cash out every month. But regardless of my salary increase, I still stick to what I’d used to give since before.

6. 2nd expense (Myself). 17% of my salary. This is a fix cash out as well. Since before, I only used a fixed amount for my own expenses and I need to stick to it.

So to sum it up, for my whole salary I used 34% of it for my expenses and the rest is for my savings and plans. Want to know how to achieve it? These are the following ways on how I stick to my budget:

1. Don’t keep a large sum of your cash with you. As long as you still see the cash that you have, spending will not that be big deal for you.
2. Once you receive your salary, take away all your savings and settle it right away. Once you put it in your different account, the less chance you’ll use it for your expenses.
3. Withdraw only the fix amount intended for your expenses.
4. If you usually spend like there’s no tomorrow, the first thing you need to fix is your mindset on settling your finances. Read books and watch videos that will make you financially literate.
5. Start now and be Consistent on doing it. It will be very hard at first but you’ll surely see the positive outcome to your life. You’ll surely realize a lot of things like I had. Promise.

Managing finances is not that really hard to do. It’s a matter of having the right mindset and knowing your priorities. This may sound like it’s too good to be true, but achieving a million will not be that hard.

“Start saving now.”

“Use the right outlet where it will help you to grow your finances.”