Friday, July 08, 2011

Where Does It All Go?

In an attempt to take control of my spending and become better at managing my money, I kept a log of all my expenses for 30 days with the objective of seeing where each penny goes. I also wanted to see how much of my salary goes to each of the following life expenses:

Beauty Services
Credit Card
Food
Fun Stuff
Hobbies
Miscellaneous
Phone Bill
Savings
Toiletries
Transportation
Travel Fund
Wardrobe

After religiously taking note of each and every expense, the numbers show that this is where my money goes:

A big portion of my salary went to my nourishment (and that of my loved ones - I shelled out a hefty amount for Father's Day dinner). Miscellaneous expenses included little treats like an ice cream cone, a new book, and incidental expenses like a new umbrella, a  friend's wedding gift and gout antidotes for G-third. I am currently setting aside money for an upcoming Vietnam-Cambodia trip and I recently renewed my passport, so a sizeable amount went to my travel fund. The commute to and from Makati added up at the end of the month - and that's with minimal cab rides. A recent enrollment in art lessons had me buying art supplies and paying for weekly sessions.

I spent nothing on new clothes, and sadly nothing was set aside for a rainy day. I started my Moving Out Fund this month - but now I wonder, where am I gonna get the money for rent if I'm practically dry at the end of the month? Obviously, I have to cut down somewhere. (And perhaps find something I can do on the side to augment my income.)  

The sad truth is, I've been living beyond my means. The challenge :

1. Be more conscious about my spending,without depriving myself completely of life's little and big pleasures.
2. Set aside a portion as savings.

Can it be done? With a lot of discipline, a bit of temperance, creativity and self-control, I believe it can.





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