Keeping a savings bank account instead of maintaining a piggy bank at home keeps the kids' savings in a safe vault. A monthly saving of at least 100 pesos a month will accumulate a total of 6,000 pesos in 5 years. Cool isn't it? But kids are only kids and the idea about saving may not be in their minds yet. So, to motivate and bring their young minds closer to the idea of saving, I initiated the first steps by opening savings bank account for them. I checked with my bank (Bank of the Philippine Islands or BPI) and I learned about this so called Jump Start account, a savings account for kids from age 10. So, I opened savings account for my two kids where they can put in whatever amount they saved from their piggy bank at home.

I used to have a piggy bank back then when I was their age. But every coins I put in there eventually vanished. Well, that is the disadvantage of a piggy bank - the coins can easily slip away. Please don't ask me why...…LOL... But I still encourage my kids to maintain a piggy bank at home but the coins should not stay in there for long, it should be transferred to their savings bank accounts.

I don't want my kids to think that money comes in so easily, I want them to know the real thing. I want them to see the hard part about earning money while at their very young age so that as they grow up, they will truly appreciate every amount - big or small. I believe that for kids to appreciate the value for every single cent is to show them first how daddy earned it. So, I started by telling them that I have to travel a very long way to get to work that I started to miss them even just before I arrived. I am not really sure that by telling them that way I effectively conveyed to them the hard part in earning money but I believe it gets to them in some point.

Why I am telling my kids this kind of things? Well, I just want my kids to truly treasure every amount of their allowance they received from their mom. I want them to value the importance of saving. And above all, I want to instill right into their young minds to start saving not tomorrow or the day after but TODAY.

Because there are endless temptations dragging us to spend our money, most of us certainly fall into one type - the bad spender. And the worst is we don't even know that we already has become one. But if we really would want transformation from bad spending habits to not just being good but better, how about breaking free from bad spending habitude? Well, you can aim for the best if you really want to.
We all have bad spending habits and it's either we are aware of it or we just snoozed it off. Because of this practice, many has fallen into piles of debt. To avoid this, here are three easy steps that will guide us on how to spend better with our money.
Three easy steps to better spending.
1. Make a budget plan and follow it.
Take a pen and start creating a budget. It is always the best idea to jot down what our budget plan is. But the easiest way to do this is to use a personal finance program that can help us create a budget and at the same time track our expenses anytime anywhere. I recommend YNAB, a personal finance application putting more weight on budgeting. It's available both as online service and as stand alone desktop application with on the go iOS and Android app. I am using this personal finance desktop application over a year now and it really helped me a lot with my budgeting.
2. Track spending.
Know where every cents go. No matter how small the amount is, frequent small amount spending actually slash big stash of cash in the long run. In YNAB, every cent is assigned to a budget, so tracking of every amount we spend from day to day expenses comes in so easily. By the way, I am not representing YNAB (You Need A Budget), I am just a very satisfied YNAB user.
3. Keep away from temptation.
Clear your table from all those glossy catalogues of electronic gadgets or clear your inbox from promotional newsletters you've signed up. But be sure you get rid only to newsletters you think unnecessary and remained subscribed for the ones that you really need, like airlines promo fare newsletters if you travel a lot. I travel so frequently not for pleasure but for job related matters so I really need to subscribe airline newsletters for promo air ticket deals.

By following these three easy steps dedicatedly, certainly in the next three to six months you'll find how less stressful life can be. Just imagine how happier life is with lesser and lesser debts or none at all.
Happy spending.

What is emergency fund? It is important to know by heart what this thing is all about otherwise we won't be staunch to effectively save up for this purpose. The amount of cash set aside for any unexpected costs like illness, something wears out that needs immediate repair and all other financial surprises that comes into our way is referred to as emergency fund.
Whether we like it or not, emergency can come into our way anytime of the day and without sufficient fund reserved for times like this, is absolutely stressful. So, here comes the crucial QUESTIONS - 'Are you prepared to handle that stress?' or 'Are you financially prepared to cover emergency expenses?'

When to start saving for emergency fund?

The earlier we start building an emergency fund, the more prepare and capable we would be to absorb the financial shocks 24/7. It's always best to have sufficient emergency fund set aside to cover unexpected expenses of three to six months. The earlier you start, the better.

Is emergency fund necessary?

If heavy rain or typhoon visits your neighborhood, the thing that you should worry about is where to get money to cover the costs for repairs of damaged properties. With your emergency fund on stand by, you don't have to scramble to get the money you need because you already have the fund waiting to be called for use. Additionally, with emergency fund on hand, you can focus your mind on handling other tasks and let the emergency fund handle the rest.

How to start building emergency fund?

Now that we identified the points as to when to start saving for emergency fund and its importance of having one, now let's talk on how to start building emergency fund.
1. Small Cuts Adds Up
Start building emergency fund by cutting off small amount from your income. Doing this on a regular basis every time your receive your paycheck, eventually boosts your emergency fund significantly.
2. Look for Money Leaks
Are you into the habit of visiting Starbucks 7 times a week for your favorite espresso or cappuccino? How about reducing it to four times a week? I am a big Starbuck fan but I don't consider going there everyday a need but simply because I just want to indulge my cappuccino cravings. Don't leave lights on when not using, use SMS instead of calling significantly reduced your monthly expenses, thus, you will be able to add more saving to your emergency fund.
3. Automatic Fund Transfer
Have a separate bank account for emergency fund. From your savings account where you receive your monthly salary, schedule automatic fund transfer every month to that account allotted for your emergency fund.
4. Make Cash From Trash
Look around your house. Did you see those piles of empty tin cans and bottles? Those dusty plastic toys? Don't keep them unless you have plans of converting your house into a warehouse. Sell all these stuff.

Having an emergency fund can mean achieving financial gain in the long term if remained unused and at the same time protects you from unexpected financial set backs when the time of need arises. So,start building your emergency fund now.

If you want to start a business, it must be something you are familiar with. It's really not a good idea to come up with a business you totally don't know or have very little knowledge on how to actually start and successfully run it.
On one episode of 'On the Money', a money-related TV program that airs in ABS-CBN News Channel, I learned some basic start up tips essential for starting entrepreneurs. The tips are very interesting and I find it totally essential especially in starting a business. Once you go through with these tips, you will be on the right track. So if you are still at the early stage in planning a business, I am asking you to read this post before pouring your hard earned money into whatever business you are about to set up.


Start Up Tips Before Starting A Business

Idea
There must be an idea and it must be identified as a unique idea with emphasis on innovation all the time. The context of the idea is that it has been tried and the you should take away personal biases. Like for example, don't say that your business is already doing good even you have just started. You should observe how it is tried in the market. That idea is not just what it is but it is also like how the market perceive it and whether it has something that the market values.


Create Business Plan
Some people don't have the formal way of doing this but somehow in their head they have this business plan. In creating the business plan, consider these three questions for the business:
1. Can you make this sustainable in the market place?
2. Do you have a passion for this? Of course the passion should be there already so that means you will sustain in the business. If you don't, you will have to find other people who has passion for it.
3. If there are market then how big is that market?
4. How will you do it and how will you deliver the product?

Resources
Whether you will gather the resources from your own pocket or from other people so be it but try to see how will you gather it. If in case you need to borrow money from your personal account to use for the business, you have to treat it as a loan. Whether or not the loan will have interest, it's up to you. If you won't do this, your business will be dependent on your lifestyle.

Start It Out
When you start it out, you are the owner, you are your own driver, you are your everything. So when you start, you will fill every place of what is needed before getting somebody else and you will have to figure out because that is what how you are going to be forming out the organization.


Expand to Building Professional Services Organization
This is the time where you start putting professional people into place. When you started the business you already have a part time bookkeeper but by this time you'll need to have an accountant, a supervisor, you will also need to have the time clock system. So, at this stage all the organization should be in place.


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