I'm Currently Broke (Plus Current Financial Status)

And it took me a long time to accept that.

Honestly, it's been quite a long time since I've last experienced being broke. The last several months have been financially good with me until now. You see, I am currently experiencing a lean month, where the amount of work I currently have is a lot less than my regular workload.

Well, it's not just a lean month. Because it is currently summer vacation in the US, it is lean season in my line of work. And in the world where you are paid per hour, this means less-than-good news.

The bad thing is that a few months ago, when I got introduced into the world of personal financial management, I fixed a budget based on my regular income - and I totally forgot that the lean months are coming. This means I am less than prepared now and might have to sacrifice our wants and even a few needs to make ends meet.

Another thing that worsened the situation was getting scammed early this month. It's a sad event, but if I were rich and financially free, that would have been nothing but a heartache minor bump in the road. I also unfortunately spent a lot last month on things I don't really need. Bad.

Photo credit: www.behance.net

Tip: Always be prepared for the rainy days.

We all know the story of the ant and the grasshopper, don't we? Why don't we apply the lesson to our own lives? Because it is difficult. I know *sigh*. Now, here's my current "financial" status (if you might consider my being broke a financial status):

Tithes - I used to tithe all the time when I first became a Christian. But when I "backslid," I also conveniently forgot to take out 10% of my income and offer it to God. However, I got reintroduced to it when I also self-studied personal finance, and I realized I cannot miss tithing. And even when it is very tempting to get something out of my tithes, I'm glad to say that I have been pretty consistent in the last months.

Savings - Embarrassingly, I have a very little amount in my savings account. It only comprises ten percent (10%) of my regular income. It doesn't even come close to the recommended amount equal to three to six months worth of regular income.

I wonder when I can save substantially.

Debts - I have no outstanding consumer debts. The only debt I have (if you consider it debt) is the mortgage for the house we are paying for. However, this is very different to debts, such as installment plans for gadgets. 

Investments - I seriously have zero investments. On the other hand, my boyfriend's only "investment" is his small agricultural business. We still need to work on building our investment portfolio, which should ideally include stock investments, mutual funds, insurance, and government bonds.

Based on the rundown above, what we need to work on are our savings and investments. However, because I am currently broke, I need to prioritize the things that need urgent payment, such as mortgage, bills, and baby's needs.

PS: I'm not financially dependent on my boyfriend. He sends money for our son's needs, but I decided that we should work on our finances individually for now. We have come to a mutual decision that both of us should be financially independent. I think this will train us on how to handle money properly to prepare us for *gasp* married life. But we discuss the concepts of saving, tithing, and investing from time to time.

What is "Rich"?

What do I mean by "rich" and why do I aspire to become one?

I remember when a friend told me that a batchmate (we all graduated 3 years ago) is mayaman because she just bought an iPhone 5. Wow! Of course, I was impressed at first because during that time, only a handful had dibs on the newest iPhone. However, this was when I was already learning about the proper way to handle money, so the first thing I told her was, "Cash o installment?"

Photo credit: www.mashable.com

You might already predict the answer. If you think our batchmate bought the phone on installment basis, then you're right on the spot. How much does my batchmate pay for each month? I don't know, but I'm sure I can buy a lot of diapers with that amount.

I see a lot of people carrying the latest gadgets. Me? I only have a cheap Android phone. Even though I sometimes drool at the features of the newer high-end phones, I have to content myself with what I have. You know why? Because this is what I can afford and because I don't need a new phone.

Tip: Live within your means. Do not buy something you can't afford with spot cash.

Photo credit: www.tourism.gov.ph

So let's get back to topic. What do I mean when I say "rich"?

1. For me, a rich person is someone who is content with what he has and does not have to look at another person's possession.

Like what I said, I only have a cheap Android phone, but it works. I work full-time as an online essay instructor, but what I own is a small notebook instead of a Macbook. I also blog regularly, but I didn't buy an expensive DSLR to take photos. Why should I when my point-and-shoot works well?

2. A rich person is also emotionally secure and does not depend on material things to validate himself.

This is something I need to work on. I think I have a low EQ when it comes to clothes and dresses. Gadgets I can ignore, but when I see a pretty dress for sale, I have a pretty hard time debating with myself. Unfortunately, it is not always the frugal one who wins. Aside from clothes, I also have very low self-control when it comes to baby stuff and interior decor.

3. Finally, a rich person is someone who can face any unexpected event, whether welcome or not, without having to worry because he is prepared.

This is the most important factor, I think, in the journey to becoming rich. A lot of people might boast their gadgets and wheels, but would these pay for an emergency? I actually see many people selling their gadgets online. Why? Because they need money for something. In my opinion, a rich person would never have to resort to doing such a thing. This is because a rich person has already an emergency fund and would not buy anything that doesn't grow and is considered a liability.

There we have it! These are my definition of rich. I am not everything I mentioned above. As I mention here, I'm still beginning my journey to becoming a rich Filipina.

How about you?

About this Blog

Hi there! I'm Maan and I'm an aspiring rich Filipina.

I usually blog over at Davao Mommy, but I decided to create a new blog, The Rich Filipina, to be the home and witness of my journey to becoming financially independent.

Yes, I have started the journey already by devouring books, blogs, and all sources of information I can find about personal finance for Filipinos. This is my first step. However, when it comes to the actual journey, I can say that what I am making now are still really tiny baby steps. But we all start from there, don't we?

This is another purpose of this blog: to make me accountable for my actions. I want to be able to document the different steps and milestones I have already achieved until I see myself as what I want to become: a rich Filipina.