Wednesday, May 22, 2013

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:
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.

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