For the Love of Money

I have been raised in a big family. Five big brothers, four big sisters and a throng of close relatives living nearby. Money has never been an issue, because there is none to begin with. Everything has its designated allotment long before the money comes. Prudence on financial matters was always practiced. Resources were recycled, reused and reduced. This has been so ingrained in my veins I turn off all electrical appliances when not in use, unplugging them even. My husband turns nuts over this because I insist he does the same.

Despite this, we are still not rich. Life is more comfortable though, now that all of us siblings are all grown up and with our own families. I would like to share some financial principles hoping one day, Lois and 2 would benefit from them.

Credit Cards
Some studies say people spend 30 percent more when they use credit cards instead of cash. This is because we get the illusion that money is not lost since the card is returned after each purchase. One of my sisters was duped this way. Worst, she didn't pay all her monthly dues completely, making compounding interest worsen her debt month by month. My brother had to help her when the bank companies started calling.

To prevent this, I paid all my purchases when it was my turn to have my own credit card. I just maximized the 30-day leeway, and got all the bonus points. To do this, I used the envelope system. One envelope represents each fund allotment.

I think I had eight then:

1.tithes
2.fund I give to my Inang
3.utilities
4.allowance
5.clothing expenses
6.food stuffs
7.social expenses like night outs and weekend getaways
8.and savings.

With the dawn of online banking, I threw the envelopes away. Instead, I immediately transferred funds online so when it's payment time, my properly allocated money equal all the credit card purchases I made. It is still more practical to carry less cash in Manila, so it's always credit card as much as possible.

Gift Giving
As much as we can, that's our principle when it comes to gift giving. This is one of the statements we would like to make as a Christian family. That doesn't mean though that we give the moon and the stars, everything is still within our spending limit. Sometimes when I really get encouraged – ok, pumped – by those big, red letters of store sales, I give in to my feminine side by buying for relatives. This way, I don't get to cram for my Christmas shopping and I am able to give in to my ill-nature of shopping during sale.


Savings
Rich Dad, Poor Dad's basic principle is to pay your self first then use those savings to earn for you. Paul and I are not great savers. God has blessed us with just enough. Our strategy, though not the best is to get those pension plans, insurance and stuff, plus a non-negotiable long-term deposit for the kids' schooling. Adding to that savings fund is not regular, only when we get a big windfall like bonus from the office, etc. - clearly, grace of God.

Loans
As believers, one of the biggest challenges especially to Paul is to live debt-free. We're long way off that, but that's the goal we want to get to. No major purchases because ever peso we get has already been allotted for.

Summing it up
God owns everything. He feeds the birds of the fields, what more us, His royalties? Prayer is our main tool and God's words are our primary weapon. May Lois and Baby 2 learn to spend wisely and live fully as salt of the earth.

On Salts. Got this from Crosswalk.com

We are salt. Do you know that salt is used in greater quantities and for more applications than any other mineral? It has more than 14,000 known uses! Every living creature requires salt for life and health.
Salt can soften hard water, remove impurities; preserve and cure foods; tan hides and it's even been used to seed clouds to produce rain.
 
When Jesus refers to us as salt he means that we are essential to every living creature. We have thousands of uses in His hands. We can help soften, heal, separate, remove impurities, fill, preserve, cure and even tan hides!