Expense Management - Plan Your Payables

Len Grande and her husband Elmer send four kids to school: Phyllis, 13 years old, first year high school; Philip, 11 years old, grade five; Phoebe, seven years old, grade one; and Phoenix, four years old, nursery. That means a lot of backpacks, school uniforms, pencils, papers, and notebooks to buy every single year. But Len and Elmer have managed to do it debt-free - and miracle of miracles, they’ve managed to save on the side, too.

What’s their secret?

Len says, “List down all your payables so you’ll know exactly how much you need to save up for, then program where you’ll get the funds to meet your payables.” By payables, Len doesn’t only mean projected tuition and miscellaneous expenses, she also lists down an amount meant for savings as well as payments for her pension plan.

Phyllis’s elementary yers were covered by an education plan. It was a baptismal gift. The first payment was made by one of Phyllis’s ninangs and Len took over the subsequent payments.

This year, Len is particularly proud that her daughter Phyllis, who graduated salutatorian in elementary enjoys a 30 percent discount on her tuition. And because all four kids goto the same school the youngest. Phoenix, was granted a discount, too.

Len is thakful that their mid-year bonus is released every April, just in time for enrollment. since she pays every quarter, she only has three other payment months to think of - July, October and December. The July payment is covered by her husband’s bonus from the workplace. the next two payments, they save up for.

Len does this by allotting P5,000 of her salary every month to the employees’ cooperative, which the employees themselves invest conservatively. This forces Len to save money. “Kung sa akin kasi yon, baka wala na yon,” shey says.

She also pays for her insurance with an endownment plan. This matures in two years, after which she intends to get another one to cover either her kids’ education or her retirement.

Len is thankful that she has found a good employer that offers good benefits and enough opportunities for career advancement. This has allowed her to save up for her children’s education and her family’s future.

Citibank Tip: ” Getting spending under control is not easy, so include your family in all plans. They can help you sour out your finances. Beside, the changes you make will affect the too, so get them involved in the budgeting process. You may need a few months to improve your spending habits to keep adjusting until you have the plan that works best for you.”

source: Good Housekeeping

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