Setting my budget right has been one of my goals this 2018. Despite that, I never had a definite budget plan until I learned of @smaeunabs' budget challenge -so I'm now making my concrete allocation adjustments for the year to increase my savings and make best use of my personal income and not waste it on unnecessary expenditures.

My Budget Allocation last November 2017

Before I go on to discuss my budget goal for this year, let me share to you how poorly I had been doing financially last 2017 (haha!)

My salary is variable every month, that is, part of my salary aside from basic pay called 'service charge' depends on hotel sales, that's why I'll only cite one month in the analysis. And since December pay is tax free, I'll discuss what I did with my personal income last November instead.

Photo above shows the amount that goes into my account on the month of November. Since we're paid every fifteen days, I'm listing down two net pays of the month. As you can see, instead of the 30th day pay that should have been lower because of the contributions, we're seeing it to be higher than the 15th day pay. That proves how volatile my salary is. If the hotel sales is low, I could get as low as Php 10,000 net pay. If the sales is so high (like my most recent pay wherein I received Php 9,500 service charge) I could get as much as Php 14,000 net pay (if based on the former tax system). So when the Martial Law was first declared in the entire Mindanao last June, due to the crisis in Marawi City, tourism in the region totally crashed and I received my lowest net income ever.

In the photo below, I listed how I spent my income last November. You see I've had only Php 200.00 savings and that is ridiculous! (my financial advising friends made me say this lol) This is because I actually had a mindset that I'd only start saving when I become 24 - and I just acquired that age 2 weeks ago. So there's no turning back now.

My daily need budget of Php 3,500 is actually too much for 15 days but I've never been thrifty when I arrived in Davao, and last November there are a lot of budget breakdowns I could not trace, so I decided to include them in that category. Aside from that, I'm still fulfilling responsibilities back home, I'm sending allowances to my studying sister. I'm also paying my married sister's rent - I'm doing this in grattitude to all the efforts she has done to help me finish college.

On the other hand, I'm giving the best support I can offer to my parents. I also had balances in my credit cards which will surely take some of my income.

In summary, I was giving my family 28% of my salary, while 8% went to my colleagues as treats. A major 63% was taken by my personal needs - wait, this does not mean I'm being selfish with my salary, I'll kill you if think that way - living a solitary life here in Davao is really hard, you get to provide everything for yourself and sometimes you have to entertain yourself, too, in order to get rid of homesickness and loneliness. This made me desire acquiring a girlfriend soon, but still, I didn't exert any effort of acquiring one because I don't want to add another financial burden on my already-loaded shoulders. Can't you see - this is ridiculously absurd - only 1% of my salary remained! Do you think it is enough to win a girl's heart? LOL

My 2018 Budget Plan

After discussing my awful financial performance last November (which nearly speaks for the entire 2017), I found several points to be improved with my budgeting principles.

Then again, my salary is variable so the computations for every month is different. I would therefore use my January data to come up with numerically precise target results.

The pay I received yesterday can be shown on the first item. That's the highest net pay so far that I've received, thanks to the whopping Php 9,500 service charge and of course, to TRAIN LAW. If you haven't known about that yet, check @fojrance's blog Philippines' New Tax Law. The next item is my projected pay at month end. It's fairly lower because I know the yuletide season is over and the sales goes back to normal also as a result.

My Budget Adjustments

Personal Daily Needs

As I mentioned earlier, 3,500 is just too much, so I'm trimming it down 1,000 lower to Php 2,500. We have one free meal a day in my work place, plus I'm not spending anything for my transportation since my home is just a 5-minute walk away. Furthermore, I'm not into hangouts with friends, so I'm sure I'll achieve that, especially now that I have a goal.

Sisters' House Rental

I've told my sister that I'll start saving some money for myself on 2018 and she already agreed on reducing my contribution in their boarding house rent. This is an additional Php 1,000 savings.

Credit Card Payments

I've known that it's not good to store debts, one should only spend an amount that is in the wallet. So just yesterday, I paid in full my existing Metrobank and EastWest credit card balances - thanks to my first payout as a steemit writer. Haha. Thanks to you, and my steemit friends for their unfailing support. I no longer have debts to pay, and I'm resolving to use credit cards only during emergencies.

Beers and Snacks

This is a funny category. I actually included this because everytime I get home from work, I rarely miss having a sip of a can of flavored San Mig Light Beer. And it does take a huge portion of my money. So as a goal, I'll try to limit myself into two cans a week, I know I can do it - I know my throat can bear it.

There you go, a drastic reduction of my personal expenses from 63% down to just 30%, and a dramatic increase from almost zero to about Php 10,000 per month of savings, I can't believe it's highly possible. This is what budget plans are for.

The 565% increase from Php 200 last November to Php 11,300 target and attainable savings this January is just insane! If I have not joined this challenge, I wouldn't have known this.

Although there are a lot of unexpected, urgent and unavoidable expenses, I'll just have to stick to my plan. Even if I don't achieve the target for this month, Php 1000 or Php 3000 lower than desired is already commendable. I have to get to that. And I strongly believe I can.

Just as the long journey begins with the first step, the success of my entire year's budget challenge will be reflected on how I'd perform in my first month. Good luck to me! Haha

What are these savings for?

Without a second thought, it's for investments! I'm planning on investing in stocks by the end of the month, and I will begin to set aside part of my savings in cryptocurrency trading which I've been hesitating to get into due higher risk than stocks (correct me if I'm wrong haha), but I've resolved to take the risk and be ready to lose money in the process.

Have you made your own #thebudgetchallenge entry? If you haven't, check @smaeunabs' post by clicking here: The Budget Challenge.

Discipline is the bridge between goals and accomplishment. Set your goals high, and don't stop till you get there. Setting goals is the first step in turning the invisible into the visible. Concentrate all your thoughts upon the work at hand.