Track and Budget Your Expenses Effeciently

Expense tracking and budgeting are essential to fixing your personal finances. By knowing and limiting where your money goes, you won't risk getting short before your next pay check. It will ensure that you will have more than enough money to last you until your next pay day. Expense tracking is especially important for those who use credit cards. This will prevent you from spending more than what you can afford to pay.

Expense Tracking

Tracking and budgeting your expenses can be a tedious and time consuming activity. This is the reason why a lot of people don't do it or give up and stop doing it. A common mistake people make when tracking their expenses is making it too complicated. I will share to you several ways to improve how you can track your expenses and finish it faster.

All You Need to Know About Modified PAGIBIG 2 Fund (MP2)



Finding a safe way to invest your hard earned money has always been a challenge. PAGIBIG has provided a safe invesment product that offers good returns for its members. PAGIBIG MP2 is a voluntary investment program that offers better return than what your compulsory PAGIBIG contributions provide.

The program took effect on February 3, 2010 and it has been providing good returns to its investors. Let us examine the MP2 program in detail and find out what it has offer.

How to Save on Fuel Expense Through Rebates

Fuel is one of the expenses vehicle owners can't escape. Every peso you save on fuel expenses will save you a lot on the long run. Most motorist will try to find ways to reduce their fuel expense through driving techniques, proper maintenance or modifying their vehicles. Another simple way you can save on fuel cost, is to take advantage of loyalty cards offered by gas stations and rebates offered by credit cards companies. Most of the major gas companies in the Philippines have a loyalty rewards program and are partnered with a credit card company.

Philippine Consumer Price Index and Minimum Wage (1957 -2015)

Date Administration Inflation Rate Price of Goods Min. Wage (NCR) Wage - Price Ratio
1957 Carlos P. Garcia (March 23, 1957-December 30, 1961 0.00% 4.00 4.00 1.00
1958 3.90% 4.16 4.00 0.96
1959 -0.50% 4.14 4.00 0.97
1960 4.80% 4.33 4.00 0.92
1961 1.60% 4.40 4.00 0.91
1962 Diosdado P. Macapagal (December 30, 1961 - December 30, 1965) 5.80% 4.66 4.00 0.86
1963 5.60% 4.92 4.00 0.81
1964 8.18% 5.32 4.00 0.75
1965 2.56% 5.46 6.00 1.10
1966 Ferdinand E. Marcos (December 30, 1965 - December 30, 1969) First Term 5.40% 5.75 6.00 1.04
1967 6.25% 6.11 6.00 0.98
1968 2.36% 6.26 6.00 0.96
1969 1.96% 6.38 6.00 0.94
1970 Ferdinand E. Marcos (December 30, 1969 - September 21, 1972) Second Term 14.40% 7.30 8.00 1.10
1971 21.40% 8.86 8.00 0.90
1972 8.20% 9.59 8.00 0.83
1973 Ferdinand E. Marcos (September 21, 1972 - January 17, 1981) Martial Law (January 17, 1981 - June 16, 1981 16.60% 11.18 8.00 0.72
1974 34.20% 15.00 8.00 0.53
1975 6.76% 16.01 8.00 0.50
1976 9.20% 17.49 10.00 0.57
1977 9.90% 19.22 10.00 0.52
1978 7.33% 20.63 11.00 0.53
1979 17.50% 24.24 13.00 0.54
1980 18.20% 28.65 14.00 0.49
1981 13.10% 32.40 18.00 0.56
1982 Ferdinand E. Marcos (June 16, 1981 - February 25, 1986) Third Term 10.20% 35.71 18.00 0.50
1983 10.00% 39.28 21.00 0.53
1984 50.30% 59.03 46.00 0.78
1985 23.10% 72.67 46.00 0.63
1986 1.15% 73.50 46.00 0.63
1987 Maria Corazon C. Aquino (Feruary 25, 1986 - June 30, 1992) 4.07% 76.49 64.00 0.84
1988 13.90% 87.13 64.00 0.73
1989 12.20% 97.76 89.00 0.91
1990 12.20% 109.68 106.00 0.97
1991 19.30% 130.85 118.00 0.90
1992 8.65% 142.17 118.00 0.83
1993 Fidel V. Ramos (June 30, 1992 - June 30, 1998) 6.72% 151.72 135.00 0.89
1994 10.40% 167.50 145.00 0.87
1995 6.83% 178.94 145.00 0.81
1996 7.48% 192.33 165.00 0.86
1997 5.59% 203.08 185.00 0.91
1998 9.23% 221.83 198.00 0.89
1999 Joseph E. Estrada (June 30, 1998 - January 20, 2001) 5.94% 235.00 223.50 0.95
2000 3.98% 244.36 250.00 1.02
2001 Gloria Macapagal Arroyo (January 20, 2001 - June 30, 2004) First Term 5.35% 257.43 265.00 1.03
2002 2.72% 264.43 280.00 1.06
2003 2.29% 270.49 300.00 1.11
2004 4.83% 283.55 325.00 1.15
2005 Gloria Macapagal Arroyo (June 30, 2004 - June 30, 2010) Second Term 6.52% 302.04 350.00 1.16
2006 5.49% 318.62 362.00 1.14
2007 2.90% 327.86 382.00 1.17
2008 8.26% 354.94 382.00 1.08
2009 4.22% 369.92 404.00 1.09
2010 3.79% 383.94 426.00 1.11
2011 Benigno Simeon C. Aquino III (June 30, 2010 - June 30, 2016) 4.65% 401.79 446.00 1.11
2012 3.17% 414.53 456.00 1.10
2013 3.00% 426.96 466.00 1.09
2014 4.10% 444.47 466.00 1.05
2015 1.43% 450.83 481.00 1.07
* Price of goods base price 1957 at Php 4.00
** Minimum Wages include all allowances
*** Wage to Price ratio determines the purchasing power of the Minimum Wage Earner against the Increasing Prices of Goods. 
Source:
http://www.nwpc.dole.gov.ph 
http://data.worldbank.org

Time Value of Money

Money received today is more valuable than the same amount of money a year from now. It is important to understand the relation of money and time since the value of money is affected by time through Inflation and Loss of Opportunity. Money loses its purchasing power over time due to inflation. As prices rises the same amount of money today won't be able to purchase the same number of goods a year from now. Another way you lose money over time is through loss of opportunity. Money that should have been received a year ago could have earned if it were invested a year ago.

In order to determine the value of money over time we will use the formula below.

PV = Present Value
FV = Future Value
IR  = Interest Rate
N   = Number of Years

PV = FV / (1+IR)N