Mid-Year Financial Review for 2018 | SavingsPinay
And I’m sharing it all to you.
You may remember the Mid-Year Financial Review I did last year. Thank you for the positive feedback you gave on that.
For me, June is the perfect month to reflect and to look back on how the first six months of the New Year went in the area of finances.
I mainly focus in checking the progress and necessary adjustments I can do with the following:
- My 2018 Financial Goals
- My Current Spending Habits
- My Extra Income Projects
- My Mid-Year Net Worth
- My Next Actions to finish the year strong
This Mid-Year Financial Review takes on an hour or less to finish and I highly recommend you do the same.
Pick a specific date this June where you can sit down and conduct a financial review. Make sure you have a pen and paper ready.
Or sign-up to the SavingsPinay Resource Library to access my very first free opt-in, The Mid-Year Financial Review Workbook.
The Mid-Year Financial Review Workbook includes the following:
1. SMARTER Financial Goals Worksheet
Are you struggling in reaching your financial goals?
Then maybe you need to revisit your goals and make them smarter.
This worksheet will help you do that exactly. I devise a worksheet that will assist you in goal-setting with the corresponding next actions you need to do.
2. Your Daily Spending Tracker Worksheet
Tracking your day-to-day spending is essential to keep up with your budget. Isn’t it nice to know exactly where your money goes?
Let’s make tracking our daily expenses easier and more convenient with this free worksheet. You can print and cut it, turn into a little handy notebook and bring with you anywhere.
3. The Side-Hustle Worksheet
If you are living on one income then you are doing it wrong. I’ve talked about side-hustling every now and then to encourage you to step up and earn extra income too.
If you don’t know where to start then this free worksheet is for you. I included helpful tips and questions to ask for you to determine the best side-hustle to have this 2017.
4. Calculate Your Net worth Worksheet
Any financial review is not complete without calculating your net worth. This is an essential step to set a map on how your finances should be and would be in the future.
The tool included in this free The Mid-Year Financial Review Workbook will be your guide in correctly computing your current net worth.
5. My Next Actions
Lastly, you will get a free My Next Actions List to jot down what your possible area of improvement will be to finish the year strong.
Again you can download The Mid-Year Financial Review Workbook at the SavingsPinay Resource Library.
My 2017 Financial Goals
To view the full list of My Goals for 2018 click here.
I can sum up what I want my 2018 to be in terms of finances with the following:
- I want to save more than what I earn.
- I want to get stable extra income through my side hustles
- I want to diversify my investments on other vehicles and
- I want to make some milestone purchases like furniture
My exact financial goals for 2018 are as follows:
Hit 60,000php target emergency fund and save it on a passbook savings account by November 2018.
Keep myself invested in the stock market but, instead being impulsive, I plan to invest 8,000php every four months on stock market.
Invest in index fund by first quarter of 2018.
Invest in life insurance next by first quarter of 2018.
For 2018, I’m continuing the money challenge but this time I will do the 52-week Money Challenge in 20php increments.
Increase my saving and investing percentage by 1% every month.
Instead of buying financial books I will read ebook instead and create a book review post to share what I learned. I plan to do this for my email list only so if you are still not part you can sign up here.
Host my own personal finance seminar/workshop. This is part of my priorities this year and something I really want to check-off.
Reach my goal of a six-digit extra income fund.
Practice delay gratification for the nth time.
Now let’s take a look on the progress I made for the first six months of 2018.
1. Php 60,000 Emergency Fund
As you may have noticed, I haven’t made a significant dent for this. I bid 2017 goodbye with around Php 32,000 in this account and I am still in the same bracket.
Given that I deposit around Php 2000 every month in this fund, I should have at least Php 44,000 but I am such a failure in this. Where did my money go?
Well to begin with, I got sick at the start of 2018. I got a rabies vaccine in March. I got bitten by my lovely dog one afternoon while playing with him.
I don’t think my dog has rabies since he is still around 3 months old but since the bite had some blood and I never had injected with a rabies vaccine ever since I thought it is only necessary to have one.
My medical card doesn’t include rabies vaccine so I had to shell out my own money for this. Rabies vaccine cost a lot and you have to go four times to the clinic which means added transportation.
Anyways, enough with the explanation. The bottom line is I am way behind with my goal and if I really want to achieve this I must be able to double the money I am saving.
My Next Action: Put more extra cash, bonus or 13th month straight to my emergency fund.
2. Keep invested but instead of monthly, quarterly with Php 8000 minimum
The idea behind this goal is because of the article I read an article in Investagrams that Php 8000 should be one’s minimum investment in the stock market.
Mathematics support that investing less than 8,000 pesos, means you are losing more money even before there’s any price movement.
I am not going to lie and admit that I failed in doing this approach.
The Philippine Stock Exchange Index went from an all-time high of 9000 points to a continuous fluctuation between 7400 points to 7700 points. The stock market has been failing since February 2018 and what I did is cost-averaging on the stocks I already bought last year that are really low.
What is cost averaging?
Cost averaging is an investment technique wherein you buy the same amount/number of a particular investment/stock on a regular schedule, regardless of the share price.
Hopefully this next six months or the last two quarters of 2018 I will be able to only invest a minimum of Php 8000.
3. Invest in Index Fund in the first quarter of 2018
Finally something I achieved!
Around April 2018, I moved half of my Save and Learn Equity Fund investment to the recently launched Consumer Index Fund of First Metro Asset Management Inc.
Here’s an excerpt from the post I did on the best retirement accounts in the Philippines.
Index Funds work like mutual fund. When you start investing in one, your money will be pooled together with the other investors and invested on a common market.
The Philippine Stock Exchange Index a.k.a. the Top 30 companies in the country is the number one market that index fund in the Philippines mimics.
Last quarter of 2017, FAMI launched a Consumer Index Fund. The First Metro Index is composed of 18 stocks under food and beverage manufacturing, fast food and restaurants, mall development, communications, financial services, tourism, transportation and more.
It became available in the market by February 2018 and after two months of consideration I finally decided to jump in by using Php 25000 from my mutual fund investment.
Why I chose to invest in Index Fund?
According to Sir Warren Buffet, index fund is the best investment for retirement. Why did he say so?
Just like mutual fund and ETF, Index Funds are invested in a market that already have multiple stocks.
Direct investing in the stock market can be a bloody and stressful journey. You have to spend time researching which stocks to buy and when to buy them.
In Index Fund all you have to do is simply invest. It streamlines the time (and emotion) spent making decision to where your money should go.
Investing in index fund has a clear goal in mind – mirror the market!
What does this mean for you and your retirement fund?
As long as your chosen market is green, your index fund is green too.
Something I realized now that I’m investing in direct stock market is that I have a tendency to be emotionally attached.
As the market move up and down, I am easily consumed by fear and greed. This feeling force me to make sudden financial decisions here and there.
With Index Fund, there is a lesser chance that you get affected by your emotion. Index Fund has a simple job – track the market!
I am excited with how this investment will turn out in the years to come.
4. Invest in life insurance next by first quarter of 2018
I had a renewal term life insurance from Sun Life which I won last year during the SINAG Awards.
Although I have yet to ask for details as to the specifics of the insurance policy we received I am still fortunate that I can worry less since I have my work life plan policy and the Sun Life to cover my family’s needs.
If you haven’t invested in a life insurance I’d like to give you some important reasons to do so.
Who needs Life Insurance?
The biggest deciding factor as to who needs life insurance is this –
Will someone suffer financially when you die?
Kapag namatay ka ba ngayon, kaya ba ng family mo mabuhay in the years to come? Is there enough financial resources for them to continue with their life?
I personally suggest to get a life insurance if and then you belong to the any of the following scenario:
1. If you have a family to support, get a life insurance.
Having a spouse and/or children or even parents and siblings who depend on your income should get you thinking of getting an insurance for yourself!
Life insurance will make sure that the family you left behind will have more than enough to continue paying for day-to-day bills. This will also ensure that, now that you’re gone, the plans you have for them in the future such as college education, are still intact.
2. If you have mortgage/debt to pay, get a life insurance.
Have you incur any mortgage/debt throughout your lifetime? If yes, then a life insurance is good investment to cover the cost of your debt. This is also important so your family doesn’t have to move if you die.
3. If you have accumulate any wealth you wish your family can inherit, get a life insurance.
Have you heard of estate tax? Estate Tax is a tax imposed on the privilege of transmitting property upon the death of the owner. This rule applies in transferring house, land, shares of stocks and even business ownership or interest from the deceased to the heir.
After death, heirs must pay the estate tax to BIR within 6 months or else surcharge will occur. If heirs weren’t able to pay for estate tax the government can take over the deceased property legally.
This is where getting a life insurance becomes handy. Proceeds from your policy will cover the estate tax required on any asset you gather throughout your lifetime. Your children can benefit from your assets as a whole.
I also like to add this scenario – they say that if you’re single, with no debt and no dependents, it’s okay not to have life insurance.
But, I beg to disagree.
As long as you have someone who would suffer from your death financially, you should consider getting an insurance for your life!
You still need that monetary assurance to support for aging parents or a sibling. Also again, it is a good investment to own habang bata ka pa.
5. The 52-Week Money Challenge in Php 20 increments
I have tried the 52-week money challenge ever since learning about it from Kuripot Pinay. I really like the idea Ms. Rhea presented and I find it to be a good way to kickstart an attitude of being a saver.
The challenge turned out to be really a challenge. There has to be a certain level of accountability between you and your money to succeed in it.
I have done the invisible challenge last year and my video became viral in YouTube. And so I wanted to level up by doing the 52-week money challenge but this time in 20php increments, money that I have already successfully saved in the past.
Currently, I am in Week 23 which means I have around Php 5520 already!
How I’m doing the 52-week money challenge in Php 20 increments?
I collect whatever Php 20 that comes my way on a given week. If it is enough to the deposit I needed for that week I mark it off. If not I use whatever money I saved or left from my budget and exchange it to Php 20.
Fortunately my parents have a sari-sari store so exchanging Php 20 is never a problem for me.
Gusto ko rin maintindihan niyo na mahirap mag-ipon ng say Php 600 worth of 20pesos in one week! The average 20pesos I can collect is around Php 300 only. That’s why I save the rest in a different money denomination and just exchange it to 20pesos after.
6. Increase my saving and investing percentage by 1% every month
How I organize my finances is that I allocate 30% of my monthly salary to save and invest.
1. I transfer 10% of my salary to my emergency fund.
3. I transfer another 10% of my salary to my stock market account as additional buying power on a monthly basis. My current broker is FMSBC. I did a step-by-step tutorial on how I opened an account with First Metro Sec in this post.
But since I wanted to really save more this 2018 I decided to deposit an increment of 1% of my salary every month on a particular savings account.
I intend to use whatever money I gained in this account as a travel fund for next year.
7. Read financial ebooks
I have around 10 financial ebooks in my Google Drive account and I still have read any. My bad. I’ve been caught with procrastination in the first three months of 2018 and the rest was spent for some of the best novels I’ve read in my life.
Reading financial books is important. Increasing what you know about money management will help in making sure you make sound decision every time you spend, you save or you invest.
Here are the ebooks I’m talking to you about:
1. Zero to One by Peter Thiel
2. The Success Principles by Jack Canfield
3. The Little Book of Common Sense Investing by John Bogle
4. Rich Dad’s Cashflow Quadrant by Robert Kiyosaki
5. Secrets of the Millionaire Mind by T. Harv Eker
6. Unfair Advantage by Robert Kiyosaki
7. The Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer, Michael LeBoeuf
8. The Millionaire Next Door by Thomas Stanley and William Danko
9. Awaken the Giant Within by Anthony Robbins
10. The Intelligent Investor by Benjamin Graham
I am scheduling myself to finish at least one financial ebook a month and use 30 minutes of my break time reading.
Also, as soon as I came back from my trip to Seoul I decided to sell some of my personal finance, productivity and self-help books to the SavingsPinay Page and Group on Facebook.
I was overwhelmed by the support I received with the members of the community because just less than an hour of posting, the books were already sold.
8. Host my own personal finance seminar/workshop
At this point I have no idea if this is even possible.
There’s only six months left in 2018 so it would be harder and harder to pull this one through. Organizing a seminar is something that takes months of preparation so I’m not as expecting I will achieve this goal this year.
Although I would be grateful with something not as major as a workshop or seminar. A simple readers meetup will be A-MAZ-ING too, meeting all of the loyal readers of the blog over coffee talking about finances, investing, blogging and more.
Is this something that would interest you? If yes please let me know in the comment section below.
9. Reach a six-digit extra income fund
Most of my extra income fund is now gone. I spent them all for the travels I did visiting Eastern Samar and Seoul.
I am not mad or sad though, as I had the greatest time of my life during those days. I also have not made any significant money from my weddings and events business as opposed to what I envisioned when I made this goal.
For the current progress, I’ll be happy even to get as much as Php 50,000 for this account as 2018 ends.
But I will do my best to hustle and focus all efforts on two major things – 1. Release a paid ebook and 2. Market my hosting services. That’s it.
Whether somebody buys the ebook or get my hosting my services is not my burden anymore. My only burden is to write and release a paid ebook and make it available AND continue marketing my talent in hosting to others.
I will need every hosting gig I could get this 2018.
10. Practice Delayed Gratification
Something that I’ve been fighting my way through this year is to really practice the art of delayed gratification.
Delayed gratification is the process that the subject undergoes when the subject resists the temptation of an immediate reward in preference for a later reward.
Remember one of the money tip I shared last month? Write down what you want to buy on a paper.Keep that listed in the next 30 days. If you still like the item after 30 days then you can purchase it without much guilt.
That is a good example of delayed gratification.
I see two main reasons why delayed gratification could boost one’s finances:
1. Delayed gratification will help you save money. We all know most sales happen at the end of the month. If you allow yourself to purchase at a later time you might score a better price compared to purchasing impulsively.
2. Delayed gratification will help you get rid of guilt. Something I hate the most is regret especially when it comes to purchases. Sometimes we are forced to buy things we end up regretting afterwards. Because you think first before purchasing, you are allowing yourself to know much more about a certain product and whether you really have the money to pay. You avoid the risk of ending up with a loan or personal debt.
Definitely I can say I have shown such practice of delayed gratification especially when it comes to travel.
I gave myself enough buffer fund (thanks to my side hustles), so I can spend a year of saying yes to travel without breaking my bank.
For the months or year that I was waiting for my travel fund to grow, I still had some fun but only to far less expensive trips you can take that won’t really eat up your savings.
You can also visit nearby museums, parks and recreation areas. During the year that I’m building my travel fund, I became content with quick day tours at Manila Ocean Park,Intramuros, Binondo and Star City.
It’s really not about how far you’ve been to, but really more of the how happy you’ve been at that exact moment.
Highlights of 2018 So Far
I can definitely say that my year so far is nothing but great. It is filled with first time experiences and memorable moments.
Financially, I may be down but as a whole, I am above and beyond.
Here are some highlights of my 2018 so far.
1. I’m cooking
Wow. For the first 23 years of my life I never ever tried cooking a decent meal for my family. But for the past couple of months I have been overjoyed by my passion for cooking.
Among the meal I have cooked already were Pork Binagoongan, Chicken Curry, Chicken Adobo, Chopsuey, Carbonara and more. I never thought cooking will be this fun!
2. Visit to Eastern Samar and Seoul, South Korea
For both March and May I traveled. First, I went home with my whole family in our province in Cabay, Eastern Samar.
I have no expectations at all about the next five days and four nights I will be spending in Eastern Samar. I actually thought it would be a boring vacation for all of us.
No WiFi and No Signal.
But lo’ and behold, the trip became one of the best and the most unforgettable ever. Even now, while I’m writing this post I am missing the life I had back in the province.
Ngayon alam ko na kung bakit gusto nila Papa at Mama na makauwi kami.
Then South Korea happened a.k.a. my first travel abroad. Who would have thought I will be able to set foot in Seoul.
For someone like me who have long been a KDrama, KPop and KVariety fan, going to Seoul, South Korea is definitely a dream come true.
I visited the N Seoul Tower, ate street foods in Myeongdong, went to Goblin shooting locations (Yongdap Bridge where Sunny and Grim Reaper First Met and The Goblin Wall), wore Hanbok in Gyeongbokgung Palace and more.
There’s something about travel that is so satisfying. Probably that sense of instant achievement it gives. I am really happy to say that I’ve been to both Samar and South Korea, both from my bucket list!
3. Hitting Google Adsense threshold twice!
Four years ago, I have no idea how I will be able to get my first Google Adsense payment.
I average around $2 every single month. It took me four long years to learn how to properly monetize on Adsense.
Currently, I am on my third Google Adsense payout. First was on August 2017, next was February 2018 and now May 2018.
Seriously after I earned my first $100 from Google AdSense, it became so much easier for me to reach my next payment threshold.
What did I do differently?
Owning my own domain and hosting made such a huge difference in my blog life.
That investment unlocked all the possibilities for monetization on my blog. For three long years I didn’t bother to have my own domain and web hosting.
I felt comfortable being a free blog.
Then my Kuya from Olanap.com said to me,
“Pag di ka .com, di ka lang hindi seseryosohin ng ibang tao. It also means na ikaw mismo ang hindi sumiseryoso sa blog mo”
If you are still blogging on free platform I highly recommend getting your own domain and hosting now. Try Pangalan, a one-stop shop to all domain and hosting needs.
Their PNSakto has everything you need to start a profitable blog.
Why I recommend Pangalan?
First, I wouldn’t recommend getting your own domain with Pangalan if I haven’t used it myself.
This blog and my other blog,IzzaGlino.com as well as my business website IzzaGevents.com are all hosted in Pangalan! I love patronizing local businesses and it makes me feel secured knowing they have a headquarters in Manila. If something bad happens, I can reach their office right away!
Second, you can start a blog with Pangalan for less than 500php per year.
For that low price you can now start a professional blog. They even have promos if you really want a domain on a budget.
Third, amazing customer support.
Newbie bloggers especially those who, like me, have no interest in the technical side of blogging will definitely love Pangalan.
Their customer support really works. If you have questions on getting started or setting up your new domain now, you can get help quickly and easily over phone, Messenger or email.
My experience with Pangalan so far has been pretty smooth. They immediately respond to my requests and ensure that my blog is up without any problem at all.
My Current Spending Habits
Last year, I’ve been spending a lot of timeless pieces when it comes to clothing and accessories. I ever bought my first branded bag, a Longchamp Neo Sling Bag in Black.
I stopped buying clothes that I know I won’t really use and skincare/makeup I don’t really like.
Currently, I am spending on travel A LOT.
And I definitely made the best decision of my life. There is no regret in spending money on travel especially with the people you love the most.
I also feel like I became wiser when it comes to spending my money. Some of the good money habits I’d adopted so far are:
1. Knowing what triggers me to spend. I learned I am more likely to spend money on a dinner after work if I don’t have a snack by 3PM. To avoid spending Php 100 to Php 200 additional on food I try my very best to have a snack first while at work.
2. I follow the cash envelope system. I find the cash envelope system to be the easiest method to stay as close to my budget. I have a better control on my money whenever I put them on envelopes and have a quick grasp on how much money is left for me to spend.
3. I stopped buying new clothes and makeup. Since 2017, I’ve been wearing less and less makeup than usual, and I love it. This saves me money because I stopped having urges to buy a new lipstick or new blush and instead try my hardest to empty products. We also have uniform at work so I don’t need to spend anymore on new clothes!
My Extra Income Projects
Aside from the blog, all of my extra income projects are on hiatus.
I am not putting much effort in freelance writing, youtube and growing my wedding and events business. I know I am not trying hard enough and I keep on procrastinating, as usual.
How I Plan To Grow My Extra Income before 2018 Ends?
Some of the things I am planning to do to grow my side hustle income are:
- Write and sell a paid ebook.
- Post ad on Facebook about my hosting services. Facebook is such a great place to advertise one’s services online. Now that I already have a video up, I would like to spread the word about my side hustle better.
- Reach out to fellow wedding and event suppliers if they need any emcee services.
- Finish and launch www.izzagevents.com
I am not losing hope that my side hustle projects will soon be profitable. I am excited on how God will use His gifts to reach out to wider audience.
Either by hosting momentous events or sharing through YouTube life and money tips.
My Mid-Year Net Worth
It is exactly one year since I started tracking my net worth with real and actual numbers.
Below is the screenshots of my assets, liabilities and current net worth for May 2018. To be updated make sure you read my latest recap and extra income report!
For the longest time I held back in publishing my net worth because I’m afraid of the expectations of the people around me.
Everyone start from something. And I am now looking forward in earning my first million pesos too!
Why you should compute your net worth?
1. It reveals your current financial status.
2. It helps you create possible next action to stay on track with your financial goals.
3. It gives you an idea on how much you really owe and what area you can adjust to pay-off your debt.
4. It motivates you to strive and to hustle more.
Here is a pic of my net worth progress chart since I started to track my net worth last year.
I started with around Php 175,000 in net worth and now I am a quarter of a million pesos worth already!
The progress is slow but steady.
Want to Calculate Your Own Net Worth? Sign Up and download the Simple Net Worth Tracker in the SavingsPinay Resource Library.
My Next Actions to Finish the Year Strong
I am truly proud of my accomplishments but I know there’s still much to do.
Nanga-ngalahati na ang taon.
With my 2018 goals revisited, spending habits reviewed, income projects launched and net worth revealed, below are my the main areas I will work harder on:
- Get at least a month ahead in my blog posts. Doing this will autopilot the success of both SavingsPinay and IzzaGlino this 2017. For June I am working on getting one week ahead of post especially with two long weekends. I already have a blog post idea bank on Google Drive and now all I need to do is spend quality time writing.
- Create my first digital product to sell. Hopefully it is still not late for me to create a product to sell now that we’re halfway pass 2018. I currently writing an eBook and I just want to make it available before 2018 ends. Whether someone buys it or not is not my burden anymore.
- Have booked events every month from September to December. The wedding and event industry has been very nice to me. I can’t thank God enough for giving me the gift of public speaking. In the next three to four months my attention will all be about marketing the business. I am claiming that it will be an exciting and prosperous –ber month!
- Some Financial Milestones to Hit by December 2018
Php 60,000 in Emergency Fund
Php 25,000 in Extra Income Fund
Php 75,000 in Mutual Fund and Index Fund
Php 50,000 in Stock Market
Final Notes from SavingsPinay
There is one big lesson 2018 have taught me so far,
It is surrendering everything to GOD.
All of my ambitions, my gifts and my strengths.
My inhibitions, my doubts and my fears.
The money that I have and what I have yet to receive.
Including Him more in my life became an ultimate game changer for my 2018. I cannot stress enough the happiness I found the day I surrendered everything to God.
There is nothing much more important for me right now than the relationship I have with God who strengthens me.
It definitely changed the way I see success, progress and life in general. May God use me and this humble blog for His glory.
Can I pray for you and your finances? If you are experiencing trouble entrusting your finances to God, please pray this simple prayer with me.
God You are the ultimate provider.
Thank you for Your love and mercy. You have been nothing but kind through the years, showering me with Your grace.
At times of trouble I seek no one and nothing but Your love. Your comfort gives me strength. You are my rock and my redeemer. With you there is redemption.
I pray You will continue to guide me in my decisions. Make me wise in handling my money. Make me better in everything I do.
When I feel like giving up or quitting, may you remind me why I started.
When I feel like nothing is happening, may you surprise me with Your miracle.
When I feel like money is scarce and fading, may you move me to trust that You will provide.
Grant me with utmost humility to acknowledge Your presence every second, every minute, every hour and every day of my life.
Let no debt, failure or loss and no ambition, success or gain separate me from You.
This I pray in Jesus name, Amen.
Thank you so much for reading and praying along with me.
God will fill you with so much as long as you start trusting and believing that He can provide. Always remember that.
I wish you all the best as you work towards the path of financial freedom. Comment below your thoughts, questions and suggestions.
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Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at www.izzaglinofull.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at firstname.lastname@example.org