Living Solo: Spending Money The Right Way, part 2 of 2

money management, made better with Renzie Baluyut.

In the last post, Part 1 of  Spending Money the Right Way, we discussed a simple money management technique recommended by “Secrets of the Millionaire Mind” author T. Harv Eker.

Eker recommends that whenever money comes our way, we should make it a habit to divide it up into six different accounts, each with a particular purpose.

• 10% goes solely for investments (the FFF fund)
• 10% is for big-ticket items you’re saving up for (the LTSS fund)
• 10% goes to your continuing growth and education (EDUC)
• 50-55% goes to your bills and necessities like rent, utilities, food, clothes, etc. (the NEC fund)
• 10% goes to rest and recreation (the PLAY fund)
• 5-10% goes to gifts, donations and charities (the GIFT fund)

So for every Php1000.00 I have, it would be broken down accordingly:

The Philippine One Thousand Peso Bill. Image courtesy of WikiPilipinas.org.

• Php100 goes to a fund for future investments, particularly for acquiring more passive income.
• Php100 goes to saving up for, say, brand new appliances at home, or that new laptop I wanted for myself.
• Php100 goes to a fund that will support my digital photography lessons, or business workshops, or more books on marketing.
• Php500 goes to doing groceries, or paying off bills, or for buying a new shirt or something.
• Php100 goes to my “movie-and-coffee” fund, or “dinner-and-drinks-out-with-friends” fund.
• Php100 goes to feeding those stray cats outside the apartment.

Which means if I had received a check for, say, Php18,000.00…

• Php1800 goes to the Financial Freedom Fund,
• Php1800 goes to Long-Term Savings for Spending,
• Php1800 goes to my continuing Education,
• Php9900 goes to paying off day-to-day Necessities,
• Php1800 goes to my Play fund,
• and the remaining Php900 into the Gift fund.

This habitual allocation of funds should be in effect regardless of amount, no matter if you receive, say, Php100 or Php20,000.

Now bear in mind that the percentages may vary according to your need, and can therefore be adjusted according to your current situation.  But the most important thing is getting into the habit of putting money into EACH of these separate accounts, no matter what.

The system works so that it allows for more controlled spending.  If my friends invite me out for beers, I know that I can spend up to Php1800 and nothing more.  Otherwise, we can find ways to just party at home so we can spend less.

Putting a cap on my Necessities Fund also conditions me to live a simpler lifestyle, as I now have to find ways to cut down on unnecessary bills (why subscribe to cable TV when I have a fairly efficient internet connection?) as well as to save money.

It might be hard at first, but just like forming any habit, it becomes second nature as you go through the motions on a regular basis.

Personally, I think it’s great advice; something that would have been a lot more useful 15 or 20 years ago when I was just starting out.  But hey, there’s no better time to start than right now.

You can expect a lot more articles on the topic of money management and personal finance on this blog in the future.

Special thanks to Andy, and his post on the Financial Freedom Formula, and to Chase of Barfield Management.  You guys were great help on the topic.

Hope this helps all you chicks and dudes living solo, all you entrereneurs, and pretty much everybody else who’s looking at taking their money management a bit more seriously.

Cheers, everyone.

My Fun-filled Transformers Weekend

If you ask me, i will say without a doubt that Transformers: Revenge of the Fallen was definitely one of the best movies to ever come out this year.

Now there are a lot of things I liked about the latest installment in the Transformers franchise, I’d have to say that while the filmmakers had taken the liberty of introducing fresh ideas and story devices into the movie, they were ideas that didn’t violate the old memories I had of the 1980′s animated series.

In fact, the new ideas worked rather well in tying all the elements of the story together.  So for that, you simply have to give credit to the writers: Alex Kurtzman and Roberto Orci (who both worked on The Legend of Zorro (2005), Mission: Impossible 3 (2006), and Star Trek (2009), as well as on hit TV series Alias, Lost and Fringe), and their buddy Ehren Kruger.

Alex Kurtzman and Roberto Orci, image courtesy of Slashfilm.com

In any case, I did look up trivia, production notes, etc. about the movie- because I’m just involved like that.  I had even gone so far as revisiting the old Transformers classics- such as episodes from the 1980′s animation series and the 1986 Transformers movie.

If you’d like to check out movie trivia on the latest installment of the Transformers franchise, then check out my other post, “Ten Fun Facts About Transformers: Revenge of the Fallen”, or you can head on over to the movie’s pages on Wikipedia or on IMDb.com.

"The Autobots Ride", picture courtesy of About.com and Paramount Pictures

You can also read my review “Ten Things I Like About Transformers: Revenge of the Fallen”.  It’s got some spoilers though, so don’t read it yet if you haven’t seen the movie, and plan to watch it soon.

Also worth checking out, if you want to brush up on everything you need to know about the Transformers, check out these sites:

• The Transformers Wiki, at Transformers.wikia.com, and
• TFWiki.net The Transformers Wiki, at TFWiki.net.

Both are fan-maintained online databases of all things Transformer and Cybertronian.  If you ask me, great geek reading.

You also might want to check out the various Transformers toys, CDs and DVDs right here, on Renzie’s Online Emporium.

Transformers: Revenge of the Fallen is a production of DreamWorks Pictures, Paramount Pictures, Hasbro and Di Bonaventura Pictures, and is distributed by Paramount Pictures.

Cheers, everyone!

Check Out the AKA Mobile Directory

the local social media scene with Renzie Baluyut.

There’s a new social media application you might want to try out, particularly so if you are (or if your business is) based in the Philippines and Metro Manila.

I just signed up for the AKA Mobile Directory.  Currently only available to Philippine-based mobile networks, the application is still in its beta stage, yet its integrated web and SMS search engine promises to be the next big thing, as soon as more people, companies and establishments sign up to be part of its community.

I just signed up on the AKA Mobile Directory as Renzie. Add me up!

The premise is simple: you can join the AKA Mobile Directory by signing up (which is free for now) so you can be listed.

You can then search for other people, companies, events, establishments using keywords, and you can do so via the website, or if you wish, through your mobile phone (which you also should have registered).

As an individual, or as a professional, the AKA Mobile Directory is a great way to promote your profession or your services, as well as to network with other users, who can also connect with you.

As a company or an establishment, the AKA Mobile Directory is a great platform for targetted marketing and promotional campaigns.  The service has several applications integrated into it that can be readily used to generate interest, engage
customers, and encourage repeat business.

So eventually, you’ll be able to build up your own list of “watchers” (those following you on AKA), and you can broadcast to everyone on your list (via a “Yell”) or just to some selected individuals (via a “Tell”).

You can even integrate the AKA Mobile Directory with your Facebook account, so you can update your status through your mobile phone, as well as receive notifications when other users “watch” you, or when someone messages you via “Yell” or “Tell”.

Sending messages through AKA’s web service is free, while sending them out as an SMS messages consumes AKA Credits, which may either be earned or bought.   Standard text messaging rates apply (using the SMS service).

A shot of me sending out a greeting to one of my friends using AKA Mobile Directory's SMS messaging service. Navigating the website is fairly easy, with everything you need to the left side.

Again, AKA is in beta right now, so go right ahead and try it out, and throw your two cents’ about the service, so the developers would know what works and what doesn’t- whether it’s just a personal preference, or a more challenging issue on usability.

I just started using it a few hours ago, and it seems to work just fine with my Facebook account, so I can now update my status from anywhere using my mobile phone.  And I’m hoping to network with other people on it as well.

Visit the AKA Mobile Directory at http://aka.name, and sign up for free.

Cheers, everyone.

Renzie Ten Years From Now

a snapshot of a vision inside the head of Renzie Baluyut.

We’ve all been asked, “so how do you see yourself <insert arbitrary number here> years from now?”

One thing I’ve realized is that this seemingly innocent, yet over-asked question, actually gives you a chance to evaluate your Grand Strategy over your life.  And by “Grand Strategy”, I mean a visualization of exactly what you want to achieve within the next- in this case, ten years.

“I want to be rich.”  “I want to be famous.”  “I want to live happy.”  These would be some of the more typical answers to the aforementioned question.  Nothing wrong with wanting to be rich, or famous, or happy, or thinner, or successful, really.  But you have to paint a clearer picture:

How rich is rich?  Do you want your own G5 jet shuttling you back and forth European cities?  A Bentley for each day of the week?  Similarly, how famous is famous?  Having a million followers on Twitter?  Five thousand friends on Facebook?

The point of filling in all these details, is to put together a realistically attainable (yet challenging) scenario of your future self.  If you were an Isaac Mendez- you’d paint this picture out in a mutant power-induced instant.  This is your destiny, one that you will have to carve out for yourself.

On this one particular beautiful spring morning, I decided to answer that over-asked question and fill in the details of my own vision of the future.  Allow me to acknowledge my vision of a typical day in the life of Renzie ten years from now.

Ten years from now will be 2019.

I see in my mind a beautiful 2-storey house that might be in a residential area in Glendale or Long Beach.  The kids are just about heading off to school with lunches I packed them earlier that day.  My wife’s getting ready for work too.  As she drives off for the day, I head on to the adjoining home office to get things done.

Yep, I have a home-based office, from which I run a network of small business ventures, just after breakfast.

• I have a couple of property management companies- one to oversee the day-to-day operations of a number of apartments along the West Coast, and another buying, selling and renting out real estate in various parts of the Philippines.
• A travel and tours company is just about getting a final count on a number of parties heading out to Blizzcon 2019 at the Anaheim Convention Center.  Tour teams to Disney Resort and Knotts Berry Farm have been prepped and good to go, according to this morning’s report.
• A shipment of anime DVDs, dolls, action figures and other collectibles from Japan will be arriving tomorrow, according to my geek-friendly coffee shop based in Pasadena.  I’ll be dropping by later that afternoon to check out the inventories.

After poring through the rest of the sales figures and reports, signing checks and managing the other online accounts, I head off to town to get even more stuff done.

By 10:30 AM, I’m at the gym, working on tone and cardio for the most part.  I meet up with a client for late lunch, then stop by the coffee shop in Pasadena.  It shares floor space with a hobbies and collectibles shop, and has a nice little niche market of gamers and geeks, both casual and hardcore.

I get a call at 3PM from my wife- reminding me to pick the kids up from school, and to swing by PetSmart for some cat food and litter.  I round up the kids from school and take them out for some ice cream, right before heading off to the store to grab the supplies.

Instead of cooking dinner that night, the kids wanted some pasta and pizza, so we drive on over to a nearby restaraurant and order some carry-out.  My lovely wife is already home, spending some much-needed play time with the cats.

Over dinner, we all talk about school and the latest Twilight movie, which the kids want to see on Friday afternoon, as we would all be out camping over the weekend.  Gotta check on all our gear tomorrow to see what else we might be needing before heading out for the outdoors shop in the afternoon.

As Mom helps out with the kids’ homework, I check my email: approving the copy for a bunch of sales materials for a client due for printing the next day, online brochures for new apartments in Metro Manila, friends confirming game night two weekends from now, a business partner’s itinerary as she flies in from the Philippines next month, and a marketing proposal from a nearby computer shop.  I sync my handheld with my PC, and power down for the evening.

The kids are allowed an hour to play with their XBox 19.  Wife and I retreat to the den and squeeze in an hour of online gaming.  We then get the kids ready for bed and tuck them in.  We get ready for bed as well; she watches her reality shows recorded on DVR while I read a couple of chapters from the latest Robert Greene book.  After making sure the alarms are set right, we both catch some much-needed shuteye to take on a brand new day come morning.

That’s going to be me ten years from now.  A daydream on a blog post perhaps, but also a roadmap.  In my next post, let’s break it all down together, and join me pick on my own brains.

But for now, ask yourself this same question:  How do you see yourself ten years from now?

And this time, really paint yourself a detailed mental picture.

Cheers, everyone!

10 Unplugged Activities You Can Do at Home

hanging out for one hour without lights with Renzie.

I’ve decided to live blog the Earth Hour event from home.  So here I am in the dark, with my trusty notebook, just hammering away at the minuscule keyboard in almost complete darkness, putting my thoughts into text.

I think we should spend more time away from our TVs, PCs and appliances.  If anything, this whole one-hour-without-power has made me realize that this doesn’t have to be a once-a-year affair.

In fact, an entire 60 minutes without power is a good thing: a back-to-basics retreat of sorts, right in the comfort of your own home.  All while saving some energy, and getting some things done, away from the PC, TV, XBox, Wii, DVD player, or whatever else that’s usually switched on.

Since I’m live-blogging on Earth Hour, you’ll probably be reading this post after Earth Hour is done.

Earth Hour is great, sure.  But it can be made even better if you can take that to the next level: instead of powering down for an hour just once a year, why not do so once a month?  Or if you can, once a week, or even once a day?

Here are a few things you can do unplugged- some personal recommendations: 10 things you can do with the lights off, on Earth Hour.

1.  Break out the musical instruments.  This would be a great time to brush up on some guitar or piano.  Learn a new piece and impress your friends- and yourself!

2.  Cook.  At least get some prep work done: season and marinade some meats for grilling, get some dough done for a batch of bread (or cookies!), or prepare your sandwich ingredients for the whole week.

3.  Read.  A good book in a comfy chair, by candlelight always sounds like an excellent idea to me.

4.  Get some chores done.  You can use these 60 minutes to sort out the laundry, clean out a closet, or to just tidy up a few rooms.  Coz your house isn’t going to clean itself up

5.  Break out the bike.  Go ahead and take a ride around the neighborhood.  Check your lights and reflectors before you do so- it’s gonna be dark out there.  And strap on that helmet before you go!

6.  Take a nap.  How’s that for powering down?  Only if you feel like it, I’d say.  Otherwise, you might want to do something more productive.

7.  Trip out on some sounds.  Fill your player beforehand with some new tuneage and old favorites.  Whichever you’d like to soak up on, it’s always a good way to chill.

8.  Stargaze.  Take out a comfy seat and just hang by the porch and check out the night skies.  Doodle along with a sketch pad, or blog away with a notebook.  The open air would be great for a change (hmm. Looks like I should have done that from the very beginning, earlier on.  Oh well…)

9.  Spend time with your animal companion.  I’m talking about something special for you and your pet: an extended walk, perhaps, or a full 60 minutes worth of play, or use that time to put together a whole new play area for your doggie or kittie.

10.  Gather the family (or your friends, or loved ones) together, and just talk. It’s a great way to catch up, exchange stories, or plan something together.  Family- AND environment-friendly at the same time.

How did you spend your Earth Hour this year?

————————————

From the Facebook page of our good friends over at 24/7 Nocturnal Navigator:

With just nine days to go before the world switches off for Earth Hour 2009, WWF-Philippines calls on the social networking community to spread the Earth Hour message through e-groups, blogs, web videos and texts.

“The commitments of support grow with each day. We urge everyone to spread the word and join millions throughout the world by switching-off lights from 8:30 to 9:30pm on Saturday night, 28 March. This is our chance to show the world what our Bayanihan spirit can do, for only when we act as one will Earth Hour be successful,” says Earth Hour National Director Yeb Saño.

Earth Hour is a massive social movement aimed to mobilize action against climate change through the simple act of turning off lights.

Launched in Australia on 31 March 2007, Earth Hour moved over two million people and 2100 businesses in Sydney to turn off their lights for 60 minutes — hence the movement’s logo. This captured the hearts and minds of people all over the world, giving rise to Earth Hour 2008 — where 50 million people in 370 cities followed suit. New York’s Times Square, Rome’s Coliseum and even the remote Casey Station in Antarctica plunged into darkness.

The Philippines was the first Southeast Asian nation to pledge support. Its flagship cities of Pasay, Manila, Parañaque and Makati observed a switch-off ceremony and enveloped the entire Roxas Boulevard seaside strip in symbolic darkness. Popular landmarks such as the Cultural Center of the Philippines and Mall of Asia were blanketed in darkness. Lights-out activities were instigated by a million Filipinos in over 50 major towns and cities across the nation.

“Earth Hour 2008 remains the country’s largest environmental action. Last year, total power savings amounted to 80MWh. 56MWh was saved in Luzon alone — equivalent to shutting down a coal-fired power plant for one hour. More important than the power we saved was the awareness and positive action generated. This year, Earth Hour 2009 hopes to inspire at least 10 million Filipinos to unite and act for the environment,” explains Saño.

Earth Hour is an initiative of WWF, the Department of Energy, Green Army Network and SWITCH movement. Over a hundred corporations, schools, public and private organizations have now pledged support. The roster of supporters grows by the hour.

The Department of Energy has given its full backing for the movement. “This is a cause that should unite us as Filipinos and as citizens of the world,” declares DOE Secretary Angelo Reyes.

Adds WWF-Vice Chairman and CEO Lory Tan, “Will Earth Hour alone stop climate change? No. But it is a statement that we will not go down without a fight.”

The global aim of Earth Hour is to secure the participation of one billion people in 1000 cities globally. Already over 1500 cities in 80 countries including the United States, China, Russia and India have signed on.

“It is hoped that this global gesture will send a clear message for world leaders to take strong and decisive action against climate change,” explains Saño. Top leaders will meet in Copenhagen this coming December to craft a post-Kyoto policy for tackling the world’s mounting problems on climate change. “The strength of our message ultimately depends on how many Filipinos will join in.”

Cheers, everyone!