5 Things that I Learned from My Utang Free Diary and Diary ng Pulubi

One of my personal goals in 2022 is to be a book worm and read as many books as I can for one year. I am now investing into it and started buying books that I like. Recently, I bought books from Shopee for an affordable price yet quality book.

The books that I bought were about productivity, personal growth, and financial books. I want to invest in myself by improving my knowledge using these books and apply the lessons if possible.

Luckily, there are lessons that I got from reading the My Utang Free Diary and Diary ng Pulubi written by Chinkee Tan, a wealth coach from the Philippines.

Translation of the title of the books: My Debt Free Diary and Diary of the Beggar.

I want to share the simple lessons that I learned and hopefully, you will also apply it in your life.

Never spend too much

Obviously, the key to become debt free is not to spend much of your money if you don't have enough money. The rule is simple, do not spend money more than your income.

If your income for 15 days is $100, obviously, you should not spend more than your income. Why? The reason is, you will end up borrowing money and have debt where you will pay for the loan interest. Also, you will just have a burden and think of your unending debt.

You just need a common sense to apply the rule and learn to budget your money. Never pretend that you are rich.

Know your needs and wants

This one is popular and always taught at school. You must need to know your needs and wants to avoid unnecessary expenses. Instead of paying for your aircon, why not save it? Instead of buying a cigarette, why not save it?

Maybe you will say, I really need this aircon, it is too hot. Ask yourself again, is the aircon essential? For me it is a yes. You can live without an aircon. Our ancestors lived without those appliances and they lived longer.

If it is really too hot, why not go outside and sit in a comfortable place? Being stagier will not provide money. You will just spend more money by paying your bills.

Remember, the needs are the things that you can't live without. Those are clothes, foods, water, shelter, etc. even soft drinks are just what you want.

Avoid borrowing money to pay your debt

Do you have a lot of debt burden that you cannot pay and thinking of borrowing again to pay your other debt? This option is not recommended to you. Why? The reason is, you will just add more burden to you and the loan interest will become higher. 

Instead of having one debt, you will just add another one including another interest where you will pay more. Borrowing other money is not a solution. Why not working instead of borrowing? Why not stop your bad habits and start saving? Explain yourself to the creditor and start paying them a little amount, it will work.

Be practical

Before the pandemic and lockdown happened, most of us usually bought food outside and ate it in our office or school. Visit the popular fast food chain and eat your lunch there. But this habit is not a good idea because you are just spending more money if you will buy food outside. Bring your own food and eat it in your office.

Imagine buying food worth 100 pesos for lunch instead of cooking two eggs with rice or a sandwich. How much did you spend? I bet you saved more money!

Party for your close family/friends only

We usually spend a lot of money to celebrate special occasions such as birthdays, weddings, graduation, etc. We always invite all of our friends, the whole clan of our family, and sometimes our neighbors.

This type of celebration is not ideal if you are trying to save money. He said, inviting a lot of people will just add to your expenses. The more people invited, the more money that you will spend. 

Also, if you celebrate a luxurious party and borrow money, better to think again before making a move. It is not a good idea to borrow money so you will have money to spend for your party. Party now, cry later.

Conclusion

They said the best way to become rich is to save and learn financial literacy. When you learn how the money works, you will know the things that you need to do and save more money.

Also, if you are financially broke and someone invited you to eat outside where you will spend your money, learn to say NO. Be yourself and reject the invitation. Always live practically.

Debts can be paid if you manage your budget and money. This is the time to stop your bad habits and start saving money.

Published: February 4, 2022