2008 December | Frugal Pinoy

I’m receiving a sizable amount of unexpected income this month. Almost like a freelancer’s 13th month pay. This isn’t unusual during Christmas, where people get paid more, businesses generally have more income, and students receive money as gifts from their ninongs and ninangs. This extra money you receive is called “a windfall”.

What exactly is a windfall? A windfall is an unexpected extra amount of income or business revenue. Some examples include: inheritance payouts, Christmas bonuses, extra revenue, cash winnings, and cash gifts (the ones from relatives, not illegal ones form Malacanang hehe).

Although windfalls are common during the Christmas season, they also happen in other months during the year. Anything you receive above your average income may be considered a windfall, if the money has not been budgeted yet.

What to do with a windfall

Most people spend windfalls by buying treating themselves or taking out their friends and family to lunch. While nothing is wrong with rewarding yourself, leaving the rewards unchecked or unmonitored often means the money will disappear sooner than you think. This is why I always have a plan for windfalls.

In case of unexpected extra income (which I usually have each month, since my income is not set in stone), I always have a hierarchical game plan on what to do with my extra money. Here’s where I stash them (in order):

Fund for house in the farm.
Fund for repairing my mother’s house.
Retirement fund.
Emergency fund.
Travel fund.

How I divide the money into those 5 funds depends on how much my windfall is. If it’s only P5,000 or below, I usually put all of it in Fund #1, or I divide it between Fund #1 and Fund #2.

You can also do the same thing, set up a list of 3 to 5 things where you can put the windfall. Make sure your list is in order so you would know what to prioritize. Keep this list handy – whether in your budget notebook or as a file in your computer – so that you can easily refer to it before the temptation to splurge sets in. Don’t worry, you can always include “Personal Reward” in your list of windfall funds so you can enjoy that extra money a bit. Just make sure that your entire windfall doesn’t go there.

It may seem like I’m too disciplined or I’m not rewarding myself enough, but that’s not the case. Having the farm house built as early as possible will be a great reward for me. I prefer to live in the farm and have some place to retreat to when things are going too crazy in the city. It’s really all about setting your priorities based on the things you want to do and the dreams you want to fulfill.

Will you be receiving extra money this Christmas? What will you do with it?

Great free ebook on how to become a blogger

Posted by FrugalPinoy on Dec 3, 2008 in Books, Earning and Income | 2 comments

I just finished reading this excellent (and FREE) ebook by Yaro Starak and gideon Shalwick called “The Roadmap to Become a Blogger”. It basically lays down everything you need to know about making money from your own blog (which I also discussed to some extent in a previous post).

What I love most about Yaro and Gideon’s ebook is that it has action steps. Meaning, there’s a list of stuff you have to do to implement their advice. I love action steps because they are practical, and they note down all the tasks you need to accomplish. ( I used action steps in the post “How do I start as an online freelance writer?” to better explain what aspiring writers need to do.)

Anyway, going back to the ebook, you need to sign up before you can download it. Don’t worry – if you don’t like the email updates you receive, you can always unsubscribe. They carry out the mailing list using Aweber, which is a trustworthy, spam-free service.

Also, please note that some of the advice might not be applicable to Filipino bloggers, especially if your target audience is local. Still, it’s a great resource for beginning and veteran bloggers alike.

Click here to download this handy ebook.

Image credit: Graphic taken from Yaro Starak’s blog

Frugal Finds in Bohol

Posted by FrugalPinoy on Dec 1, 2008 in Frugal Tips, Travel | 1 comment

We recently went on a 9-day trip to Bohol and, as promised, we made note of some frugal finds we encountered. Here are some of them:

Nuts Huts. This place is IT. Located at the heart of Loboc, Bohol, it rests beside the Loboc River and high up in the mountains. Our room cost us P500/night. The original price is P600/night, but there’s a P100 discount if you stay for more than one night.

Since Loboc is closer to Corella (where the tarsiers are), Bilar (Butterfly Conservation Center and Man Made Forest) and Carmen (Chocolate Hills), compared to Tagbilaran or Panglao, it makes more sense to stay here when visiting those places.

You can also organize tours and transportation with the Nuts Huts office. The Magnificent Cave Hike costs P200/person, including guide fees. They also rent mountain bikes. The staff is friendly and approachable, so if you need to organize specific tours, they’re always ready to help.

Budget Gadgets: A Website for Frugal Geeks

Posted by FrugalPinoy on Dec 1, 2008 in Frugal Tips | 2 comments

My partner recently launched a new blog called “Budget-Gadgets”, where she reviews and discusses the cheapest gadgets available in the market.

Here are some of the notable posts so far:

So if you have a soft spot for gadgets but you don’t want to spend a fortune on them, Budget Gadgets might just be the site for you.

Free Personal Finance Resources for a Wealthier 2009

What are you doing with your extra cash this Christmas?

Great free ebook on how to become a blogger

Frugal Finds in Bohol

Budget Gadgets: A Website for Frugal Geeks

Help Iligan and CDO

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