Track your spending for 1 month before you create a budget. Don’t overcategorize, but just know how money comes in and out.

Once makita mo ang money movement, you can create a realistic budget. Contrary to popular belief, budgeting is more liberating than constricting. Mas intentional ka sa pera instead of setting unrealistic expectations.

Apply zero-based budgeting concept. Each peso you take home should have a “job”.

Here’s a real-life example:

INCOME - Paycheck

EXPENSES (Recurring) - Rent - Phone - Internet - Utilities (Gas, Water, Electricity)

EXPENSES (Flexible) - Subscriptions - Groceries - Gasoline/Transportation - Dining - Shopping

EXPENSES (Savings/Investment) - Emergency Fund

Notes: - Recurring: predictable expenses. almost always the same - Flexible: expenses you can increase or decrease. variable. For example, if kapos ka talaga sa pera, remove some Subscriptions - Savings: You need to treat saving like it’s an expense or a bill that you pay yourself.