Starting to Budget

One of the many questions people ask me is how to budget properly. This sample computation shows how to budget a Php10700.00 salary after tax (Php12000.00 gross).

The graph above shows a sample computation when you are starting to build your emergency fund. An emergency fund is something you must first establish. Emergency funds are usually 3x or 6x that of your gross salary. Therefore you must save Php36000 to Php72000. This fund must only be accessed if you get laid off or resigned in a job and must be replenished as soon as possible. I’ll make another post on how to use time deposit products of banks to maximize potential earnings.

The graph above shows a sample computation of a budget after establishment of an emergency fund. As you would see, you could now use extra funds (“others”) to buy “wants” or you could put extra funds towards investing. For visualization, please click here…

If you have any questions place them in the comments or hit like :)