One of the most basic scenarios you encounter as stay-at-home mommies is managing your household income every day. As soon as your spouses earn their pay checks, you begin to make decisions on where will it be spent, saved or invested or… wait for it: failed! In order to achieve success with your household earnings and maximize every centavo, you will need to determine what you really need and track where your money is actually going. Once you already have a plan, it’s “let’s make a budget” time!

Firstly, you need to have an accurate list on all your necessary expenses and then tracking how much money you need to allocate for the need. As mommies, you need to keep track and record your family’s expenses- for example, allowance budget for your spouse, allowance budget for the children, allowance budget for groceries and other necessities.

Secondly, you need to have a clear budget for savings. Say that you have kept track of your expenditures accurately every month, you can already begin to organize your tracked expenses into a workable budget. Your budget should show how your family’s expenses ratio with your family’s income. With this, you can strategize your spending and limit overspending.

Thirdly, look at the things you spend on and avoid wasting money by spending smartly with an effective plan. You should find means to cut your spending to create a saving. If the expenses are too high, think of some ways to cut back those costs. How do you effectively do this? You need to identify non-essentials from essential goods your family primarily needs.

Another, you need to control your debt. As much as possible, avoid borrowing money or creating bad loans for the things your family will not need immediately. More importantly, you need to set some savings goals. You could start by setting a small, attainable short-term goal such as having a new smartphone or holiday gifts, reaching smaller goals can give you a psychological boost that makes the reward of saving more immediate and reinforces the habit.

Furthermore, you have to decide on your priorities. Your goals are likely to have the biggest impact on how you allocate your savings. You must have a clear idea of where to start saving, for instance, you need to buy some children’s clothes, or replace a broken television, or have a simple family vacation- you could start putting some money away for now.

Moreover, it is important that every family member should take care of their health. You are aware of how much money you could spend on hospital bills, doctors’ fee, medicines and etc. when we get sick.

Lastly, you closely watch your savings grow. Be reminded that you always need to review your budget and check your progress every now and then. This will help you get used to your usual family budget plan and it will also help you identify and fix problems effectively and rapidly. This may even inspire you to find more ways to save and hit that goal faster.

In saving and budgeting, it is also important that we have a common positive mindset when dealing with our finances. You need to start saving money and spend some on what is left. It is important to set your priorities straight so that you can achieve a common goal. Moreover, you need to consider healthcare and insurance as investment and not some kind of expense. Both healthcare and insurance will provide you some protection from money-related risks as we go along our financial journey. And definitely, you should reach a point in our lifetime that our family savings and investment money will work for you. This can help you achieve more financially and this will give you freedom to do anything you want to happen for your family in the future.

Some of stay-at-home moms would say:

My husband has been working hard a lot all his life but we were not able to save anything. Where did all our money go?”

Have you ever asked yourself the same question? If you have, maybe it is because you have been using the saving formula differently.

According to Warren Buffet, one of the wealthiest men in the world, he said, “Don’t save what is left after spending; spend what is left after saving.”

He meant that, you keep something for yourself or for your family first.

The correct formula for saving should be:


and not the other way around.

Always keep in mind that before you spend, you need to save some amount first. Set aside 20% or more from the amount you are receiving from your spouse’s salary and from the salary you get from other sources of income to save for your future. Treat it like a bill that makes you require to pay.

Saving can also be a habit. What if you start saving loose changes in your spending habits? Start saving PHP10 a day- it will give you P300 in a month!

One way to increase your savings is to reduce your expenditures at home. Delay self-rewards, cut down on items like soda, coffee, bottled water, high-end gadgets and phone, shopping, eating out, etc.

It doesn’t matter how big you earn that counts, it is how much you keep from what you earn. Time is money- the earlier you save, the better for your future.

To put it into context, a classic example for this would be a young couple getting married, has children and has little savings. They bought a house with mortgage. Other expenses were also present since they just started building a family. So, with house mortgage and other expenses, money becomes tighter.  They tell themselves they will continue saving later. As they enter mid-life, their children go to higher education. The couple is now bombarded with expensive school fees, tuition fees and other miscellaneous fees that take a big portion out of their budget. Soon, this couple enter retirement age with little or no savings at all. They know they must save but accepted the fact that it was too late for them.

From this example, we should be able to get the essence of early savings and improving the family’s financial foundation so that we don’t suffer the same fate like that of the couple.