The MILK (Money I Long to Keep)

Saving money is not an easy task. Especially, if you're a housewife just waiting for the monthly salary of your husband. You should be wise in managing the household finances so that you will know where the hard-earned money goes. So what I did was, I divided our monthly income into six envelopes and labeled each with the following:

NEC (Necessities)

This is for the necessary expenses in the house. It Includes the grocery, utility bills, house rent (if you're renting), medicine and emergency expenses (e.g. if someone gets sick in the family and he needs to go to the hospital). Remember, your NEC money eats a great portion of your income. So 50% might go in here. You could lessen the expenses by saving in some areas like grocery and usage of electricity it's really up to you, then at the end of the month you could turn what's left of your NEC money to your other savings.

SIB (Savings/Investment/Business)

As it states, this is for your personal savings, future investments (like buying a house or property) or a business that you would like to build. This money is for building some assets.

EDU (Education)

Saving a portion for your children's education is a must since they really need to be educated. It helps to save early for college too while they are still young so that you will not have trouble finding where to get the money needed when the time comes.

LTW (Long Term Wants)

Everybody wants something special even if it's expensive. So this is for that something that cannot be bought right then and there (e.g. travelling to another country, an expensive mobile phone that you are eyeing, or a new car) and you need some time to save for it.

PLAY (Treats)

As you are working hard (especially your spouse), you must also "pay yourself". As the saying goes "All work and NO play makes John a dull boy". This is rewarding the whole family like maybe watching movies, buying new clothes, etc.

GIVE (Charity)

Lastly, you should also spare 10 % of what you are earning to charity. I always believe in tithing and giving back because as what they say: whatever you are giving will be given back to you in tenfolds. That is the way life works.

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