How Effective are Money Organisers?

Have you ever experienced getting the salary you have waited for so long and suddenly found yourself wondering where on earth did the money went right after you withdrawn it from the ATM? Or is there a time when you know you budgeted your money then all of a sudden the money allotted for your different expenses got all mixed up and you did not know the budget for your household bills was spent for buying those fashionable clothes and shoes thus make saving up such a big challenge for you? With the continuous soaring of the cost of living here on the Philippines, how can we ever be responsible savers and spenders?

In a recent survey released by the Bangko Sentral ng Pilipinas for the last quarter of year 2017, the percentage of Filipino households with savings lowered from 36.8 percent to 35.6 of the previous quarter. Budget for emergencies, education, hospitalization, retirement, investments and real estate purchases went down. In addition to that, the result of the Consumer Expectation Survey (CES) showed only two-thirds or 65.4 percent of Filipino households own bank savings deposit accounts while 45.6 percent keep their money at home (“Filipino households with savings decreases for Q4 2017: BSP survey”, 2017). This is quite alarming because the idea of having savings is there to literally save the family from being financially incapable of buying their daily necessities. Thus, each Filipino household must think of effective ways to save up and budget their money.

One of the simplest initial step we could take to be able to save money and manage our expenses is through the use of money organizers. Money organizers come in different forms but have the same purpose - for people to budget money wisely by separating potential expenses, labeling them, and serving as a reminder not to spend the money allotted for the expenses other than where the money is supposed to be used. Filipinos are very creative in thinking of ways on how they can encourage themselves to use money organizers. Some of them buy the readily made wallet containing separate pouches that can be labelled. Others use separate labelled jars or coin banks while some open up several bank accounts for separate savings.

If you will search on the internet, especially on Facebook, there are a lot of testimonials stating that these money organizers help them save money more and practice responsible budgeting. But with or without these money organizers, it is one of the best practices of smart consumers to make sure that they are organized when it comes to taking care of their hard-earned money for the following reasons:


Organizing money helps in tracking and controlling your expenses.

One of the nightmares we all do not want to encounter is completely losing the money allotted for a certain expense despite carefully budgeting the money that we have. Where did we go wrong when in the first place, we spent time budgeting everything and we even wrote the allotment of money in our planners?

The problem is that the our budget list is not in our hands 24/7. Thus, it will be difficult for us to even remember how much is our budget for each expense. This is where we ignite the problem. As consumers, we are always being tempted to be impulsive when we see some promotions or when we feel the urge to spend money on things. Thus, if our money is unorganized, the budget for all projected expenses will possibly mixed up and the next thing we will realized is we already consumed the budget for two projected expenses for the cost of just one category of expense. That is certainly why we are encouraging everyone to segregate their money. Try putting the budget of one expense to one of the pouches of your wallet and the other budget allotment to the second pouch. In this way, you will be able to easily be reminded that the money you assigned for this expense is still enough or you already need to think of ways on how you can make the most of the remaining money while you wait for the next payout.


All eyes on your spending and savings and how estimation can work wonders for you.

Organizing your money helps you focus on what you spend for and how much you can save. It will make you efficiently think of ways on how you can make your money work for you. You will be able to separate the money you want to save every cut off, thus, you will no longer be tempted to use it anymore for some other things.

In budgeting, you project your expenses thus, we can estimate whether the money that we have at the moment will be enough and will prepare us in advance if we need to take debt and how much should we borrow. On a positive note, if we are good in budgeting or in estimation of expenses, we can produce extra money from what we currently have. Sounds very intriguing, right? How can this be possible?

Budgeting helps us foresee possible unnecessary expenses thus we can already eliminate them from our spending list. If we budget only one thousand pesos from our salary to be spent on new clothes, then we remove the chances of overspending because we have money goals. Also, through organizing money and alloting it to several expense categories, we can see which category we used to spend more on and after figuring that out, it will be easier for us to make some adjustments. These will help us to have excess money and be able to save more.


Offers great benefits for every Filipino household

Organizing money is very important for families especially those with more than one earning member. It enables everyone in the family to easily communicate about money and how it should be used as one whole group.

Most family disputes are rooted on financial problems because the husband and wife and even their children do not agree on how they can wisely spend the little money they have and budgeting can somehow resolve this. It promotes unity in working for your family’s money goals and prevents misunderstandings and resolve personal differences on how the money will be used and what particular expenses is it worthy to be spent for. It helps the family members to practice being responsible and accountable with spending.

You see, budgeting can somehow be time-consuming but it will surely yield positive results. It is better to be financially organized than being drowned in debts because you failed to manage the money you have. Budgeting will make you aware of where you’ve spent your money so that at the end of the day, you can sleep peacefully because the case of the sudden disappearing money will no longer bother you.


By: Glydel Salanio