2016 has 19 days left.
Wait what??
19 days??
Oh men! Time flies really fast. It's as if my mind is still in July when I was planning how to build our Emergency Fund. Well, thinking about it now makes me a little sad but then, I know that the change of priorities was a greater idea.
If you haven't read about my plan on building a small amount of fund to start with, I wrote about it in August. I actually read it again before I started this entry and I realized, what a great plan I had in mind. Unfortunately, the execution of the plan was the real challenge.
So what has changed?
Back in September, I thought about buying a gas range. My baking business was growing day by day that I am having a hard time accommodating orders that are coming. I have my maximum of 12 pieces Yema Cakes that I could bake from 7am-11am. Some days requires 24 pieces of Yema cake and as much as I want to commit, I was really having a hard time. My full time job got affected somehow and I have to even choose which is which. Of course I wouldn't want to quit my day job only because I am happy with it. But then, baking is where my heart is so I know I wouldn't want to give up on it too. The next option I have in mind was to buy a much bigger oven. I was using a Hanabishi 30L Convection Oven and that could only accommodate 6pcs of llanera. I was aiming to bake 12pcs in a batch to cut the time required for baking.
Decision.
Finally, I have decided to buy a White WestingHouse Gas Range with 62L oven. I was so glad with the purchase although I was hoping it could accommodate one whole batch of Yema Cake. It wasn't but then it really helped with my baking. I was able to cut the labor time for making the cake with the help of my convection oven. With this new endeavor, I failed to save for my emergency fund further as I have to borrow money to make this happen. I also bought a stand mixer to go with the new oven since my hand mixer cannot keep up with the orders.
Failing to Think Ahead.
Rather than using all of my savings to make this purchase, I decided to borrow money from a friend which ended up making my budget tighter. Because of this, I was so afraid to compute my weekly budget because I know it will surely go to negative and will only stress myself more. The first few months of having this new gas range helped me cope up with the bills and expenses. I knew I made the right decision. Although I invested money for my business without enough fund, I knew it was okay until sad events happened. Nanay had to be confined in the hospital making it hard for us to bake and deliver cakes as no one will look after Jami. I also let relatives to borrow money that ending up me having to shoulder some of the installment at some point. That took a toll on our expenses that I felt it will be really hard for me to come back up. I was paying for my own loan while paying for someone else too.
How Could I let this Happen?
I was blaming myself all the time although I couldn't say I had a depression. It was far from that and I am thankful I had my own family to stand on me on these events. I also had friends whom I could vent out too when it was too much to handle. I was thinking negatively that it will be really hard for me to go back on track. I knew how it felt having debts but I let it happen again. Jami's birthday came and that I had nothing. It was so sad that I had to incur more debts just to cover up the losses I had in the process.
Turning Point.
When Nanay recovered, I had the chance to start selling cakes again. Our 13th month pay came and I used it all to cover most of them. I know I don't need a new phone, a camera, new clothes or shoes. I know these things could wait. I could say I can finally see the light. I am 98% clear with debts and I could budget our money even more. I am now trying my best to plan our meals ahead of time to save more money than buying ready cooked meals or even fast food. With home cooked meals, I could save 100 pesos daily since I no longer have to buy food while in the office. I started listing down all of my expenses again and trying my best to separate my sideline's money to my personal money to avoid it being spent unnecessarily.
What Now?
Jami's about to go to school next year so I have to make sure I have funds for that. I don't want to incur any more debts. I am starting over with my financial journey in building the fund with a new strategy and I am hoping I could see it work in the coming days. Daryl also had the chance to undergo a training in Naia T3 and I was crossing my finger that we could hear a positive feedback after the holidays. Speaking of the holidays, goodies are so in demand so I am expecting a higher amount of orders in the coming weeks. With the new strategy that I am talking about, instead of taking off 20-30% to savings, I would lower it to 10% for now until I could fully recover. I have then decided to get all my baking profits into savings automatically which allow us a higher chance of saving more. With that, I'll be able to see the savings growing higher than usual. I am praying this could be done according to my plan before the year ends - or so I say, 2 weeks from now. =) Am I happy? Yes! Happier than ever. Thank God for all the struggles, I am standing up tall and proud this time. =)
Wait what??
19 days??
Oh men! Time flies really fast. It's as if my mind is still in July when I was planning how to build our Emergency Fund. Well, thinking about it now makes me a little sad but then, I know that the change of priorities was a greater idea.
If you haven't read about my plan on building a small amount of fund to start with, I wrote about it in August. I actually read it again before I started this entry and I realized, what a great plan I had in mind. Unfortunately, the execution of the plan was the real challenge.
So what has changed?
Back in September, I thought about buying a gas range. My baking business was growing day by day that I am having a hard time accommodating orders that are coming. I have my maximum of 12 pieces Yema Cakes that I could bake from 7am-11am. Some days requires 24 pieces of Yema cake and as much as I want to commit, I was really having a hard time. My full time job got affected somehow and I have to even choose which is which. Of course I wouldn't want to quit my day job only because I am happy with it. But then, baking is where my heart is so I know I wouldn't want to give up on it too. The next option I have in mind was to buy a much bigger oven. I was using a Hanabishi 30L Convection Oven and that could only accommodate 6pcs of llanera. I was aiming to bake 12pcs in a batch to cut the time required for baking.
Decision.
Finally, I have decided to buy a White WestingHouse Gas Range with 62L oven. I was so glad with the purchase although I was hoping it could accommodate one whole batch of Yema Cake. It wasn't but then it really helped with my baking. I was able to cut the labor time for making the cake with the help of my convection oven. With this new endeavor, I failed to save for my emergency fund further as I have to borrow money to make this happen. I also bought a stand mixer to go with the new oven since my hand mixer cannot keep up with the orders.
Failing to Think Ahead.
Rather than using all of my savings to make this purchase, I decided to borrow money from a friend which ended up making my budget tighter. Because of this, I was so afraid to compute my weekly budget because I know it will surely go to negative and will only stress myself more. The first few months of having this new gas range helped me cope up with the bills and expenses. I knew I made the right decision. Although I invested money for my business without enough fund, I knew it was okay until sad events happened. Nanay had to be confined in the hospital making it hard for us to bake and deliver cakes as no one will look after Jami. I also let relatives to borrow money that ending up me having to shoulder some of the installment at some point. That took a toll on our expenses that I felt it will be really hard for me to come back up. I was paying for my own loan while paying for someone else too.
How Could I let this Happen?
I was blaming myself all the time although I couldn't say I had a depression. It was far from that and I am thankful I had my own family to stand on me on these events. I also had friends whom I could vent out too when it was too much to handle. I was thinking negatively that it will be really hard for me to go back on track. I knew how it felt having debts but I let it happen again. Jami's birthday came and that I had nothing. It was so sad that I had to incur more debts just to cover up the losses I had in the process.
Turning Point.
When Nanay recovered, I had the chance to start selling cakes again. Our 13th month pay came and I used it all to cover most of them. I know I don't need a new phone, a camera, new clothes or shoes. I know these things could wait. I could say I can finally see the light. I am 98% clear with debts and I could budget our money even more. I am now trying my best to plan our meals ahead of time to save more money than buying ready cooked meals or even fast food. With home cooked meals, I could save 100 pesos daily since I no longer have to buy food while in the office. I started listing down all of my expenses again and trying my best to separate my sideline's money to my personal money to avoid it being spent unnecessarily.
What Now?
Jami's about to go to school next year so I have to make sure I have funds for that. I don't want to incur any more debts. I am starting over with my financial journey in building the fund with a new strategy and I am hoping I could see it work in the coming days. Daryl also had the chance to undergo a training in Naia T3 and I was crossing my finger that we could hear a positive feedback after the holidays. Speaking of the holidays, goodies are so in demand so I am expecting a higher amount of orders in the coming weeks. With the new strategy that I am talking about, instead of taking off 20-30% to savings, I would lower it to 10% for now until I could fully recover. I have then decided to get all my baking profits into savings automatically which allow us a higher chance of saving more. With that, I'll be able to see the savings growing higher than usual. I am praying this could be done according to my plan before the year ends - or so I say, 2 weeks from now. =) Am I happy? Yes! Happier than ever. Thank God for all the struggles, I am standing up tall and proud this time. =)
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Mommy Jen