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• Importance of wise money management

  Mastering the art of wise money management is crucial for achieving financial stability and independence. By developing effective budgeting strategies, differentiating between needs and wants, and implementing savings and debt reduction plans, individuals can take control of their financial future and enjoy greater peace of mind.
• Reducing Debt and Interest Payments

  • Prioritize High-Interest Debt
  • Consolidate and Negotiate
  • Increase Payments
• Maximizing Earnings and Investments

  • Income Diversification
  • Smart Investing
• Avoiding Impulse Purchases

  • Pause and Reflect
  • Implement a Waiting Period
  • Create a Shopping List
• Four Principles of Spending Money

  Living Within Your Means, Finding the Best Values, Cutting Excess Spending, Shunning Consumer Credit
• How to Live Within Your Means

  1. Create a List of Essentials

  2. Estimate Your Income

  3. Record All Your Expenditures

  4. Compare Your Income to Your Expenditures

  5. Evaluate Your Expenditures

  6. Cut the Fat

  7. Boost Your Income if It's Necessary

  8. Set Saving Goals

  9. Save for an Emergency
• Finding the Best Value

  • Generally, the product with the lowest unit cost is the best value
  • Purchase the product with the lower unit price
  • Find a balance between price and value
  • Compare the unit prices that you calculated to see which one is lower
  • Do your research and compare prices before making a purchase
• Cutting Excess Spending

  • Frequent Dining Out
  • Excessive Entertainment Expenses
  • Unplanned Shopping Sprees
  • Luxury or Status Items
• Shunning Consumer Credit

  Consumer credit is expensive, and it reinforces a bad financial habit: spending more than you can afford.
• Traditional Budgeting

  It relies heavily on past financial patterns. Budgets are typically adjusted by a percentage increase or decrease from the previous month
• Steps in Traditional Budgeting


  1. Gather past financial data

  2. Adjust figures based on estimated changes

  3. Set new budget targets for the upcoming period
• Zero-Based Budgeting

  It requires justifying every expense from scratch, regardless of previous budgets<|>It involves assigning a specific purpose to every dollar of income, with no money left unallocated for the upcoming period
• How to Choose a Supplier of Goods

  • Quality of Products/Services
  • Price and Affordability
  • Product Variety and Selection
  • Health and Safety Standards
• Techniques in Saving Food Cost

  • Eating Out Frugally
  • Eating Healthy at Home Without Spending a Fortune
• Developing Good Shopping Habits

  • Avoid Impulse Purchases
  • Buy in Bulk
  • Create a Budget
  • Make a Shopping List
  • Compare Prices
  • Shop with Cash
  • Plan Your Meals
  • Shop Mindfully
• Entertaining on a Shoestring

  • Wine-Tasting Party
  • Covered-Dish Dinner
  • Basketball Party
  • Game Night
  • Movie Night
  • Fun and Inexpensive Outings with the Kids
• Taxes

  The enforced proportional contributions from persons, properties or rights by the lawmaking body of the state for the support of the government and all public needs.
• Taxable Income

  The pertinent items of income provided for in the National Internal Revenue Code.
• Income Tax

  The tax on all yearly profits arising from property, professions, trades or offices or tax on the person's income, profits, and the like.
• Classification of Taxes

  • Income Taxes
  • Business Taxes
  • Transfer Taxes
  • Documentary Taxes
• Income Taxes


  Taxes levied on the financial income of persons, corporations or other legal entities.
• Business Taxes


  Value-added tax, Percentage taxes, Excise tax
• Transfer Taxes

  Estate Tax, Donor's Tax
• Documentary Taxes


  Taxes levied on the privilege to enter into contracts.
• A citizen of the Philippines, residing also in the Philippines is generally taxable
• An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable
• An alien individual, whether a resident or not in the Philippines is STILL taxable.
• Who Should File an Income Tax Return

  • Every individual who derives income from employment, business, practice of profession or other sources
  • Exceptions: Individuals earning purely compensation income whose taxable income does not exceed P250,000, individuals whose income tax has been correctly withheld, individuals whose sole income has been subjected to final withholding tax, minimum wage earners
• Sources of Gross Income

  • Compensation for services
  • Gross income derived from the conduct of trade or business or the exercise of a profession
  • Gains derived from dealings in property
  • Interest, rents, royalties, dividends, annuities, prizes and winnings, pensions, partner's distributive share
• Compensation Income

  Income arising from personal services under an employer-employee relationship, whether it takes the form of salaries, honoraria, bonuses, pensions, allowances, representation fees, and other similar incomes
• Types of Compensation

  • Regular Compensation
  • Supplemental Compensation (Overtime pay, Fees, Commission, Profit Sharing, Monetized Vacation and Sick Leave, Fringe benefits, Hazard pay, Taxable 13th month pay and other benefits)
• Exclusions from Gross Income

  • Proceeds of life insurance policies
  • Amount received by the insured as a return of premium
  • Gifts, bequests, and devices
  • Interest on government securities
  • Compensation for injuries or sickness
  • Income exempt under treaty
  • Retirement benefits, pensions, gratuities
  • Other income which are expressly exempt from tax
• Allowable Deductions

  • Itemized deductions (Expenses, Interest, Taxes, Losses, Bad debts, Depreciation, Depletion of oil and gas wells and mines, Charitable and other contributions, Research and development, Pension trusts)
  • Optional Standard Deduction
• Types of Income

  • Compensation Income
  • Business or Professional Income
  • Passive Income
  • Others
• Personal Exemption

  The amount allowed in the nature of a deduction from the income of certain individual taxpayers, representing roughly the equivalent of the taxpayer's minimum subsistence and those of his dependents.
• Additional Exemption

  An additional exemption of P25,000 for each dependent child not exceeding four, who is chiefly dependent upon and living with the taxpayer and not more than twenty-one.
• Debt management


  • A way to get debt under control through financial planning and budgeting
  • The goal is to lower current debt and eliminate it
• Debt can help achieve life goals, but can also lead to an unfulfilling, stressful existence if taken on more than can be afforded
• Downsides of being buried in debt

  • Diminished lifestyle, forget about financial freedom
  • Enslaved to whatever source of income
  • Increased stress levels
  • Negative emotions like shame, guilt, loneliness
  • Narrowed opinion and high stress level
• Reasonable debt

  Debt that helps achieve a fulfilled life, is manageable in terms of interest rate and amount, and can be paid off on a schedule