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Home Improvement on a Budget for an SMDC Condo Unit

I figured I will turn this into a series of posts and this is Part I. Since I started several topics on real estate and budgeting, I decided to also share how my home improvement journey whilst saving money and paying off my loans.

After a year of living in my bare, unfurnished condo unit, I still didn’t save up enough money to start the renovation that I planned when I moved-in. I resorted to applying for a personal loan, and I got Citibank‘s approval within three days.

I got a bit too excited so I went ahead and I started with a budget of Php100K. From reading different blogs and inquiring from several contractors on Facebook, I already had an idea on what I could get with this amount. I first started by listing down what I wanted.

I knew I had to be realistic, so I ended up crossing out some “wants” from my list. When I asked for a quote from a contractor, I was disappointed (but not surprised) when he confirmed that my budget can only cover the following:

Overhead cabinet – Php16,800
Counter cabinet – Php15,000
Display cabinet – Php8,400
Closet – Php28,000
Partition wall – Php14,000
Repaint – Php14,000

TOTAL – Php96,200

This is a 2018 quotation so add around 5%-10% if you are reading this in 2020.

I originally planned to dismantle a portion of my kitchen countertop, but because I did not want to pay for the construction bond, I ditched the idea. That means we had to install cabinets on that part which have added more to the costs.

Related post:
Where to Find IKEA Furniture in the Philippines

And because everything was prefabricated and the scope of work was only described as “installation”, we also had to get rid of the repainting job.

I shelled out Php100,000 in total.

If you are planning to have your condo unit renovated, always include the construction bond in your budget. The bond normally ranges from Php20,000 to Php50,000 depending on the scope of work. This was not part of my budget so we had to make sure that everything is done in a day; the building Engineer did not approve more than that unless I pay the construction bond.

Here are some tips when looking for a contractor to renovate your condo with a very tight budget:

1. Check for contractors who have already done construction works preferably in other units in your complex. Their familiarity with how the process works in your building would be a big help. They would often post photos of their projects on Facebook and you could find them there when searching for the name of your building or residence.

2. Ask for a quote. Majority would ask for your budget so be upfront about that. Contractors would want to “adjust” to your budget. Note that lower costs would not only mean smaller work scope but cheaper materials as well.

3. Look for sample works, it’s very easy to find them on social media these days. Check for customer feedback or comments. If you cannot find them on Facebook, they are either just starting up which is not bad, or they are so hide-end that you can only speak to them by appointment.

4. Prioritize. Write down everything that you want and need along with their approximate costs. Then slowly remove the ones that you could let go for now until what is left meets your budget. In my case, I removed the drop ceiling and pin lights from my list.

Moving on, here are some before and after photos of my unit after the minor renovation:No full bedroom photo yet until I get a new bed. 🙂

Hiding half of the exposed beam with a customized cabinet was my first requirement. I might turn the other half in to a TV stand slash accent wall.
I originally wanted to get rid of the protruding end of the kitchen countertop, but I did not want to pay any fee to the building admin so we kept it. Thankfully, I like the finished product.
Almost a full view of my unit. I’m having my dining set customized and won’t be delivered until the end of next month, I’m using my old table for now. Lots of work to be done in my living room too.

So, I have all white walls and ceilings. I see them as a blank canvass which I’ll be working on for the next few months. This will put to test whatever is left of what I learned from my Architecture days. I started with basic furnishing, and I went all Scandinavian with my choices.

If you find this topic interesting, you can follow me on Instagram for more:

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Where to Buy IKEA Furniture in the Philippines?

Where can we find IKEA furniture in the Philippines?

IKEA has yet to reach the Philippine shores but many of us are already a fan of IKEA pieces. And since we may have to wait for two more years until the first IKEA store will open supposedly beside the Mall of Asia, we have to settle with whatever we could find online.

Yes, if you want to buy IKEA furniture in the Philippines, online is the way to go! For the past seven months, my virtual life was spent almost entirely on Instagram, Shopee, and Lazada.

And that’s how I found these stores that sell IKEA products in the Philippines.

Conner Furniture House (connerfurniturehouse.com)
– They are turning one this 2019! You may also look them up on Facebook and Instagram. I am planning to purchase a Lerberg shelving unit from them and will be updating this post to share my experience. So far, they reply to Instagram DMs.

Furniture Source Philippines (furnituresourcephils.com)
– They’ve been around for over five years now so they have quite a large following already. They take pride in having loyal celebrity customers which is why they’re not very nice to new, small-time buyers. You can feel that from the way they respond to you via their Viber account. They don’t entertain Instagram DMs.

Qoncept (Shopee/Lazada)
– You know how this works. While there are a lot of IKEA re-sellers in Shopee and Lazada, Qoncept offers quite a wide-range of Ikea products to choose from. However, they also sell non-IKEA products.

Belowsrp (Shopee)
– Good customer service, from what I’ve experienced. They’re also not exclusively offering IKEA products so you’ll have to confirm that with them before purchasing an item.

There are other individual re-sellers online and I find the following the most legit ones. I haven’t purchased from them yet, but based on their social media following and the fact that they’ve been active for over a year, I think they are one of the few whom buyers could trust:

– Mobelph (Facebook/Instagram)
– Styleyourhome_ph (Instagram)

Aren’t we all excited for the opening of IKEA Manila (or IKEA Philippines?) next year?

Finding Treasures in your Balikbayan Boxes

Literally and Figuratively.

There’s no denying that a balikbayan box is a treasure.

If you have a family member who is an OFW, you may have received one of these packages before at least once or twice a year. Some OFWs even send their boxes every three months.

Let’s start by admiring and appreciating those Balikbayan boxes.

Have you noticed how carefully packed every items inside the box are? They are wrapped in plastic and packaging tapes, each labeled with a family member’s name. Imagine the long hours spent in arranging and packing them, not to mention the time and effort exerted in scouting for the best items that they think everyone would like. That’s how much our OFW family member or members love us.

As receivers of balikbayan boxes, we should recognize that everything in there is a treasure. Let’s admit it, as selfish as it sounds, sometimes we would prefer to receive cash. But we’d be surprised by how much money we are actually saving with the help of these Balikbayan box items, if only we know or learn how to recognize that.

Here are the many reasons why everything in the Balikbayan box is a treasure. If you are receiving these items, perhaps you should already cross them our from your next shopping list (if you haven’t yet).

1. Toys

While there are places to buy cheap toys in the Philippines, you may need not to buy them anymore if you are receiving some from abroad.

2. Kitchen Utensils

I was at home last month when I saw an unopened box of spoon and fork set. I knew that it came from the Balikbayan box, so I asked my mom if I could take it. They don’t need it back home, and it would be a good replacement to the kitchen utensils that I bought (at a very cheap price) when I moved in to my new place. That alone, already save me a couple of hundreds.

3. Toiletries

I rarely buy soap, and I can’t remember the last time I bought a bottle of shampoo. I have months of supply of soap and shampoo from the Balikbayan box. That’s a lot of savings considering that a bottle of shampoo in the Philippines is priced by over a hundred pesos.

4. Clothes

I am buying a shirt only once a year. If my sisters ask me what kind of shirt I want, I would ask for a polo or polo shirt so that I could wear them in the office. Everyone in the family, my parents, my nephew and niece, all wear clothes from Balikbayan boxes. Saves us a lot of money.

5. Shoes

The last time I bought myself a pair of shoes was two years ago; it is a leather shoes also for office use. My sneakers and rubber shoes all came from the Balikbayan box, and most of them are also over two years old. In addition, my parents rarely buy shoes anymore.

6. Bags

I personally haven’t received a bag yet, but my mom does. All her bags are also from the Balikbayan box, so she never had to buy one herself anymore. Big savings for her too!

7. Chocolates and Candies

Chocolates are the first things that kids look for in the box, and is the first thing that OFWs put in there. So if you have an OFW family member, you should not be buying chocolates at groceries anymore. Period.

I’m sure there are several other things I missed. What other items are you getting from your Balikbayan boxes?

What I Did to Save Money and Settle my Credit Card Debt

In one of my older posts, I talked about how I settled my credit card debt with HSBC. The article How to Get a Bank Clearance for your Credit Card, is where I outlined the actions that I did in contacting HSBC and negotiated on paying my 6-year old debt. Yes, six (6) years! I stopped paying my credit card in 2010, and only had the courage to call my bank in 2016.

The truth is, I always had the intention to contact them but I didn’t know when and how. The fear in my mind is making up all these possibilities like the need to hire a lawyer and appearing in-front of a judge in court. All these kept me away from debt collectors, and I managed to evade them for years.

Thankfully, I made the right decision to not entertain the debt collectors! I never thought that I could resolve everything with just one call, and a trip to the HSBC office in Taguig later. It was absolutely hassle-free! No debt collector from whatever law firm they claim to be working for, is involved!

So, what did I do to save enough money and be confident enough to call my bank? This is where the difficult part of the story comes in.

After I stopped paying my credit card in 2010, I started thinking about being more responsible financially. However, I never really saved money prior to that so I didn’t know where or how to start. Moreover, I was partying the entire time in 2010 and 2011.

Needless to say, when I left my job in 2012, my bank account was empty and I shamelessly relied on the help of my siblings for three months until I got another job.

Two months into my new job, my boss in the US invited me over for a training and meet and greet. My company prepared all the paperworks and when it was time for me to appear in the US Embassy for the dreaded Visa interview, HR asked me to bring a copy of my bank account statement.

Imagine how embarrassing it was to tell them that I didn’t have a property, no car, and no bank account other than payroll.

That’s when my journey at saving money started. I promised to myself that I will start saving from that time on. And I kid you not, it was never easy then, and still not very easy now. In fact, it was not until a year later when I opened a bank account. Here’s a timeline of how I was saving money prior to calling HSBC in 2016:

2012

I landed a new job and decided to save money and settle my then two-year old debt. At around this time, I also started earning extra cash from my sideline as a wedding photographer. However, I was still recovering financially from being jobless for three months, so I actually barely saved anything that year.

2013

I opened a new savings account with BDO. I chose BDO because I was aiming to qualify for the BDO Reward’s card, a move that I did not regret doing later. This has inspired me to save even more.

My weekends are still devoted to my photography gigs. I was earning around P2,000-P3,000 per assignment (equivalent to roughly P10,000 a month). It pays the bills, literally.

2014

Both my day job and sideline are doing fine. My photography group raised our wedding packages pricing so I was now getting a share of P3,000-P4,000 for every shoot; our weekends are fully booked!

However, I was not seeing any improvement on my savings account. It is still stuck to its maintaining balance, and that prompted me to review how I am saving.

This is when I realized that the 50-30-20 rule doesn’t work for me. This rule basically wants us to put:

50% of our salary to paying our necessities such as housing, rent, and other bills,
30% go to our wants, this is basically the amount we can spend, and
20% to savings.

I was not wired to save and I am guilty of the many reasons why most of us Pinoys are having a hard time saving money. This is my subject in this article:
7 Reasons Why Saving Money is Hard for Most Pinoys

So, what was my solution? I modified the rule so it would fit my personal financial situation:

50% – rent and bills
40% – for spending
10% – saving

As mentioned above, I was not used to saving. I was raised with a “loan mentality” so saving money is not in my nature. But by saving only a small amount every payday, I was putting this “saving mentality” into my system at a very slow pace. A pacing that my financial spirit could absorb and handle.

The good news is, it is working!

Ironically, this was when the calls from debt collectors started coming in, again.

2015

I travelled to the US in March of this year. It was my first time outside the country so it got me really excited. Although everything was paid for by my company, personal spending was unavoidable.

In May of the same year, I bought a MacBook which I thought was a good investment for my photography needs. I paid 50% in cash, and the other half through a friend’s credit card for a six-month installment plan. For the next six months, I was paying her around P6,000. That was a new aha! moment for me.

I thought, if I am able to save 10% of my salary and pay my friend P6,000 every month, I should now be able to save that same amount moving forward! I could now do the 50-30-20 rule!

And so I did. I started saving more.

By the end of 2015, I paid the reservation fee for a condo unit. A move that almost lead me into depression the following year.

2016

One of the usual pitfalls for first-time money savers is: getting too excited of how much they’ve already saved.

After paying the reservation fee for a condo unit the previous year, my agent quickly prepared all the paperworks and before I knew it, I was already allotting a big chunk of my budget for the downpayment (at a 12-month installment). Unfortunately, I also decided to let go of my sideline that year. In short, I brought in a liability but removed an asset.

On the other hand, I was already starting to believe that acquiring a property that year is a huge mistake (and a financial advisor would tell me that for sure, if I consulted one). For months, I was getting rejection after rejection from banks who wouldn’t approve my home loan applications. At some point, I considered giving up on the over P200K downpayment that my siblings and I already paid. I thought, perhaps, the condo is not for me or not for us.

But as what they say, God works in mysterious ways. It turns out that it was both a blessing and a blessing in disguise. Because this made me finally decide to contact HSBC to pay my six-year old credit card debt and get a bank clearance. Luckily, I was able to negotiate and brought the amount down from P120K to P35K!

What was initially a harrowing experience turned out to be joyful in the end. 2016 was the most financially challenging point of my life. It has taught me so many lessons that in the middle of 2017, I finally decided to document everything through this blog, with hopes that what I am sharing will be helpful to someone who’s going through the same phase.

Yes, always remember that this is just a phase. If your credit card debt is giving you nightmares, you will get through it for as long as you have a genuine intention to settle it when you can.

For six years, I was hiding from credit card debt collectors. My LinkedIn and JobStreet profiles were set to private because I was afraid they could find me there. I would get anxious if I get a call from unknown numbers, and worse, when debt collectors found my new employer and reached my office extension number.

I did not ask for miracles that my debt will suddenly disappear, although I did pray for some divine intervention. And because paying my debt has always been in my intentions, the universe conspired to find ways to lead me and push me towards fulfilling that. It gave me the right opportunities (disguised as difficulties), and the right people (very patient agents, friends and siblings) to help me.

The paths were not inviting at all, they were scary, unclear and rough. I was extremely hesitant and fearful at first, but when I decided to follow and go through the many obstacles, I surprisingly emerged unscratched in the end.

So if you are reading this because you’ve been receiving threats from debt collectors, start saving up money and call your bank after. If you already have the money, I highly recommend that you settle your debt with your bank directly.

If you are having a hard time saving money, perhaps you could relate to my personal financial struggles as well. I’ve been working for over ten years now, but I only recently took saving money and being frugal seriously. The lessons that I learned along the way played a very important role in my story of finally settling my credit card debt.

I am documenting my progress in my personal finance articles where I also share my tips on how to adapt a “saving mentality” for us who are not wired to save. To learn more, you may browse my posts by clicking on this image:

I wish you all the best!

7 Reasons Why Saving Money is Hard for Most Pinoys

I have been working for over ten years now. By this time, I should already be maintaining a healthy savings account. At least, that was my expectations when I started planning on what to do with my life after college. But realities start to sink in when five years after landing my first job, I still had no savings. And worse, I was in debt!

Sadly, that was the only time that I started to practice saving money. However, I failed in all my attempts that until now, I still do not own that healthy bank account that I was expecting to have.

As I am teaching myself to save money now, I came to realize and understand the many factors that contributed to my poor financial habits. Most of these are rooted from the kind of financial upbringing that I was raised to, plus my unwillingness to take responsibility and take adulting a lot more seriously.

And while I’m on this journey of educating myself on how to be financially free, I am having all these light bulb moments, and I can’t help but look around and realize that I am not alone! According to the Bangko Sentral ng Pilipinas (BSP)’s latest Consumer Finance Survey released in January 2017, almost half of the entire country’s deposit accounts have a balance of P5,000 or less:

Data Source: http://www.bsp.gov.ph/downloads/Publications/2014/CFS_2014.pdf

This data shows that a lot of Filipinos are actually paying for service charges since most banks have a minimum maintaining balance of P3,000! Consider yourself lucky if your bank account has an average daily balance of more then P5,001.

And can you believe that only 14% of Filipino households have deposit accounts?!

So why is it so hard for an average Filipino to save money? I guess we cannot simply attribute this to poverty. A lot of it has something to do with our spending and budgeting behaviors.

Here are some of the reasons why we find it so difficult to save money. In all honesty, I was able to come up with this list because I was once guilty of all these “crimes”!

Loan Mentality

As a kid, I would hear my mom say“wala na aka sinasahod, nai-utang na lahat”. I was probably too young to understand these words back then, but it instilled in me the thought that being in debt is normal. My sister, who was also still in grade school at that time, would joke about things like “wala pa man yung sweldo ay nagastos na”.

In short, we were exposed to this loan mentality that we also ended up being in debt when it was our turn to make money. We know it was a problem, but we see it as a normal and common problem because everyone we know has this same problem. So we thought it’s fine.

Nope, it’s not fine.

It’s very hard to let go of the loan mentality that I could only wish I was raised with a “saving” mentality instead. All my adult life, I considered taking a loan as the only way to afford things that I wanted or needed. Before I knew it, I was already in huge debt and living from paycheck to paycheck.

How can you adapt a saving mentality?

I say, start small. For the past ten years, my attempts at saving were never successful because I always wanted to start big. I would follow the different money rules and the ideal ratio of spending versus saving. But because I was not wired to save, it never worked for me. Starting with a big amount then forcing myself to be frugal and stick within a budget until the next payday, is too much for someone who didn’t grow up doing it.

Treat it like you are getting rid of an addiction, start small and slow. You will need to condition your mind about saving first until it becomes a habit. It took me years to practice this. So start with an amount that you can forget and not end up withdrawing from your bank account later on. It doesn’t matter if you are only savings P100 at first, keep on doing it until it becomes normal. When that happens, you can then start adding more. Again, do not attempt an abrupt change by jumping from say P100 to P1000. Doing so might trigger your brain to remind you of your old bad habits. You do not want to go back there anymore.

Consumer Mentality

One time, when I was a kid, my father gave me some new five peso coins. He asked me to keep them, they are new, he said. I didn’t understand what he meant by “keeping” them. I went to our neighbor’s sari-sari store and spent those 5 peso coins. I saw his disappointment when a few days later, I told him that I already spent them all.
See? I didn’t know that he actually wanted me to save the coins. Because along with the loan mentality, I was also raised with a consumer mentality.

Malls are huge in the Philippines because people flock to them. It has become an extension of our living and dining rooms. Sunday is a family day, which translates to hearing mass then spend the rest of the weekend in a mall. Malls are where we spend our hard earned money. Why? Simple – for most of us, we work and earn money so we have something to spend. Consumer mentality.

It’s alright to spend. Because, why not? But along with spending, make sure that you are also saving. Another saving challenge: go ahead and buy that shoes. But remember to save the same amount that you spent on that shoes. Because if you can withdraw P4,000 for a pair of shoes, why not save P4,000 for your future?

We Love to Celebrate

Fiesta culture. We love festivities, we love to celebrate. And when we celebrate, we spend! There’s nothing wrong about celebrating. But when you have to borrow money just to spend for a celebration, maybe it’s time to reconsider?

We Splurge on Payday

Just today, my co-worker sent an email invite to everyone for a lunch out on the next payday. It’s a familiar scenario of how employees “enjoy” the fruits of their labor. We go to Starbucks, or we set aside at least a P500 budget for lunch or dinner with co-workers, and not to mention the drinking sessions over the weekend.

And we would intend to shop because it’s payday sale!

All these to make pancit-canton and 3-in-1 coffee our diet for a week before the next payout.
Again, no one is forbidden to spend, for as long as you pay yourself first – by saving first!

Facebook Culture

We love to share. We do not only love to share our “blessings”, but we share a lot about our lives too. We make sure that our neighbors will know of the new appliance that we just bought, new gadgets, new clothes. When social media took over our lives, we fill our timelines with beautiful life events for the whole world to see.

Sometimes, we feel obliged to post photos of all of our happy moments, because why not? But a lot of us are taking it too far – buying things they do not need just to keep their Facebook timeline looking impressive and expensive.

We Take Pride on our Resilience

We proudly declare to the world that Filipinos are very resilient. That we can survive every challenge that come our way. And that because we are used to dealing with life’s difficulties, we are expected to make it through the toughest of situations.

Unfortunately, this has affected the way we look at our future. We would postpone saving money because we believe that we can always find ways to handle things in times of financial crisis. Worse, we do not see the importance of saving at all because, well, we are resilient.

We Believe in Luck

I myself always thought that winning the lottery is my only way out of poverty. I would buy a lottery ticket and pray that I will win!

We believe in luck. We believe that someday, the Almighty will send us blessings in the form of miracles, like manna and moolah falling from the skies.

Oprah Winfrey has a very good definition of luck – “luck is preparation meeting opportunity”. I think this is very true. If you want to be blessed, you have to prepare yourself for that blessing. You have to be able to handle it, otherwise, you will end up failing. If you want a high-paying job, you have to prepare for that job by earning the necessary expertise and skills, so that when the opportunity comes, you are ready. That is true luck!

Despite all these, I think a new generation of Pinoy “savers” is starting to emerge. This is evident in the huge following that financial and business Facebook pages are getting. The Peso Sense Facebook page for example already has almost three million followers (as of this writing). You know these are not fake likers because of the very active page engagement – lots of discussions about money, paying off debts, and followers who are actually sharing their own experiences and tips on how to save.

Other finance and business-focused pages like MoneyMax.ph and Entrepreneur Philippines have large social media following too. All these are good signs of what to come, and again makes me feel that I am not alone! I am so glad that many of us have found financial enlightenment, let’s keep sharing and spreading the good news.

When Should you Upgrade your Computer?

At the office, our IT department has decided that our laptops can only be mandatorily replaced after six years. While this can be disputed whenever there’s a valid reason or justification, we were surprised at their confidence towards the lifespan and performance of laptops these days. I guess they are being reasonable in a way – I realized that I only owned two laptops in the past nine years, and both are still working fine.

My MacBook Pro is turning three this summer; it feels like I just got it last year. It is still performing like it did when I first used it. I was reading an online forum today where the “Average Life Span of a MacBook Pro” is a topic and someone candidly replied “As long as you want it to!“. Amusing.

My 2008 Dell laptop, and 2015 Macbook Pro.

It’s true, I think a MacBook can survive for many years, and that makes me a very satisfied customer. While there are moments when all those Apple restrictions give me headaches, a MacBook’s longevity is undeniably one of its best selling point.

Not to be left out, however, I have to mention that my nine-year old Windows computer is still alive too! It’s a Dell Inspiron 1420. It did crash after over a year where I unfortunately lost all my files, and the battery stopped working after less than three years. For a span of five years, I had to reinstall its OS twice, using two different installers until I decided to eventually go back to its original OS. It has been running fine since the last OS reload. I still use it for minimal computing needs as it starts humming after an hour of continuous use.

I think, laptops can be upgraded anytime within 3-6 years. It really depends on the usage though. If it is being heavily used, the chances of it getting slower over time is definitely higher.

After purchasing my MacBook in 2015, I am happy that I never had to upgrade, nor do I need a new one yet. In fact, I’ve never checked on new laptops ever since, not until now that my nephew needs one for school. I was asked to look for a good laptop, and I honestly am not sure which one to get for a limited budget. Looks like online is the way to go? What would you recommend?

Is it Cheaper to Replace or Repair a Broken Appliance?

I bought an American Home coffee maker as a pasalubong for my parents last Christmas. Yes, it was more of a pasalubong than a Christmas gift. I wanted us to use it right away so I also brought home with me the ground coffee that my former boss sent me all the way from Costa Rica.

We used the coffee maker for a good five days, and it was working fine. I got back here in Manila before new year, and I was surprised to receive a text from my mom telling me that the coffee maker has suddenly stopped working. I called them and made sure that they are operating it correctly. My background in tech support was put to good use while asking them questions.

tightly plugged in to the wall outlet? – yes
power light on? – yes
does it make any boiling sound? – no
is it getting warm? – no
coffee dripping on the glass carafe? – no
is there water on the water tank? – yes
are you sure the power light is on? – yes
any damages on the unit? – none

Well, it looks like the coffee maker is not really working. By the end of January, I was back home and checked it myself. It is indeed broken and I was ready to bring it to the American Home Appliance repair center here in Manila.

I understand the rules about warranty, and I am confident that the one-year warranty for my purchase will be honored. There is no physical damage on the item, but in case they won’t honor the warranty, I made the decision of not paying anything for repair.

When is it cheaper to simply buy a new one instead of spending for repairs?

First, most electronics are always better when they’re brand new. Any repairs done to to the product often lead to more repairs. Before you know it, the total cost of getting it fixed is already almost the same as its original price when you bought it.

Second, this coffee maker is only P799. If it gets repaired for anything more than one peso, I’d rather buy a new one from a competing brand which I’m sure will last longer. I bought an Imarflex coffee maker for personal use this January, and I’m not seeing any sign that it will also malfunction anytime soon.

So when making a decision to whether or not get your broken appliance repaired, evaluate the costs. If it gets fixed, is there an assurance that it will take long before it starts malfunctioning again? Compare the repair cost versus the price of a new one, is there a huge difference?

The major rule is: if the repair will cost more than 50% of the price of replacing the appliance, you should get a new one.

How to Save Money on Your Phone Plan Subscription

Can you save money on your phone bill without totally cutting your plan subscription? I was asking my self the same question while reviewing my payment history with Globe. I can’t believe I’ve been paying P3,000-P4,000 for my phone plan in the past eleven months:

A quick throwback to almost a year ago when I decided to extend my 30-month phone plan subscription with Globe. I was originally subscribed to Plan999, and I upgraded to Plan1799 with an iPhone7 Plus handset (for P800 a month). That turns my total monthly bill to P2,599 for 24 months. Where does the additional P1,500 coming from? Excess usage!

What is the Excess Usage for?

Basically, the Plan1799 includes unlimited call to Globe and TM numbers, unlimited text to all networks, and a 10GB worth of data. I only call Globe and TM numbers, so I know right away that these charges are from my excessive data usage. We are all aware about the data capping that Globe and Smart are imposing. Well, because I do not allow myself to be limited by this data cap, I made the decision to pay the price. How much? P1,500 it is.

So if your plan offers a 10GB data for a month, every KB of data in excess to that is automatically worth P1,500. You’ll be paying for the excess charge anyway, so why not go unli with it? Here’s how my recent data excess charge was computed:

P1,339.29+%VAT equals P1,500 excess usage.

I understand that data is expensive so I feel that the excess charge is reasonable for a 55.6GB volume. This is the reason why I do not want to get cable as I could watch everything online. I am still hesitant to make that move to DSL or Fibr as I am more mobile as I thought; I can’t be without data when I step out of the house.

Now, how can we save on our phone plans???

Ask first if you really need the plan. Maybe consider cutting it after the contract expires, and go for prepaid. Nonetheless, if you feel that you are better off with a plan, decide on which plan is the best for you. Globe and Smart are quite flexible with their offerings, so determine which inclusions you would really want to spend on:

Data

If you have DSL at home, you definitely won’t need a high volume of data. Unless you travel all the time or you cannot live without streaming videos wherever you are, maybe it’s time to get a lower data plan. I would say 3GB is recommended for a month of regular mobile surfing:

Call and Text

Are you actually calling and texting all the time? If yes, the unli-text and call is perfect for you. Otherwise, get rid of it and look for a plan that includes a consumable option. Make sure to stick within that limit to avoid extra charges.

Other Inclusions!

Do you actually want all those inclusions? Perhaps your data allowance is already enough to cover everything, so check your bill for any unused inclusions. Ask your service provider to remove them if there are any.

Free Subscription that Auto-renews

Your plan may include free subscriptions to Spotify, Netflix, etc. They are free for a certain period, normally around 3-6 months and will auto-renew after that. If you do not want to keep the paid subscription for the succeeding months, contact your network and unsubscribe before it starts appearing on your bill.

Paper Bills

Do you really need the paper bill? Banks and other networks accept soft copies and print outs of your bill as a proof of billing. I don’t know which other purpose would you be needing the paper bill for. With Globe, that is P50 a month and they actually encourage their users to go paperless. Subscribe to paperless billing and save that 50 pesos (P600 per year)!

Lastly, get a cheaper handset.

I want to keep my number so I am extending my plan with this as the major reason. I realized, I may not be wanting an iPhone again in the near future. I will also be going back to my old Plan999 after my current subscription expires, and will downgrade to a cheaper phone, most probably an Android. The expensive, new phones this year will surely get cheaper next year!

I get a lot of calls from Globe offering me additional lines, and I am always firm at declining them. Which reminds me – do not get an additional line! Unless you need them for business purposes, you do not want to pay for more than one phone bill a month.

How are you saving on your phone bills? Have you experienced switching from postpaid back to prepaid?

What are the Advantages of a Prepaid Credit Card?

Prepaid cards are good alternatives to credit cards.

I use to work as a customer service representative, and we would sometimes advise a customer to use a prepaid credit card for payments, in lieu of a credit card. I didn’t really know what a prepaid credit card is back then as Philippine banks are not yet offering them.

A few years later, I found myself lining up in BPI to apply for a prepaid credit card. It was useful and I had it for six years. I did not renew it this year because I got another one from UnionBank, plus a secured credit card from Security Bank.

What are the advantages of a prepaid credit card?

– If you are into online shopping, but do not want to use a credit card, a prepaid credit card could be of help.

– Your credit limit is dependent on how much you want to “load” into the card so you have full control of your spending. Say you want to book a hotel at Php2500, you may only reload that amount, process your booking, and you’re done.

– No monthly bills. Since this is prepaid, you will not receive bills at the end of the month!

– No maintaining balance required. And for some banks like UnionBank, your prepaid account can also function as a savings account.

– Reloading is easy. Most banks allow you to reload via online transfer or thru an ATM.

Are there any disadvantages? Personally, the annual fee which cannot be waived is quite a turn off. Other credit card perks, such as installments, are of course not possible with a prepaid card. Also, you cannot withdraw your money (or your load) via ATM.

What are the differences of a prepaid credit card and a debit card? I could only think of one – unlike a prepaid credit card or regular credit card, you cannot use a debit card for online payments (not counting bills payment).

Making online payments are unavoidable these days, and if you do not have a credit card or if you want to play it safe, prepaid cards are the way to go. I think most banks offer them now, but I noticed that only BPI and UnionBank are actively promoting their prepaid cards.

Are you a prepaid credit card user too?

Why the BDO Rewards Card is Better Than the SM Advantage Card

I learned about the BDO rewards card from another blogger a few years ago and I got really interested. The problem is, I didn’t have a BDO account at that time. I used to have one but it was a payroll account and I left it to close when I resigned.

Over a year later, I opened a new BDO account and totally forgot about the reward card. Which is why receiving a card in the mail after two years came as a surprise. I immediately enrolled it online so I could check my points at any time.

What do you get from the BDO rewards card? It is exactly the same as your SM advantage card, plus more. All SM department stores and groceries, including participating stores, accept it. The only difference is you get to earn more points since your BDO online payments are counted! Even auto loans and home loans earn you points.

How could one qualify for a BDO rewards card? You should have an existing BDO bank account, of course. Your branch will send you the reward card for free when you reach a month-to-date average daily balance of Php50,000.
I have been using my points several times in the past, mostly when buying medicine at Watson’s. Last Sunday, I stopped at a SaveMore branch after working out at a nearby gym. I only needed milk, a bag of brown rice, bread, and some canned goods which I estimated at around Php500 in total. I was so hesitant to use my credit card but I didn’t have enough cash. When the lady at the counter swiped my BDO rewards card, it reminded me to use my points. I asked her to check my balance and I did have 377 points available. My total is Php521 so I only paid Php144! Wonderful!

These are one of the small things that I use to take for granted. I hated it when SM sales ladies ask for an advantage card every time I’m at the counter; I hated it more when they offer me one. But when I got my BDO rewards card, I would actively hand it to them the moment I check out.

Again, in addition to the points that you can earn from shopping, you can earn points from your BDO online bills payment too! Which reminds me to go back to using my BDO account when paying my bills online, instead of my credit card. I get rewarded from the former more; that is 5 points for a minimum of Php1000 bills payment. Not bad!

Are you also using BDO rewards card?