I’ve always said that personal finance is 20% head knowledge and 80% behavior. In January, our behavior had to be one thing: Resilient.
Last month was a wake-up call. Between a 75% income loss and the reality of a high-overhead life, the math finally stopped "mathing". I promised to show you the raw numbers, even when they aren't pretty.
The January Deficit
In January 2026, we faced a reality that every family fears: Our expenses exceeded our income.
• Total Income: ₱262,628.00
• Total Spending: ₱444,736.00
• The Gap: -₱182,108.00
How did we survive a ₱182k deficit? Thank goodness for Reserves.
Because we have been practicing the "7 Cures" and stashing away our "Fat Purse" during the good months, we had the cash to cover the gap. Without those reserves, we would be drowning in new debt right now. Instead, we are just in "Surgery Mode".
The "Surgery" Report: Where the money went
To get our ship back on course, we had to look at our January spending with a scalpel:
January 2026 Spending Breakdown:
• Staff: ₱153,002.00 (34%) — CUT. We have already let go of two staff members.
• Rent/Mortgage: ₱58,315.00 (13%) — Fixed monthly cost.
• La Huerta (Farm): ₱35,015.00 (8%) — Essential for our future food forest and self-sustainability.
• Groceries: ₱30,768.00 (7%) — Currently tightening this budget.
• Eating Out: ₱28,679.00 (6%) — SLASHED. This is a discretionary "want" that we are eliminating.
• Staff Benefits: ₱24,841.00 (6%) — This will naturally decrease following our staff reductions.
Total January Spending: ₱444,736.00
The "Snowball" Block: Starting Small
I’ve taken a major step toward ending the credit card cycle. I have officially blocked one of my credit cards—the one with the smallest limit.
Why only one? Because I believe in the power of small wins. By blocking this specific card, I’m ensuring no new charges can sneak onto it while I aim to pay it off in full this February. It’s about creating a "Snowball" effect; once this smallest card is dead, we move to the next.
Sacrificing for the Breakthrough
We aren't just cutting numbers; we are cutting lifestyle:
• Memberships: I ended my gym membership.
• Tools: I canceled the only business tool I was paying for.
• The Team Shift: I’ve moved almost my entire support team to help my husband’s business secure a "big win". I am working at my absolute limit—breastfeeding, childcare, and two jobs—to keep the house together.
If we don't see a breakthrough by the end of February, the next step is moving in with my parents. It’s a humbling thought, but we will do whatever it takes to stay on the path.
Have you checked your "In vs. Out" for January? If you had to perform "budget surgery," where would you start? Hit reply—I’d love to hear how you’re tightening your belt alongside us.
Still fighting,
Mrs. Almost Debt Free
