How to Improve Your Finances Using 5 Envelopes Budgeting System

Today, my helpers have invested in the stock market.

Twenty years from now, they can retire as millionaires. The system is really simple. The moment they receive their salaries, they divide it into five envelopes.

               First Envelope:          Tithe Fund
               Second Envelope:    Expense Fund
               Third Envelope:        Support Fund
               Fourth Envelope:     Emergency Fund
               Fifth Envelope:         Retirement Fund

1. Tithe Fund

My helpers are already so generous to their families.

But I explained to them that we also need to give to God’s work. I shared to them the blessings that come from doing this.

“You’ll grow in abundance thinking,” I told them, “when you give beyond your family’s needs. This will make you think rich and feel rich. And when you change your thinking, you change your living. Soon, you’ll become very rich.

And you’ll have more to share.” I told them that 10 percent is a great biblical guideline to follow.

But I never forced them.

I wanted them to decide how much they wanted to give. I don’t even know how much they give. I asked them to give it directly at The Feast (that’s what we call our weekly gathering in our spiritual family, Light of Jesus). But let us say they do give 10 percent.

That means they give P700 a month.


2. Expense Fund

This is what they spend for their daily needs. Since they live in our home, they don’t spend too much. They buy their clothes, toiletries and perhaps favorite food not found at home. But I’m so happy that they’re very disciplined. They don’t spend too much on cell phone load.

So as not to spend too much, they take a day-off every other week only. When they do, they spend for a movie or a meal with their friends. They generally live a happy life.

For their monthly expenses, my helpers spend P1000 a month.

3. Support Fund

Like clockwork, each of my helpers sends P2000 a month back home to their province. They send this for the daily food of their families.

As I told you, if they don’t send this, the people they love don’t eat. There was a time when I wanted to end this dependence. I wanted to help their families by providing a business fund.

Many times, I’ve sent money to the province so people there can buy a pig, chickens, etcetera — anything that will give them a source of income. But my attempts have failed.

Soon, they end up selling the mother pig. Soon, they spend the capital. And the business disappears. Unless there are people on the ground to guide them in their businesses, nothing much will happen. So my helpers — and the domestic helpers around the world — continue to send money each month to feed their families.

4. Emergency Fund

This, I believe, is the magic sauce.

My secret ingredient.

I told my helpers that aside from their savings, they should create an Emergency Fund. Because every once in a while, their families will call them up. An uncle dies. The farm needs seeds. A niece is in the hospital. The typhoon ravages the crops.

When these emergencies come up, they have another fund to send back home. For my house helpers, this is P1000 a month. They put this in the bank account. Or sometimes, my wife keeps it for them — whatever they prefer.

So they have peace of mind that they have money for any family emergency.

5. Retirement Fund

This is their real savings. I explained to them, “I call it Retirement Fund because I want you to retire as millionaires.” Their jaws dropped. They looked at me like I said they would become Barney the purple dinosaur. In their minds, it was preposterous. How could domestic helpers become millionaires?

I explained to them the principles found in my other books, 8 Secrets of the Truly Rich and Choose to Be Wealthy. “Because you don’t have a business, the best way for you to grow your money is to invest in the stock market.”

Let’s review my helpers simple system: They earn P7000 a month. They tithe P700. They spend P1000 for their own needs. They send P2000 back home to their family. They keep P1000 as an Emergency Fund — also for their family.

So what’s left? P2300. Remove the P300 for miscellaneous needs. My helpers invest P2000 a month in the stock market.

The next thing I did was to give them a powerful vision.


Richly blessed,


P.S. 1This article is an excerpt from the book “My Maid Invests in the Stock Market” by Bro. Bo Sanchez (Used with permission). To get a copy of the book and other books by Bro. Bo, you may check out

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