The art of financial frugality

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In Alexa Mira Society (AMSI), we started to become more conscious in our spending this year. Ever since starting the planning stages in April 2019, we have been spending only around P100k. It baffles me how other organizations spend P100k on a single day.

I think it’s a matter of trying to understand that funneling in hundreds and thousands of money in a program does not necessarily mean you are creating genuine, social impact. Sometimes, frugality with spending can have its positive impacts as well–at times even greater impact.

It’s also about transparency and spending money wisely. As much as possible, we only spend for the things that are really needed on every program day, such as food and honorarium for speakers, among others.

Here, I will share some small practices that our organization does, that thankfully led to positive financial results so far.

Spreading out the program outline

For one, our programs are not a one-time, big-time thing. It’s spread out across the year. This is also one way to keep the programs sustainable and attuned to the practical needs of the community.

For this year, we focused on two main programs. I think this helped us narrow down our focus, so that the funds that get funneled are centered around these two main programs. I think it also helped that we have a small community of five families.

As much as possible, we were also frugal with the expenses on every program day. We don’t really need too much money to move forward and progress–we just need the appropriate amount of money to keep the program going. I think this is a very important lesson for many non-profits. While we are not experts on this aspect, we try our best with what we have.

Funding and grants are also not easy to come by all the time, so we really have to be wise in spending money.

Having a minimalist approach

Having only what you really need is the basic premise of minimalism. In non-profits, I think the same perspective applies.

Being a small organization, we really have to make do with what we have and unleash our creativity around that. In another blog post, I shared how creativity helped us in AMSI.

More than just lessening expenses, minimalism in non-profits means that you only spend on what is essential for the community. You don’t need too much to begin with. You just need a few, well-selected things that could help in the long-term sustainability of the organization and community.

While we are small, I hope other non-profits learn a thing or two from our experiences at AMSI.

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