Stock Market: Risky or Not?

People’s impression of the stock market can be countless. But the most notion we often hear is that the sock market is risky. But isn't it most of the things we do in life are risky?  

Riding the motorcycle going to work for example is a risk you take everyday. Putting up a sari-sari store also involves risks. Being an OFW, too entails a lot of risks. But risks can be minimized if not totally eliminated. 

Motorcycle riders have their helmets, gloves, knee pads to protect themselves from serious injuries from possible falls.

In the Stock Market, there are also preparations and strategies we do, and discipline we follow, to lessen if not avoid the losses. 

So, according to my mentor, there are some ways to minimize the risks in investing in the stock market and so that we can maximize the returns of our investment. 

Watch the video below to know more.

It's Girl Power

Today, we are celebrating the International Women's Day.

GIRL POWER blog mates, group mates and page mates :-)

Happy women's day to us all. 

As women, we ROCK. We have the POWER. Absolute power to change our FINANCIAL life.

As OFW women, we have the power. Power to uplift our families from poverty. Power to give them their financial needs. But most especially, POWER to GO HOME and be WITH OUR FAMILY VERY SOON celebrating especial occasions together, without worrying of their pang-tuition and allowance.

We working women in the Philippines or abroad have the power to be financially independent.

We must save and invest now to boost this power that GOD has bestowed on us.

As a woman to fellow women, I'd like to share with you my personal knowledge on stock market investing through this especial FREE e-book with FREE video tutorials. 

Don't resist the POWER to change your future. Visit my subscription page, to subscribe for free and allow yourself to be blessed.

Be FREE. To financial independence.

P.S. 1: If your find this post helpful, please don't hesitate to share it in your page or to your friends. Let's all journey together to freedom. 

Bakit Ka Nangutang?

When was the last time you asked someone for a loan or apply from an office for a loan?

Are you still in debt or have you already gotten yourself out from your matagal nang pagkakautang?

Kung wala ka nang utang, Congratulations!!! Binabati kita. Sana ako na rin ang susunod sa 'yo :-)

But...wait. Is DEBT really BAD?

According to Robert Kiyosaki, there are 2 kinds of debts. There is a BAD DEBT and there is also a GOOD DEBT. Hindi ito yung utang na loob a :-)

BAD DEBT according to Kiyosaki is the money borrowed that is used for things that takes away money from your pocket.  GOOD DEBT on the other hand is yung utang that is used for things that helps you acquire wealth.

So going back to my question, BAKIT KA NANGUTANG? Is your debt a masamang utang? or a mabuting utang? 

Recently, I have joined a Facebook group of some Filipinos, karamihan OFWs, who are in to financial literacy. One of the group members asked:

"Hi there!! I am planning to loan for my start up business which lending companies that I can loan? The amount that I barrow is Php. 30,000. And also is PAGIBIG loan can barrow in the said amount? Thanks!!" 

This member has a good aim but he should also make sure that his purpose of borrowing is well planned. Otherwise, sayang. Especially he mentioned that it is for a start up business. But, according to Kiyosaki's definition of debt, this can become a good debt assuming that the start-up business is solidly planned.

On the contrary, Violy (ako po yun) applied for a loan from her insurance company dahil kinapos ng budget during one of her bakasyon sa Pilipinas. By that time she hasn't yet met her role models: Robert Kiyosaki, Bo Sanchez, Francisco Colayco and Warren Buffet.

She used the money she borrowed para sa pamparenovate ng bahay lng naman and panlibre. As a result, maganda na ang pader ng bahay nila, but she's still in the process of paying her loan plus the interest. The walls of their house do not even say, "Hi, ito o pambayad mo." 

If she could have delayed a little bit and saved for that amount... Tsk...tsk...tsk... A lesson learned.

Make borrowing your friend not your enemy because when you borrow and have bad debts, this will pin you down with the burden of paying the principal and the interest. But if you borrow for things that will put money in your pocket, this will uplift you from your miserable financial situation.

The next time you UTANG, think first, WHY?

P.S. 1: If you like this post, please feel free to share in your page and with your friends. 

P.S. 2: If you are interested about investing in the Philippine Stock Market, I have prepared a free e-book with free video tutorials about it. Just Subscribe for free. You can find the subscription form in the SIDE BAR or BELOW. 

3 Misunderstood Obligations: Reasons Why Many OFWs Are Still Poor

How long have you been working and living abroad, thousands of miles away from your love ones?

How long are you planning to stay overseas to reach your goals?

Before answering, you should first honestly identify your BIG WHY of going overseas.

Why? Why? Why have you left?

To earn more money?

To have a brighter future?

To provide a better life for your love ones?

What is your emotional why according to Bo Sanchez? Your deeper reason of working away from home.

Whatever that goal is, it is necessary to always put that in your heart because that will keep you going once faced with circumstances while you are away from your home, from your family, from your friends.  That goal will keep you on track to achieve success and to unlock the chains to escape from poverty.

According to mtholyoke.edu, 12% of the Filipinos work and live abroad. From this approximately 11,280,000 Filipinos working abroad, the psa.gov.ph noted in 2014 that 35.2% have savings from their cash remittance sent to the Philippines, and majority of them save less than 25% of their remittance.

So, if an OFW remits 20,000 pesos, he saves less than 25% of this amount, which is less than 5000 Pesos. This is not bad. If this happens, say every remittance the OFW saves 4000 Pesos or more, in a year he will have 48,000 Pesos. In 5 years, he will have 240,000 pesos.

How about the other OFWs? Well, according to psa.gov.ph, 64.8% have no savings from their cash remittances. No wonder why there are many OFWs who are still poor despite the fact that they have been working overseas for many years, receiving higher pay that they usually used to receive in the Philippines.

I’m also an OFW and have been working abroad for a decade, and for ten years, I’ve realized that I still haven’t reached my goals of why I became an OFW. I am one of those 64.8%. So, after 10 years, it is only now that I am starting to save and grow my hard earned money abroad.

I believe that I’m not alone in this road. I believe there are also several OFWs who share the same sentiments with me, that after working for so many years away from their families, they still can’t afford to go back home because they have more bills to pay and no savings at all.

After many years of working and living abroad, I experienced firsthand, observed and recognized 3 misunderstood obligations and practices that makes many OWFs still poor despite of the length of working abroad and the money they are receiving.

1. UNCONTROLLED REMITTANCES

Sending money back home is of course a responsibility and an obligation of an OFW to support their families in the Philippines. However, many overseas workers do not properly account their remittances.

Several OFWs do not prepare a proper budget of how much money to send, to keep for emergencies back home or abroad, to save, and how much money to pay debts.

Several OFWs spoil their love ones by sending money every time a family member asks for more. As a result, their love ones left in the Philippines gradually form an irresponsible money spending habits. They gradually form the notion that they don’t need to spend wisely because they are well provided by their OFW mom or dad, daughter or son, brother or sister.

2. UNNECESSARY BALIKBAYAN BOXES

Lately, the issue on balikbayan boxes was all over the social media. It is undeniable that may OFWs send stuff, different stuff –imported goods to their families in the Philippines.

I myself had done it before. But one time, when I went to the mall, I realized that most of the goods in my balikbayan box were on the display shelves. I forgot that we are indeed living in a globalized world.

Sending balikbayan boxes is inevitable especially for sending personal and especial stuffs. There are also companies that provide goods to their workers that the OFW may also share them to his family in the Philippines through balikbayan boxes. There are times that sending balikbayan boxes are necessary.

However, if you spend much of your salary buying the content of your balikbayan boxes and spend more for the shipment fee and taxes, it is more practical to send money. If you are already making a habit of sending boxes once, twice, thrice a year, I personally believe that you need to go back to your "emotional why" and account your expenses on these balikbayan boxes.

Besides the financial burden of shipping, the disappointments from the shipping company and customs give emotional distress to you and to your family as well. And if unfortunate, your family still needs to pay for taxes before they can bring the box home.

If you add up all your expenses from buying the boxes, the contents, the shipping, the taxes, the inconveniences, most of the time, sending balikbayan boxes cost more that sending cash for your family's needs.

3. PASALUBONG PRACTICE

As an OFW for the first time in 2006, I was so excited to go home and tried to buy my love ones pasalubong. Then for the succeeding holidays, I gradually stopped buying each individual a pasalubong.

Not buying pasalubongs for everyone is not being greedy. I personally believe that I can help better by keeping the cash. So, when someone will be needing help for real, I have extra cash to give.

Many OFWs obligate themselves to buy pasalubong for everyone-pasalubong for mom, dad, brothers, sisters, aunts, uncles, cousins, best friends, friends, classmates, neighbors, tricycle drivers.

The question is, how much are you earning abroad? If you can afford, then why not?

But if you just want to show off and try hard to buy everyone a pasalubong until your money is almost gone, I believe it's time to review your goals again and think it over if it is really a need to buy that pair of branded shoes for tito or that branded shirts for your barkadas or that trending smart phone or that advanced computer even though your children still have functional gadgets.

Then when in the Philippines, party here, party there, then eventually you will sell your gadgets because you no longer have enough cash left.

If this is the case, I think you better look at the mirror and see your future old self and your children's older selves and think again of your big WHY of going abroad.

I still buy pasalubong, I do.  I buy chocolates. Then, I cook. Then we get together.

I'm not telling don't buy at all. My point is, If you can and have enough then go, otherwise, hold on and mind your budget. 

Remember, that the most important thing is the quality time you spend with your love ones.

So, if you want to be wealthy and be together with your family soon, revisit the main reasons why you left home and work far away from home.

Think long term!!!  and let’s escape from poverty!!!

Mutual Funds - Recommended Investment for Newbies

In my previous blog “Growing Your Money in just 3 Simple Ways for Beginners”, I have recommended investing in Mutual Funds to good people who are starting to grow their money for their brighter future. I mentioned that I'll be talking more about Mutual Funds in my succeeding blog.

As promised, I’d like to share with you today more about Mutual funds in simplified form.

WHAT IS MUTUAL FUND?

“It is like rice. It is a staple” - Bo Sanchez

“It is a pooled fund collected from several investors for the purpose of investing in securities.” –INVESTOPEDIA

“It is a collection of funds from many investors which is managed by a professional fund manager to gain income for the investors.” – isavenvestify

BENEFITS OF MUTUAL FUNDS

1. Managed by professionals

As a starting investor, you need someone to manage your investment.

Like in starting a business, you need an expert to guide you in growing and managing your business to minimize the risk and maximize your income.

These professional managers will closely monitor the market to let your money grow no matter how small your fund is.

2. Convenient

Because they are managed by professionals, mutual funds are easy to invest in. You don’t need to do the monitoring of the market and looking into every detail of your investment.

3. It is already diversified

Mutual Fund has a default setting which I personally call the “diversification app”.  The fund manager will instantly invest the collected fund in a wide range of securities.

This will balance the risk of loss because if one of the securities goes down, the others might be performing well.

The Fund manager puts the eggs in different baskets to minimize the risk of losing all the eggs when crisis strikes.

4. Beats inflation

Putting your money in Mutual funds provides you the chance to beat the inflation rate comparing it with just putting your money in your bank’s saving account.

5. Allows anybody to start small and can consistently add small

As an ordinary employee with a not so extra-ordinary salary, investing in mutual funds is affordable.

You can start with a minimum amount of 5000 Pesos and can consistently add a minimum amount of 1000 Pesos anytime.

6. Safe

Mutual Fund is a legitimate investment instrument. It is highly regulated by the Securities and Exchange Commission (SEC).

The funds are only invested into particular investment products and are prohibited to engage in certain transactions that may jeopardize the investors.

Mutual fund managers are like bus drivers. Remember that each public utility bus has a certain route. Each mutual fund also has particular securities to be invested in.

Buses are prohibited to takes routes which are not included in their transport or franchise permits and so do mutual funds. The fund manager can not just invest the pooled funds in any securities that are not in the list.

7. Liquid

Your Mutual Fund investment can be redeemed anytime. However, you just need to take note of the fees that may apply if you redeem your fund earlier than the minimum holding period.

DRAWBACKS OF MUTUAL FUNDS

1. You don’t have control over your fund

Because you are not the one managing your fund, you don’t have control over it. The only control you have is when to add funds or when to redeem your funds.

Imagine yourself riding on a bus. Because you are not the one driving the bus, you have no control which route the bus driver will take. The only thing you can do as a passenger is to wait for the designated stations to get on and off the bus.

Unlike if you are directly investing in the stock market, you have total control of your fund. It’s like driving your own car. You can take any route you wish to take.

2. Returns are not guaranteed

Mutual funds are affected by market conditions. There are times that the market is at loss. Thus returns in mutual funds are not guaranteed. 

However, there are strategies that you can do as an investor to minimize the loss and maximize your returns. This can be done through long term investing and the cost averaging.

FOUR TYPES OF MUTUAL FUNDS

1. Money market funds

These funds have the lowest returns and with lowest risk also.

These funds are invested in short-term government securities including time deposits and special savings accounts.

This is recommended for short-term investing which is ideally, less than 1 year.

This is recommended for conservative investors.

2. Bond funds or fixed income funds

These funds are invested in low risk assets such as government securities and corporate bonds that generate consistent returns

This is recommended for short to medium term investments which is ideally, 1 to 3 years.

This is for moderately conservative investors

3. Balanced fund

These funds have balanced mixture of safety, income and capital appreciation

This is recommended for long term investment which is ideally, more than 3 years

These funds are invested in fixed income securities and in the stock market

This is for moderately aggressive investors

4. Equity funds

These funds have higher returns but the risks are greater, too.

This is recommended for long-term investment which is ideally, more than 5 years.

These funds are invested in the stock market

This is for aggressive investors.

MUTUAL FUND PROVIDERS IN THE PHILIPPINES

Below are the list of mutual fund providers listed in the COL Fund Source of COL Financial Philippines

You may approach any of these providers to start your first mutual fund investment.

MUTUAL FUND SUPERMARKET

As a COL Financial Philippines’ client, I have experienced buying my mutual funds though the COL Fund Source which is the first  “Mutual Fund Supermarket” in the Philippines.

Benefits of buying mutual funds through COL

1. Easy and Convenient

Investing in mutual funds through COL Financial eliminates the troubles of going to the different mutual fund providers to invest.

This makes funding and monitoring your investment very convenient with just few clicks of mouse.

2. No front and end fees

Front and end fees are the charge deducted from your fund from your initial fund and from the sales when you redeem your fund.

When you invest in mutual funds through COL, the front and end fees are waived.

Bonus: Advise from my mentor for 2016

Because of the market’s volatility at this time, my mentor advised me to invest in mutual funds.

My interpretation:

In this volatile market, the professional managers have more professional knowledge where to invest my fund.

They closely monitor the market and has a better understanding of what’s going on.

P.S. 1: To know more about stock market and mutual fund investing and receive professional advice on how to manage your investment, join the Truly Rich Club by clicking here.

P.S. 2: To learn how to start a stock market investment, fill in the subscription form to receive my free e-book "How Did I Enter Into the Philippine Stock Market-My Step-by-step Guide"

Growing Your Money in Just 3 Simple Ways For Beginners

“No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.”

-Suze Orman

Are you still holding on to your New Year’s Resolution? I hope you are becoming more determined or excited to achieve them as I am excited for you. In this third and last blog for the series “ThreeThings to Include in Your New Year’s Resolution”, I am going to share with you the 3 simple ways to grow your money.

If you haven’t tried to let your money work for you before, I believe, this is the right path for you to begin your journey to your financial freedom.

As Robert Kiyosaki, the Author of the Rich Dad, Poor Dad said:

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."

Be like farmers

Sow seeds, tend them and patiently wait for the time to harvest.

How many mango seeds does it take to grow a mango tree that later on bear hundreds of kilograms of mango fruits? How many kilograms of rice grains does it take to produce tons and tons of rice?

These few seeds of plants have the ability to produce abundant supply of food that won’t allow you to go hungry. But in order to let their plants grow, farmers need to tend them-from watering, putting fertilizers, spraying pesticides, weeding the grass that grows around them, and cultivating them to take away the risks of the plant from producing less fruit than what is expected, or worse from dying out.

To make sure that the rice grains they sow will grow and bear grade A grains, the farmers have to patiently watch over their plants, and patiently wait for the right time to harvest.

What are my points?

In growing your money, you need patience. If you like growing your money instantly, I apologize but the ways I’m about to teach you aren’t the ones you are looking for. I’m sorry. You may want to try lottery or TV game shows or tracking hidden Yamashita treasures.

The ways I’m going to share are slow but sure. Long term but worth it.

Have you ever seen a farmer who harvested his rice grains when the grains are just sprouting out? Or have you ever heard of a farmer, who planted rice and after a month the rice are set for harvest? Plants need time to grow and so does Money.  Money needs ample time to give ample returns.

So, How to Grow Your Money?

As starters, be open minded to read and digest the following:

1. Choose your vehicles to wealth

Ride your way to wealth. There are many money machines that can make you rich. There are many vehicles to wealth. For newbies, I suggest you first invest in Mutual Funds.

Why Mutual Fund?

Mutual Fund, according to Bo Sanchez is like "rice." "It’s a staple." This is level one investment which is appropriate to starters who are now ready to take the first step to their financial freedom.

Mutual funds are very affordable to every income earner. In the Philippines you can start investing in Mutual funds with 5000 thousand pesos only.

Why Mutual Fund?

Mutual Fund according to INVESTOPEDIA.COM is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. 

When investing in Mutual Funds, imagine that you want to begin a buy and sell of bags business but

a. you don’t have enough money to start the business,

b. you don’t know what kinds of bags to buy, where and when to buy, how much to sell, where and when to sell. In short you don’t know how to run the business, and

c. you don’t have enough time to start a business because you have a busy and stressful full time job schedule.

So, you decide to add your money to a collected fund from others who have the same desire and problems as you. Then you hire a manager to do the business for all of you. The manager will do the buying and selling for you. He decides what kinds of bags to buy and when to buy, and decides when to sell them.

All you have to do is wait for the return of your investment.

There are many Kinds of Mutual Funds and there are many legitimate Mutual Fund providers in the Philippines. (I’ll be talking about that in my next blogs.)

2.  Invest regularly

A farmer never stops planting because he wants abundance. He wants more rice grains to sell in the market to provide him more profit. After a harvest, he plants again.

In Mutual fund investing, you should also sow regularly. You may add as low as 1000 Pesos monthly, or once in 2 months or 3 months...your choice. 

You add money regularly to your Mutual Fund investment so that you'll accumulate more funds that the fund manager will utilize to buy more securities that will earn you more money. 

More funds, more possibilities of returns

3. Keep Seeking

Don’t be contented with your Mutual Fund Investment. While investing in Mutual Funds, keep looking for more investment vehicles and study them. Update yourself into version 2.0 like the stock market.  

I recommend you subscribe to reputable people’s forums and websites that will help you open your world to financial independence.

One of my trusted website when it comes to investing is the Truly Rich Club founded by Bo Sanchez as it is a real service oriented website where you can find helpful materials and step by step guide to a Spiritually and Financially healthy life.  

Important Reminder:

Investing, like farming has risks. But you can minimize these risks through having enough knowledge, proper management of funds and guidance from experts like Bo Sanchez for example.

Happy Investing!!!

If you liked this post, please feel free to share it to your friends. 

P.S. 1 You may also avail of my free e-Book, by signing up the subscription note below. 

P.S. 2 You may click on the link below to also listen to my online mentor explain the importance of  investing and get a free copy of his book "My Maid Invests in the Stock Market and Why You Should Too."

P.S. 3 You may also click here to Register to Truly Rich Club to start your journey to financial freedom through financial literacy.

3 Easy Ways to Save Money for Starters

In my blog, “3 Things to Include in Your New Year’s Resolution”, I have mentioned Planning Ahead, Saving, and Growing Money. My last week’s blog “The Five Ways to Prepare Your Financial Road Map” talked about the first in the list, which is Planning Ahead. It briefly discussed the 5 simple but sensible ways of planning a financial life. Today, I would like to continue this blog series by sharing with you 3 easy steps to save money.  

Are there people who are born savers?

Well, maybe there are but one thing is sure. 

Saving is a skill and everybody can learn to do it.

I believe that everybody has the ability to save. Money does not choose which person to stick to. It’s the person, it’s us who actually choose to whether end our relationship with it or mend and cultivate it.

What’s your purpose?

Before you start saving money, you should have a purpose. You should be emotionally involved in this endeavor to succeed. You should have a deep personal reason why you are saving money. What is that you are saving for? Are you saving money to have more money or are you saving money so you can afford to live a life of your dream?

Remember this: Saving money starts with the right mind set.

So how could anybody save money?  

1. Every peso counts

It is a cliché but it’s often ignored. For me here in China, “Every RMB/Yuan counts”. 

In my room I have a bottle full of 1 Mao (1 RMB is equivalent to 10 Mao). These numbers of Mao have been accumulated since the time I started working here. I spent some of course but the last time I counted, they amounted to more than 60RMB. 

So, imagine if by the time I arrived here in China I started accumulating 1RMB or 5RMB or 10RMB and never spend it. How much Chinese money might have I accumulated through the years? It could be more. This shows that every penny, whether it’s an RMB or a Peso, every tiny penny when accumulated becomes enormous.

So, if your goal is to save for example 100 thousand pesos and you are just an ordinary employee earning maybe 15,000 Pesos a month with high monthly living expenses, how could you apply the principle of “every peso counts?”

Don’t be overwhelmed by the figure.  It is possible, believe me, that you can achieve your goal. For 100,000 Pesos, you just need to save 1 Peso 100 thousand times. If you’re aiming for 1,000,000 Pesos then save 1 Peso 1 million times. Sounds funny? But it makes sense right?

Save consistently. Never lose track. Never lose the motivation. Think of your purpose. 

2. Delay  gratification

 I still can remember when I was a little girl. Growing in a “barrio”, we have this “alkansya”, a Filipino version of the piggy bank which is actually a bamboo trunk or a hard coconut shell where we keep our coins. 

Then I remember also that every time I wanted to buy Texas or Bazooka, the popular chewing gums at that time, I ran to my “bamboo trunk bank” with a small knife in my hand to take some coins out from it. Haha, sweaty, peeping at the coins and trying hard to take out some. 

At a very young age, although I was given the chance to meet the concept of saving money, it was not the right one. See, I used to always give in to my short term wants. 

By the time my friends were drinking soda, I no longer had enough money to buy one for myself because I habitually took my money out for an ordinary chewing gum. 

One of the reasons why people are poor is because people don’t know how to delay gratification. People live life as if there is no tomorrow.

Don’t pity yourself when you don’t give in to your wants now because you are doing yourself a huge favor. Don’t feel bad for yourself when you don’t buy that new smartphone model, although you can afford it, because you are saving to buy a tricycle or a car for hire that can help you earn more.  In short, you are forgoing good things for greater things.

Owning a latest smartphone model is good but it is great to have a car rental business that helps you earn more so that you can afford more.

Think of the long term and not just of the short term. Forget good things for great things. Forget the ordinary for the extraordinary.

3. Don’t mix it all up

Be organized with your money. Don’t put your spending money and savings all together.

If you have bank accounts, have a separate bank account for daily expenses and another account for savings.

If you do envelope budgeting just like the one I wrote in one of my blogs, “MyEnvelopes to Wealth”, savings should be separated from money for expenses.

Mixing them up together won’t work. It will be hard to mentally segment your money. Even though you have a photographic memory, I doubt if you can quickly imagine how much money left for expenses-for utilities, food, entertainment, etc. So, separating which money goes to which makes a lot of sense.

Happy Saving!!!

If you liked this post, please feel free to share it with your friends. 

Five ways to start your Financial Road Map

The New Year is finally here. You must have your list of New Year’s resolution now, but I’m afraid that they will just be plans all year round because according to Forbes.com, only 8% of people achieve their New Year’s Resolution. I want you and me to be one of those 8% percent. So, I am sharing with you today the 5 ways to start a financial road map that I personally followed that are now gradually showering  me with positive outcomes.

Importance of Financial Road Map

Preparing your personal financial road map will let you be aware of every important aspect of your financial life. It will tell you where you are and how you’re going to get where you are going. Your personal financial road map helps you move forward towards your goal with knowledge, clear direction and confidence. 

Here are the FIVE steps I’m talking about.

1. Honestly determine where you are

Being honest with yourself in determining your financial state will reveal where you actually stand in terms of your financial situation. There are some who are still in denial and try to see themselves as financially free even though they are not. Some are still living in dreams that they are still able to finance their chosen lifestyles even though they are already buried in debt or are in a difficult financial situation. Mapping your financial goals won’t be a success if you are holding back or is not totally honest with yourself.  

a. List down where all your cash is coming from

Make a list of all your monthly sources of income. It may come from your full time job, from your sidelines or part time work, and from your investments if you already have one.

b. List down your permanent monthly financial responsibilities

Prepare a monthly budget of all your needs. This may include your house utility bills, school fees, food, your tithe and other permanent financial obligations.

          c. List down your debts

                    Make a list of your debts. Start it from the smallest to the biggest debt you                              have.

Now that you have listed your sources of money, where your money goes and how much you owe others, you may now have a clear view of your current financial situation.         

2. List your SMART goals

After knowing your financial situation, you now have a basis in building your financial goals for this year. Whatever that goals be, they deserved to be heard and be considered. Write your goals and see whether they are Specific, Measurable, Attainable, Realistic, Timely.

Make your goals specific so you can easily picture and achieve them. Let it be a measurable goal, too. Make sure that you can easily track your progress in the process. Consider your current financial state and determine whether your goals are attainable and realistic which can also be achievable in a set time frame. For example, can you achieve your goals within this year?

Don’t make a long list of unrealistic goals that you want to reach within this year or in a short span of time. Change does not happen overnight. I’m sure you don’t want to be overwhelmed and frustrated once none of your goals come into reality. Goals are motivating once you started reaching them.

Below is an example of goals this year that can be called SMART.

*Pay quarterly 1 of the existing loans (Getting out of bad debt)

*Write and market at least 3 e-books (creating passive income)

*Invest in the stock market towards the last quarter of this year

3. List ways to achieve your goals

You now have a list of your SMART goals. The next question will be, how to make them real. This is next to the hardest part in preparing a personal financial road map, but it is manageable. You just have to go back to your goals and list down small simple ways on how to achieve each of them.

For example, in order for someone to pay his loans quarterly, he may keep a certain part of his monthly salary for this. He may also think of ways to increase his cash flow and look for additional source of income to give him more cash.

4. Take Action

This is now the hardest step in achieving all the goals you have listed. Even though you have listed the ways to attain them and set a time frame to meet each of your goals if you won’t stand up and start to take actions, your goals will only remain as goals. Your dreams will only be dreams.

Let us be like Bro. Bo Sanchez. He reads his dreams everyday. He makes it a part of his life.  He include his list of dreams in his prayers. By doing all these, it will keep your motivation high. It will serve as your reminder to keep moving and implementing your plans for a better future for you and your love ones.

Don’t just wish for success. WORK for it.

5. Track your progress

Finally, you should also revisit your goals and see your progress. Compare your goals to a plant that needs to be watered and pruned in order to grow and bear fruit.

So, there, the five ways that helped me start with my personal finance. I’ve been doing it for more than a year and it somehow guides me on my money spending, saving and investing. I have again prepared my 2016 personal financial road map and I hope you will, too.

Happy saving and investing.

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