When I started this blog, I wanted to share how I can manage to have fun with my kids even with a meager amount. Me and my family have been doing this for the past two years for we were saving up for our Canadian dream which unfortunately was not granted to us. So as of January 2015, we are picking up the pieces of our shattered dreams, moving on and making new dreams for our family.
I also have been following Mr. Chinkee Tan about how I can be able to manage my finances wisely. It is very timely for us, since we only have a very small money to rebuild our dreams and start anew. But when you have goals in life and you know where you want to go, you can face any challenge that confronts you.
Me and my husband came from a family that were not financially intelligent, no one taught us anything on how to properly handle money. Just like any typical Filipino family we were taught to get a college degree, then find work to have a stable income. But what comes next after having an income stream? That is something we were not taught.
We were struggling financially that's a fact. I personally don't want to work as nurse anymore because the income I will receive from that job will never be sufficient instead it will create a more negative balance on our finances and will also not be beneficial for my young children especially if I work night shift. My husband on the other hand, struggled with his computer business not earning as much as it does 3 years ago. But even if we regain a stable income stream we realized that we need to have a plan and change our ways so that when time of drought like this comes, we will not be greatly affected.
I have been maintaining several blogs that provides me with passive income and one of these blogs is this one : The Frugal General. Just this March, while updating my blog I received a message on my Facebook page, which I only created a few days back, from a stranger wanting to have a collaboration with my blog. Just when I thought that nobody reads this blog, finally someone has read it and appreciated my efforts.
It was Mr. Sagarit from International Marketing Group that invited me to a free seminar about Practical Money Management and Investment Strategies. I was hesitant at first, thinking what's in it for me? So i gave it a try and I was very pleased with the first seminar I attended.
The seminar taught me a lot of things that I have never learned before. I used to read Rich Dad, Poor Dad and some of Mr. Chinkee Tan's financial literacy books, but what I have not learned is where to actually invest my money and when is the right time to invest.
The best thing perhaps that I have learned from that seminar was how to Build a Solid Financial Foundation, and it includes these steps:
1. Increase Cash Flow
Yes, this first step may seem obvious, but you really have to increase your cash flow if you want to be able to suffice for all your needs and to have a positive financial status. If you have an increase in cash flow the tendency is you have more money to budget, and more money to spend and save.
But the question is: How? Well first, don't rely on your hand to mouth monthly income. You need to find ways on how you can generate more income.
Apart from increasing your cash flow, you also need to leave within your means. If you spend more than your income, even if you earn a lot, you will still have financial deficit.
2. Invest on Healthcare
Secondly, you have to save for your healthcare. Because your health is your greatest investment, if you suddenly got sick but do not have health insurance, all you investments will go down the drain because you have to use your other investments so you can save your health.
3. Insure Proper Protection
This calls for investing Life Insurance. Because we are all uncertain for our future, if you are the breadwinner in the family, it is important that you have to acquire a life insurance. However, if you have already saved up enough money in the bank which your family can immediately use once something inevitable happens to you, then you can skip this step.
4. Manage Debt
If you have debt, you can start paying them when you already have secured healthcare and life insurance. You should have a repayment plan in managing your debt and make sure that your goal is to pay all of your debts so the rest of your income will be used either for savings or acquiring assets.
5. Create an Emergency Fund
An emergency fund is a sum of money in your savings that is intended solely for emergency purposes. A sum of 3-6 months of your average monthly income is the amount you have to save for your emergency fund.
Failure to save up for an emergency fund can also damage your finance when certain unexpected circumstances happen. So it is a must that you are prepared when that time comes.
6. Acquire Assets
Lastly, when you have already achieved the previous steps it is now time to start acquiring assets through various investment vehicles. You can now buy a real estate property, invest on stocks, buy mutual funds and so on and so forth.
This only the first series of the 33 seminars that they conduct. However, only the first two series can be availed for free. The other series are free for members of IMG.
To learn more about investing and personal finance, you can attend a free seminar conducted by the International Marketing Group through their Wealth Academy.
If you are from General Santos City, I can help schedule a seminar for you by sending me an email through jangfalle@gmail.com.
Or you can answer this simple form below so I can be the one to contact you.
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