Personal Development, Finance, and Investing For Filipinos
An investment in knowledge always pays the best interest. Financial Education is your best investment.
I work hard and yet, nothing is happening. I am tired of my financial situation. I want to give up. I am a loser.
So you are stuck right now and feeling hopeless. You are banging your head and asking yourself, what should I do now?
Can you relate to this situation?
As Personal Financial Advocate, I heard this scenario many times and my answer was all the same. Here are the 4 things you should do to gain a financial breakthrough.
First, you have to accept the fact that you are solely responsible for your financial future. Yes, I said the financial future and not your current financial situation.
The past is past and some factors might affect your current situation but start right now, it is YOU. Just by inculcating this belief in yourself, you already won 50% of the battle.
Anything that will happen to you from now on, financially, you are responsible for it. Nobody can change your financial future, but you.
No one is more concerned in your financial future than yourself. It is all for YOU. Do not blame the government, your boss, your parents, and please do not wait for the next president to take action.
Be responsible for your financial future!
Second, set realistic goals. I have heard people fall for financial scams that promise big returns in a short period.
They want to get rich quickly, thus, falling into these traps.
Also, others chase high-flying stocks by listening to “Gurus” hoping to make a jackpot but in the end, “sunog” or “ipit.“ They now stay away from the stock market.
Some people do not like 8-15% a year return. For them, it is too low and very slow to the road of wealth.
Come to think of this, Warren Buffett, the greatest investor of all time, generated only around 19% average annual return during his lifetime.
I am not saying that you cannot get or always say no to big returns, what I am saying is, your goal, for now, is just to get started and build the momentum. Just like driving a car, you cannot just go to 0 – 100kph in 1 second. You need time to speed up, you need knowledge and experience to move forward.
The Third is you have to be familiar with the terms spending, saving and investing, and other financial terms.
When you receive your income, what are you doing with it? Do you all spend it? Spending is you already know its meaning. You are good at this. Saving is when you put your income under your mattress or in a bank savings account.
Investing is when you want to beat inflation by having better returns than ordinary savings accounts.
You can be investing in stocks, mutual funds, businesses, or even cooperatives.
One tip also is to follow the 50-20-30 rule. 50% Essentials (Rental, bills, etc.), 20% Financial Priorities (savings, investments, etc.), 30% Lifestyle choices.
My Fourth and last advice is to compute for your NET INVESTIBLE INCOME (NII).
This will surely determine how quickly will you get that financial breakthrough. You will use this NII to invest more so that you could generate more income and more investments.
Invest more in businesses, stocks, real estate, etc. But how could you generate more NII?
Create multiple income sources. Diversification. Maybe 1 per year?
Just 1 income stream per year. It may come from a sideline, side business, investments, etc.
Imagine, after 5 years, you will have 5 income streams! Having more income stream puts you on the defensive mode rather than on the offensive mode which lessens your risk over time.
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.