Personal Development, Finance and Investing For Filipinos
An investment in knowledge always pays the best interest. Financial Education is your best investment.
Failing to plan is planning to fail.
Planning is bringing the future into the present
What is a Personal Finance?
According to Investopedia, Personal Finance is a term that covers managing your personal money—saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, tax and estate planning.
It is also about personal financial goals--planning for retirement, or saving for your child's college education.
It's never too early or too late to begin developing financial literacy. Financial literacy is key to help people manage their money. God wants us to manage our resources, not the other way around.
The plans of the diligent lead to profit
Why Financial Planning Important?
It is important to plan your future today. Achieving financial fitness requires discipline and determination over the long term, just like running a marathon.
Financial planning helps you determine your short and long-term financial goals. You can't reach your goals if you don't set them. Planning how to use savings and investments to reach your goal is the key.
The Financial Planning Cycle
1. Know Your Situation
Who Are You And What Do You Have?
Assess your current financial situation. List your sources of income, assets owned, expenses or borrowings and any personal circumstances that may affect your financial position.
2. Set Your Financial Goals
What Do You Want To Achieve? When Do You Want To Achieve It? How Much Do You Need?
Set your financial goals. Be Realistic, Specific, and Time bound. You can save for your college education, a house, a retirement fund, or a dream vacation.
3. Create A Financial Plan
How Do You Achieve Your Financial Goals?
Determine how much money you can save each month to build your financial goal. Research different modes of saving or investing to safe keep or grow your money. Save for planned expenses; and set aside an emergency fund for unplanned expenses.
4. Execute The Plan
What Should You Do To Achieve Your Financial Goals?
Adjust your lifestyle when needed. Prioritize spending on needs and important expenses. Delay spending on your wants. Save early. Save regularly. Invest wisely. Discipline is key.
5. Review, Monitor And Reassess
Are You Executing Your Plan On Time?
Periodically review and revise your financial plan based on your current situation. Increase your goals as needed, revise your saving and investing strategies to meet your increased financial goals.
Source: Financial Consumer Protection Department (BSP)
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ABOUT THE BLOGGER
Hi, Ralph Gregore Masalihit here!
A Personal Finance Advocate. An I.T. by Profession. An Investor. A 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.