Personal Development, Business, Finance, and Investing for Everyone
An investment in knowledge always pays the best interest.
Rule of saving money, "Every peso counts." Discipline and consistency are the keys.
Saving is one of the most basic bits of financial advice out there. Despite the importance of saving money, many of us aren’t following through on that tip. When it comes to doing the right thing financially, just knowing you should save isn’t enough.
And that makes sense. It’s tough to do something consistently without understanding why you should save money and put in all that effort in the first place. After all, saving money takes discipline and a certain amount of sacrifice.
Here are some of the basic rules regarding finances. If you want to improve the financial area of your life, follow these rules.
Rule 1: Spend less than you earn
This is the first and greatest rule. None of these other money tips will help you if you cannot or will not spend less than you earn. This is commonly referred to as "to live within your means." What does this look like? For example, you make Php 20,000 a month, you might spend Php 10,000 and save the rest. You make Php 30,000 a month, you spend Php 15,000 and save the rest. In both scenarios, the individual is generating savings.
Rule 2: Create an Emergency Fund
The first goal you should be saving for is a well-capitalized emergency fund. An emergency fund is a fancy term for having money available for when those pesky unexpected expenses hit. The car breaks down? The house needs a new roof, door, furnace, or windows?
Rule 3: Save and Invest the rest
Did you know that you can open an investment account and start investing with just Php 1,000.00 to Php 5,000.00? Believe it or not, there are many possible investments in the Philippines. It is up to money-savvy Filipinos like you to find these investments and take advantage of them.
Rule 4: Capitalize on your skills and start a side endeavor
Each of us has special skills that we bring to this world. You goal is to find out what those skills are and then capitalize on those skills. The idea is to find the point where Passion = Potential and to pursue that idea until you have taken it to its full completion. This stage of the game is known as generating "Active Income"; income generation for which you trade hours in the day.
Rule 5: Own income generating assets that create passive income streams
Once you have an emergency savings set up, and you diligently paying off debt, your immediate goals is to build systems and buy assets that can make money for you. In this place you can get creative with your ideas: you could own vending machines, sell e-books or courses, real estate, reit, mutual funds, uitf, etf, or stocks that generate dividends. The ideas of how to generate passive income is limited only by your imagination and ability to work hard.
These are just some of the basic rules when it comes to financing. By following these rules, you can be sure that your current living situation will improve and if you continue these activities, you will definitely have a good future.
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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.