The New Year promises a fresh start for everyone. That is why a lot of Filipinos during this time formulate resolutions to help them establish goals, make some changes, and improve their lives.
The biggest challenge comes the month after, when old habits try to find its way back. Aside from having resolutions, they need to have enough willpower so they can stick to their game plan. The same principle applies in handling money.
In 2015, we want our followers to be smart in handling their money – on their way to financial freedom. If saving money is one of your resolutions, make sure you master these things first in order for you to do it successfully.
1. Set your financial goals
Knowing your destination is very important in every journey. Your first task is to determine what you want to achieve this year. How much do you need?
Do you want to go on your dream vacation? How about to have enough down payment for your dream house or car?
Having a clear purpose on WHY you are saving will help you stick with it the next time you are tempted to quit.
2. Make a budget
If your financial goal is the destination, a budget is your map to get there. That is why making a budget is very important in every successful saving – it will tell you where your money will go.
The 10-20-70 principle will help you manage the money that is coming in (salary, commissions, gifts, and bonuses) to where it is supposed to go.
Ideally only 70% of your income should go to expenses like electric and water bills. 10% can go to your emergency fund or your tithe. The 20% should go to your savings and investments.
3. Make your money grow – Invest!
If you follow the principle stated above, sooner or later you will have enough savings. But like what we always teach everyone, do not stop there. Learn how to make your money grow through investing.
Take the time to study each investment available to you like stocks, mutual funds, and insurance to help you determine which one best fits your needs and purpose.
If not now, when?
Time is the most important factor when it comes to investing. Come to think of it, time is the only non renewable asset you have. Take advantage of the time you have now because the sooner you start, the more time your money will grow.
2015 promises a bright future for the Philippines, are you going to be part of it?
Do you have any recommended books on Fundamental investing in stocks?
you can try security analysis…
**security analysis by Dodd and Graham…
Unless the bonds are NYSE traded bonds, the cosmomsiin is marked into the quoted offering price with most dealers. So you really do not know what the cosmomsiin is. Bonds are sold in either $1000 face amount increments or in the case of municiple bonds $5000 face amount minimum. But the price is actually quoted as $100.00 face amount. When you sell a bond it is the very same principle. The quoted price includes the broker cosmomsiin. There are certain exceptions to this. Government bonds sold at auction is one. On those transactions there may be a cosmomsiin charged becuase you are buying them directly from the government with your broker acting as an intermediary. With IPOs there is not cosmomsiin charged either. The seller pays the cosmomsiin.
Great tips!
And goals are really very important. A lot f people (including me, at first) just invest to get more money. But investments fluctuate (stocks) or just steadily inch up (time deposits). You need to know if the returns are good enough already, and what to do with the returns other than hoard them or splurge.
Good goals, and even just modest returns can improve your life. But with no goals, even with huge returns, we might just end up the way we were before.
love it! worth sharing! lots of info!. Can i share it too?
“Having a clear purpose on WHY you are saving will help you stick with it the next time you are tempted to quit.”
So true for any endeavor!
Very helpful. I just followed this 3 steps recently. My money earns more in mutual funds and stocks than in Time Deposit. How I wish I should have known this tips long time ago.
I agree and I would like to highlight MINDSET. It should start with that. Once I have the right mindset in terms investing my money I began to develop a discipline. With God’s blessings, we are on the right direction with our financial goals.
gusto ko na sana mg start EIP dko alam kng ano gagawin ko.Anong procedure dapat kung gawin sana ma i ga guide nyo ako. thanks.
Hello, every time i used to check website posts here early in the dawn,
since i love to learn more and more.
I’m wondering why you don’t just open a FDIC sanvigs account. You seem to be implying that you think the stock markets will have a rough time for 6-12 months; if that’s the case, how do you figure that NOW is a great time to start investing in stocks? At least with the sanvigs account, your money is guaranteed; so if the market dumps over the next few months, at least you won’t be losing money.But if you want to try your hand at stock picking, you can visit a company’s website to find out how to go about buying their stock without needing the thousands you might need to open an account with a broker.On the other hand, if you have any credit card or installment loan debt with interest rates over 5%, you’re probably better off paying off the debts before speculating in anything like stocks. Consider this: if you invested in a market fund 30 years ago, and you consider the reality of the decline of the buying power of a dollar in that time (and it is a reality), you effectively have LESS money now than before you put it into the market back then (this according to John Mauldin, who appears on CNBC from time to time). Do you think the increased budget deficits as a result of gov’t bailouts will improve that situation? Was this answer helpful?