photo credit: PhilippinesClassified Ads
We, Filipinos are known as an epitome of hardworking employee. We work passionately and competitively yet in our finances we're failing to be on top. We thought working abroad is one of the the best decision to compliment our financial needs. True enough, but it could only serve as temporary financial aid. Looking on long term perspective, we need to know some basic Personal Financial management to guide us on how to improve our finances.
Here are 6 Personal Financial Management for you my fellow OFW's.
1. Be Financially Literate. Financial Literacy is not part of our academic curriculum. The reason why 1% only of our population know how to invest and grow their money. You need to take initiative to educate yourself. There's a lot of ways to learn. It's just one google away nowadays. You can read ebooks or even books about finances like "Rich Dad Poor Dad" of Mr. Kiyosaki. You can follow financial related blogs or join Facebook group. And lastly, attend free or paid seminar. One of the best thing to do is consult a Registered Financial Planner to properly address your current financial status. Do your Diligence.
2. Eliminate wrong Financial Mindset. Dealing with your old financial beliefs is a struggle. Here are some misconceptions practiced in handling finances.
- The wrong formula saving which is Income less expenses = savings.
- Putting our savings to bank.
- Investing is Risky.
- Accumulating Depreciating Items believing it's an asset.
To help you eliminate these things, you need to wake up and open yourself for change.
You should start saving the right way, set it as your priority after you take your salary. Search and study an investment to grow your savings. Know to calculate risk. Practice delayed gratification. Identify your needs over wants.
3. Stop Procrastination. Assess your current financial status. Know yourself financial burden. Eliminate your wrong financial habits. Set new Financial goals. Know the basics in personal financial management. As we welcome 2016, list your plans. Take actions, commit to your goal. And lastly, seek His guidance!
4. Leave within Your means. Sadly, we heard OFWs having zero savings, indebted, living from pay-check-to-paycheck. I witnessed real life stories here in Saudi Arabia. The main problem deeply rooted from their lack of financial education. I have known a friend working for about 10 years at government office yet until now he wasn't able to retire. Some of their lifestyle were, premature acquisition of luho's, third party and party-all-night. They neglect to save, the reason why they can't escape the rat race. I am hoping that through this blog, I may enlighten you.
5. Start Saving. Sounds cliche', an old school but it's the foundation to Financial Freedom. It's the basic step in building wealth. Start paying yourself. Having more enough savings, open doors to many investment opportunity. Take advantage while you still have time and energy in doing so.
6. Begin your Investment. As we slowly build our savings, it's now time to let our money work for us. It's the key to retire soon.What investments could probably help us? There's different vehicles to ride on like mutual fund investement, UITF, money market fund for beginners. For risk takers, you can try Stocks and Forex trading. Build your business, be a real estate investor and many more ways to invest.
* You should talk first your Financial consultant before jumping into any investment.
"The only way you will ever permanently take control of your financial life is to dig and fix the root problem."
Suze Orman
PS. 1 Be a smart Stock Investor. Get Fundamental and Technical Analysis from Pinoy Investor.
SIGN-UP for FREE. Click HERE.
PS.2 Join us in Truly Rich Club of Bo Sanchez and be part of amazing wealth circle. Subscribe here.
No comments:
Post a Comment