Many Filipinos struggle financially, not knowing a thing or two in improving their financial life.
Some people believe: money is not important. Yet, without money, you are also not important. That’s a rude statement, but true.
Do you think without money, you could buy rice?
Do you think without money, you could eat 3 times or more a day?
Do you think without money, you could send your child to school?
You may live without money when you live in a place where money has no monetary value. Like living on an island where food is created by farming and hunting animals.
Let’s face it, we live in a place where money is necessary. Money has value.
Most Filipinos believe that money is scarce, money doesn’t grow on trees, money is the root of all evil.
Is it true? Or is it just all in the mind?
It is hard to live with little, to no money at hand. I had lived my life like that before, and it’s depressing. I swear! Many people have been trapped in this depressing situation. Sadly, most of them were stuck and cannot get out on the rut they are in.
For me, the game-changer begins when I start questioning myself, contemplating how my life works out. Is this all life could offer? How could I improve my life? For my family? For our future? At that moment, many questions were running on my head. As this question pops up, curiosity runs in me.
This curiosity leads me to discoveries after discoveries that turned my life around. Discovering endless opportunities that I have never seen before.
Seeking knowledge to improve my life yield growth in my financial and overall life. Studying the rich, how the rich think and act. They give us references to improve our lives. Learning from the mentors who were already doing what I want in life, people who are doing way better than me in the aspects I want to improve.
Your scarcity mindset can end with you today, bring out the challenger within you. Bring out the curiosity in you. Challenge your beliefs. If I can do it, you can too!
As I grow my knowledge base, I realized earning money has no limits. Yes. It is limitless. We are just limited by our capability to accumulate wealth.
Most of the time, we are limiting ourselves to get them unconsciously. Scarcity mindset was planted deeply in our minds for too long. We also have fear within, believing in false evidence appearing real.
We have different circumstances that’s stopping us from leveling our lives up. Those circumstances were issuing challenges in us. They are reminders that life has more to offer. Remember, God doesn’t give you a problem that you cannot solve.
Financial strategy to follow
I believe that money is the key you need to level up your life, with money at your hands you can do a lot of things. When money is at work for you, you can free your time. It can be time for the people you love, time to exercise, time to do things that you love.
Here is the list that you’ve got to follow to start leveling up your financial life.
Save and budget
Most Filipinos spend, spend and spend on food, things, stuff that we don’t really need. We practice “tingi” buying most of the time, without us noticing we already spend a lot of cash in a year.
I know it’s hard to save and budget specially when spending has been your habit. But, if you really want to change your life you’ve got to start changing your ways of handling your money.
Knowing where your money goes, tracing where they went also helps you in reducing this unnecessary spending that you were unconsciously doing.
You are in control of your money. Save at least 20% of your salary.
There will be a time that budgeting your money will be not enough, which means it’s about time to increase your income.
An increase in income can come from your work overtime, selling things you don’t need, selling products or services, surveys and a lot more.
Basically, everything that can give money in your pocket counts and it should be part of your savings. The more money you save the better.
But, what should you do to the money you save?
Building up an emergency fund
Emergency fund is a contingency plan. In case something happens, you are prepared for it. If someone from your family needs immediate medical care, this fund is at your disposal.
This fund is a must, you can fund this by getting 50% of your savings each time you save. Preferably, saving at least 3 to 6 months of your salary.
You can check my post on where should you put your emergency fund here.
Once you are done in saving your Emergency fund, you can start saving for health care, and insurance.
This too is a contingency plan in case you live too long. Who would want to outlive their savings and investment? I clearly don’t want to.
Preparing for future medical needs is necessary if you want a secure future. At least for the medical headache, you might encounter from getting old.
You can fund this by, saving more money and from the additional income, you take.
You can check out my post for a healthcare company I believe can cater your needs here.
This too is a contingency plan in case you die too soon. We don’t want to die, but sadly, our time is limited. You might have unfulfilled dreams, aspirations and regrets but what would happen to your family if something happens to you?
Insurance is there to provide for your family for quite some time. So, they wouldn’t have burden at least financially.
You can check out my post for insurance I believe can cater your needs here.
Getting out of debt
Often times, Filipinos have an existing debt to pay. Getting out of debt should be your priority or else your liability interest will slowly eat your money potential growth. Interest is working against you, your money should work for you and earn you interest, not the other way around.
You can use 50% of your savings to pay off your debt while the other 50% to save for emergency fund.
An investment in knowledge pays the best interest.
When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research, study, and analysis before making any investment decisions.
For beginner level investor, mutual fund is a good investment choice. You can start investing in mutual funds for as low as 1,000 pesos. This fund is professionally managed by professional fund managers who know the in’s and outs of the market.
The money that you save and invest will define your future lifestyle.
The health care insurance you take will provide your future health care needs.
The insurance you take will provide for your family needs in case something happens to you.
Getting out of debt, when your debt free that means more savings and more money to invest.
The more money you accumulate the better, and if something happens to you, you and your family are covered by insurance. You are secured and ready in life challenges you will be facing. With the right financial foundation, you are not vulnerable. Everything is accounted for.