Saturday, November 12, 2011

How's Your Journey To Financial Freedom?

I've been thinking lately of the status of my journey to a destination called Financial Freedom. Since I started blogging about financial freedom, I would say, the journey is full of ups and down. There were times that I was so fired up and all I was thinking is about money! money! money! And there were times that I feel I was stuck again...that I can't achieve financial freedom.

I remember a saying that I've read long time ago, it says: "Trying times is not the time to stop trying".

So I'm here again back on my feet.

It's good that I came across with this article to refresh myself again, the author says it all. Here is the link:
http://www.businessthrival.com/newsletter/part-1-your-journey-to-financial-freedom/

Saturday, May 21, 2011

Wants to Become A Millionaire?

I've read yesterday's article from Yahoo Finance 5 Easy Steps to Become a Millionaire and started thinking: Is that really easy? If becoming a millionaire is so easy then how come that majority of the world's population belongs to the negative zone (expense is bigger than income). And I must accept that I still belong in this category.

Erin Joyce mentioned in his article the last and the most intriguing part for me: Don't Live the Millionaire Lifestyle. He narrated that "Warren Buffett's frugal lifestyle (especially relative to his net worth) is the go-to example for this point. The average value of the surveyed millionaires' homes was $320,000. The bottom line is, those who spend their money on non-appreciating assets cannot put that same money in an asset that will net them a return and increase their wealth. If it is important to you to build your financial worth, stop spending it on new cars, toys and clothes. (The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.)"


                    http://flickrcc.bluemountains.net/flickrCC/

I must agree with Erin Joyce. Most Filipinos I know who belong to Middle Class lives like they are millionaire. You can categorize them by the cars they drive and by the signature shirts they wear. Unfortunately, they are not. If you will know them personally, their credit cards are overly used and over-swiped. On one hand, I can't blame them for behaving that way. Our culture somehow favors those who are visibly "rich". If you wear ordinary clothes, then you are "poor". If you commutes, then you are "poor". If you don't possess a flashy, top-of-the line cellphone then you are "poor". On the other hand, I want to blame the culture itself. It's hard to live simple in this kind of culture and poor-mindset environment, unless you wouldn't care what other people might say about you.

I'd rather be a millionaire who looks "poor" than becoming "really poor" because I'm living the millionaire's lifestyle.

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Tuesday, March 29, 2011

Finance Tips for Graduates

I still remember the time when I graduated from college 15 years back. That was the most memorable part of my college life. No more studying. No more assignments. No more projects. Whew!

I was so excited with the working life so that I can buy the things and stuff I wanted to have for myself and for the family.

If I had my mentors back then, I could have planned better and could have prepared a much tangible financial plans. After fifteen years of working, I have so much loans to pay and with a little investment. I would say I just started right now to execute the financial plan that I should implemented way back then.

For those graduates, Investopedia has a finance tips for you. I wish I could have read this kind of advice long time ago. Read on...


1. If your student loan confuses you, now is the time to figure it out. Don't just read your loan agreements, familiarize yourself with each and every term to the last detail. Know what interest rates to expect, and figure out how much you'll ultimately be spending over your repayment term. In eight months, if you haven't budgeted for your first (of many) payments, you might find yourself a little shell-shocked. College may have been an amazing experience, but your student loan won't be. Spend these next few months getting to know your loan so that you can pay it off as quickly as possible. (For more insight, see Student Loan Debt: Is Consolidation The Answer?)

2. Start saving for the short term. Unless you have a job lined up for the day after you graduate, you need to prepare yourself for some instability. Unless you're moving home, you'll probably need to find a place to live. Plus, you'll need to put food on the table. Don't make the mistake of relying on your credit cards and racking up high-interest debt. Instead, start saving money wherever you can. In three months, you'll thank yourself for creating that cushion.

3. Start saving for the long term.
Even if you have a job lined up, rainy days happen and you should start setting aside funds for them now. You never know what could happen in these next few years, and if you're lucky enough to not need the money, you'll have a head start on your retirement fund. (Find out just how much those early savings can add up in Delay In Retirement Savings Costs More In The Long Run.)



4. Decide whether you really need a car.
Car payments, gas and repairs are extremely expensive and sometimes unsustainable on a student budget. Instead of moving to a place like Los Angeles where you absolutely need a car to get around, consider a place with a good public transit system as an alternative. These days, a car can be too much of a headache for someone with an entry level salary. (Find out why a car may not be the best place to put your money in Buying A Car: The Worst Investment?)

5. Live with a roommate or family while you still can.
Unless you are really lucky, you won't make a whole lot of money in your first year out of school. Regardless, your first year out of school is a crucial time to start building your career. You might need to take an internship or two to get to where you want to be, and you don't want to live an unsustainable lifestyle while you get there. Live at home or with friends, and embrace the fact that you'll get to spend this next year with the people you love.

6. Ask about benefits.
Health insurance, dental insurance, vision insurance, employer-matched retirement plans and other subsidies are just as important as your salary. Don't just let the best salary win your heart - take a look at the big picture before coming to any conclusions. (Get more tips in Job Hunting: Higher Pay Vs. Better Benefits.)


7. Figure out a budget. Next time you have a few minutes, sit down with your computer and research the cost of living in the areas where you want to live. Approach your research with a blank slate - without any assumptions. Dreaming too big will only hurt you, so sit down and get practical.

Life outside the school is harder than you think. Once you stepped outside your school campus and started to apply for a job, you will realize that what you have learned by book is totally different from what is actually happening. You are now in the real jungle. Real experiences. Real battle. And the result of this battle at the end would depend on how prepared you are. It will never be a destiny. It would always be a journey.


Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/17/investopedia51293.DTL












Saturday, February 5, 2011

Do You Want Financial Change In Your Life?

I met a lot of people who are so comfortable with their lives and getting out of their own comfort zones is seemed so unbearable. Well, you can not blame these people. As human being, we love comfort and we hate changes especially if changes require another adjustment.

Two years ago, I've been so comfortable with my job. I had a great boss and colleagues. Though I didn't earn that much but the work environment I have kept me from seeing wonderful opportunities outside. I believed then that I can be financially free if I stay hoping that salary increase would spell the difference.

Until one day, the management announced that they are going to enter into a venture agreement with other company.In short, retrenchment is inevitable to all of us. I was sad and a bit excited at the same time. I was excited then because I believe that my position is secured even a new management arrived.

A sad news came. No one from the existing staff will be retained. All of us were asked to resign. Ouch!



Find more videos like this on Create Abundance 2020™ International Network

Admit that you need help

Like Hem and Haw in the above video, I was scared to move out and discover a "new cheese station". My limiting beliefs hinder me too see what my mind can see. My love of reading self-help books had help me to regain my strength and review my financial status. They say that "unless a patient admits he is sick, he will not seek doctor's help". So am I. I started smelling another "cheese station" when I admitted that I really need to cure my financial condition before it's too late.

Find your "emotional why"

While I review my financial status, I began writing my dreams with the amount on it and when it will be fulfilled. The truth struck me down. Most of my dreams are long overdue. If I will not move my ass, these dreams will remain dreams forever. So I decided that action should be made that day! My DREAMS is long enough to enumerate but I keep it always visible so to remind me everyday.

Face your fear


Like anyone else, I got also my list of "what ifs". "When you move behind your fear, you feel free" is always true. I came to discover that most of my fears are only in my mind. They were born of a fearful spirit. I unmasked my fears one by one and I became FREE!

Problems does not happen for no apparent reason. God has many ways of telling us that the blessings we're looking for can be found outside our comfort zones. All we have to do is to step outside.