Wednesday, July 9, 2014

Financial advice to my youngest sister


Yesterday, while having Viber with my youngest sister she told me that she just had employment contract signed. This is her first work,  first company and I'm very HAPPY for her. :) It feels good, ang sarap talaga sa pakiramdam kapag kausap ko ang mga kapatid ko at kapag nagkukwento sila sa akin ng mga happenings sa kanila, mga future plans and goals, etc.

Kaya kanina during lunch time I send a link I found online Financial advice to my 20-year-old self and I added some of my input for her to understand (medyo nagmamadali lang ako mag-explain because I'm running out of time hehe).

I want to introduced her basic finance na hindi ko naunawaan when I was in my early 20's or when I started working. 5 years na akong working and only last year when I started #aralmunabagoinvest. To my surprise after work, I saw this picture posted on her Instagram. My sister took down notes (yung mga payo ko kaninang lunch time sinulat pala ng kapatid ko) and it touched my heart a lot (super na-appreciate ko ito sis) and that's why I decided to put these on my blog. :)

Her handwritten note means more to me

I want to share here some of my added inputs from the blog I share to her.

Save more than you earn.

Habang nagkaka-edad mas lumalaki gastos kaya habang bata pa save more than you earn dahil mas konti pa ang gastos ng mas bata. Halimbawa, wala pang binabayarang bahay, bills, anak na pinapalaki, etc. take advantage to save more..

Write down your long-term money goals.
Halimbawa gusto mo bumili ng kotse i-write down mo how much ba un gusto mong kotse?

Kotse - 1 Million
House & Lot - 5 Million

Kailangan kasi maging visible at alam mo ang presyo ng long-term money goals mo :)

Pay yourself first before other expenses.
Ito ang bayad mo sa sarili mo. Gawin mo lang ang Pay yourself first formula Income - Savings = Expenses

Invest; don't just save.
Ito yung sinasabi ni Ate na un Savings ilalagay natin sa Mutual Fund. Ang mutual fund ay isang type ng investment mas malaki ang interest rate nito kumpara sa banko. Let your money work for you.



Invest in real estate.

We can go here on later on.. dahil kapag naginvest sa real-estate or un mga bahay naka tie-up usually ng 25 years to 30 years to pay. The earlier you start paying your home the better.

Invest in art but because you love art, not for money.
Ito pang mayaman to they buy art (paintings, artwork) and later on they sell.

Diversify investments.
Ang ibig sabihin ng Diversify ay ikalat (put money in more than one place). Halimbawa you have money in Mutual Funds, you have money in banks (emergency fund), you have VUL (ito yun Sunlife ni Ate Gadz), you have Stocks, Bonds, etc.

Buy life insurance for protection.
Life is full of uncertainties kaya we buy insurance as financial protection for our family. This is so important to bring peace in mind. We are transfering risk kaya bumibili tayo ng insurances.

Never lose money.
Rule No.1: Never lose money by Warren Buffet. Mahirap kitain ang pera don't lose money lalo na sa mga gambling.

Take care of liquidity.
Ang ibig sabihin niya dito ay kung madali ba makuha un perang pinasok mo sa investment. Kapag madali makuha liquid yun beh. Halimbawa, bumili ka ng bahay ang ganun investment ay hindi liquid dahil matagal ibenta yun bahay hahanap ka muna ng property agent, buyer etc. it would add extra cost such as valuation and agent fees.

Sit down and study basic finance.
Dito tayo kailangan bhe kailangan natin mag-aral kc once and for all para sa atin din ito at para mashare din natin sa iba.

Keep track of expenses.
Ilista mo lang kung saan napupunta un pera mo na pinaghirapan. Keep your receipts, and write on your budget tracking worksheet all your expenses until now ginagawa namin ito ni Jey nasanay nalang talaga kame.

Don't buy what you don't need and delay buying anything.
Dont buy things that you dont need meaning dont buy wants. If you need it go and buy it. :) Halimbawa, ang relo need natin yan pero pag ang gusto mo ay yung mga mamahaling relo halimbawa 10K un relo na type mo hindi na siya need wants na siya. Delay buying anything sometimes we just need to think twice or overnight if you really really need it (delaying gratification).

Always try to bargain and compare prices before buying.
Ito naman practice bargaining means don't buy agad-agad think first do I really need this? Can I get a good deal? Compare similar products, learn to negotiate for a lower price on anything. In short manghingi ng tawad.

Avoid unnecessary debt.
Kung hindi naman need un uutangin please avoid. Avoid getting credit cards dahil nagkakaroon un ng interest at pwedeng may mga nakatagong hidden fees and charges na hindi lang alam. Live below your means to avoid it.

Set aside cash for emergencies or hard times.
By right, your emergency fund should comes first before we invest but in your case unahin na natin ang mag-invest sabay na ang saving and investing.

Increase positive cash flow or have more income streams.
Habang tumatanda lumalaki ang gastusin kaya dapat lumalaki din ung kita. By owning assets and investments that actually create income you are then increasing your positive cash flow overtime.

When it comes to money, don't trust anyone.
Don't trust sales on networking if they guaranteed na agad-agad you will be rich. People who are successfull in networking worked overnight. Don't trust sales people when they tell you that their product have guaranteed results. If it sounds to good to be true baka scam yan. Look at the mirror yan ang una mong kakampi when it comes to money. Seek advice to right people with experience.

Invest in yourself.
Learn. Learn. Learn. Knowledge is power. Attend seminars and read online. Bago ka matulog kapag inisip mo un mga bago mong natututunan you will feel good.

Tithe or donate to charity regularly.
Tithing means mag-bigay sa church, or give portion of your money to people in need it will teach you to be unselfish.

This is all for you. Share what you learn.

Talk soon,

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