Kids are going to college very soon.....
Retirement age is quickly approaching.....
I've been an employee for over 20 years.
Yes, I have my paycheck every month and some perks,
but one is never too sure of what the future brings.
I WANT MORE MONEY!
I’m in my mid-40's and truly, its a bit late to start learning and taking these things seriously . . .
(If there are some of you reading this blog in your 20’s or 30’s,
I encourage you to start financial planning early…. )
But better late than never.
To prepare for these financial woes, I started attending a couple of FINANCIAL coaching seminars, started reading personal finance books and subscribing to magazines like
MONEYSENSE and
ENTREPRENEUR ...
Highly Recommended!
Before writing about what I learned so far…
Here’s my story:
As a 9-6 regular employee, I got hooked on finding ways to earn extra income and how to have passive income.
I should START INVESTING
LOOKED into
Business
(Crazy attending all those trade shows, Franchising stuffs to food carts and joint ventures)
Stocks
Mutual Funds / Trust Funds
Pension Plans
Bonds
Securities/Commodities/FX Trading
Real Estate Investment
I thought I should start SOMEWHERE...INVESTING my hard-earned savings. ‘wasn’t that much though.
I was already choosing among these wide range of Investment products.
I was drawing my own INVESTMENT PORTFOLIO.
I believed “INVESTING” was the way to EARN MORE.
YES, But that is only PARTIALLY CORRECT.
L-E-A-R-N-I-N-G-S
Through the books and magazines I read, financial coaching seminars I attended, I’d like to share what I learned:
If you are an average person, a regular employee or worker, living in a third world country or someone NOT born with a silver spoon…. There is always HOPE to conquer all your financial woes.
We just need to work for it and most of all be DISCIPLINED in managing our CASH FLOW.
If you are an average person, a regular employee or worker, living in a third world country or someone NOT born with a silver spoon…. There is always HOPE to conquer all your financial woes.
We just need to work for it and most of all be DISCIPLINED in managing our CASH FLOW.
I learned we should not just JUMP INTO ANY FORM OF INVESTMENT. Before we embark on ANY AND START EARNING MORE, we should:
1. first and foremost ELIMINATE DEBT so you do not just PULL-OUT on your investment to pay for this later. There are 2 kinds of debts:
a. Debt that transforms into an asset and will eventually give you extra income or passive income; and,
b. Debt that doesn’t fall in the description in letter a. above
The one that we should eliminate are those debts in letter b., like our CREDIT CARD debts, 5/6 debts (a term in the Philippines which means loans with usurious interest rates. This is very common even if interest is high because it is very accessible – no documentary requirements, no cashflow evaluation like in banks, immediately available. Lenders of 5-6 debt usually know you, or you are probably referred, they know where to hunt you down in case of default or non-payment… some lenders require just post dated checks)
2. Find a short and long term Health Care Program. No one wants to get sick or be caught in an accident but we always need to be prepared. Securing a “HEALTH INSURANCE” will protect us from expensive hospital bills much so we do not PULL-OUT our investment in case the inevitable happens.
3. SECURE A LIFE INSURANCE OR PROTECTION. Investments are risky. We also want to leave something behind for our loved-ones (and not debts).
4. Build your emergency fund. I always read save 6 months of your regular NET TAKE HOME PAY... if you're still in your 30's or 40's, at the or near the peak of your career and healthy, I'd say 3 months would do; of course if you can afford, 6 months is always better. This is to answer for your needs in case there are emergencies like someone in the family gets sick, or you (knock-on-wood) lose your job, etc.
INVESTMENTS have risks too. We also do not want to PULL-OUT on what we have INVESTED when we need the funds. Following the steps above will PREPARE us to be successful in our financial endeavors and GET BACK OUR MONEY'S WORTH WHEN WE START INVESTING.
