Financial Planning 101

[bns]

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One reason na daghan ta mga pinoy problemado sa kwarta kay puro walay sakto na financial planning.
Here's a quick summary on the major components of the best plans by order of priority:

Insurance:
It is important to have insurance to cover any major unexpected events (i.e. car accident, house burned down, critical illnesses, disability, death.) If any of you ever read Kiyosaki's Rich Dad, Poor Dad, you would have noticed the emphasis he puts on the importance of insurance.
Mao ni ang pinakaimportante para di maguba imong mga plano. Daghan na kaayu pinoy na naguba ang pamilya, napordoy, or nisamot kapordoy kay wala cla ani. Dapat mao ni ang musunod after you are able to get your basic needs.

Emergency fund:
How much should you set aside? It should be able to cover at least 3 to 6 months of your expenses to cover unexpected emergencies (home repairs, baha, minor illnesses, sick kids) Kung wala ka ani, ambot nlng unsaon kung naay gubot. Makaprenda jud kag alahas, auto, yuta. Kung walay maprenda, good luck.

Savings:
The responsible thing is you must set aside at least 2 months from your annual salary for your retirement needs. Akong nakita karon sa mga pamilya nato diri sa Pilipinas, basta matiguwang na, magpabuhi na sa anak. That's not really bad, but would you allow yourself to become a burden to your children? Although imo sila gipadako, gipakaon, niya gipaskwela, its not their responsibility to do the same to you once you retire. Parents should provide for their children and their children's children. Maski ang bibliya musulti ana (2 Corinthians 12:14, Proverbs 14:22). Dili dapat magpabuhi sa mga anak. Wala man ta gipugos na magkaanak ta kung di ta gusto naay buhi.on dba? Lisud baya kung magpabuhi pa ka ig ka retire nimo human sila mismo naay anak na pakan.on ug paskwelahon.

Investment:
Most people confuse an investment as something that should be done to have a main source of income for your daily spending. That is false. That is not called an investment, but rather a salary. When you invest, you get returns over long periods of time, which may be used for buying anything you want. If you plan on investing something, the keyword is "LONG TERM". If you don't have the extra money, its not good to go all-in in investments. Dapat mao ni ang last thing imo iconsider. If you don't have a solid insurance plan, you don't have an emergency fund, and you don't have savings, niya naa kay investment, then magkaproblema, very big chance hurot tanan imo investment leaving you with nothing.

Feel free to add or comment on this post

P.S. I'm actually a financial consultant in a leading insurance firm but I won't be forcing anyone to buy from me. This post is just for general knowledge. If you think what I'm saying makes sense and if you have questions or want to to consult with me about this post, pm me.

[mariot]

Nice post sir! What about budgetting? I think part na sa financial 101 ang budgetting. hehehe..

[bns]

Budgeting is a different topic which is done in the short term. This post is for the overall financial planning of an individual taking years to complete. Makapost cguro ko ana kung kalugar ko sunod.

[Angry Pig]

naa daghan dre mga expert ani. subscribe lang ko para makakat on

nice post brod

[Butitor]

Naa koy story gamay ishare this is called "Self-control", kani nahitabo karon adlawa.

Hanaa akoy 9,000.00 petot ako kani giipon sa pipila ka semana kay ipalit nako ug performance part sa ako motor (pampakusog ba). Dugay na ko gadumot ani. Pag abot nako sa tindahan samtang ako gitan-aw ang product sige ko huna-huna "usika sa kwarta uy, sure man mukusog ako motor ani pero...mao ra mukusog jud"...Dayon wala nalang ko padayon ug palit. Ni diretso ko sa ako Banko, COOP, ug Mutual Fund investment ug didto nako gibutang ako kwarta.

Kita ra gihapon ang kontra sa atong kaugalingon. Try pa gud ninyo ug resist, timbang-timbanga kung gikinahanglan ba ninyo ang usa ka butang. Wala ko naga pasabot ayaw nalang gasto para sa wants ug leisure kay sige nalang save dili pod maayo na.

Self control guys, self control. ug discipline pakapin.

Promise you will be rewarded. Katong 9,000.00 petot mutubo na kadto sa pipila lang ka tuig keysa gipalit ug butang na maglisod na gani mahalin ug 1,500.00 petot.

[bns]

Wala man jud problema kung mugasto for leisure. Just make sure na covered tanan parts sa imo budget. Normally ang binuhatan sa mga tao inig dawat sa sweldo kay bayaran tanan expenses, then ang sobra tigumon. Ang sakto unta ana, set aside daan sa para tigum ug budget pra macompleto nmo ang important aspects sa financial planning, then bahala naka magwaldas pra sa imo expenses Ug leisure. Wala nana problema.

[quantuminplus]

Salary - Savings& Investment = Expenses

[quantuminplus]

KEYS to Financial Success
1. Get Paid What You're Worth and Spend Less Than You Earn
- No matter how much or how little you're paid, you'll never get ahead if you spend more than you earn. Often it's easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn't always have to involve making big sacrifices.

2. Stick to a Budget
- One of my favorite subjects: budgeting. It's not a four-letter word. How can you know where your money is going if you don't budget? How can you set spending and saving goals if you don't know where your money is going?

3. Contribute to your Retirment Plan

4. Have a Saving Plan

5. Invest

[ProjectDavex]

Subscribe lang ko dri muag daghan ko pwd mkatunan dri.

[Dorothea]

A really good book about personal finance nga dali ra masabtan sa tanan is Dave Ramsey's The Total Money Makeover. I've bought copies of that book as gifts to friends and family. I highly recommend it.