After our school days, each of us will start to live an independent life using our career and experties learned from schools in finding ways to have own source of income which either looking for job local or abroad OFWs, use freelance skills in services, having own business and etc. Then starting to establish own family getting married, raising children and so on.
But it is sad to say, after how many years of doing this normal routine task, it is very hard to achieve a financial stability or financial freedom in life many of us still burried in personal "Debts" regardless of professions in life and levels of income, ĎEBT is like a shadow always following behind our back which leads to stress and prostrations due to our common behavior that if our earnings are increasing our expenditures also are increasing, earn more and spend more, keep on trying new things not been tried before. But there's nothing bad of doing all of this, be sure to have limitations. "Hindi lahat na araw ay pasko" we like it or not drought and famine will come from time to time. We should think and reserve for the unpredictable "WHAT IF?s" in our daily lives. What if I lose my job or my source of income next day? What if things will happen like this? And so on.
Now, here in this blog post I will discuss 3 Three Important things or factors leading to achieve financial freedom in the future. And the simple proven equation below is like this:
"(Dfl + S + I) = FF" or
Debt free life + Savings + Investing = Financial Freedom
This means that we should strive to settle first all our payable personal debts, loans Bombay 5=6, loan sharks etc, before starting to build up our Savings plan. Because obviously, loan interest is more than100% higher compared to our Savings deposits in the banks and other investment portfolio.
No1.)
DEBT FREE LIFE; How to achieve on this?
A)Never Borrow to Buy Deteriorating Stuff -If you want to get out of debt, the first step is to STOP borrowing for anything that deteriorates in value. Like Cars and gadgets for non business use, Appliances, house furnitures & fixtures and other related things which depreciates in value.
Let say buying a car for installment in 5 years term for non-business use, with spot cash price of Php1M only, with loan interest of 20% to 30% this will become more or less Php1.3M for the total loan contract payable in 5yrs and if ever you want to dispose your car after 5 years in whatever reasons, the market value or the buyers willingness to buy for your 2nd hand vehicle will be at most 50% from the original brand new price or even lower depending on the physical running conditions of your car. It means you have an estimated potential loss due to car depreciation value plus loan interests of more or less Php800k for 5yrs or Php160k/yr or Php13k/mo or Php400/day in exchange of having a car for the certain period of time. Just think about it and plus the unfigured amount for maintenance like gas, oil, insurance and vehicle registrations.
B)Don't use credit cards for convenience—You will pay the whole amount at the end of the month. Do you have something you want to buy right now and are tempted to buy it on credit? Don’t! Save up for it every month. Tame your "I-Want-It-Now" monster. See what happens to your desire after a few months of saving. You might wake up to realize you don’t really need it. Avoid impulse buying behavior which is easily triggered by the very flowery, juicy, watery product ads compaign seen in tri-media, social media and while you are walking inside the Mall there are plenty of red tags markings there such as; Buy 1 take 1 or 50% off! PAYDAY SALE! SALE! SALE! and tends you to buy something which are not or less important and after a couple of days you'll find it junk in the corner inside your home.
C) Debt Freedom- List down all your debts from those with the highest interest down to the lowest interest. If you have huge credit card debts or if you used loan sharks that charge usurious interest rates, a stop-gap measure is to ask around for “cheaper” loans that charge lower interest and transfer your loans there. This is just a temporary solution. At the end of the day, you want to wipe out all your debts. Even as you’re trying to pay off your higher interest loans, try to pay the lower ones with the minimum amount. By giving your creditors even a few hundred pesos a month, you’re telling them that you’re not running away. In fact, call them up and tell them you’re working on your finances. Do you dream of ever reaching the state of zero-debt? Fire up this dream! Make a payment scheme plan and calculate when you will reach zero-debt. Print this date—month and year—with big letters in your journal. Have faith and stick to your plan. May your dreams come true.
No.2)
SAVINGS. How to build up this?
Prov: 6:6-8
Go to the ant, O sluggard,
Observe her ways and be wise,
Which, having no chief,
Officer or ruler,
Prepares her food in the summer
And gathers her provision in the harvest.
It has been noticed that to build up Savings is really very hard to do it needs strong commitment from oneself. Thats why many of us ended up no savings at all after losing a job. But we need to stick strictly to our plan after solving all our Debts to achieve financial freedom in the future. Many financial expert says that the ideal allocation for savings is at least 20% of your salary net take home pay which is achievable if you have self descipline and serious commitment to realize your savings goal, in addition to this you should evaluate your life style and detemine expenses leakages, what habits you've regularly do which are not so important and incurred huge amount of expenses and change it into optional then the budget allocated on it shall be goes to your Savings plan. Lets say quit smoking, minimize drinking beverages, the fine dining luxury gimik activities just make it occassional in nature only, stop one day millionaire's mind sets which is "Libre dito libre doon" with your friends and aquintances just keep in mind that in times of your financial struggles no one of them will help you for free as my personal experienced before, minimize utility usage turn off all appliances and electric comsuming devices or gadgets if not in use, learn to cook own food for the family than buying a ready to eat from the fast food, buy only important and useful things. Keep healthy lifestyle, taking care of your health and family to avoid illness, doctor's medication is so expensive and drain all your money if worst comes to worst. Just live simple life "Live within your means" Don't be showy to your friends that you have much saving they will lend you without interest or worst not paying you back.
No.3)INVESTING: What and Where to invest?
Wow! Congratulations! If you've done successfully the Tip no1.)Debt Free Life and Tip no.2) Savings. You are one step away to achieve Financial Freedom in the future. Because you don't have Debt anymore and have a Savings already. So its time to do the Tip no.3) INVESTING to grow your money. Take note don't put your savings money in a bank for long time it will not grow significantly, your savings account deposit is just to accumulate the fund only in preparation enough for your target amount of investment. Below is the options where to invest;
A) REAL ESTATE properties for long term. The undevelop lot for future project, residential lot, commercial lot, even memorial lot. Take note: Residential House & Lot package is not a 100% investment, because the house structure or building will depreciates in value year after year and it needs repair and maintenance. But the commercial building like Boarding houses, Apartments, Condominium units, Office space, Warehouse for rent is good investment because you will have monthly earnings for yourself as well as to sustain rapair and maitenance.
If you want to invest in real estate properties within Metro Manila, Metro Cebu, Cebu Province, Talisay, Mactan, Danao Bohol and Cdo. Pls visit and send message to my Facebook page》》
CLICK HERE or contact
09276273798 I will help and assist you to find good locations for your investment.
B) STOCK MARKET in Phil Stocks Exchange buy shares of stocks to Top performing blue chip companies only. Buy at cheap price and sell at high price. With ColFinancial stocks brokerage firm.
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"THE ONLY WAY TO WIN IS TO KEEP ON TRYING" DON'T GIVE UP!
