Monthly Archives: April 2015

Teach your kids about money




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Congratulations, you have a brilliant kid in the house and the more your little angels grow up the more responsibilities are piling up. This is the challenge in parents nowadays. You are taking care of a money making machine, sooner or later that kid will become an adult and earn millions thru his/her entire life. How do you train them about handling their finances will give them a better advantage. There are a lot of things you can teach to a child but I consider these are the pillars of personal finance.
Once your child knows how to count that is the moment we are waiting for. It would be better for you to start doing this. Again, don’t be frustrated if your child is having a problem making adjustment with what you are trying to impart to them. This is not an overnight process. Being a mom or a dad is lifelong career so just keep guiding them and never stop trying different approach.
Spend using cash– Your child already has a Ph D. in spending so it wouldn’t be too hard for you to teach this. I think you have a Ph. D. too. The “I want it now in them”   is being activated whenever they see something they WANT or colorful. Teach them that their allowance has an allocation for it. Introduce the word “budget”.  Remember to spend only 50% max (this is my personal take) of what you give to them because there are things that they still need which is MORE important. Whenever me and my child roam around anywhere I normally set her expectation that we will just buy food and not toys or vice versa so that we can to avoid further tantrums. Skies the limit is not in my vocabulary. If you can’t let your kids abide a simple rule then most likely they will have a problem when they turn adults.  Spending cash has a link with out emotion. It really hurts to spend cold hard cash compare to a plastic card. In addition to it “You really do spend more with plastic than cash”- Art Markman Ph. D.
Rule of thumb for this is 50% of her allowance.
Save for the future- Since I have a daughter I am trying to give her an idea that having patience will be more rewarding (Ideally). As much as possible you give her visions of long term discipline. Whenever she wants something then she can use that money she saves for the toys or shoes that she wants. If you will keep giving your kids money without guiding them properly that will be a curse for them that’s what Dave Ramsey said.  Always tell your child what’s the purpose of saving because this is counter intuitive.  You don’t want to be kill joy in the eyes of your child. The best way to teach is thru modeling not on what you’re saying. Be a really good role model.
Rule of thumb for this is 20% of her allowance.
Invest regularly – Time to start a brand new and powerful habit. As early as 3-5 years old your child should at least have an idea about financial principles from you. Don’t start teaching your kids about money when he/she is already in college. I can say that the earlier you teach them about finance the better. Once your child gets the momentum of saving and you were able to see that he/she is more comfortable now. Your child needs to understand why you are doing this in the first place. 15% from his/her allowance is my rule. If you will be able to impart this knowledge and this becomes a discipline I can guarantee you that your child will become a millionaire or even a really good investor. Your child knows how to win the game of money. Your little kid will be able to afford the future.  This is not a rocket science. Never lose hope that he can afford the future. You badly need to repeat it again and again the principle or else they will lack wisdom. You are giving your child the priceless but the most expensive principles of all time that is not available literally in school.
One great investment that all parents can make is in the financial education of their children.  Kids who learn money management skills and healthy spending habits at home are more likely to become financially responsible adults. Studies have linked structured financial education early in life leads to lower materialism, lower compulsive buying, healthy financial risk tolerance, high future orientation and high self-efficacy.  -ELOAN
Give – Giving back is such a wonderful act. When your child were still babies and you keep on asking them to share their toys or other stuff that they own the answer you normally got is “This is mine! Why should I share it?” I love how my daughter is doing now; I’m seeing the seeds that we planted in her. Seeing my daughter respond when it comes to helping someone makes me a proud dad. She’s starting to value giving compare to the previous years. She has this heart that melts whenever she see kids from the street. She kept on asking me to use some portion of her savings to give to the street kids or poor people. 15% or more is my rule. Encourage your kids to give to your local church, relatives or non profit organization like Real Life organization  or Right start. If giving is not something that you really love then please don’t expect your kids to follow you. It will be very hard for your child to understand this if you are not doing it..
For example, research by social psychologist Liz Dunn and her colleagues appearing in the journal Science shows that people’s sense of happiness is greater when they spend relatively more on others than on themselves. In one survey of over 600 U.S. citizens, Dunn and colleagues found that spending money on others predicted greater happiness whereas spending money on oneself did not, and this pattern was found across all income levels. In other words, even those with little money reported greater happiness when their proportion of spending on others, relative to the self, was greater. Allen R. McConnell


David Isaiah Angway is a Financial Evangelist

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Filed under Kids and money, Parenting, Personal Finance

Furious 7 teach us finance

Right now as of this writing the movie already reached 1.15 billion dollars and according to The BBC Furious 7 has set a new franchise record for the fastest film ever to make $1 billion at the global box office. It is a remarkable film and I can see alot of things that is in relation to finance.
Radical stunts– There are breathtaking moves in the movie, flying cars everywhere plus non stop action filled fight from the villains and the main cast. In our personal finance we need to make radical decision to be in the right side. It is not easy but will surely help us gain the upper hand. Again it is about character not the money in the bank. Your ability to make a savings out from your budget every pay day is a radical move or starting an investment and consistently putting the same amount of money for 10 years consistently is surely a radical character.
Family– Vin Diesel said ” I got no friends but I got family”. How important is the role of our families in establishing our personal finance? The family is the basic unit of every society. The culture that you have at your home is the starting point of your journey thru financial freedom. If you got kids make sure to guide them or else if you provided your kids with allowances without guiding them that will become a curse for them.
Villain– Jason Statham (Deckard Shaw) and Djimon Hounsou (is the leader of a terrorist group and the secondary antagonist in Furious 7)  till the end of the movie gave us a lot of head ache. They caused a lot of trouble to the main cast and to the city. Most of the time there are also bad characters in developing our personal finance skills. According to the newest survey done by the National Foundation for Credit Counseling. shows 41% of adults give themselves a grade of ‘C’ or lower when it comes to their personal finance knowledge.(American Study). The main villains that we have are poor belief system, lack of visions and goals in life, poor spending habits.Friends who are bad influence. Knowing is just one of the ways how to counteract it but doing something about it will help you Win Long Term.
Sad memories– Hahn died during the Tokyo Drift but he was not the only one who left the main cast His GF too and recently Paul Walker died in a car accident and will be forever missed. You think about those people that you lend money and never tried to get back to you? I am sure you can make a list of those  people who betrayed your trust and exchanged the friendships that you had with a minimal fund. Whenever you think about it, you forgive them but it always reminded you to be careful again. Sometimes you need to love people from a distance or else you won’t Win Long Term.
Collaborate with the authority – Dwayne Johnson needs help and the main cast with Vin Diesel need to make sure that they will stop Jason Statham or else they will be killed. Not only that the government needs to retrieve God’s eye. Without the connections they can’t Win Long Term against those bad guys.  Handling your finances is not easy. If you are currently investing you need someone who is ahead of you in that field. If you are into real estate you also need people who are a licenced brokers.A friend of mine told me “When you need insurance, you need to talk to someone who is an expert about insurance, and not just heed the advice of your non-expert friends who are not so knowledgable when it comes to money…”  You need to value those relationships from those expert because they will help you in making really good decisions.
Drone won’t stop – The last part of the movie shows non stop run with the drone and it almost killed  Ramsey (The creator of Gods eye). Imagine that Debt collector will always run after you specially if you don’t know how to manage your credit very well. I have couple of friends who were really mad and afraid with the collection agencies because they keep calling everytime they are in their workplace. Some of them told me they they felt so harrassed.
Of course, that’s the money they lend to you and as a credit card holder you need to pay for it whether you like it or not.  Don’t run, just face it.
God’s eye – If this one exist in real life I am sure that many people are going crazy with this.But this invention is so important because you can simply check the location, behavior, personal information of people everywhere. This is the ultimate search engine better than GOOGLE. God’s eye reminded me that we are highly predictable. The more you earn the more your spend. Lifestyle creep every time there’s a bonus or profit sharing or I can see that in the eyes of God we are being watch how we use His resources.
See you again– Whiz Khalifa wrote the song and it was really emotional because the last portion of the film was dedicated for Paul. Before the credits they showed Paul and Vin Diesel driving separate ways.It reminds me that  we need to understand that at the end of the day we need to decide to go to another level when it comes to handling your personal finance. The last chapter will never be the same. After the storm you need to start all over but remember be excited. If you lost a business, deals,money remember that there’s still hope. Your character will be tested and you will experience mistakes but that’s not the end of the road. You gotta ride for the last time.
Successful people view things differently

David Isaiah Angway is a Financial Evangelist

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Filed under Movie Finance, Pesonal Finance

How to swim on money



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Can you imagine what to do with the money that you will have if you just won the Mayweather vs Pacquiao fight? Hmmm.. maybe you are thinking about the house that you will buy or  the things that you want to acquire. Stop and wait!.No need to rush in making decisions.

Dilemma
There was a study made in 2010 by researchers at Vanderbilt University, the University of Kentucky and the University of Pittsburgh. The authors looked at lottery winners and separated them into  two groups: those who won sizable cash prizes (between $50,000 and $150,000) and those who won more modest prizes of $10,000 or less. Research shown that 5 years after they won, the big winners were the one more likely will file bankruptcy that means an extra-big lottery prize means you’ve got an extra-big chance of going bankrupt.

Winners but broke

What do you do if you got tons of money?  Do you know how to swim on water?

If yes then we will apply what you know in personal finance. If you don’t know how to do it then let us explore the things you need to do before the swimming time.
1.       Assess your skills and values – In personal finance it’s more of behavior than the money. Admit that you don’t know everything and you will not be able to know everything. At least you know something. You got fears that once you got this big sum of money you might lose it. That is typical. By simply assessing your values you will be aware where will you spend it. Developing a master plan or budget will help you visualize how to attack your expenses and save your money.
2.       Check the depth -Before you swim you need to make sure that you know how deep and wide is that pool or you might injure or drown yourself once you suddenly jump into it. Same thing goes with large sum of money that you are not expecting. It’s either you spend it all or you give it all. Proper assessment will help you maximize it.
3.       Discipline yourself – Daily grind that’s what the normally Olympic swimmers or athletes do. In terms of finances It will take a lot of effort to simply change your behavior that’s why before you swim with this tons of money make sure that you were able to manage your behavior. Spending is easy especially when you got moolah (Money) but it will be easier to keep all those funds if you understand how you behave towards saving, spending and investing.
4.       Unlearn the things that you know – Changing your perspective towards money is a sign of growth. Back in the days when the smart phone are still not a trend. I had issues with my inbox because the normal capacity of it was only 150 messages but whenever I’m not deleting unimportant messages it keeps on piling up and the important messages are not being receive. Like Elsa said in the famous Frozen line “Let it go”. The more you take care of that wrong mindset the more you will have a problem moving on. All swimmers move forward.  

5.       Practice everyday – When you swim everyday your body starts to adapt on how to learn to properly breathe, develop proper form and move all your muscles on the water while you do all the necessary strokes but to relate it in personal finance we need to develop the muscles of discipline, diligence and patience. Henry Sy never built his empire in just one day. Apple Inc success was not overnight. They practice proper form in their finances while they are still small and when they become big they also practice it and that’s why success for them is systematize and not just out of luck. Practice what is right.
6.       Join a club – Many aspiring swimmers at the start don’t know how to swim properly, I still remember that whenever they are in the pool they try to pretend that they know everything and swim on the side where they are comfortable but they end up not learning at all. The good thing about of joining a certain club is you start to develop your motivation because someone is going to encourage you to move to another level.
From womb to tomb that’s how we summarize the involvement of money to us. Maybe you are not familiar on how to swim in the ocean of money today. What is important is you should start first in a kiddie pool and have fun.


David Isaiah Angway is a Financial Evangelist

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Why Financial Discipleship is important



What would happen if your families were able to focus on establishing a legacy not only for themselves and their children, but for future generations and even the world? That is one of the many question Dave Ramsey threw at you when you read his book (The Legacy Journey). Imagine a world of no scams because everyone is too smart to get into their traps. Think about retirees that got sufficient money till the end of his life.  Crazy kids who are giving generously beyond what they can for the needy. I wish this can happen soon. The book has a lot of biblical concepts so you will surely enjoy this since it speaks the truth in love.

Let me share some of the meaningful information that we will get from the book.
1.      There are more than 2,000 Scriptures on money and stewardship, yet many people are frustrated when it comes to their finances because they haven’t learned and applied them.
2.      The Employee Benefit Research Institute found that 70% of workers say they are not where they need to be with retirement savings.
3.      Culture would lead us to believe wealth is either inherently evil or that acquiring as much wealth as possible is the ultimate goal, neither of which is based in Scripture.
4.      According to studies performed by Empty Tomb, church giving has not exceeded 3% as a portion of income in 40 years.
5.      In a culture motivated by bigger and better, we often don’t prioritize developing a heart of generosity.
6.      78% of Americans today die without a valid will.
Source: The Legacy Journey by Dave Ramsey
But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever .  1 Timothy  5:8


David Isaiah Angway is a Financial Evangelist

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Filed under 2015 Finance, Legacy Journey, Pass The Torch

How to resurrect your finances this year.



Debt after debt again plus crazy purchases that you cannot stop. It seems like you are stuck in a really huge hole?  No need to give up there’s an answer to it. Yeah there are ways how to do that.
1. Pray.
Seriously, you cannot make it. No matter what you do you are going to lose control sometime in some ways you need a divine intervention that will keep you sane. I got tons of  friends who almost lost their sanity when they got into huge debt but they have one thing in common they approach God who knows about everything. Don’t Underestimate the power of communicating with Him because he will comfort you.
2. Heart surgery
Major reason why you are in debt is NOT because of SALE in all major shopping centers but you failed to acknowledge the fact that your heart is so deceitful wherein you think with your heart now. You buy with your emotions and you justify what you bought using logical manner. What a smart move right? Whenever I go to the mall and so hungry I normally end up buying food. Like that in my example whenever someone feels empty (depress, sad) and you got a cash or 40k credit line on your card that’s a dangerous combination. I bet that you will end up buying a lot more things than usual. We want our emotions to filled up temporary You need to learn how to surrender your emotions and be self  aware.
3. Accountability partner.
Ask one of your  trusted friends, relatives, or church mates to check on you. This is the power of thinking that someone is genuinely concern about your success. The bonus here is if you fail with catching up with your financial goals this person will remind or even ask you what’s happening so far.
Please take note there are many ways how to do it but to put proper foundation will never go out of style.

David Isaiah Angway is a Financial Evangelist

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Filed under Behavioral Finance, Personal Finance, Resurrect

Do you have a Masters degree in Financial Procrastination?





Have you ever tried to plan in doing a lot of things before but it seems like you have this struggle with laziness? Haha. I was one of those people before. I am still a work in progress till now especially when I am so distracted and never focus on my goals.
Breaking up with a bad habit especially in finances is like breaking up to a bad girlfriend that consumes your time, effort, energy and money. Sooner or later you will realize that it is totally worth it.
There are habits in our life that we need to admit and we need to let go so we can experience growth. We need to graduate from the following habits.
1. You got tons of excuses why you don’t have savings or investment account.
“Time is gold” whoever said those words knew exactly the value of it. In this lifetime you will earn millions but you have limited time. Get serious with your finances and start now in changing your habits and behavior. Excuses will make you weak. Pride will bring you down.
2. You have so many extra curricular activities and you put the savings and investment as the last of your priorities.
Our ability to discriminate things from the highly important goals will give us an advantage from other people. There’s no problem in going for a long vacation, buying a new car, getting a new gadget or treating your friends to a bar. But remember to manage your finances first or else  activities will manage your finances? What would you choose?
3. You made a promise at the start of the year that you will start investing but till now you never even started choosing what kind of investment you will enter.
How many years you’ve been planning for this to start? Stop thinking about it! Like what the company NIKE said “Just do it”. Do your due diligence. Research, ask, save, invest and do it again and again till you get used to it. Momentum will overflow. Many successful people are known because of what they did not because on what they know.
4. You just plan to have your budget then fail to apply it.
Putting it in a paper is like the the first step but it will take series of action before you achieve your goals. Putting it in paper will not make you win.  Finishing it thru compounding action will make a difference.
5. You planned to pay for all the debts that you have but fail to pay even the minimum of your credit card that you owe.
Let us admit, there is a global pandemic about debt mismanagement. If there’s a medicine for procrastination in paying debt i think many will subscribe or have a lifetime maintenance with it just to simply cure that part. Commitment is something that needs to be enhance. Your ability to discipline yourself and pay for your debt and save money will free you from financial procrastination
6. You are still wondering how come your money don’t last till the next pay day.
Yes it happened again? You  failed to do your assignment. Have some written vision and goals.  Do the budget. Write it down or put it in an app so you can monitor your progress. Seeing whether your growing or not will give you an idea where to make necessary adjustments.
7. You keep on buying in E-commerce thinking that you will earn because of the discount that you are getting.
What you have is a Wrong mindset! The site design was to simply earn from people with the kind of mentality that you have.
Buying in an e-commerce site will not give you savings but will encourage you to get more items and pay more resulting to a rewarding program into your brain called buying endorphins while your pocket or bank account  is having a lot of pain.
Forming those habits is not an overnight process and changing it will take time too. You might be in a season of pruning right now where you need to unlearn a lot of crazy beliefs inside your head. You should graduate from that procrastination by simply doing baby steps after baby steps. 
Pro 22:3 A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.

David Isaiah Angway is a Financial Evangelist



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Filed under Behavioral Finance, Financial Coach, Financial Literacy, Freedom, Understand Us, Victory Over Finance, You Can Make It

The kid inside you.



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“I want it now!” That is the famous line of kids today. Growing up is a process and we as adults learned how to live and act like little ones. It is fun specially if you get a lot of gifts from your god parents or generous parents. But the moment that you came to the stage of adulthood your childish character should start to fade away but believe me it’s really hard to let go.
Symptoms of childish character when it comes to personal finance.
1. You spend 80% of your salary  to the things that you WANT and not what you NEED.
CURE: Have a budget and identify when and where your money is going out. Knowing is half of the battle but remember to make necessary adjustment. You don’t want that kid inside you to win again.
2. Instead of saving for it you immediately use your credit card to pay for items that you WANT.
CURE: Plan your purchase, without planning you will be on the losing end.
3. You don’t care what will happen the next day because you are so use to borrow money from someone.
CURE: Ask someone’s help like an accountable partner who will understand you and tell you the TRUTH. Look for a friend or a financial adviser that you can trust.
4. You keep on making stupid decisions after another by simply following your HIGH LIFESTYLE and LOW INCOME  strategy.
CURE: Know more about your insecurities and fears. Once you identify those things remember that you might go back from your old self, but once you acknowledge your self-worth you will definitely change your attitude towards money spending.
5. The moment that you borrow money from someone and never even pay it back on time.
CURE: Remember to keep your promises because your integrity will be tainted if you will just run away.
6. Investing your money to a certain company that promises you good return without studying the business itself. Then realized that the company is a scam.
CURE: Bank in yourself, grow your Financial IQ. so you won’t mess.
7. You keep on blaming others why you don’t have savings or investment. 
CURE: Remember your success in every aspects of your life depends on you. Personal accountability will make a you a force to be reckon with if you will check on your behavior and ask successful people how did they make it. Blaming will help you to be stagnant.
The kid inside you can damage your bank account miserably if you will never learn to acknowledge and let go with it.I just want to encourage you with this verse in the bible that says about transforming your mind and ways. Patience is equivalent to maturity.
 
1 Cor 13:11 When I was a child, I talked like a child, I thought like a child, I reasoned like a child. When I became a man, I put childish ways behind me.

David Isaiah Angway is a Financial Evangelist
 

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Filed under Kid inside You, Money Goals, Personal Finance Plan