Category Archives: Financial Planning

6 amazing things I learned financially from SUPERBOWL LI (51)

Today, we witnessed another sports event that reminded us that everything is possible. New England Patriots and Atlanta Falcons had a really excellent duel in this Super Bowl LI. This sports event is such a big thing in the United States but in the country we are just wondering how this kind of sport really works. I’d like to share my observation within the game and how you can use it to change your finances this year.

Never give up – The score was totally not good at all for the New England Patriots, they need to make a stop, so they can score. For the last 2 quarters, everything is working against them. With the score of 3 (NEP) in favor of  28 (AF) and a limited time,  Tom Brady must create a really good play. Knowing that everything is not working, they decided that every possession counts, no turnover. Same thing goes with your finances; you’re running out of gas already, your money is getting thinner. Your emergency funds are no longer good. Never give up and be more creative. Be an entrepreneur and you’ll see money will flow again.

 

 

Make History– We have seen a historic comeback and they won the Vince Lombardi trophy, but remember it was such a bad start for the New England Patriots, but they compete and started embodying their roles. Soon, they were able to make another score until they tied the game. That moment, it already gave them advantage. The teams never waste it and their championship game will be put to the NFL history books. Your finances may look like ugly, but it’s not your destiny to settle for less. You should settle for more.

Beat your old record – Tom Brady was able to make some great comebacks in his career, that’s when he overcame a 24 point lead deficit from the previous Super Bowl.  Right now, he made every fans and sports analyst so proud of what he achieved. It’s overwhelming but your old assets must go up and not go down. Your liabilities must go down. You also need to bank on your Financial I.Q so you can grow your existing assets that you have.

FOXBORO, MA – SEPTEMBER 21: Tom Brady #12 of the New England Patriots and teammates run onto the field before a game against the Oakland Raiders at Gillette Stadium on September 21, 2014 in Foxboro, Massachusetts. (Photo by Jim Rogash/Getty Images)

Be in sync with the team – The greatest quarterback stated that “he’s so proud with what the team achieved”, that’s a powerful reminder that he’s with them for the last 60 minutes of the game and beyond. If you have financial counselors, talk to them, if none, you won’t achieve a lot. You may experience the brink of disaster. Speak to those who are self made and you’ll be inspire to emulate their good traits and avoid possible traps.

Do your Job – Coach Bellichik who won the 5 Vince Lombardi Trophy said to his team to do their job. You know what that signifies, that’s trusting your teammates, the system, your gut feeling. Your job is to change the course of your family tree and help them uplift their situation. It’s not enough that you earned a lot but your ability to pass it on to the next generation.

 

Feb 5, 2017; Houston, TX, USA; Lady Gaga performs during the halftime show during Super Bowl LI at NRG Stadium. Mandatory Credit: Kevin Jairaj-USA TODAY Sport

Set the bar – Have you seen Lady Gaga’s performance at the Super Bowl Halftime show, astounding! In your finances, change is inevitable, but your mentality should be quite different from the last 4-5 years ago. Start changing your habits and be the leader in your family in terms of finances.

 

David Isaiah Angway is a Registered Financial Planner, Chartered Wealth Advisor and a financial consultant for IT-BPO-Banking, HealthCare Industry and Manpower Agencies. He is a conference speaker and was featured multiple times in ABS-CBN News Channel show called On the money, Bloomberg TV Philippines First Up, Morning show of NET 25 called Pambansang Almusal, Eagle Broadcasting Company EagleNewsPh Facebook Live and different radio stations in Metro Manila. He also writes for BusinessMirror, Rappler.com, and MoneySense magazine. He’s also part of the most respected agency in the Philippines. Sun Life Philippines. 

He is the CEO and founder of WinLongTerm Financial Consultancy, that help organizations retain their top key employees such young urban and educated millennial (Gen Y) by teaching practical money management in the workplace. You can contact him thru his website winlongterm.com and his Facebook Page @WinLongTerm for more informative ways how to grow your money and secure your family.

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Financial Planning for awesome single moms


 

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I just want to honor all single moms out there who never grew tired of taking care of their kids while managing their finances. I hope this will give you clarity. Not all single moms are in a similar situation but these are my recommended items in your personal finance kit.  This is a multidisciplinary approach that includes spiritual, mental, emotional and social aspects as we explore the world of financial planning. It will take a lot of your time to master everything but the process is worth it.
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Get closer to God You may either have sufficient funds or not but without peace inside you won’t last this journey. Tough battles are ahead of you but being with God will keep your sanity within. Many single moms are distress with too much stuff in their minds. Without faith to the One who holds the future you may end up in chronic depression that may lead into suicidal thoughts. According to circleofmoms.comthe most common problems of single moms are no sounding boards when making decisions, taking care of the kids without someone to consult with during the middle of the night. You are not on your own. God cares for you His daughters no matter what happens specially with your life .

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Decide what you really want in life  Remember that you are still alive and not dead, dream more for yourself. Your self- concept should not focus on your past rather focus on what you can achieve. You need to get back up because you were born to be a champion.  You might be in a tight budget right now but again once you try to focus how to look for the opportunity things will turn out differently, finances will surely be positive. Lack of money doesn’t mean scarcity of favorable circumstances. nothing beats you when you Decide NOT to  glorify the past.
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Talk to a legal expert  In the family code of the Philippines it says that whether you got a legitimate or an illegitimate child, the father should be responsible in supporting your kids financially. This is not voluntary but a responsibility of the father. Never be afraid to ask for financial support because your child deserves it. Dismiss the issue with the father and claim the rights of your beloved child. Withholding the father from supporting won’t make the situation better. Single moms are  often smart, hardworking and a champ! Do not let those guys who messed up with you,continue living the way they want to. Let them be involved. Talk to the public attorney’s office Philippines. They can help you answers with your questions.
Support is defined under the Family Code of the Philippines (1988) as follows:
Art. 194. Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance, education and transportation in keeping with the financial capacity of the family.
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Master the art of budgeting Doing this means understanding more about your priorities in life. As a single mom you will always juggle a lot of things. You will always be in lack when you don’t organize your money. The best friend of chaotic life is  a troubled plan.  I suggest you to have fun with a personalize excel file or an app that will remind you the allocation that you got for this week. You can experiment and analyze your behavior towards it. It’s like looking in a mirror.  As a Financial Planner I used an excel file to keep me on track. I visit it everyday for 2-3 mins and this keeps on reminding me about how I manage my funds well. Again it is a matter of preference, whatever fits you and make you progress, go for it.
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Create an emergency fund  There will be an earthquake that may shake  your life  but most of the time you don’t know when this will happen. That’s the principle behind the emergency fund. This will prevent  you to be in debt and beg from other people when you encounter this kind of emergency. Preparation is the key. If you are currently saving some funds make sure to name that account. Study the behavior of   billionaires, entrepreneurs because they know the value of this. When you get your paycheck, transfer automatically at least 5-10% of it. Build it on time and you will have an umbrella when it pour it all out.
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Get an insurance  When you die accidentally without any safety net your immediate family especially the young ones will suffer. Think about your kids future. If you will use the cost benefit analysis, You will only pay for a certain amount so that you can be covered with a bigger amount that can help your love ones survive. Nothing can replace you, especially the joy that you bring while you are still alive but you will take that away when you suddenly demise. Insurance will give them a way to start a new life knowing that you cared for them. This will help them back  up. For more info about the legitimate insurance companies check the insurance commission.
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Long term financial goals   In order for you to win long term you need to act and think long term.  Your kids are looking up to you, they are inspired to see you waking up every single morning working hard. Look at yourself 10-20 years from now. What are the aspirations that you want to attain. Heller Keller said “The only thing worse than being blind is having sight but no vision” Don’t look too much with the  side mirror. Look at the windshield. Your life is much more bigger.
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Credit card debt  Never ever use your credit card as your emergency fund.  If you are already in debt don’t lose hope. There are a lot of ways how to take care of those things. Talk to someone who is financially inclined. Don’t talk to your family members or friends who are also broke. They will not give you the best advice to win.  Just find a winner who have gone the same issue and found a way. Keep asking. Look for forums. Use the internet and the mighty power of google. There a re a lot books who talks about debt.  U2 said  a famous line Sometimes you can’t make it on your own.
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Invest in the education of your kids  After you carefully manage to put up emergency funds, eradicate debt and built your savings. Yes, you can still invest long term. Beware of scams  and always check the legitimacy of the company.  As early as your child was born whenever you have extra resources put it  to a mutual fund specifically to an  equity fund. Historically our funds in the Philippines are doing great. Even at the peak of financial crisis we were able to recover.   
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Find support from a community. Life will knock you down but remember that you have your own tribe.  You are designed to be with a community who will support, love, hug , cry out with you when you are on your lowest point. When you are highly emotional you will commit  more mistakes including on handling on your finances.  When you are confuse with your situation there are mentors, friends, encouragers, winners  who can help you. This will prevent you from losing more money and manage the funds while you are enjoying the journey of single motherhood.  After all the struggles  with your finances  there’s a light at the end of the tunnel..
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Be an entrepreneur or ready to change your career  Nothing is certain specially in your career. You try to embrace the fact that you have a higher calling. Being a single mom should not confine you within the box of your current situation. You got dreams that you want to achieve like baking, making lovely dresses, selling your coaching services. Whatever makes you productive please pursuit it.
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Self evaluation  You got the most awesome job in the world and like any other job there’s always this performance evaluation.  Rest days should be for self reflection. This is mandatory and not optional. Evaluating yourself will give you opportunity to drive your finances to the next level and prevent common mistakes.
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Create a will or trust   This is related to estate planning. Never underestimate this tools. It is really important for you to have a knowledge with this to make things easier for you once uncertainty take place.  According to Elder Law Answers,  A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. A will covers any property that is only in your name when you die and it allows you to name a guardian for children and to specify funeral arrangements.  
A trust can be used to begin distributing property before death, at death or afterwards. It is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” A trust usually has two types of beneficiaries — one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies. a trust can be used to plan for disability or to provide savings on taxes.
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Teach your kids about money   Kids look up to you everyday. Being a role model will create an impact to them. Once you neglect to explain to your child the way you spend they will immediately assume something. When gray area struck confusion sets in. Remind them about your inner values and priorities in life so they can put the money in a proper place..
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Romans 5:3-5 ESV

More than that, we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope, and hope does not put us to shame, because God’s love has been poured into our hearts through the Holy Spirit who has been given to us

 

David Isaiah Angway is a Financial Evangelist

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Filed under Conventional Wisdom, Financial Evangelist, Financial Planning, Invest, Personal Finance, Single Mom, The Best Mom, Win Long Term

WHY do I need financial planning

 

As a young professional today, you would like to change the status of your finances but you don’t know how. You have million thoughts on how to let your finances be revived again this year but you think it will be better to start next year. If you don’t have any idea where to start, I challenge you to do the something today or else you won’t improve. I am guaranteeing you that once you follow this program, give yourself an average of  10-15 years and am sure you will be able to reach the wealth that you need. It is not a quick rich scheme so you won’t be a scam. 
Knowing is half of the battle. Do this routinely and you will understand more of your behavior towards your finances. You should plan and don’t think average. Get a piece of paper or download a worksheet that has the following then compile and evaluate it weekly.

Start with why you are doing this?

If you can’t tell me your compelling reason then you can’t sustain everything below. Imagine yourself that you are going to have a diet plan for the next 30 days but during the 2nd day you don’t have the energy and willingness to follow the most powerful plan, like why you need to deprive yourself with your favorite food. Everything will fall apart, you are wasting your time, effort and energy with the planning stage if that won’t be put into action. Your compelling reason why you need to do that should not be yourself. Remember when you think about yourself as the end goal, you are thinking too small. You don’t want to think average like anybody. Poor people think about themselves all the time. Authentic Rich individuals think about opportunities how to help other people and that’s who you are and how you should be wired. 

When you start with Why, the How and what will follow.

Example of BIG WHY
·         To make sure I can be financially free and pass this legacy to my family.
·         To be an excellent steward when it comes to finances.
·         To support nonprofit organization and help campus missionaries.

1.       Budget   

This is the starting point of financial planning. You will fail with investing when you don’t know where your money goes. That means you will be running out of gas in the middle of a freeway if you don’t check your gas tank first. But I got good news for you. There is hope. Knowing how much you got so you can maximize what you have is the goal of continuous budgeting. Doing your budget for the first time might overwhelm you because there are so many things you need to include in a minimum amount. Remember that taking actions to your plan will solve the current and future financial issues that you will have. When you’re lazy to do your budget you won’t be able to finish the construction of your dream house. Managing your funds is a skill needs to polish.

2.     Emergency fund

Whenever I got my salary I put that directly into my emergency funds. The rule is simple if your needs expense per month is 10,000 then multiple it by 6. This is a very simple principle. Save for the storms of life (illness, accident, change tires or when you lose your job). Learn to prioritize this.  Do this early as possible so you can move to the next level which saving for your wants. Caution: don’t ever use credit card as emergency funds and you will dig your own graveyard (bankruptcy). 

3.       Saving goals

You need to at least give yourself  3 compelling reasons why you are saving funds or else you won’t stand a chance when laziness  struck you every time you got your salary.  Your goal is to learn during the journey, this is not about the end destination. When you focus in excellence, sacrifice and faith things will start change. Behavior will follow. Chances are you will hit your goal in a repetitive manner. Savings are for your extra needs and wants. Put 20% in the bank when you immediately get your income make sure that you already got emergency funds first. 

4.       Debt plan
Please don’t ever go to investment without paying your debt first which earns a higher interest rate. Your debt plan should include how much you need to pay for every single cent and when you will be debt free. The plan is you need to stick to it no matter what happened.  When you put it in paper you can see the big picture.  The reason why you don’t want to be debt free is very simple; you think everyone is in debt so you think you are in the zone.  Live like no one else so you can live like no one elsesays Dave Ramsey. Debt snowball is a really good strategy, you pay the debts that you can eradicate first and as you get the momentum it will be very hard for you to break it.

5.       Estate plan
You are accumulating a lot of assets now and your investment is off the chart. Estate planning is not only for the rich kids, it is for everyone that you love. Your legacy to your family is important even when you depart; no one will plan for your family so take responsibility for yourself. Be selfless and take time to check your current assets over liabilities. Remember that you don’t want to add up to the inconvenience of your family members once you evaporate from this world.   

6.       Insurance coverage

You are priceless but you need to identify how much you bring on a table. If you were able to identify that you are worth  7 million then get that coverage as long as the computation is correct. There is computation from the insurance industry like multiply your yearly gross income to 10. The computation might not be as accurate as the standard computation of today’s industry but it gave you a ballpark figure. What’s important is to get an insurance that is equivalent to you. You badly need this or else when something unexpectedly happen to you insurance company will help you and won’t let your family suffers.  If you got kids and wife but you are refusing to have insurance, you are putting too much risk financially and emotional aspects in their lives.  No one would like to see those things to happen. Be responsible.

7.       Investment

Everyone wants to get into this but many are being scammed because of poor diligence. Be careful all the time. First, list those things why you are investing,  second, you need to identify whether you got time, money and knowledge to identify the investments that you want then your risk tolerance should be define. Investing is a word that’s not just about higher ROI.  Are you an aggressive type or a conservative one? Regardless of your answer there’s no right or wrong. The purpose will give you the drive, without it you won’t last. Third, List the things that you are investing you want to achieve like education for your kids, retirement or build your dream house. Know the amount that you will be satisfied and consider to be happy.

8. Read Books, Attend seminars, join a Face book group and find a coach.

Never underestimate the value of networking and community. You should declare war against poverty, procrastination and poor mentality. Reading books will give you thought provoking ideas. Attending financial seminars like IMG conventions in Makati, Truly Rich Club, and Money summit every year can increase your network and expand your horizons. Joining Face book group will give you an all access pass with like minded people; you are welcome in contributing your thoughts. You can easily follow mentors who are expert in the financial industry that will make you more accountable with the results you are getting. All in all fresh and updated insights will give you new perspective to make you successful with no boundaries. You should revolutionize your thinking so acting upon it won’t be a struggle.

Your unique plan is totally not identical with anyone so don’t copy someone’s financial plan or strategy. How you manage your finances while you are working is a glimpse of your future financial plan during retirement. You can change your tomorrow today. With the help of our God who holds the future and your willingness to make sacrifice you are surely going to win long term.

Pictures courtesy of hubspot, the dollar business, learnvest, shutter stock, carmen marquez, imoney, img, go banking rates


David Isaiah Angway is a Financial Evangelist

 

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Filed under Finance Advocate, Financial Advice, Financial Change, Financial Coach, Financial Evangelist, Financial Investor, Financial Mentor, Financial Planning, Insurance Money Goals

Clench fist financial planning

A clench  (close)  fist in the area of financial management is full of greed that tightly held so that those precious funds (moolah) will never get away. The close fist represents someone who doesn’t know how to give. They think that if they hold those money so tight they think that they will reach financial freedom. People who don’t give because of shortsighted misunderstands how this so called money works. These folks are so weak and insecure, they believe that they get more by hoarding and gripping those funds.
The problem with clench fist financial planning ARE:
1. It is born on weakness 
 Maturity shows up when you don’t clinch. When you try to open your hand that means you are starting to open up your mind. It is also a gesture of invitation and acceptance. Dave Ramsey said  “When we are scared we fight, clench our fists and prepare for battle because we don’t have the perception or position of strength to avoid a fight. So while a closed fist is a sign of battle it is born of weakness.”
2. Insecurity is the motivation
There are many people who don’t give because they felt they don’t  have enough. The money they think they have right now will not be sufficient at all. Giving is a counter intuitive approach.  Open hand is NOT part of the vocabulary.  They let this clinch fist tactics to make their insecurity stronger than ever. Me, myself and I is the anthem of this people which is unhealthy at the long run.
3. Against Biblical principle
When you hoard too much, you exercise your free will  a lot. But, you were created to give something in the first place.   Giving is motivated by grace. Your capacity to give has a spiritual connection too. Remember that in relation to (Gal. 6:10) So then, while we have opportunity, let us do good to all men, and especially to those who are of the household of the faith. This passage shows  that we have no right to hoard money or possessions when we are aware of others in legitimate need. Once you are in clinch fist that means there’s an issue with stewardship. This principle applies to the Body of Christ, since we are part of the  family of God and we are consider as brothers and sisters of each other–and also to the non-Christian poor. 
4. You will surely stinks    

When you don’t take a bath for awhile your nasty odor will surrounds the whole place. It will be devastating for your friends, colleagues or strangers to be around you. Swamps are characterized by slow-moving to stagnant waters. When you hold that too much water without releasing it imagine the toxic waste that’s accumulating inside it this will make you stinky than ever. Clinch fist money management will help you become worst and not achieve financial freedom.
5. Financially imprison

Many people wants to experience financial freedom but still imprison with poor money mindset. You are in chain if you follow this rule.  Way back World War 1 and 2 there were many people who gave their lives to their country for the sake of freedom. Giving is one of the major reason why we are free today.  Break free from those money myth and you will achieve a higher purpose why you need to open your hand.

When it comes to financial planning and wealth building habits we need to be aware how to let go of the financial myths and renew our mind with new set of rules. 

Getting personal
1.      Can you describe your ability to give today in the aspect of Money, Time, Talents.
2.      How many percent do you normally give to the non profit organization like church, charity or orphanages?
3.      Do you have a budget for giving (Benevolent fund)? Can you justify why do you give the way you give?
4.      What are your action plans to prevent the clench fist money management?
5.      Where do you see yourself in the aspect of giving after a year?


David Isaiah Angway is a Financial Evangelist

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