Category Archives: Personal Finance

Men who built America part 1- Cornelius Vanderbilt

The entrepreneurialrock stars during the industrial revolution created a massive growth in the United States. When you go back in time almost 150 years ago, you will meet these visionaries who defied a lot of things to make sure their dreams come true. Studying the characteristics of these individuals will help you to move radically and achieve your great potential and think new ways. Let’s start with the man also known as  Commodore (the senior captain of a shipping line).
He was tough and decisive – At a very young age, he loaned 100 dollars to buy a ship. He thought that using his grit will help him reach financial freedom.  After a couple of years, he achieved the unthinkable; he made himself a millionaire and the leading manufacturer of the biggest ships in entire America. Vanderbilt also sees the future when he entered the railroad industry. All profit from his fleet ship manufacturing was invested to the newly formed industry. Like Vanderbilt, you can use business loans to finance your dream but remember that you need to be so obsessed with your idea and have incredible work ethic to win the game against the competition.
Hunger to win – His competitors thought that Vanderbilt can no longer compete since he’s an old man. During that time he’s already at his 70’s and the average life expectancy that time was only 55 years of age; you are either killed in war or deadly disease at late 1800’s. New businessmen came in the railroad industry, so they tried to exclude him from having deals. Later did they know, Vanderbilt saw another opportunity to declare war against his business rivals. Historians revealed that he owned the only bridge that can only pass the East coast, knowing that he decided to close it. All the competition can’t go to the other side of the country, soon they lost their profits. Wall Street heard the news and a massive fear spread to all the investors, stocks of those rival companies went down, he bought a lot of shares and Vanderbilt was able to control the majority of the railroad line. It was considered as a hostile takeover during that time but he outsmarts his competition. Failure is not an option.
Big thinkers train their successors – When he lost his favorite son from the civil war, he needed to train someone else. The old man was able to develop his younger son William in managing the business deals. Though William was less accomplished compare to his brother, Vanderbilt needed to train him like a Vanderbilt.  He understood the part that he needed to pass his entire estate to the next generation when he’s finally gone. He never let the past of losing his talented son hinder him since it will only drag misery to his business and finances.
BIG people maximize opportunities – Vanderbilt saw that the railroad industry was overbuilt during that time. Great entrepreneurs look for new opportunities to increase profits and he wanted to be back at the top. The right time came when a young oil man from Ohio named J.D. Rockefeller was introduced to the king of railroad. They made an alliance and were able to seal a deal that he can ship 60 barrels of oil everyday across America.  With the newly formed products, he was back at the top against his rival companies.
Visionaries are always ahead of the game – The king of railroad knows that he needed to differentiate himself from the rest and be better at everything. He innovates a lot and was able to control majority of the railroad line. He always keeps on giving value to a lot of people. Like what they said, innovate or your business will evaporate.
Entrepreneurs are ordinary people with extra ordinary dream. They think and act differently and use a lot of leverage to get ahead of the game. Profit will follow once they create value to the market. Without the creation of value you should not expect profits at all.
Your finances will be in a bad situationif you don't stop chilling with the wrong people (17)

David Isaiah Angway is a RFP and a financial consultant for IT-BPO-Banking, HealthCare Industry and Manpower Agencies. He is a conference speaker and was featured in ANC On the money, Bloomberg TV Philippines. He is also columnist at BusinessMirror, Rappler, and MoneySense magazine. He is a licensed nurse and a former Senior Fraud Specialist of the largest bank in the world, JP Morgan Chase & Co.


He is the CEO and founder of WinLongTerm Financial Consultancy, helping young urban and educated millennial (Gen Y). It sets and achieves their long-term financial goals by empowering them through behavioral finance.


For more information and concerns subscribe to Facebook page or contact me at, here’s also my mobile number 0925-787-7796


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Filed under Entrepreneurship, Personal Finance

My Top 12 personal finance blogs of 2015

Here are my top 12 blogs that captivated my readers this 2015. Thank you for spending time and never hesitate to comment, share and subscribe to this site. I’m looking forward to educate, collaborate and share to you my knowledge.
It is essential for everyone to plan for their paycheck while they are still young. Building effective habits will help fresh graduates to enjoy, maximize and prevent regrets in a long run while you are managing your finances every payday. You will also learn important tips how to counteract peer pressure when handling your moolah.
Rightstrategy will help you win long-term but if you are not really good in prioritization, this will surely derail you to achieve your dreams. This helps you to achieve correct thinking and categorize what is urgent and important.
If you think financial products will solve your problem, you are definitely wrong. You want to be well informed so you can decide what’s best for you and that is the role of coaches and advisors but you will see two important characteristics of this 2 position that can help you gain confidence in a long run in your personal finance.
Financial issues while you’re 20’s
Millennials are growing in numbers but the behavior is totally predictable, on this blog you will see the most common problem of the generation today and how you can counteract on it.
This yearly event can give you a lot of scoops about economy, sales, strength finders and upcoming trends in the financial industry. I learned a lot from Jonathan at this event and I would like to help ordinary Filipino understand the basics about the economy.
This is an honest, authentic letter in Filipino language (Tagalog) on how a lender trusted his friend to return the money back ASAP but still hasn’t got his money. You’re  probably stress with the money that you haven’t collected yet from those people who borrowed from you  but rarely you have guts to tell these things because you are afraid that this will hurt your image as individual, you don’t need to worry, writing what you got in mind is highly recommended to lessen your stress.  
I am proud to say that I am a Christian and longing to see a better world someday. I also believe that the God who created everything wants to see that one too. But I can’t do it by myself. Mission trips are definitely a way to share the gospel and exercise giving for a bigger cause.
You will never win if you don’t understand how the game of money works.
Kids are growing up without proper guidance in money management. We can’t blame them because most of the parents are clueless about it too. How do you bridge the gap in this society today? In fact, the skills and basic concepts can be learned so easily if you will focus on these concepts.
Are you tired of going on the same direction with your finances or you keep on failing yourself how to reach your financial goals, read this and you’ll be well guided.
It’s really sad that many people are getting scam without identifying these clues. Many are gullible and easy to be persuaded since human are highly predictable. Check on this blog and you will be ahead of the game of money not by chance.
5 years ago and you still haven’t got savings account. 2 years ago you promised yourself that you won’t be on the same direction but till now, you haven’t move for such a long time. Time to learn and how self awareness can help you to move from your comfort zone to a better place.
Your finances will be in a bad situationif you don't stop chilling with the wrong people (17)

David Isaiah Angway is a RFP and a financial consultant for IT-BPO-Banking, HealthCare Industry and Manpower Agencies. He is a conference speaker and was featured in ANC On the money, Bloomberg TV Philippines. He is also columnist at BusinessMirror, Rappler, and MoneySense magazine. He is a licensed nurse and a former Senior Fraud Specialist of the largest bank in the world, JP Morgan Chase & Co.


He is the CEO and founder of WinLongTerm Financial Consultancy, helping young urban and educated millennial (Gen Y). It sets and achieves their long-term financial goals by empowering them through behavioral finance.


For more information and concerns subscribe to Facebook page or contact me at, here’s also my mobile number 0925-787-7796

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Filed under Behavioral Finance, Finance Advocate, Financial Advice, Personal Finance, Scam

ANC Interview: “What to do with your first paycheck” by David Angway Registered Financial Planner

Key takeaways from on the money interview

Developing and nurturing your goals are essential but focusing on your behavior is way better to keep goals alive. You should have a S.M.A.R.T.E.R. goals. I added E. and R. to have a lasting impact which stands for Evaluation and Re-evaluate the goals, values, and behavior you have today.

Millennial generation should think differently and act way better than the previous one. I would recommend us to learn from the mistakes of the people who are ahead of us.

Chunk it down.

The IT-BPO industry is booming so they need massive number of workforce from different sectors. Your salary will give you a tool to increase your assets that will help you reach your financial goals. Set up a system and you are good to go.

Part time and free lance work are very interesting nowadays. Millennial is rising and work from home is trending.

Full time work still the grandfather of the employment system in the country today. In fact according to statistics majority of Filipinos are trained to work for an employer compare to being an entrepreneur.

I think if we want to remove the traffic in Metro Manila let us encourage everyone to work from home.  

Technology is making our world flat, that means the landscape of business and creating value can spread using the world of technology.

With the overflowing supply of nurses in the country today most of them are either in abroad or in a different industry.

Right questions will always lead you to right answers.
These 3 are not enough; you need another one which is a community that will support you with your investment strategies and thought patterns.

Here are On the money questions during the episode.

David Isaiah Angwaycurrently helps  young, urban and educated millennial (Gen Y) set and achieve their long-term financial goals by educating them about investments, asset allocation, risk management, retirement planning, and estate planning. His role as a financial planner is to find ways to increase the client’s net worth and help the client accomplish all of his/her financial objectives.
Disclaimer: All pictures belongs to ANC On the Money. All rights reserved Nov 2015

Behavioral Investing
Asset allocation

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Filed under ANC On the money, Finance Advocate, Finance Talk, Financial Coach, Personal Finance

A Single Yuppie’s Guide to Saving

Payday is not until next week but your wallet is now empty. You scratch your head and ask, “Where did all my money go?” This scenario is not uncommon for the working class specially the Pinoy young professionals. The truth is, most of us single yuppies live from paycheck to paycheck. We are the generation that demands “work-life balance” that is why we like to work hard and party harder. We live like kings on a payday weekend and end up virtually broke on the next weekend. There is absolutely nothing wrong with enjoying the fruit of your hard work. Let’s all live and enjoy. Carpe diem! However, if you are one of those people who seriously want to solve the problem of running short on cash a few days before payday, don’t you think it’s time to ask how  you spend your money? The first step toward financial stability is reflecting on your finances. 
Take some time to sit down and list all your expenses for the month. You can do this on your day off or even on your coffee break. Now, what you will need is to create several lists of expenses on a piece of paper or you may use an Excel spreadsheet. Identify the average amount of your pay slips for the past 3 months. You may be earning a total of twenty four thousand a month from your call center job – make a mental note of this figure or jot it down.
The first thing you need to identify is the total amount of your monthly bills. This is really easy and anyone can do this. Heck, some people may already be doing this! Your monthly bills may include, rent, mobile phone, internet service provider, credit cards, cable TV, and other stuff like electricity and water bill. You may include your average spending on groceries under this list.
The second list of expenses you need to create is the cost of your fare allowance from your home getting to your workplace. Do you take the MRT or you prefer taking a cab? You should include your lunch money on this list as well. These will all be part of your “daily operational expenses” and you will need to multiply this into the number of working days in a month. Keep in mind that on average, there are a total of 22 working days in a month. 
The third list would be your “lifestyle expense”. Do you usually drop by Starbucks for a cup of coffee before heading to your office? Do you buy snacks at the office vending machine? How about your weekend activities? How often do you go to the movies? How much do you spend when you go to clubs and how often you visit a spa massage? Anything that is on this list are all variables but, pretty much flexible because you can live without them or you can replace one activity with a cheaper alternative. 
 Now, you were able to identify your total monthly expenses, how much was left? If what was left turned to negative balance, then make adjustments in your “lifestyle expenses”. If there’s more money left, congratulations! 

How much money do you really need to save? 
The responsible thing to do is to keep 10% of your income in a long term savings account or investment. If you are earning 24k monthly, you must keep 2,400 pesos in your “life savings”. This 10% is non-negotiable and part of your income which you could invest, while doing so that money will get a compounding interest in 10 to 15 years for VUL, growth stock mutual funds or the stock market. Most of the commercial banks offer investment banking options which could help you attains your financial goals.
Start a short term savings account or open another savings account. Your short term savings must be versatile. This pot of money will pay for that new gadget you really want to purchase or use it as your travel funds if you take trips every 4 months or so. If you are considering a home renovation project or simply need cash for a “rainy day” use your short term savings account as your emergency fund, never withdraw from your “life savings”. Truth is, you’ll never know when you will finally decide to settle down and start having your own family, and your expenses will definitely change and will multiply. When that time comes, you will be grateful for yourself   having the discipline in keeping that “life savings” untouched. 
At the end of the day, the value of determination will be the only thing you need in order to build a savings account. Nelson Mandela once said “It always seems impossible until it’s done.” You have to start somewhere and the sooner you start your savings account, the better. Don’t be careless with your money but don’t be a scrooge either. Live and enjoy your youth but make sure to create a balance.

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Mahj graduated with a Bachelors Degree in Economics at Dela Salle University Dasmariñas Cavite. Currently, she’s a freelancer and studying graphic design.
She was also a former fraud specialist of a Trillion Dollar bank .

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Filed under Budget, Guest Post, Money Problems, Personal Finance, Yuppies

9 financial concepts you need to teach kids

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Financial concepts today are getting easier now to grasp. Movements from different organizations that talk about  financial literacy program is getting momentum compare to the previous decades. Maybe this is because of the previous mistakes of our fellow countrymen. As a parent  we are responsible in preparing the next generation for the upcoming tasks. Historically, year after year the number of fraud victims due to very good financial engineering and poor decision making is costing us billions of pesos but in today’s world we can prevent that from happening by spreading the fundamental values to the younger ones.
What is Budget
Teaching  them about budget is also teaching them how to fish regardless of their resources.  Never let your kids graduate from grade school without knowing how to do this because this is the pillar of financial management.  Be organize with your finances.
The battle between wants vs needs
Kids are very known to their “I want it now” syndrome  they are highly emotional and will throw temper tantrums ASAP to get what they want.  Since you are ahead and more intelligent to your kids, you are using the logical part of your brain after weighing in the available resources. Once you passed an efficient system the future generation is going to be more responsible.
The concept of  Investments  
In simple terms once they spent something there should be a bigger return in a long run. We are not talking about consumerism but real investments like 1000% return such as education, attending a class or put so much time in something that you love like art class and use your kids talent to create project after projects to serve others.
Credit card and Debit Card usage
Let your kids be knowledgeable about how to use this or else this will make or break them. Both cards can be use in the same manner but if you keep on swiping without too much control and don’t know when to stop they will  end up in a very deep hole. 
Power of Debt
My parents hate having debt and since I live in a Christian home our philosophy is if you are in debt then you are slave to the lender.  Explain to them that being in debt and interest rates should never bury you in stress.
Everlasting Taxes  
You can escape other stuff in this world aside from tax and your kids should be aware of it to make sure not to focus to much with it. Wealthy people focuses in earning more and not  just in taxes.
Compound interest
The 8TH wonder of the world. When your kids know this as early as possible they will be surely ahead of the game of money. Let them learn  this wisely and it  will help your kids be more financially savvy. 
Beware of Scams
This is for older kids. In a low trust world let your kids learn  not to believe every thing that they hear from other people is true. Let them ask you and get counsel from the people they look up to.  Sit down with them so they can open up. Many people will lure your kids. 
Giving to less fortunate
This is counter cultural but totally liberating. The principle the more you give the more you receive. The  Proverbs 19:17 ESV says it all “ Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.”

David Isaiah Angway is a Financial Evangelist

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Filed under Behavioral Finance, Parenting, Personal Finance

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

Financial Coach VS Financial Adviser

Graph courtesy of Financial Mentor
Today you will know the big gap between the two. You might be confuse with the term but coaching process and giving financial advice is like a night and day.
Financial Advisers want to take care or manage the funds that you already accumulated while Financial coaches help you to be accountable and build your wealth your own way thru your knowledge and skills set.

This is the principle  financial advice is like giving a man a fish and expect  he will be  hungry again in an hour. If you teach him to catch a fish you do him a good turn and that is the impact of financial coaching process.

Financial coaching is driven by goals of the client, coaches help people develop skills and behaviors they can improve upon independently. The benefits of financial coaching are improves financial capability and increase savings.  According to center for financial security, coached clients are more likely to have a financial goal and be more confident in their ability to achieve that goal compared to those who do not work with a coach. You are in control of your finances because you are smarter and have skills in making a better informed decisions

Financial advice  focuses on your portfolio by providing specific securities and investment advice. The financial adviser business model is all about managing the money you already have. You give them control of your assets and they do the work for you. (Todd, financial coach, owner of the Financial Mentor  Website)
Investopedia defined financial adviser as professional who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement, depending on what the client requests. Some financial advisors are paid a flat fee for their advice, while others earn commissions from the investments they sell to their clients. Fee-only arrangements are widely regarded to be better for the client.

Traditional Financial Advice will always fail you – and the Statistics Prove It
In a changing world and economy if you will follow the  old advice of your friend who is not well verse financially you might end up retiring without dignity. Not all advice will be good to you and not all financial products will be suitable to your needs.  

In a research based study the issue with retirement shows that 2 out of 100 can retire very well and live comfortably. Imagine yourself believing those money myths that you have now and I can guarantee that it will cost you a lot. Financial coaches and financial advisers can help you make sound financial decisions but you have to choose whether you will be the authority or not.

Getting personal

1.      What do you think is superior for you and why?
2.      Who do you prefer to have a collaboration when it comes to your wealth habit?
3.      Why do you need financial adviser and financial coach in your life?
4.      What particular character would you like to see from your financial coach and financial adviser?

David Isaiah Angway is a Financial Evangelist

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Filed under Financial Advice, Financial Coach, Financial Literacy, Personal Finance

Financial issues while you’re 20’s

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Every generation got a problem and a struggle. When you are young it gives you the ability  to make necessary changes but when you let your issues stay as it is and get out of control it will surely haunt you and derail your dreams.  There are numerous ways how to resolve it but identifying the problem will help us be in a really good position.
1. Brand obsession
Buying branded items are good but buying the same brand all over and over again whenever they release new products is totally outrageous. You are burning a hole in your pocket. Sooner or later you will have a bigger problem if you will continue this.  Being trendy is good but being financially savvy will be better. Practicality will keep you safe from trouble.
2. You want to get rich not be rich
Are you a pretender or a contender? Can you survive once you got an emergency? While you are young don’t just focus on your outside appearance, invest within yourself too. Many young adults keep on hopping in different industry looking for a higher pay so they can finance their lifestyle but they can’t sustain it in a long term. Invest in yourself, study another course. You need to simply change your thinking in being rich. A genuine rich person will never be insecure with their neighbors new phone, new car, new house. A rich person knows exactly their REAL value.
 3. Short term vision
If you got problem with your eyes it is really hard for you to move because you might get hurt. When your vision lacks clarity you are surely in trouble. You got a little problem if you have a game plan. How do you see your finances 5 years from now?  If you know exactly where you’re going then you will be in good shape. If not, then I recommend to think about that, before you construct your house and lay down the cornerstone you need to go back to the drawing board, have a blue print and put those ideas in paper. Try to read it everyday so it will sink in your system. Your vision might change over time but it will be better compare to not having one.
4. Go with the flow
One of the problem being young is the lack of experience and that is equals to shortage of wisdom. You are too busy following the norms and the culture without too much analyzing the effect of it  on the long run. When you follow every ones advice you will be lost. You need a game plan.  Don’t let other people’s lifestyle dictate your spending pattern. Don’t be shy to tell them that’s not on my budget because they don’t care when you are broke.
5. Credit card sucker
 Every month you can’t stop using it. Even in simple items you need to swipe your card. In a culture that debt is normal and having no debt is considered a freak you need to wake up.  Let me tell you that most people who spend using credit card has issue with acceptance and security. According to
With the ever increasing access to credit cards, the number of people with a shopping and spending addiction is astounding.  While the exact number is not known, It is estimated that there are over 14-15,000,000 shopaholics in the U.S. and that the U.S. credit card debt is greater than six hundred billion dollars.
I have a very simple solution to that credit card spending. Throw your card and only buy using cash.
6. Too much reward for yourself
You have a serious problem when you try this kind of life style; travel everywhere, party anywhere, sky is the limit when it comes to spending. I just want to remind you that you are not a rock star or celebrity, but even celebrities go broke sometimes when they cannot sustain this lifestyle with low earnings over bigger expenses. Rewarding yourself is a great way to give you some boost but if when you strike the balance with reward and wisdom you will hit the jackpot with great repeatability.
7. No financial heroes
Having no inspiration is a suicide. Try to look for an inspiration or a hero. Someone who will help you to achieve your dreams financially like your friend who are successful and books that’s very timely to your situation. Remember that you can’t do it all. Even superman got kryptonite that sucks his power sometime. So when everyone around you spends higher than they earn you badly need to be the hero in that generation.
8. You hate the idea of saving
There are people who don’t have any idea why savings is good. For them, saving money is more on depriving yourself with something that you really want now. Yes, they are somehow correct but they should focus more on WHY we need to have savings compare to  focusing on HOW they should save. If you got no savings you cannot afford the future. All billionaires understand the value of having a really good buffer (Savings). They can easily move whenever they need and want to.
9. Voucher fanatics
I love the idea of vouchers with a really big discount but according to studies it will increase your spending habits. When you love buying things that you want you normally go overboard with your real budget because you think you can save more. The problem with the idea is you think that the promo won’t happen again. With the fear and greed that you got it will increase your chance to have a financial disaster.    

David Isaiah Angway is a Financial Evangelist

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Filed under Decade, Finances, Personal Finance, responsibility, young

How to lend money wisely

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We all have been there: you trustingly lend your hard-earned money to a “friend”, and when it’s time for them to pay you back, they hide from you, come up with the most creative excuses or worse, ignore you. Sometimes, you get so traumatized and decide to just say NO to all those people who ask to borrow from you. But there’s good news: there are steps you can follow to reduce, if not eliminate, the risk of such financial and friendship losses.

The following are five practical ways and precautions to avoid such.

1. Give instead of lend–  When friends or relatives notorious for not paying their debts asks to borrow 5000 from you, promising to pay you back in 3 days, will you lend money to them? I shall use my Uncle Ben (Benevolent) rule here: You can give 1%-10% of the amount they’re asking for, if you think that can help them. Let us remember that it is easier to give than  to collect money from borrowers. We are so shy to wear our collectors’ hat. I have many friends who get stressed out when it became time to collect. They lent so much money to common friends but rarely got it back, or on time.

2. Think, don’t just feel– When your friend is in an emergency and he/she asks for financial help, claiming to need this and that, sometimes you act without thinking and you immediately lend a hand. Your money is like ammunition when it comes to war. What if an enemy attacks you and you are left with no ammunition because you’ve lent it away? What are you going to do? Stop and think first, your savings account will dry up if you let your emotions rule you. I have a theory on why God put the brain above the heart: He placed it there so that it may rule over our easily deceived hearts.

3. Draft and Sign a binding agreement– The situation is this: They are asking to borrow 50,000 from you so they can fund their business, or they need to pay for an emergency situation. They promise that within 6 months, they will pay you back. You have money in the bank. The problem is how to wisely lend your money with minimal risk. Too many relationships both personal and professional have ended up being ruined because of unpaid debt. So my recommendation is to write down what was agreed upon, have it duly signed by both parties to ensure the presence of a clear agreement. Commitment is not optional since you guys are friends.  He needs to take the agreement seriously, and the payment terms should be clearly defined and followed. By simply writing it on a piece of paper and having it signed, you will have something to present to any arbiter just in case your borrower decides to run or hide from you. You can file a case against them at your nearest small claims court. This is a problem with the culture that we have: this is not a widely held practice at all. I encourage you all to be different in this case. There’s not much difference whether it be a big or small amount since it is not about the money in the first place, but rather about the principle of trust.

4. Assess the situation– You have a friend who is a party-goer, who frequently eats in upscale restaurants, who has so many gadgets and owns a brand new car. His family has a house bigger and better than yours. All of a sudden that friend got into a big mess and is now asking for your financial help. I recommend that you first ask why and how he came to be in such a mess. Let me remind you managing, not wasting, the money you have worked hard for is your primary task. When you find out what happened to that friend, you empathize and then assess your finances first to see if you have enough funds. Dig deep, be upfront, be concerned. Don’t be ashamed to ask why they need borrow from you. Asking them will also help you to make good financial decisions in the future. Is this for a worthy cause? If you demonstrate good and sound financial decision-making, it will be an opportunity to inspire others to follow your ways.

5. Learn to say No and be honest!- There are times with you really have to say NO to people asking to borrow from you. Whether it be due to your own lack of financial security, or due to your lack of trust, or due to your desire for them to learn, being honest is the best way to go about saying NO. Do not feel guilty about it. Do not also recommend other people to them for it will cause more problems. Don’t ever use your credit card for cash advances for it will cripple your sound finances with long term dues the fees involved.

An excerpt from got
The clear teaching of the Bible is that God expects His children to act righteously when lending money. And it helps us to remember that our ability to produce wealth comes from God (Deuteronomy 8:18) and it is God who “sends [both] poverty and wealth; He humbles and He exalts” (1 Samuel 2:7). Now, there is nothing wrong with legitimately loaning money and expecting to be repaid at a fair rate of interest (Proverbs 28:8; Matthew 27; Psalm 37:21). Yet we need to remember that the Bible’s teaching on money matters also includes borrowing money and indebtedness. Although the Bible does not expressly forbid borrowing money, it doesn’t encourage it, either. It is not God’s best for His people, as debt essentially makes one a slave to the lender (Proverbs 22:7). God would rather have us look to Him for our needs than rely on lenders. Additionally, as the psalmist makes clear, we are to repay our debts (Psalm 37:21). When we loan money to someone, we increase that person’s debt load and make it easier for him to stumble.

Thank you to the Chief editor: Gandalf the black

David Isaiah Angway is a Financial Evangelist

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Filed under Forgive, Lend, Money Management, Personal Finance

Important financial strategy

Image from Efficiency Time Table Matrix

Many people are currently lost and trying to figure out what to do with their finances. Some of them prioritize the things that they want but not what they need. While others follow the crowd or the fad. How about you, who do you follow?  
The Stephen Covey matrixis designed for time management system but this is also helpful when it comes to your finances. Once you treat your finances very  well you will surely reap those rewards because right priorities will be emphasize.

Quadrant I is for the immediate and important deadlines. This is the foundation of your financial house.  You start it brick by brick and this is a “must”.
1.      Have a vision, goals and budget  for this week, month and  year  You need to sit down and have some blue print to achieve a solid structure of your financial house. Every house or a building started in a drawing board or in a piece of paper. You got to start right or else you will waste your time.
2.      Start having an Emergency funds – Once you are good with your budget try to allocate a portion of your salary for emergency funds. Make it 10-20% every salary. If you won’t do this and something happened, you will surely be in debt.
3.      Start getting  Insurance- You will die and we don’t know when and  how. Sounds morbid but that’s the truth. You need to have a protection so your relatives or love ones will not suffer financially.
4.      Focus on Long term Investment– Time is your ally when it comes to investment. Procrastinate on this and your future will be dependent with Social security benefits. Imagine, as of this writing SSS can give you a max of 9000 per month. Can you sustain your lifestyle now with a rising cost of goods once you retired? 
5.      Pay your debts or totally get rid of your credit card – If you think credit card is for emergency, think again. Sooner or later you’ll end up a slave of your own behavior if you continue thinking that way. However, you can easily reach your financial goals by removing those consumer debts. Practice discipline and never run away from your responsibilities. 
Quadrant II is for long-term strategizing and development.
1.      Read books and blogs about personal finances– When you invest in books and you follow the principles the rate of return will be huge. It will cost you a lot once you rely on your personal experiences. Get a guidebook about personal finance since it will be more efficient to follow a system that’s proven and tested. 
2.      Plan your budget – Don’t fall in love with the first budget plan that you made. Always make necessary adjustment. Do it every week and evaluate your behavior towards your spending pattern. Your good habits will put you at the top.
3.      Attend financial seminars- When you have time and money never miss the chance to simply listen to the leaders of the personal finance industry. Parallel to that is if you love attending live concerts the experience is really different. Increase your knowledge and you will save yourself from a crisis.
4.      Get a financial coach  – Financial coaches want you to win but if your parents, grandma, neighbors are your financial coaches but they are currently in a financial woes  please  think  carefully about their advices. You need to seriously talk to someone  who is credible and who can walk the talk.
5.      Listen to a free podcast about finances– At this the age, we are so privilege to have so much information on the palm of our hand. While you are traveling you can use those apps in your phone for free to enhance your skills. Instead of wasting your time in a traffic jam you will be empowered when you focus your brain to something that’s going to make you better in a long run.
6.      Virtual shopping  for financial products like insurance,  mutual funds and stocks– You can maximize your money whenever you compare prices since almost all financial products of different companies are uploaded on their site. Do your due diligence and you will win long-term. 
7.      Check the investment options you got according to your  risk profile – Not all investment instruments are for you. It should be suitable to your needs and aligned with your goals. It might be urgent but it is important to see all the options first to make proper decision. When you cannot explain the investment that you would like to enter you may be scammed.
8.      Career planning– There is a study that Millennials (1980-2009)  is the generation of hoppers. Most of us can’t stay in a job for more than 10 years compare to the Baby boomers and Gen X. Remember that there will be a lot of seasons in your career.  Make sure you are totally prepared for the change.
Quadrant III is for time pressured distractions. They are not really impor­tant, but you badly want it now.
1.      Buying the newest gadgets, HD TV using a credit card – Many people fall into this trapof consumerism. Newest iPhone, Samsung or latest gadget is the vices of this generation, but this is just a distraction. Not really important. The kid inside you is being unchained especially when you see the 0% using the credit card installment.  Dave Ramsey said  “if you can’t buy it in cash, you cannot afford it.”
2.      Buying a vehicle for the sake of status quo – You think that wants and needs are the same. Big no! Buying a car that will help you to minimize your cost is good but remember if you bought a car because you think it is cool to have one is a worst idea, it will derail your  finances. Your savings and investment with no additional  cash flow won’t be sustainable to achieve your goals. 
3.      Buying a condominium or a house  without a plan – 30 years of payment terms is good but 15 years or 10 years payment is way better because of the fees, but before you buy you should  ask some questions like is this really important or can you just deprioritize it for another year. Planning should help you determine this. Refer to Q1 and Q2.
4.      Buying an item that will just pile up on your place. Have you ever bought a lot of shoes, books,  and things that you don’t really need but you think you will need it someday? You are a victim too of “I like this” mentality. It reminds us of our inner child. We buy something using our emotions and justify it with logical reasons. 
Quadrant IV is for those activities that yield little  or less value. These are activities that are often used for taking a break from time pressured and important activities.
1.       Watching TV series for too long. – Anything that kills  your time is not a worthy activity. Too much is not good at all.
2.       Addicted to online and phone games. Many are guilty with this and being addicted means someone can control you, not you controlling them.
3.       Sleep more than 12 hours a day. When you sleep it lets your body to recover but if you hibernate like those polar bears then you are wasting your time and that is counter productive. If you want to be successful you need to be a doer not just a dreamer.
4.      Going to Starbucks as the extension of my home– When you spend time in Starbucks or Coffee bean you tend to fall in to the “latte expenses”.  If you will compute everything that you spend just for coffee. You will hate yourself with the realization of you put all those money down the drain. 
5.      Facebook for more than an hour just checking the news feed The social media is  a good tool in marketing. If you are a digital marketer or you’re building your brand that creates revenue for you. Spending time with it for too long waiting for your friends latest posts is disrespecting your time. You cannot regain time which results to money lost.
Live like no one else so you can live like no one else- Dave Ramsey

David Isaiah Angway was a former fraud specialist and a Registered Financial Planner who currently helps young, urban and educated millennial (Gen Y) set and achieve their long-term financial goals by educating them about investments, asset allocation, risk management, retirement planning, and estate planning. His role as a financial planner is to find ways to increase the client’s net worth and help the client accomplish all of his/her financial objectives. 

Diagram Source: Steven Covey, A. Roger Merrill, and Rebecca R. Merrill, First Things First (New York: Simon and Shuster, 1994), 37; James Cooper, “3 Vital Time Management Principles for Small Business Owners & Entrepreneurs,” mimosa PLANET, December 2, 2010, accessed February 4, 2012,
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Filed under Finances, Important, Personal Finance, Stephen Covey, Time Management, Urgent