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Every one is designed to win, wants to win and end up being a winner. Financial problems have simple solutions but that doesn’t mean it is an easy battle. Living your life should be exciting but sometimes you got knock down. With the right amount of knowledge, skills, and attitude you will be back on track.
1. Get a financial coach
In a generation that is full of information it is easy to get distracted. You badly need insights from someone who can understand and willing to work with you in order to improve your behavior so you can reach your goals. The end goal of a coach is to simply improve the clients performance in making sound financial decision. The client will be held accountable for the results of their financial health. Whenever you watch Weight watchers and Biggest Loser, those reality shows have been successful because of a lot of grind in the process and change in mental state of the contestants. After the coaching sessions you are expected to win long term not just for a couple of weeks because the coach was able to empower you with knowledge and equip you will great tools in making your dreams come true.
2. Manage your cash flow or budget
If you do this everyday or every week am sure you will win long term. By monitoring your behavior and making some action plans after you see the evaluation of your spending pattern it will help you to move forward. Many people are stuck and don’t know what to do with the money they earn, they thought saving some portions of it is the end of the story. What they don’t get is they also NEED to manage the expenses. When you let the expenses overtake your earnings sooner or later you will be in slavery mode (Debt). But if you let that money be in its proper place you are in a good hands. Treat your money like a soldier, if you will place all of them in a war against your old habits (enemy) you will lose a lot of them.
3. Get an Insurance that suits your needs
Many people still don’t see the value of insurance. In a country that most of the people are hardworking but have a poor financial literacy program it is really sad that they can’t see this as a goldmine. You need to get an insurance to secure the needs of the people that you love. If you don’t have a love one then don’t get it. Every body is going to die and you need to prepare for it. I recommend you to think long term and know your value. If you are worth 10 million today then get a 10 million or more coverage. Don’t just get one, ask from your insurance agents the things that you need to know or else they might not open up.
4. Write your will
Imagine that you have an establish career, your cash flow is good, you got an insurance and thriving investment together with a happy family but what will happen if you leave the Earth without a will?
If you don’t have a written will and you have so much assets that you have when you die, a complete stranger will decide how to split the estate under your name and your love ones like your children will suffer because of that. You are the one to blame if you will mismanage it. Talk to Registered Financial Planners for more info about this.
5. Revisit your career plan
Planning still the best way to prepare for the worst. Every year should be an exciting year. When mediocrity strikes you then you are setting yourself for less. . Domino effect will happen and you will end up unproductive. Your employer won’t think twice to kick you once your performance drop to the lowest level. Business is business and it will be better to let go of you.
The advantage having a career plan is you got a road map on how to climb up that mountain of road blocks ahead of you. Career choice starts within you not from your boss. You need to write down your skills set that will match to the next job that you have. Pray for divine intervention everyday because it will be a tough decision. You either might resign and look for the job that you really want or stay within the same company but look for a higher position. Changing your career will also have an effect with your cash flow so you need to think and weigh in things for you to grow.
6. Have a business.
Being an entrepreneur needs a lot of commitment. But if you are dedicated to grow more with mistakes and not regrets having a business is a gateway to your success. Grinding and pounding to your next sale will help you get out from living from paycheck to paycheck. Everyone is not cut to be an entrepreneur but you need to think like one. You have crazy abilities. Know yourself and grow it.
I noticed that all billionaires are businessmen who started from ground zero. With your effort, passion multiply it with a really good attitude will help you go on a long way.
7. Build your retirement plan
Study shows that more people once they retire from work are expecting a lot from Social security but according to the statistics, GSIS and SSS cannot sustain the lifestyle that you want. Now, if you want to live comfortably try to make a better choice. Build it brick by brick thru putting your extra funds in a good pool fund or put it in a stock market with a combination of peso cost averaging multiply it with discipline your money will grow exponentially.
Our economy is growing plus the pooled funds are doing really well. If you start with 5000 and every month you keep putting the same amount. Historically the equity funds can give minimum of 12% annually. When you do this for the next 30 years you will accumulate 8,258,577.94 regardless of the currency. With the compounding effect PLUS with time and value of money this will roll over and I think you can already live with a retirement in a decent way.
|Image from Dave Ramsey Website Financial Calculator|
David Isaiah Angway is a Financial Evangelist