Financial education is a crucial part of our life since every aspect of it involves money. It is a must that we learn how to manage money well and make it work for us.
What were my key takeaways from that session?
Financial planning begins with your goals. That’s why your plans are unique, specific & personal.
There’s no cookie cutter formula for financial success. We all have our unique experiences that define our financial goals. The goal that we should have is developing better financial habits today than we had yesterday, and not comparing ourselves with other people.
We spend 40 hours per week working hard to earn money, but do you ever think how hard your money works for you?
Saving all your money in a bank account will be counterproductive than putting your money in a mutual funds account. While you’re working your day job, your money also works for you. We should overcome the fear of investing in passive income through consulting with financial experts and understanding how we can benefit in these investment products in the long run. It wouldn’t be great to realize that we should have invested in health insurance after we get into an accident.
It’s not wrong to want things.
A person should not be labeled materialistic if he works hard to acquire top-of-the-line equipment. What is wrong is if you do not acquire money with integrity. The stigma on wanting a better state of living should be banished because it holds us back from our true earning potential.
Put a price on what you want.
We cannot achieve what we do not measure. Identifying specific amounts for our financial goals should be the next step upon identifying what motivated us to identify these goals. This will also help us in fine-tuning your strategies towards your financial goals during your monthly or quarterly personal audit.
We should use technology to help us develop better financial habits.
We use our smartphones to take photos of everything, but why not use it to help us make better financial habits? Some of the recommended mobile applications are Wally and Powerone Financial Calculator. Wally will make expense tracking easier since we always use our phone and Powerone Financial Calculator will make complicated financial calculations more user-friendly through its interface and will help you decide what financial products you should invest on to get to your financial goal on your target date.
Empower yourself with the big and bold goals you set
As what Aya Laraya said, “Do not tell me what you CANNOT do, but tell me what you CAN start with today. We will work our way from there.” Developing the mindset and setting concrete goals is the first step towards achieving financial freedom.
Kristel Silang has written personal finance articles for The Manila Times, UP Institute of Small Scale Industries, and Manila Bulletin. You can follow her at Twitter at @kristelsilang.
Ed’s note: #Money4LifeChallenge is Sun Life Financial Philippines 6-month financial planning series for bloggers and digital influencers led by Aya Laraya of Pesos and Sense. Interested to join? Drop us an email via email@example.com.