Three ways to handle your money


In my previous post, I gave the  5 main reasons why I need a financial goal and before we talk further about financial literacy in which I am not an expert of but I can say I have a high level of knowledge in a certain aspect. As a creative person, I have mentioned that it's hard for me to save and because there was a lack of interest to apply the things I learned in various means of information fed to my brain and the fact that I "hate" numbers to deal with.

Life ain't like that, It's complicated and tricky especially with numbers involved and despite I don't like to deal with numbers, I learned to work out things and I enjoyed some of it despite me wanted to puke many times because I have to deal with it every now and then.

To give a brief summary of the reasons why I choose financial goals
1. No Work = No Pay; this is how freelancing works
2. Personal Obligations = Rent, and Bills
3. Personal Freedom = Life Goals as described by BDO, Buying a house, your first car and etc.
4. My Lifestyle
5. Marketing for my Business

For quite some time, I've tried and practiced a variety of what I call savings formula, applying the things I learned from all financial seminar and books I have read. Some were applicable and some are during those time and though there are practices that worked well with me while other's aren't until one day a close friend gave me a book, The Abundance Formula by BO Sanchez, this book upon reading it worked well with me and which I am currently practicing as well.

To simplify, the abundance formula is a 100-10-20-70; in percentage (%); the 100% active income is divided into 3 parts; the 10% Tithe, 20% Savings and 70% Personal Finance. In my case, I started working on the 20% Savings.
  •  20% Savings - Personal Freedom falls under this category; yes, yes and yes. Having savings can be impossible especially for the young ones who is just starting out in their career path and like most young professional who are in this position, having a savings account can be such a tough call to make. In fact on the first few years when I was trying to make a savings, I always cheated on myself that I end up "NO" Savings for my life goal and when I made a firm decision to follow the formula It was really hard as I am tempted to look to achieve a small goal and 20% was like "uh-oh!" and "I'll save later" and a made a lot of compromising decision just to satisfy my goals. What I did, was before I had my 20% Savings, I worked out on my mindset by starting small. I had a personal bank account and enrolled my account to the investment service of the bank wherein I started having 1,000.00 php deducted every month and every time I see that deduction, I reminded myself of the Life Goals until such time 20% was never an issue to me at all.
TIP: Enroll in an Auto-Debit Agreement with your bank or Investment provider in which helped myself change my mindset and it was effective it took months before i stopped thinking about the money auto-debited and that when I increased by savings by 20% it become an instant gratification knowing that 20% is for for my Life Goal and since I was able to change my mindset in having a savings, tithing was become my next goal. 
  • 10% Tithe - 10% of your income goes to tithing according to Deuteronomy 14:22-26 and other bible verses too, this is a very hard thing to work on especially when you are used to have everything you have for yourself and this year, I'm glad to say that I was able to consistently contribute on my tithes despite me, myself and I wanted not to do this action and good thing that despite my mind would argue with this topic at most time or me tempted to use this; its intact and when I felt that I need to contribute I felt good to share it. 
TIP: Have a Passbook Savings account that is away from your location , so you wont be tempted to get your money from the back and an ATM should not be an option at this point, let your money grow in the bank and when its the right time to share your blessings, share only base on the exceeding amount of your maintaining balance.
  • 70% Personal Finance- My Personal Obligation falls under this category, my lifestyle, and marketing for my business. This is where everything becomes a jungle for me as I need to find more ways to increase my income while working on this budget allocated and be more efficient and aggressive to serve my clients. I won't talk too much about personal finance because each individual has its own personal monthly obligation such as house rent, electric bills, and even phone bills. It is up to you on how you will manage this.
TIP: Know your fixed monthly expenses which is your personal monthly obligation and also the realistic lifestyle that you have and take an assessment which one are you willing to change and what needs to be eliminated.

Despite the topic of Money is a sensitive issue, many people still don't know the importance of handling their money whether they are professionals or not. In my case, despite knowing its importance it takes a whole level to achieve this formula by starting of changing my mindset. I enjoyed my hard earned money without savings as a saying goes "mayaman ngayon, pulubi bukas"; that compliments well with those people who's mindset or lifestyle of a one-day millionaire and when I realize the importance of handling my money because I was aiming for a bigger goal, implementing it becomes easy and i have to do a lot of self-convincing towards myself on why I did that particular action over and over, and like what I said until it never become an issue to me.

You want something? Then make it work.

 Let's talk more about savings and why you should know where you wanted to invest on our next topic.
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