No BS Talk About Personal Finance

Below is a straight-talk, no bullshit article about personal finance:

1. You must have an earnings. This is basic, of course if you don't have an earnings, then you actually have no money thus nothing to manage. Look for something you love to do and earn from it - be it as an employee or as an entrepreneur. It doesn't really matter. What matter is that you "enjoy" what you do and at the same time earn from it. Why I suggest that you enjoy what you do and earn from it? So that it doesn't feel like work and you'll not feel burnt out. If you don't have a job, you can contact me.

2. Make sure your earnings are higher than your expenses. This is also important as you've got to have excess money to save up for "future needed funds". If you're earnings are lower than your expenses, you can either add-up another source of income (meaning, you don't have to leave what you currently do) or look for a better paying gig (meaning, don't waste your time and efforts in what you do, look for a greener pasteur). If you already have a job but wants to have another source of income or wants a better career, you can contact me.

3. Make sure to have a "6 months emergency fund". In USA, their only suggested to have a 3 months emergency fund. But here in the Philippines, there is no suggestions or whatsoever from the government. So, a lot of financial planners suggest people to have at least 6 months emergency fund. So if you're spending P10,000.00 every month, you should have an emergency fund of equivalent to P60,000.00. This fund will and only be used in case you temporarily loss income. This will be the fund you'll use while looking for another job or looking for another source of income. Your emergency fund should be placed in a very liquid investment instrument such as the savings account, a time deposit account, etc.

4. Make sure to have a yearly budget for health and medical bills. You don't want to use up your emergency fund should you or your family have a medical emergency. You and your family should have a health plan so that in the event that you or your family get sick or experienced an accident, you're well prepared for it. Your emergency fund is not intended for health or medical expenses so you better have a health plan. If you still don't have a health plan or wants to change your existing plan, you can contact me.

5. Make sure you have budget for different one-time big-time yearly expenses. One-time big-time yearly expenses are called Sinking Fund. This is used for one-time big-time yearly expenses such as Christmas, Valentines, Birthdays, etc. You should have a sinking fund for each and every one-time big-time yearly expenses you have where you save money on a monthly basis. You should never use your emergency funds for this.

6. If you have kids, make sure you have a budget for their education until they graduate. This is your responsibility as a parent thus it is NOT optional. You don't have a choice but to have this one. This is a packaged-deal for having kids. Tuition fees and other school needs increase every year, just like anything else, because of inflation. Unless you're a super dooper mega over rich person, you won't be needing to save up for your child's education. An educational plan can help you attain this one. I know that CAP, TPG, Pacific, and other preneed companies failed to deliver their promise on their educational plan holders. But a life insurance company is very much different to a preneed company. You should not be confused. A life insurance is a financial industry more like of a bank. It is strictly governed by a separate government entity called the Insurance Commission. There's a lot to talk about life insurance and this article is not the avenue for it as this is a straight-talk, no bullshit article about personal finance. Be closed-minded on these things, and you'll risk your child's future. I tell you, you can not save up for your child's education by yourself unless of course you have the "skill and knowledge" that most professional investors have. If you wish to know more about the education plans that life insurance companies offer, you can contact me.

7. In relation to number six, make sure you have a life insurance. A life insurance is a financial product used in the event of permanent income-loss due to total disability or worse, death. Your life insurance coverage (coverage is the amount that will be given to your beneficiaries (your spouse and/or children) in the event of your permanent income-loss) will depend on the lifestyle that your family have. If you don't have a life insurance or should you wish to know if your coverage is already enough for your family or not, you can contact me.

8. Make sure you have a retirement fund. This fund will be used by you by the time you no longer "actively" work for money (whether intentionally or unintentionally) for your daily/monthly expenses. Of course all of us will retire eventually whether by force or by choice. In this event, even though you've already retired from working, it doesn't mean that your expenses will also retire. It doesn't work like that. You retire from working for money but your expenses don't retire in asking for money. So, you've got to have a retirement fund for your expenses such as food, shelter, clothing, transpo, communication, medical/hospital, etc. The amount of your retirement fund will depend on your chosen lifestyle. You can never accumulate your needed funds in a savings account. You should use one or any or combination of different investment instruments such as stocks, bonds, real estate, mutual funds, UITF's, life insurance, variable life insurance, forex, etc.