make it automatic

I am not as discipline as you think I am. I hate budgets and I don't like sticking to it. I am not a details guy. I still don't know the exact amount of our expenses. But one thing I do practice that has save us and brought us to a place nearer to our financial freedom is what David Bach, author of Smart Couples Finish Rich, "MAKING IT AUTOMATIC"

We have created an automatic system that sets aside all our obligations to MR. FINANCIAL FREEDOM every payday. I am currently using the BPI SAVE UP system that automatically sets aside a portion of my earnings every month.


So example: I earn P200,000 (how I wish). I enroll in BPI save up and program it to set aside P25,000 a month. I am left with P175,000 to spend and do whatever I want with my money.

At the end of the year I have P300,000.

Imagine having an automatic system for the next 40 years before your retirement?

finish what you started

To review Dave Ramsey's Baby Steps....

Baby Step 1: Save P50,000
Baby Step 2: Pay off your debt

Now here is the next step.

Baby step 3: Finish your Emergency Fund

If you have finished baby step1 and 2 it means you already developed the habit of saving. Baby step 3 would be easier for you now.

A complete emergency fund covers 3 to 6 months of living expenses.

Why do we put so much effort in finishing the EMERGENCY FUND.

FACT of LIFE: It will rain one day. The question is have you stored anything for it.

78% of us will experience an EMERGENCY within the next 10 years.

So you could either do two things:

Pray that you are the blessed 22% (w/c I am praying for as well)
or
Pray and prepare when it comes.

Most of our friends who have stored wealth experience greater wealth in rainy seasons. Because those who have the money can take advantage of the dip in economy.

That is why FINISH what you STARTED.

how to pay off your debt

Here is how to pay off your debt:

1. List all your debts in order of the smallest to largest balance. Yup even your sari sari store debts. All means all. Debts from your relatives, friends, 0% interest debts, ALL.

2. Pay off the small debts first, then the big debts. Why? Dave Ramsey said that finance is 80% behavior, 20% knowledge. We want to start modifying your behavior. Once you get small wins you get excited to tackle the bigger ones.

3. Put all extra income into paying off those debts. Tips, salary raise, gifts - ALL!

4. Keep paying the minimum on all debts except the smallest debt. Attack on all sides!

¶ My son, if you have put up security for your neighbor, if you have struck hands in pledge for another, Proverbs 6:1 Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler. Proverbs 6:5

highly recommend Chinkee Tan's book "Till Debt do us Part" available at National Bookstore or at this site.

identify your enemy

I once attended a seminar on sales and the main lesson I got from the 5 day seminar was "NEVER LOSE CONTROL"

This simple applies to our financial life. One of the biggest enemy people have is that money controlled them and not them controlling the money.

We must tell our money what they must do, not money telling us what to do. Because if money starts taking control you will get into some BIG DEBT.

I made a bad decision last year. I purchased a car that i can't fully pay. So for 12 months last year, we had to adjust our expenses because I was too haste in making a purchase.

I felt like there was nothing I can do or buy because we were always exact or sometimes even negative in our finances.

So imagine the thrill of finishing that payment. It is easy to become wealthy if you don't have any payments, right?

That is why my advice: Get out of DEBT!!!! It is your ENEMY!

haven't been blogging money stuff

less blogs doesn't mean less money!

we are on our way to financial freedom!

taking the baby steps suggested in my blogs and Dave Ramsey's book has totally changed how we live and spend.

it takes sacrifice to secure a better future.

we have just finished paying off our car, we have completed our 5 year insurance payment and we are raring to look for opportunities to invest right now!

For those who are interested to live financially free I highly recommend

1. TOTAL MONEY MAKEOVER
2. SMART COUPLES FINISH RICH
3 MONEY DOESNT GROW ON TREES
4. SUZE ORMAN'S BOOKS

AND TO CONSULT A GOOD FINANCIAL PLANNER (RFP)

1. MY GOOD FRIEND AND FINANCIAL COACH RANDELL TIONGSON. ( i am not paid to endorse him!!!!)

why i cant trust my money

Whoever trusts in his riches will fall, but the righteous will thrive like a green leaf. Proverbs 11:28

my own confession

Randell - my financial coach, made his confession. it's my turn.

This morning my wife ask for grocery money. I said I don't have money to give her.

ARE WE BROKE?

NO!!!! we are not. But you hate the feeling that you can't easily give the grocery money she asks of you. it was not a want, it was a basic need.

Not that I don't have grocery money but I want to check the list our cook gave us. Money does not grow on trees. Our cook does not understand that.

But I still hate the feeling of not giving the GROCERY money.

So I check our financial situation.

We are not financially healthy. I hate the feeling again!!!
But we are not financially broke. But you still hate that feeling!!!

I made dumb investments 2 years ago that could have easily made my day better because I can give the GROCERY money!!! I hate the feeling!!!

I told my wife - let's cut cost. Check what we really need. Give me one more month. (Don't you feel for me now?!)

Why one more month?

Here's why.

1. We are finishing up our last payment this month for our seed RETIREMENT FUND which is quite a hefty sum that would be deducted from our monthly expenses.

2. We are finishing up this month our dollar investment that I made 5 years ago. That's minus our monthly expense as well.

3. We just finished last month our car payments (paid without any interest). We got a good deal from our friend.

That is where the money is going lately but we have been faithful and we are continually practicing putting our small savings into our retirement baskets and investment baskets.

IF YOU WILL LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE!!!

Don't you just love that feeling.....