December 15, 2015

escape poverty1 - Copy
I hope people are also passionate to discuss about saving money
As when they argue about Roxas, Binay, Santiago or Duterte.  
I wish people are also interested to know more about growing money
Like when they wait for the next episode of Aldub’s kalyeserye.

 

Filipinos are tired of poverty
But most don’t act to be wealthy.
And if they do, they often fall to a trap
Because many love to be rich in a snap.

 

Like what they said: “Money don’t discriminate.”
It’s up to you to manage and control it.
Saving and growing money is simple
As long as your knowledge and patience is ample.

 

Look at some rich people in the country
Sy, Tan, Razon, Gokongwei
It took time for them to grow
That’s a story worthy to know

 

It’s not too late for you and me
Just give time to financial literacy
Below you find 5 simple ways to do
To help you start your journey, too.

 

1. Pay off your bad debts
Bad debts are the money you borrowed that is not helping you put money in your pocket. This is the money you borrowed to perhaps pay another bad debt, or buy a new gadget. A borrowed money used as a down payment for a new 50 inches TV, vehicle or a house. Borrowed money that instead of giving you money, it is actually taking more money out of your pocket.

Pay this debt one at a time, little by little. Map a payment strategy to pay it off and be bad debt free. Otherwise this will pull you into the pit of a lifetime poverty.

2. Live within your means
Don’t be jealous of your officemate who wears new clothes everyday, owns a new smartphone every 6 months, and goes out for lunches and dinners every night, drives different cars every week, or goes out of town every weekend.

Learn to live within your means at least for now.  Learn the art of delaying gratifications. Learn to budget your money and make sure you include savings. Wait until your money grows, then you can have the wants you’ve been wanting for. Otherwise, you will always be working for money.

 

3. Open a savings account and start building your emergency fund

According to National Economic Development Authority or NEDA, only 40 out of 100,000 Filipinos have Bank deposit accounts. (www.rappler.com/business/22107-how-many-filipinos-own-a-bank-account) This is sad but true. Some Filipinos open bank accounts because they are required by their company for payroll purposes. Some, for remittances from their OFW family member. Some, for pension purposes only.

Only few have voluntarily opened their own bank accounts. It’s time for you to have your own. This will help you train yourself to save regularly. This will be your ally in your journey to financial freedom.  

Once you have a savings account, try your best to deposit regularly every time you receive your salary. Set how much your emergency fund be and start building it.  If it’s too hard for you, start from small amounts; 200, 500, 600 until you form the habit of saving in the bank. You’ll be surprised how much money you have saved in time.

4. Educate yourself on how to make your money work for you

While building your emergency fund, you should also be learning on how to grow your money. The internet is very rich of information. There are free e-books, videos, and articles about saving and investing, and you should grab these free offers. Actually, many free materials on the internet are very informative that you can actually start venturing into some of the investment opportunities in the Philippines like the stock market.  

Ask people who are knowledgeable about investments and who are already into it. Don’t ask your friends or family members who know nothing about stock  market or real estate or mutual funds and the like. You will only hear discouragements from them which will only impede you in your journey to financial independence. Do your research. Start investing on knowledge. Buy books about personal finance or attend seminars.  

5. Invest a part of your salary

Once you are out of bad debt, achieved your emergency goal, and have enough knowledge on growing money, you may now start investing a part of your monthly income. You may now choose the best investment instrument that suits your needs and goals.

 

Don’t stop educating yourself though. There will be numerous temptations, frustrations, confusions while investing. So, it is necessary to continue learning. Join some investors’ forums or if you like you can also avail of online mentors from trusted organizations like the Truly Rich Club to guide you in your journey to financial independence.

 

Your financial independence depends on your hands
It’s up to you to change your fate and have a taste of freedom.
I am not claiming I’m already there but I have started my journey.
Change of mindset about money is always necessary

It’s not yet late, we still have time to escape poverty.  

 

If you liked this post, please feel free to share it to your friends. 
P.S. 1 You may also avail of my free e-Book,  How did I enter Into the Philippine Stock Market -my step by step guide, by filling in the Subscription form on the upper right side of this page.
P.S. 2 You may click on the link below to also listen to my online mentor explain the importance of  investing and get a free copy of his book “My Maid Invests in the Stock Market and Why You Should Too.”

 

About the author 

Violeta Depalog

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