Thank you Randell Tiongson for teaching financial literacy to Filipinos. I’ve learned so much from Steps to Financial Peace seminar. By the way, thank you for the complimentary tickets! Anyways, here are my notes that I want to share, get ready to achieve financial peace!
- Ensure proper protection, get life, health and wealth insurance!
- Get from top 5 insurance companies, and be committed to pay life insurance.
- Don’t get educational insurance, instead invest in stocks, uitf and used that money for your children’s education
- Bank Savings gives you liquidity; Investments maximize your hard earned income; Insurance protects your future income. Life insurance gives you immediate financial security
On Savings and Investments:
- Create an emergency fund and put in a savings/current or time deposit accounts. How? Determine your one month family expense and save at least 3 months worth of expense – this will make you feel safe. 4 months worth of expense emergency fund will make you feel good, 5 months worth of expense emergency fund will make you feel comfortable and 6 months will allow you to sleep soundly! But, don’t go more than this! Balance!
- Build Long-term savings – INVESTMENTS!
- Most Filipinos are ris averse.
- Anything low risk or no risk earns lower than inflation (ex savings account, time deposit)
Rules of Thumb!
- Determine retirement fund
- 20/20 Rule – for 20 year retirement, start planning 20 years before retirement age
- Think investment, think long-term!
- Common Filipinos when in need, tends to beg, borrow or worst steal! To avoid this, we must act now! Invest early, wisely and regularly!
- We will be empowered when we’re financially equipped.
- TIME is your greatest asset. Time value of money, don’t underestimate the value of compouding!
- Regular investing works!
- Stocks values varies, it goes up and down, but definitely goes up!
- Investment can be Low Risk, Low Return or High Risk, High Return!
- Allocate or diverse your investments! Put them in different baskets! Combine high-liquid and low-liquid, high-risk and low-risk!
- When you invest, don’t be GREEDY!
- Allow God to remove your greed, fear and ignorance when investing. These attitude is dangerous in making investment!