When: August 12, 2011
Where: Teatrino, Promenade, Greenhills
Speakers: J. Randell Tiongson, Francis Kong, Jayson Lo, etc.
This Finance seminar I attended was like no other.
Here are some insights I picked up from this valuable seminar:
1. How to increase your Cash Flow
Apply the 70/30 rule.
Spend 70% of your income.
Save/invest 30% of your income.
Invest early. Invest wisely. Invest regularly.
When you start to discipline yourself in this aspect, you will be financially independent in the long term.
2. Get out of Debt
Being in debt is a sandpit. It’s also a cause of one’s unhappiness. There’s a strong correlation that the happiest people are those who do not have any debt at all.
You need to decide to get out of it. The sooner, the better. If you will pay your creditors, pay them regularly and faithfully.
You need to protect your name, integrity or reputation. Many relationships are strained when a debtor is not able to pay his/her creditors on time. Worse, if they no longer pay at all.
3. Build Emergency Funds
In any life events, we have to be prepared for any eventuality esp. when sickness, accident or death occurs in the family.
Just how prepared are you? Rule of thumb is if you’re able to save up:
up to 3 months’ equivalent of your monthly expenses = it’s safe.
up to 4 months = it’s considered good.
up to 5 months = you are already sitting in a comfy chair.
up to 6 months = you can sleep soundly at night.
4. Financial Protection
You save and put money in banks to be liquid.
You maximize your earned income by investing it in different investment instruments.
But how do you protect your savings and investments when an unfortunate incident happens? Answer: Insurance.
Preserve your wealth by getting insurance. It’s more important to insure your life over your assets (but this is not to undermine non-life insurance which is also important) esp. if you are the breadwinner. By getting enough life insurance coverage, you can somehow replace that lost income that provides for the affected family.
5. More Notes
Nobody becomes rich overnight.
Spend less than what you earn and invest the difference.
Build Long-term savings = Invest.
Time is your greatest asset. Ex. If you save P2,000/month at an ave. 8% p.a. In 20 years, you will have P1.185M.
Risk – the chance that the actual return from an investment may differ from what is expected.
You cannot break the Rules of Investing. Investments can be:
High Risk – High Returns
Low Risk – Low Returns
Speculative (like Real Estate)
Invest early. Invest wisely. Invest Regularly. Plan for today.
So dear reader, if you get the chance to attend this Financial Seminar, I highly recommend and I encourage you to attend. For sure, you will not only learn good financial habits and practices from the highly competent financial speakers and godly men such as J. Randell Tiongson, Francis Kong, Jayson Lo and many others but you will be blessed by the wisdom and knowledge that they will impart in the seminar.
In hindsight, this event was the original one and was I glad to be a part of it; the first of the many events that will be held for as long as there is a need to educate the people on how to achieve financial peace. Last time I checked, it’s been almost a year and this financial event is still on a roll reaching out to many parts of the country such as Cebu and even Davao. And now they also have financial guru, Chinkee Tan in the team, in place of Francis Kong, who coincidentally is Chinkee Tan’s mentor.
Thanks to Steps to Financial Peace. It helped me see the “light at the end of the tunnel” and I am on my way to a truly financial peace.