In view of our longstanding commitment to improve the lives of our members and as part of our Consumer Protection Program, AFPSLAI started facilitating seminars for members regarding handling of personal finances.
It is the hope of the AFPSLAI Board of Trustees and Management that the seminar will not only help members manage their finances well, but would empower them to increase their financial capacity, and really live out their dreams.
- Have a vision.
List down your long-term goals, wherein you plan ahead as to where to put your finances for five, ten, or fifteen years from now. You will never be able to start anything if you only think of the present. You must have a vision of what you want for the future.
- Make a budget.
The most important step towards financial wellness is to create a budget. Start by defining your income. Then make a list of monthly expenses and decide whether there are any recurring costs or occasional expenditures you can eliminate. Update your budget regularly. – www.greenpath.com
- Live within your means.
Simple living is appreciating what is necessary and what is not. It is about identifying what our real needs are versus our suggested wants. The key to living in simplicity is to never compare yourself with others. Be grateful with what you have and work with it. – www.entrepreneur.com
- Start saving early.
The sooner you start managing, saving, and investing your money, however limited, the better off you will be during your retirement years. – www.investopedia.com/www.time.com
- Automate your savings.
Consider having a set amount automatically transferred from your salary to your savings account each month. You will be surprised how quickly your savings balance grows. Start small and then increase the deposit when you feel you can set aside more. – www.discover.com
- Maintain an emergency fund.
The best way to make sure you have the cash you need in a crisis is to set up an emergency fund. Savings accounts are the safest place to keep your fund so you won’t be tempted to dip into it. It should also be kept fairly liquid so you will be able to access it quickly if an unexpected expense comes up. – www.practicalmoneyskills.com
- Create other income streams.
Diversifying your income stream is crucial to protect yourself and your family against the unavoidable ups and downs of economic and industry cycles. Because of the financial risks that come from relying on one source of income, consider creating at least one or more additional streams to generate cash flows. – www.entrepreneur.com
- Borrow money for investments.
Borrowed money should be used only for investing – where your gain will outrun your borrowing costs. This might mean investing in the literal sense (stocks, bonds, etc.), or it might mean investing in yourself – for your education, to start a business, or to buy a house. In these cases, borrowing can provide the leverage you need to reach your financial goals faster. – www.investopedia.com
- Invest wisely.
When you are considering investment options, focus on risk. Every investment you make should be focused on the safety of your capital, the returns you can expect, and the liquidity of your money. Spread the risk around by putting your money in different vehicles. Do your research thoroughly before you put your money in anything. – www.imoney.ph
- Protect yourself from scams.
Identity theft is a real problem in the financial services sector, and one of the best ways to reduce your risk of being a victim is by monitoring activity on your accounts. Never provide unsolicited callers with account numbers or any other information that may compromise your financial security or personal identity. – www.money.usnews.com
- Talk to your kids about money.
It is useful for children to learn the importance of money in our daily lives and about our family’s values when it comes to money. Good saving and investing habits become second nature over time, and your children will be able to draw on these skills for a lifetime. – www.360financialliteracy.org
- Learn through financial education.
Research has shown that people who are financially literate end up with more wealth than those who are not. Taking time and effort to become knowledgeable in the areas of personal finance and investing will pay off throughout your life. – www.investopedia.com