“I can’t do financial planning, I don’t have a lot of money”
Look, I know that you have been through a lot of challenges in your life, and I know that somehow it’s directly or indirectly related to money. If that’s been the case, don’t you think that this is the right time to learn how to manage your finances?
You see, personal financial planning might sound intimidating to you. You’ve been overwhelmed with the complex calculations, analysis and financial jargons. Remember, having a lot of money is definitely NOT a requirement in financial planning. What we need is a solid framework that can guide to develop the following:
- Financial Goal Setting
- Assess your net worth
- Examine your statement of income and expense
- Develop your financial plan (Education fund, House, Car, Retirement..etc)
- Create wealth through Investments (even if you have the slight idea about stocks, bonds, mutual funds… etc.)
- Review progress
- Create additional source of income*
I was stunned when I first tried the process. My paradigm shifted. I realized that by having a clear goal and knowing my financial position, I can motivate myself to change my behavior about money and most of all, about being rich. Let’s slow down here for a moment, I have a question:
What does being rich mean to you?
Knowing what “Rich” means to you is important. Otherwise, you might end up mindlessly trying to keep on doing something that you don’t like and unthinkingly trying to keep up with your friends.
The designation of being “Rich” is different for everyone, and money is just a small part of being rich. Like Royce for example, a former housemate of mine who loves travelling. He once told me that his goal in life is to travel to different places- local and abroad. JP loves eating out and singing at KTV bars where one night might cost him P5,000. Chinny loves joining marathon runs with his wife. All of my friends value different things. I consider myself rich now that I can do these simple things:
- Help my parents with their retirement, so they can stop working anytime they want to.
- Have more time on doing the things that I really love
- Spend on the things that I love doing (e.q. spent lots of money on seminars and trainings- I love learning, but don’t buy a fancy car)
- Help my family and friends with their financial decisions.
- Spend more time with my loved ones.
Before you go further, I encourage you to set your goals today. Why do you want to be rich? What do you want to do with your wealth?Tweet