Friday, September 25, 2015

Work Towards Financial Freedom


Watching Suze Orman’s financial planning tips at Google made me realize that managing your money through proper financial planning is not just about saving, it’s about making smart choices to prepare yourself for any situation that can happen. Suze has pointed out doing what’s right vs. doing what easy. She also mentioned that even though we are earning well, we also need to do something for ourselves to prepare for the future and possibly unpleasant surprises. Although some of her tips applies only to US citizens like investing in 401K, most of them are truly practical and applicable to all of us.

I have listened, read, and researched about financial planning since 2012, as soon as I got employed in P&G.  What I fear the most is not being able to manage my revenue streams properly and could end up full of debt. My family is not really the wisest when it comes to financial management, and I have learned a lot from their experiences. Honestly, I have learned more on what NOT to do vs. what to do. This is why I have this frustration to learn more about money, business, entrepreneurship, and financial management to make sure I won’t commit those same mistakes.

Even after gaining financial literacy, it’s still a shame that I don’t have at least a 3 months’ worth of emergency fund. I had been so aggressive yet careless on where I can invest my hard-earned money. My practical learning from this session is to set-aside a portion of my salary by auto-deducting it from my payslip and put in a cooperative fund. Next is having security against possible serious mishaps. Well-known financial advisors always highlight insurance being a necessity and not a luxury. Even though I already have a Variable Universal  Life insurance policy with a face value of P1M, I still have plans to get another policy to prepare for my retirement even as early as now.  After securing the basic financial needs, then I can start expanding it through investments in mutual funds, UITFs, and other investment vehicles.

It always saddens me every time I talk to a friend, a family member, or a loved one that does not even entertain the thought of getting an emergency fund and insurance. And it gets worse if they can afford a Louise Vuitton bag, a Macbook, an iPhone, but cannot afford an insurance. And every time it happens, I have this urge to explain to them the importance of financial planning and how other investment vehicles can help them achieve their goals in the future. Maybe this is the reason why I decided to become a financial planner of Sunlife. For the first time in my life, I feel like I have made this decision not to make extra money, but because I’m truly sincere about people being financially literate. Perhaps soon I could commit my advocacy to teach people how to attain financial freedom. Could this be my calling? Could this be my purpose? Could this help me achieve self-actualization? I don’t know the answer right now but I know that making people happy to help them attain financial freedom also makes me happy; even when I put the money and the commissions out of the equation.

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