It is undeniable that majority of us struggle in handling finances. What we are not aware of is that we lack discipline, and lack of know-how on managing money. Just like we get the habit of spending here, there, and everywhere, as if we are one-day- millionaire. And at the end of the day, we kept wondering where our money had gone to. Well, I'm not exempted to this situation. During my 20's, when I started earning, I've been a slightly compulsive buyer. I couldn't help but buy the things I wanted - it could be clothes, sandals, or other useless stuff. My friends thought I was stingy, but I was not. I realized I had a tiny amount in my bank account after I resigned from work. I should have then a 6-figure savings. Wink! Wink!
I remembered, when a close friend of mine shared this equation: Salary - Savings = Expenses. Simple equation yet has great impact on my life. What does this equation mean? It means that the moment you receive your salary, you set aside right away your savings. The amount left will go to whatever your expenses. This has started to "shift my paradigm" on financial management. Before, what had been instilled in my mind was that I was not capable of saving money because my salary was small; my resources was limited. But now, I have changed. I am now becoming more financial literate.
What I am talking right now is all about financial freedom. What is financial freedom? For me, financial freedom means debt-free, worry-free related to money concerns, and I can do whatever I want without being limited by money resources.
Ronan who is my husband, and I, are now working very hard to attain financial freedom. Here are our true-to-life story tips:
We plan our retirement. We invest money in the stock market aside from what we used to have like SSS, Pag-Ibig, Insurance, etc. We should keep in mind that we are not strong and healthy for a lifetime. Our body depreciates too like cellphone and car. So it is just right to invest for our future.