Personal finance

Understanding your personal finance | Rodora Mendoza

NOWADAYS, most of the concerns of Millennials’ are how they can start dealing better with their personal finances. Sadly, some of them fall victims to scams.

Good news! If you need help to organize your budgeting, banking, insurances, mortgages, or investments, there is a best person to support you.

Your partner to handling better your personal finance is no other than a Financial Planner.

Financial Planners help you to identify how much you need today for achieving your goals for your future. Most young professionals today want easy money without thinking if the company is legitimate or not.

Before we start investing, we need to first know the basics of finance. Many of us skip this important step. Skipping the basic steps may affect your investment accounts.

Basic foundation in finance is simply like building your house on a solid foundation so that whatever storm may come, you are still able to continue achieving your goals.

Your investment is simply like a roof: if you are planning to build a house, of course, you will not place the roof first before its foundation. It is the same thing in our finances.

We need to understand and undergo a process. There is no shortcut to it.

If we want a solid foundation for our finances, we need FIRST to secure everything because there are unexpected events in life like sickness, death and accident. These three events in life may have a big effect on our finances. Having solutions for these three means having a health and life insurance. Having these will give you peace of mind to pursue your goals in life. No one knows what will happen during the process in achieving your goal. It is better to be prepared whatever storms may come. Having a peace of mind will help you not to worry about what may happen in the future.

SECONDLY, build your emergency fund so that you will continue your goals if you lose a job or losing your business due to unexpected happenings.

THIRD, start having your passive income. Look for investments to create another stream of income e.g., a business you want, stocks, forex or cryptocurrency. Invest on what you know and further study anything that you want to invest on.

FOURTH, never stop learning to identify possible opportunities that will lead you to your goal. You may also find a mentor that will give you some advices.

FIFTH, you can only do these things if you are debt-free and you already identified your goals and purpose in life. Discovering your purpose in life will lead you to your God-given goals. The journey is not easy as it takes hardship; the important thing is you learn from mistakes and are prepared for the unexpected events in life.

Discover your WHY; what will keep you going as you pursue your purpose in life. The important thing is either you learn from mistakes: your own or others. At the end, the choice is yours. No one can blame you for the decisions you made. It’s your life and your choices.

If you haven’t organized everything in your life, it will fall short and you’ve started all over again. I witnessed it from my parents. During their younger years, when they had no personal finance, they appeared to be in a rat race and a cycle. Income less expenses will always be equivalent to zero or a negative balance.

By not prioritizing savings at earlier age, it gets difficult to start on later years as you need to work harder for you to make your retirement years comfortable.

My tips for you today: start early as you can, look for the opportunity that may interest you and do something you love to do. Time is very important than money because you will never earn back your time again. Realizing those outcomes from my parents, I am able to start to save at my earlier age so I will not have to work hard for money but letting the money work for me and do what God called me to do.

I believe you can do this, too.

This 2021, start to plan better for your personal finance. Find a financial planner or partner to help you. Your future is worth planning for. Why wait for tomorrow when you can start to plan better now.

Rodora Mendoza is a Registered Financial Planner of RFP Philippines. To learn more about personal-financial planning, attend the 88th RFP program this March 2021. To inquire, e-mail [email protected] or text at 0917-6248110.

Source: https://businessmirror.com.ph/2021/02/02/understanding-your-personal-finance/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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