After months of saving money for the holidays and draining your bank account within few days, you have to face the fact that reality bites – you have to pay all consumer debts you have incurred during the season
Natapos na ang napakagulong schedule mo, umalis na ang mga nagbakasyon sa bahay nyo, at unti-unti na rin kumakalma ang tiyan mo sa napakaraming kinain mo. Ngayon, panahon na para bayaran ang iyong credit card.
Holiday debts or pangungutang para lamang makapag-Pasko or Bagong Taon ay isang problemang pang-financial na tinatamaan kahit maging mga taong sobrang kuripot. Kung isa ka sa mga taong tinamaan ng “holiday-debt” syndrome, maaaring simpleng problema ito sa ngayon, ngunit isang malaking bangungot kung ito ay pababayaan. Sa pag-simula ng bagong taong 2016, na year of the monkey, wag magpatalo at baka mataya ka sa larong unggoy-ungguyan. Since this year is year of the monkey, be careful of those clever people and be wise on managing your finances where debt management is one of the crucial parts.
So, how to start the year with the right financial mindset? Here are some of my tips for you to set 2016 as your best year yet in life:
Don’t ignore your debts.
Maaaring parang mas madaling wag ng pansinin ang mga utang at mag move on na lang, pero ano mang iwas mo, ito ay di mo matatakasan. If you want 2016 to be your best year ever, one attitude that you must really take into practice is being responsible to all actions you make. Success starts from having the right mental attitude. Tandaan, every month na hindi mo nababayaran ang utang mo ay nangangahulugan ng karagdagang utang para sa iyo. Try to think how much you will be paying for the late charge fee on your credit card and additional interest in all types of debts. Hindi lamang iyon, ano mang utang mo sa mga credit institutions ay mag-rereflect sa credit history mo. Sa susunod na mangungutang ka ay tataas ang interest rate na ipapataw sa iyo or worst wala na talagang mag papautang pa. The moment you start paying your consumer debts, try hard to avoid getting new one. Promise yourself to live a life na debt FREE.
Start building your back-up fund.
After managing your consumer debts, this time you need to consider building a back-up fund or commonly known as emergency fund. I just choose to call it as back-up fund to eliminate the negative connotation on it. Paulit-ulit naman nating naririnig na dapat mayroon kang 3-6 months emergency fund or back-up fund. Pero para sa akin ang mas angkop ay pang isang taon. Lalo na sa isang OFW, mas kailangan mo ng mas malaking back-up fund kung ikaw ay biglang matengga ng matagal sa Pinas. Even before you sign up for an application for stock market or any investment account, open a dedicated savings account for back-up fund first. At kung gusto mo na simula ngayon ay di mo na kailangang mangutang tuwing sasapit ang panahon ng Kapaskuhan, simulan mo na ring mag save para sa gagastusin mo sa Paskong 2016.
Protect yourself against all financial risks.
I’m sure, isa ka rin sa mga taong nangangarap na yumaman, pero ano man ang galing at sipag mo, kung may mangyari sa’yo, aksidente man o critical illness—mabubura ang lahat ng iyong pangarap. That’s why having enough, right, and affordable insurance must be the first step towards financial independence. Although to be honest, I’m connected with one of the biggest insurance companies in the country, I’m not recommending this so that you’ll buy from me. I’m pushing this idea for I know from my first hand experience how stupid it is to invest your money without securing the money-generating-machine of the family—the bread winner—and that is YOU. If you own properties, get insurance too such as car insurance, property insurance, and business insurance.
Start growing wealth by growing your active income.
“Active income” is the income you earn from actively working in a business whether as employee or as an owner. Of course, being a business owner is better than being an employee in terms of many things and one of which is income. Pero sa mga taong di naman biniyayaan ng tibay ng loob upang mag-negosyo, maaari ka pa rin kumita ng malaki sa iyong active income. Highly paid employees can develop large income streams. Napakaraming tao ngayon na di hamak napakalaki ng mga kinikita kahit na wala silang sariling negosyo, kabilang dito ang mga magagaling na salesmen, athletes, executives ng company, doctors, seafarers, lawyers at iba pa. Napakaraming paraan upang lalo pang tumaas ang kita, at ang patuloy na pag-aaral upang ma-promote ay isang tiyak na paraan. And of course multiple income stream is better than just one income stream. Ang kailangan mo lang talaga minsan ay ibaba ang pride upang magawa ang mga bagay na may malaking tulong sa finances mo. Meron akong kakilala na napakayamang tao, may-ari ng isang malaking bus company, pero sya ay isa ring successful na insurance agent at consistent na awardee.
Identify and plan for big life events.
We all know that life is full of surprises, but still there are lots of things in life that we should be prepared for. If you are planning to get married in the next few years, this is the best time to start planning. Determine how much you are willing to spend for that one day wedding event. Maraming mga bagong kasal na matapos ang big day event nila, the following day, ito na ang simula ng kanilang bangungot. We all want to have a wonderful wedding experience, but it pays a lot to be honest with yourself, kung ano nga lang ba ang kaya nyong gastusin. Then after knowing how much you are willing to spend, this time, know how you can achieve it. Maghahati ba kayo sa gastos or si lalake lang ba ang gagastos? Mahalagang isyu ito na dapat pag-usapan. This planning is not only applicable to weddings. Same is true when it comes to fund preparation for your children’s education as well as for your retirement planning. Proper financial planning is important in order for you to have a sufficient fund for life’s big events.
The year 2016 offers us a lot of opportunity. Never mind if you have been into many financial mess before. Every new year gives us a chance to correct our ignorance in the past. For those who are always on track on their finances, new year can offer you a way how to grow more money in what you are doing best. If you can’t find the inspiration on my lists above, try to look for the particular area in your financial life that you want to focus on, then that’s the great place to start. If you need help in starting your financial life right this year and you’re looking for an expert to help you, we, from Cardinal Buoy Group of Financial Planners, that’s what we do best—helping our clients reach their financial goals.
Happy New Year!