2012 Goals

I think we all knew about resolutions because we all formulate our resolutions every year. I ditch the idea of resolutions and replaced it with goals since I want to focus on achieving things and not just improving myself in some aspects of my life.

I want to share to you my goals and i hope this will inspire you to make your list also.

1. Open a dollar account. [Not feasible since dollar is declining]

2. Learn how to drive smoothly.

3. Get a passport.

4. Get a dental check up every 6 months.

5. Picnic date with Paul

6. Get a body scrub. (in a spa)

7. Ride a horse.

8. Buy paul a gift.

9. Travel to three (3) places.

10. Run a half marathon.

11. Publish 100 blogs

12. Update my wardrobe.

13. Donate blood.

14. Spend one Saturday in the office.

15. Sell my blackberry.

16. Surf in La Union/Baler.

17. Read a book every month.

18. Get a facial regularly.

19. Weigh 114lbs by December 2012. [Ha ha ha!]

20. Get a student license in April.

What to do with finances this year?

I've not been writing lately because I want to reflect more on what I should do this year with my finances. It's not that I have a lot of it but I want to make sure that my finances are in tact and are geared towards the goals I have set few years back.

What struck me was the realization that basics are still the best guides in handling everything especially money matters. They have not failed me yet.

Here's what im going to do this year in order to achieve my financial goal this year.

1. Save first before spending.

2. Increase tithes.

3. Invest more money.

4. Lessen expenses.

5. Prepare for emergency.

6. Give away what i find unnecessary to me.

7. Live a simple life.

These seven simple things never failed me yet. I hope readers can also find their seven simple steps this year.

Till then.

Lessons of Debt

It is a very common practice for Filipinos to loan money to buy things especially big purchases like a house and lot or a car maybe.

As for incurring debt, three lesons have been shared.

1. It always depends on the purpose. If the purpose is wrong, debt is bad.

I remember a qoute told by David Ramsey thatngoes this way, "We buy things that we don't need with money we don't have to impress people we don't like." If you think you fit this qoute then i think you have a problem.

It is not bad to be ahead of everyone. It is not bad to have things. But if you accumulate things the wrong way, i am 100 percent sure that you are going to dig yourself deeper and deeper until there is no more space for younto breath.

Lesson: "Do not keep up with the Joneses. Who are they anyway?"

2. Size of debt versus income matters.

Think of it this way. You are applying for a loan and your records show that you are paying your bills on time with instances of paying more what is required in your credit card. What is the probability that the bank will lend you money? Actually it is high.

On the other hand, if you are so indebted and your debt is close to your monthly salary then the probability is very small. The bank analyzes cashflow. The mere fact that your debt to income ratio is closer to 1 signals a red light.

3. Debt Management Approach

Paying debt requires financial management. It requires discipline. You cannot depend on other people. It is you who is responsible. Start managing your debt or your debt will begin to manage you. The smaller your debt the more cash will be put to your bucket and the faster younwill achieve financial independence.

Dream On

When I started attending a series of financial literacy seminars first thing that struck me was their tagline, "Financial independence is not a dream, it's a reality!"

All my life, no one told to me about financial independence and its importance to my life. So naturally I was taken aback when I first heard it.

First let us define financial independence. According to wikipedia, it is the state of having sufficient personal wealth to live independentlynwithout having to work activelyfor basic necessities. His only means that the tag line suggests that a person can accumulate wealth to sustain his needs. Only if he makes it a priority.

From that day on, I committed on making my dream a reality. The journey is not a joyride. Actually it is difficult. I have to learn how to restrain myself from buying and accumulating things. I have to immerse myself with books on personal finance. I have to take advices from different people, media, internet and bloggers. I need a total overhaul.

To this day i continue the discipline in handling my finances. I am more confident to talk about money now. I am more informed than before. I am able to foresee my future and can lay down financial plans easily. The seminars and the discipline are now bearing fruits. Everything is part of my system now.

I am confident that I can reach my target this year. And I am confident that I can exceed what is expected. Thanks to the community, now i can start "Dreaming on!"