MANAGING MY FINANCES

OUTLINEReasons for Working AbroadSteps to Financial FreedomPlanSaveInvest/Business

Reasons for Working Abroad To send children to school

To build a house

To earn a bigger income

Reasons for Working AbroadTo save for the future

To support the family

To invest / set up own business

To achieve financial independence

Reasons for Working AbroadTo travel and see other places

For self-development

Steps to Financial Freedom1Plan2Save3Invest

1Plan23

Step 1: PLAN Set Family Goalsa. Educationb. Housingc. Healthd. Retiremente. Protection/preparedness against unforeseen eventsf. Savings & Investment

Family goals are usually centered on the following:

Tips on How to Set-up Family GoalsSet family goals together Discuss and determine how each member will contribute to achieving family goals

Step 1: PLAN Set Family Goals

Tips on How to Set-up Family GoalsWhat are the goals of the family? Education, house, businessWho must participate to achieve these goals?How can each family member help to achieve these goals?

You may start by answering the following questions:

Your Financial Time Line

Steps to Financial Freedom1Plan2Save3

Step 2: SAVE Know the Right Formula for Saving INCOME EXPENSES = SAVINGS 30,000 .00 30,000.00 = 0.00

Step 2: SAVE Know the Right Formula for Saving INCOME EXPENSES = UTANG 30,000 .00 40,000.00 = -10,000.00

Step 2: SAVE Know the Right Formula for Saving INCOME SAVINGS = EXPENSES 30,000 .00 5,000.00 = 25,000.00

Step 2: SAVE Know the Right Formula for SavingSave at least 20% of your income!You should have a FIX and REGULAR Savings!Pay yourself first SAVE!

Why Families are not able to SaveDependency on family member working overseasProcrastination delaying savings, putting savings on a later timeOther family issues that drain resources Early marriage, Family break-up, Lack of interest in school, Personal problems, vicesLuxurious lifestyle (wants vs needs)Lack of financial literacy

Prioritize Needs over WantsNeeds necessary to live Food, shelter, education, medicineWants not necessary but we desire to haveElectronic gadgets (cell phones), travelling, unnecessary shopping

Steps to Financial Freedom1Plan2Save3Invest

LOWER YIELD BUT GUARANTEED RETURN ON PRINCIPALHIGHER YIELD BUT NO GUARANTEED RETURN ON PRINCIPALSavings DepositTime DepositTreasury BillsRetails Treasury BondsMutual FundsUnit Investment Trust FundsStocks/Stock MarketInsuranceReal Estate

Invest your savings in money-making assets. Step 3: INVEST / BUSINESS Make your money work for you

Use your savings in putting up a business.Use your assets as collateral to a business loan.Step 3: INVEST / BUSINESS Make your money work for you

Steps to Financial Freedom1Plan2Save3InvestWhere are you now?Where do you want to be in the future?

PERANG PADALA, BIGYAN NG HALAGATIPIRIN, PALAGUIN, AT PAGYAMANINPARA MAGANDA KINABUKASAN NATIN

End.

Thank You.

**Three things to consider when you invest:

a. Safety know how safe your investment will be; know the risks involved; deal only with licensed companies and authorized representatives

b. Liquidity how to soon you could withdraw your money or convert your investment into cash, terms of maturity

c. Return earnings that your money will get e.g. interest, dividends, rent payments, appreciation in the value of the assets; will the rate of return be higher than the inflation rate?

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