STOP MAKING NEW YEAR RESOLUTIONS! START MAKING GOALS!

"You read a book from beginning to end. Achieving your goal is
the opposite. You start with the end, and then you do everything you must to reach it."

The year is almost over, with the New Year comes the usual New Year resolutions, most of us are actually aware that we can’t stick to it,
its only in keeping with tradition, (much like those firecrackers we set-off at midnight, when its over, wala na)not in keeping it. So I’m thinking (duh) why not make a resolution the same way most of us do business, make a goal, and to make sure you stick with it, make it quantifiable or measurable. For example, why not make a financial goal? (ok I’m beginning to sound like an insurance salesman, of which I am he he) let’s say P10,000 every quarter in savings, which you could eventually use to invests, pay-off an existing loan or maybe an emergency fund, its up to you, as long as you start saving. One of the nice things about having savings as your goal is that you are actually hitting more than one bird with a single stone, (Be financially independent,I will balance my accounts, not get into debts, stop unnecessary expenses, limit nightly gimmicks etc.) Consider the following methods in attaining your goal. (I got this from Inquirer.net)

1. Watch closely where your money goes-It could hold the solution to your “I don’t have much money” or I don’t know where the money went” woes”.

2. Decide where your money will go-since savings is your goal for this year, now is the time to make-up your mind what you are saving for, pay off your loans, educational plans for the kids, a future trip..but get into the habit first.

3. Make a spending plan-Allocate your earnings wisely by making a written budget every month (something most of us don’t do) experts say pay yourself first (now that’s a good idea)-meaning set aside some amount for savings (an old envelope will do, but make sure you won’t touch it) before you settle bills and spend money. A good starting point would be 10%, but do make it bigger as your income increases or your debts decrease. Then set a ceiling for your regular expenses, now you’re starting to live within your means.

4. Start an emergency fund-you can use your savings as an emergency fund in case of emergencies or unplanned expenses, god willing if nothing of the sort happens, then your savings remains intact, if something of the sort does happen, at least you have something you can fall back to, especially if you lose your job. sort of your own insurance.

5. Manage your debt-never get one you can’t afford to pay, before you get one, compute your budget and see if you can afford to regularly pay them for a period of time. Applies also to credit card purchases.

6. Protect your name-maintain a good record, pay off your bills on time. your income tax promptly, etc. your good name is one of your( if not the) most important assets.
7. Look for ways to grow your income-maybe you can get a sideline business or job, to compliment your present income, then use the extra for investment. As the Chinese say: “yung pera lipad lipad lang yan, ikaw bahala habol” (money is just flying all around, its up to you to catch it)

8. Have the essentials-If you’re not: be a member of the SSS, and Philheath, get an insurance policy, this includes, hospitalization, disability, accident, even a memorial plan. Stop fooling yourself you don’t need them.
9. Be serious about investing-Those savings you put aside can earn more when placed in a proper investment vehicle. Leave some in a savings or checking account, but put the bulk in higher-yielding-mutual funds, UITF’s, stocks or bonds, depending on your appetite for risk, talk to a Banker or Financial planner, read articles regarding personal finance (Fancisco Colayco’s “Pera mo’ Palaguin mo” would be a good start-also see link below) an while some may think its not a good idea because of the crisis, come to think of it-its actually the best time, besides investments should be treated as long term, at least 10 yrs.

10. Share your blessings-I think this is self-explanatory

HAVE A PROSPEROUS NEW YEAR

Links:
www.colacofoundation.com
www.income-tacts.com
www.pinoysmartsavers.com
www.icap.com.ph
www.rfp-philippines.com