Reasons for Financial Insecurities

Lack of specific measurable goals

   - aim at nothing and you're bound to hit it.

Failing to think long-term

   - too much focus on grocery items, clothing, etc.

Longing for more money

   - more of an excuse than a solution

Holding money too loosely

    -instant gratification

Misusing consumer credit

   -spending in future income

Holding money too tightly

   - leads to unhappiness

Start Saving as soon as you read this advice

• Not later, not with your next raise or payroll, not after you get Christmas bonus, not after you win the lotto. Start NOW!
• Save it before you see it. (Auto debit/deposit)

Tie up loose change

• Empty your pockets
• Sell assets you don't really need (www.bidshot.com for Philippines; www.ebay.com for US)
• STOP SENDING ALL YOUR MONEY HOME
• Get rid of bad life insurance
• Provide a service (invest in your church not in lotto)

Discipline

• Stop spending like there's no tomorrow
• Spend smartly

o Canvass - Think about that big-ticket item purchase like (Digicam, Car, Home Theater)
o After much careful thought, think about it some more
o Consider attendant expenses - a home theater system needs to be fed expensive DVDs

• Don't charge consumables - use cash as much as possible; beware of rewards programs
• Join paluwagan but don't borrow

Pay off debts and stay Debt free

• Don't rub future income to pay for past expenses
• Go beyond the minimum amounts for credit cards payments
• Accelerate mortgage principal payments on housing and car loans

Buy a Life insurance for the breadwinner

• Life insurance is an expense you have to budget every year.
• This investment is for peace of mind; it's not a waste of money
• This is to protect your family when the inevitable happens too soon.
• A small price could give you peace of mind and live life longer.

Savings is not everything

• This is something you do early in your life
• It does not end there; you have to keep up with inflation
• INVEST money; buy income-generating assets

Employ people smarter than you

• This will allow you to work on other things that will improve your finances

Take risks but don't put your eggs in one basket

• Real estate will not grow as high as it was in the past century.
• Savings deposits are not enough. Inflation will eat it up.
• Stocks market is a roller coaster ride but if you stay long enough you will still be profitable. (18% net return in the Philippine market despite, Martial Law, EDSA 123, etc)
• High return investments mean high risks. That's a law.
• Pyramiding and Ponzi is for high-risk takers.
• Mutual fund does not guarantee return but experience is modestly good; but worst can happen
• Common trust funds guarantee returns but not as high as you can get in mutual funds during ordinary times.
• Government securities are also risky. 

Diversify to minimize risk

• Don't diversify too much
• Don't diversify wife, family and heaven
• Balance your portfolio such as:

o Medium Risk taker:     (%cash, %bonds, %stocks other investments)
o Middle life investor (10%,40%,50%)
o Pre-retired investor (1%,44%,55%)
o Retired investor     (10%,40%,50%)

Learn basic Accounting system

• Use excel, quicken etc to manage your finances
• Even if you get negative data
• This is a measure that you know what you're doing and where you're heading
• Though boring, not doing it well has led to the death of many worlds' largest companies.
• Understand your investments by heart (stocks, bonds, etc); Buy a business not a stock

Use Peso amounts to targets; use time frame

• This will guide you to when to increase effort or withdraw commitment
• Review regularly

Learn to Give

 Luke 6:38