Thursday, June 3, 2021

Steps I've Taken to Be Financially Free

Two months ago I wrote about my Kuya's challenge for me to be financially free before I turn 50. I started by understanding my monthly and annual expenses. One key advise of financial advisers is to understand what you're getting into. I read articles and watched a lot of videos. I also attended the Truly Rich Club workshop on understanding the stock market.

There are so many financial products out in the market. My Mom was a banker so her expertise was more on growing your money through savings. So I broke down my research into three: (1) financial products I could do through a bank; (2) investments (stocks); and (3) real estate. 

To be honest for many years I let my Mom manage my money. I would just deposit my savings and she'd take care of moving it to a time deposit. I decided to take over my accounts when I took a break so Mom didn't have to stress about it. After assessing my savings situation I inquired from the bank how I could earn more interest from my savings. 

Regular and time deposit savings don't really earn much interest. In fact, I learned if you leave your money just on savings you'll eventually lose money. The first thing the bank asked me was my appetite for risk and how long I could keep the money. Here's a list of options they gave me:

  • Insurance
  • Unit investment trust funds
  • Bonds
  • Treasury bills

I wanted something which could provide me cash every month so getting more insurance wasn't the best option for me. Bit wary about the current state of affairs back home so I'm still assessing whether bonds and treasury bills will be a good investment. So far the UITF is the best option for me. 

I learned a bit about stocks when I was taking my MBA. I just needed more guidance about what to invest on. I signed up for the Truly Rich Club a few years ago and finally attended a workshop on the stock market. It gave me a better understanding on what I'm getting into, plus they give advise on where to invest every few weeks. 

I started investing last March and I'm happy to share that one of my investments gave a dividend already (like PhP100+ only haha). It was small, but encouraging. The important thing about investing in the stock market is to assess your appetite for risk. It's also better if you do it for long term investing. TRC is hosting another stock market workshop on June 19. If you want to sign up as a member, here's my affiliate link and here's my 10% off coupon code - TRC101727AFF- if you just want to join the seminar.

I'm hoping that the interest from bank investment can provide my monthly needs. I'm so far just a third covered for my projected monthly expenses. Will be working on this quest more. I'll write more about real estate on another post since there's a lot of stuff about that I'm still studying right now. 

Hope this helps you as you work towards financial freedom!

PS Just also wanted to say I'm so grateful I have a Kuya who's been providing me guidance. I thought it would be great to share the stuff I learned from him (like the quest to be financially free). 

CB///*Yr2/54  #StuckAtHomeDay/Yr2/81 #StayHome #BeKind

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