Getting Started...

"I want to start saving but the amount I'm earning now is just enough to pay for my expenses and I still have credit card debts to pay...I have nothing left to save! How do I start?"


Sounds familiar?


This is my line before which I know some of you can relate with. A lot of times I tried to build up my savings but my efforts were in vain.


This was my old money management method:


INCOME - EXPENSES = INVESTMENTS/SAVINGS


Every payday after I receive my salary, my old habit was to pay off my expenses/bills first then go to the mall to look for interesting things to buy or spend for the activities that I enjoy doing, such as watching movies, dining out with friends or traveling. There was no conscious effort on my part to control my expenses because I thought that I had enough cash to last up to the next payday and some pesos left for savings.  However, if you will ask me, "How much were you able to save?" My response would be "zero!" There was nothing left! And this was a never-ending cycle for years.


But through financial education, I realized that for the longest time I was managing my money the wrong way.


When I became a member of the Truly Rich Club and from reading financial literacy books, I learned that the right formula to become rich is this:


INCOME - TITHES & INVESTMENTS = EXPENSES

We need to make a conscious effort to form a habit of allocating a percentage of our income first for tithing and investments before our expenses.


TITHING 

photo source:
http://powerofleadership.wordpress.com/

I admit that I don't give tithes before purely out of ignorance. I didn't understand why people gives 10% of their income to the Church which I felt was way too much! I even had negative feelings toward that act. 


But when I attended a session in The Feast where the talk was about tithing, everything became clear to me. 


I realized that tithing is not a law but a symbol of love. Our first expense should be given to our Almighty Father because everything that we have, including the source of our income came from him.  It is a symbol that our lives belong to God and we are thankful for all the blessings that we continuously receive from Him.


When I started giving tithes to the spiritual family that nourishes me, I received a lot of blessings and opportunities and I want you to experience that too.


There are several verses in the bible that talks about tithing. One of these is from Malachi 3:8-10.


Will man rob God? Yet you are robbing me. But you say, 'How have we robbed you? In your tithes and contributions. You are cursed with a curse, for you are robbing, the whole nation of you. Bring the full tithe into the storehouse, that there may be food in my house. And thereby put me to the test, says the Lord of hosts, for if I will not open the windows of heaven for you and pour down for you a blessing until there is no more need.


Give back to God, and you will receive blessings ten folds! 


INVESTMENTS

photo source:
http://powerofleadership.wordpress.com/

Next would be building up your assets. Robert Kiyosaki defines "assets" as things that generate cash inflow or that will put money in you pocket, such as rental properties, businesses, and other forms of investments that would give you passive income such as stocks, mutual fund, UITF, and government securities.


After allocating a portion of  our income for tithes and investments, then the remaining money can be spent for our expenses. 


In my next blog, I will teach you a simple technique I'm using to manage my expenses. 

The Book That Started My Journey

It was last November 2010 when I purchased the book that changed my life.

Actually, that was not the first time I noticed book, "Rich Dad Poor Dad" on a bookstore shelf or heard about it from other people. But I didn't bother to take a look at it, more so, buy it.

But God shows us the way during times when we are seeking for answers.

Again, I stumbled upon this book during that time I was looking for direction in my financial life. And something inside urged me to purchase it.

Before I read the book, I was nagged by the thought that at the age 32 and with 8 years experience working as an employee, I had no savings and investments. (please read my first blog entitled My Past to learn more about it). I felt like that I was just going through the motions - without a direction.

I thought that a bigger salary will solve my dilemma. But transferring from one company to another that offers a higher pay or having a salary increase was not the answer. Ironically, my expenses and credit card debts even became higher!

Little did I know that a single book would change everything.

Rich Dad Poor Dad by Robert Kiyosaki is a fascinating story of how the author's Rich Dad taught him the lessons he needed to learn to make himself financially independent. 


This book opened my eyes that some things that we thought are assets are actually liabilities - for example : a house or a car. Moreover, because of my addiction to shopping I even  justified to other people and to myself that my quality/branded clothes, shoes and bags are assets!

While reading the book, I encountered a lot of "Aha" moments when it comes to money management, investing and personal finance .  It provided the basics to my quest for financial literacy and opened my mind to new possibilities. 

Because of this book, the lady who used to be a "bargain-holic" became addicted to learn the ways and the means to become financially free.