As you know, I attended Bo Sanchez' How to be Truly Rich Seminar last February 6, 2010 at the St. Francis Theater in Lourdes Mandaluyong and there Bo Sanchez talked about investing your money in the right places. He advises us to save 20% of our income every month.
What do we do with the 20 percent? It depends on your current situation.You also have your current finance and debt situation to consider. Here are some questions to think about:
1. Do you already have an Emergency Fund?
What's an emergency fund you say? An emergency fund is just that, money set aside for a rainy day or any emergency. Your emergency fund should be equal to at least 3 to 6 times your monthly salary. So, for example, if you're retrenched or get sick, you'll have enough money to cover your expenses for the next few months til you get better or find another job.
2. Do you have any debts?
This is self explanatory. If you owe any one or any company any money then you have debt.You can use what is called a FREEDOM FUND to hasten your debt payments. Let's say, for example, you pay P5,000 monthly for your car. You add the FREEDOM FUND to your monthly payment of P5,000 so that your balance will go down much faster. The next thing you know you're already debt free!
So if you don't have an emergency fund yet plus you also have debt. Here's how you divide your 20%
Place 1/3 of 20% in EMERGENCY FUND
Place 1/3 of 20% in FREEDOM FUND (for paying off debt)
Place 1/3 of 20% in WEALTH FUND (money for investing)
Just adjust this accordingly depending on your situation. Once you already have your Emergency Fund in place then you can then already allocate 1/2 each to your Freedom and Wealth Fund or if you don't have any debts then allocate half each to building your Emergency Fund and Wealth Fund.
Also remember, if you have any particular debts that must already be paid then you can put your full 20% towards your FREEDOM FUND.
Additionally, if your emergency fund is already in place and you're debt-free then you can also place the entire 20% in your Wealth Fund.
We'll talk more about the Wealth Fund soon.
- designstudentny
Showing posts with label emergency. Show all posts
Showing posts with label emergency. Show all posts
Thursday, March 4, 2010
Thursday, February 11, 2010
Bo Sanchez' How to be Truly Rich Seminar
I attended Bo Sanchez' How to be Truly Rich Seminar last Saturday at the St. Francis Theater at the Lourdes School of Mandaluyong.
The seminar is still as dynamic, entertaining and more importantly information-packed as ever. It's actually my second time to attend and for the small fee that they charge, it was really worth every cent. For one, I realized that besides building businesses, I had totally neglected the whole other part about investing and saving. As I was going home with my boyfriend, I even told him how sad I felt at how I hadn't applied all that was taught in the seminar. In hindsight, I'm thinking at least I applied some of it. I stopped investing (but didn't stop saving) because of my mistake in investing when I was starting out.
The stock market was fast rising at the time that I started out and I got excited and maybe a bit greedy. I put all my money in a balanced fund. I even took out some of the money that I earlier invested in a fixed-income fund and transferred it to the balanced fund. Long story short... fast forward to the global recession and all the money is negative territory. I got blinded by my 5 digit returns that I totally ignored the voice in my head telling me to pull the money out or at least re-invest some of it in safer investments. I had even read that when the market double tops that's the time to take your money out. But did I take it out? No. So imagine my distraught when the market started plunging and I couldn't do anything about it.
Anyway, that's all water under the bridge. The stock market is slowly rising again. It's actually a great time to invest. Bo Sanchez said during the seminar that the best time to invest is when the market is down, when prices are low. It may be hard to do but this is when preparation and saving pays off because you'll have the chance to take advantage of opportunities that others cannot partake of.
Bo Sanchez reminded me that I needed to also invest money in paper assets besides putting them in my businesses. So starting this coming payday, I'll start saving part of my income to what Bo calls the Freedom Fund, the Wealth Fund and the Emergency Fund.
According to Bo, we should all FIRST AND FOREMOST, set aside 20% of our income for our savings. Pay yourself first! And divide this 20% into 3 parts:
Gotta go! Have to open a new bank account so I can properly set aside money from my salary.
Til Next Time,
designstudentny
P.S.
Bo Sanchez' next How to Be Truly Rich Seminar is on April 10, 2010 if you want to attend. It's still going to be in Manila but if you can't attend, the next best thing for continued education (even if you've already attended the actual seminar) is Bo Sanchez' TrulyRich Club. Me and my brother are already members of this and many of my friends have also signed up for this really great treat. It's like having Bo Sanchez' as your personal financial mentor sending you notes and lessons right in your inbox every week. Click here to find out more.
http://www.bosanchezmembers.com/amember/go.php?r=1138
Reading Bo Sanchez' books is also a great way to learn from him. Here are some of my favorites:
Photo courtesy of www.bosanchezbooksingapore.com
The seminar is still as dynamic, entertaining and more importantly information-packed as ever. It's actually my second time to attend and for the small fee that they charge, it was really worth every cent. For one, I realized that besides building businesses, I had totally neglected the whole other part about investing and saving. As I was going home with my boyfriend, I even told him how sad I felt at how I hadn't applied all that was taught in the seminar. In hindsight, I'm thinking at least I applied some of it. I stopped investing (but didn't stop saving) because of my mistake in investing when I was starting out.
The stock market was fast rising at the time that I started out and I got excited and maybe a bit greedy. I put all my money in a balanced fund. I even took out some of the money that I earlier invested in a fixed-income fund and transferred it to the balanced fund. Long story short... fast forward to the global recession and all the money is negative territory. I got blinded by my 5 digit returns that I totally ignored the voice in my head telling me to pull the money out or at least re-invest some of it in safer investments. I had even read that when the market double tops that's the time to take your money out. But did I take it out? No. So imagine my distraught when the market started plunging and I couldn't do anything about it.
Anyway, that's all water under the bridge. The stock market is slowly rising again. It's actually a great time to invest. Bo Sanchez said during the seminar that the best time to invest is when the market is down, when prices are low. It may be hard to do but this is when preparation and saving pays off because you'll have the chance to take advantage of opportunities that others cannot partake of.
Bo Sanchez reminded me that I needed to also invest money in paper assets besides putting them in my businesses. So starting this coming payday, I'll start saving part of my income to what Bo calls the Freedom Fund, the Wealth Fund and the Emergency Fund.
According to Bo, we should all FIRST AND FOREMOST, set aside 20% of our income for our savings. Pay yourself first! And divide this 20% into 3 parts:
- 1/3 should go to your Wealth Fund - money to go into investments
- 1/3 should go to your Freedom Fund - money for paying debts, if any
- 1/3 should go to your Emergency Fund - money set aside for a rainy day (like Ondoy :p)
Gotta go! Have to open a new bank account so I can properly set aside money from my salary.
Til Next Time,
designstudentny
P.S.
http://www.bosanchezmembers.com/amember/go.php?r=1138
Reading Bo Sanchez' books is also a great way to learn from him. Here are some of my favorites:
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