Wicked & Righteous

STEP No. 2: LIST DOWN ALL YOUR DEBTS

Self Discipline <<--click here for Step No.1

Don't Jeopardize Relationships over Money

What do you think is the difference between wicked and righteous? Last time I did some posting about how to pay off debts,  and what are the steps because I know, one way to have peace of mind is to be financially free and another way to have peace is to be debt free.  Let us all admit that no one doesn't want to be financially stable. Yes, money cannot buy happiness, but it can give you peace of mind thinking that tomorrow you have something to give to those people who comes to you because they are really financially in need. According to Psalm 37:21--The Wicked borrows but does not pay back, but the righteous is generous and gives. My parents taught me a lot of misconception about life most especially in terms of money. I am not blaming them because they didn't come from a rich family like the Ayala and the Zobel, or the Cojuangco and the Aquinos. 

My parents both came from humble beginnings. Though according to my mother, my father's family own a mango farm in their province and my grandfather on my father side was a well-known educator in their town because he was a school principal. That is why I am still thankful that my parents value education more than anything else in this world. But one thing they didn't educate me is in term of financial literacy. Now I am trying my best to teach my children how to be financially independent at an early age, to be content in what they have, to be frugal and value life and relationship more than anything in this world. 

I saw a lot of broken relationship because of some financial problems. I myself, I experienced it first hand as I enter adulthood and started to be conscious about life and it's meaning, how my mother and father argue because we don't have enough amount of money to pay our monthly bills. How my husband and I fought because our salary was far behind our debts that we need to pay. But those were the days, I thank God that my parents taught me one important thing, how to value people over money. Yes even though I was so preoccupied and busy achieving my goals on how to be financially independent my feet are still on the ground knowing what is important and what is not. Don't waste the long time friendship over money, the happy memories you had with someone because of trying to escape the reality of debt. Paying off debt was as easy as counting and reading the ABC's. Just don't forget to ask the guidance of the lord to give you so much knowledge, courage and the determination to face the reality. So the second step in paying off your debts is LIST DOWN ALL YOUR DEBTS. Do not disregard or ignore some of your lenders because you think that they are close to you, regardless if they are your closest relative, someone whom you think understand you the most, because sometimes we tend to hurt the feelings or ignore those people who are closest to our heart. My mother used to tell me. 

                 "Ang utang ay utang, ang hingi ay hingi, kahit isang 
           daan pa yan pag hiningi mo kahit di mo na bayaran okey
           lang, pero ang piso kahit piso lang yan pag inutang mo ito
           ay kailangan mong bayaran".

This means regardless how much the amount of money you borrow as long as you take it for your own use and benefits returns the favor and don't throw what is the most important things in life, the people around you. So start listing down all  your debts and next time I will tell you how to pay them in a minimal way possible. That you and your lender will both benefit from it.

Happy Savings and Have a fruitful life.

Contemplating 2012

RECOLLECTION

Twenty twelve (2012) was one of the most challenging years for us. This is the first time that I am trying to contemplate things and events that happened in my life. A lot of things to be thankful for, a lot of challenges that I may say brought more maturity to me. I admire those people who never afraid of failing, those who made mistakes so many times just to learn, just to gain knowledge, those who never afraid of changes they are more admirable than any other human individual in this world. Gone were the days when people usually say to one another don't ever change. Changes are the only inevitable in this world especially nowadays with technology, current version easily replaced with a new version in just a blink of eyelashes. Yes, I've changed but I never forgot where I came from, but I've learned my lesson well that's why. They say you loose some, you gain some, but for me I never loose, it just adds up to my life.

SPIRITUAL & FAMILY LIFE

Being a part of this community was one of the best changes we had last year. It's true that in his time, in Ecclesiastes 3:1-15 said For everything there is a season, and a time for every matter under heaven, A time to be born and a time to die; a time to plant and a time to pluck what is planted... I am so grateful for having them, for I know God send good people in our lives for a purpose and that purpose is to lead us for a better life. 

FINANCIAL ASPECT

Other change we had been in terms of our financial literacy. Now I am so sure and confident that we are on the right track. We gained 19.50% of our stocks. I know this is not much, but I believe life is not a race it's a journey that we need to savor each day. It's not about how much money we make but how we save it. With our past mistake, I've learned to appreciate things not because I have plenty but because I know how it feels to have nothing. Wealth I believed is not what a person has. It is a state of mind. The people who succeed in life from financial perspective have positive beliefs about money. I know I ignore some few people in terms of their financial needs, but I guess this proverb serve as one of my guiding principle if I really wanted to help  "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime" however in every rule there is an exemption we just have to use our right judgement and God's guidance. My lines are open you can ask a question any time via FB, Email, SMS and I am willing to share our knowledge in terms of financial aspects. Though I always told few of my friends who are already asking me about it. I am not a financial expert, but thru my experience I can share a bit of it and  I am trying to learn every day, we can help each other by exchanging our ideas after all two heads are better than one. I want to retire with enough, not more than I need when I am old.

PERSONAL LIFE

They said you will learn real friends when you have nothing but failures and problems and when you are on your worst self and attitude but they still accept you for being you. The truth is, everyone is going to hurt you. You just have to find out who's the one worth suffering for. These people embrace me despite being nasty at a time and unpleasant just like most of my old friends whose with me until now. I treasure each of them (Though sometimes I tend to forgot unintentional of course, a sign of old age hehe). I know we still need a lot of time to know each other, but last year was maybe the crucial year for us to know more of one another and  know the real meaning of friendship and family. For family is not about blood, It's about who is willing to hold your hand when you need it most. I am just one lucky girl because I was lost so many times and every time God sent someone to be with me along the way. My toes and fingers are not enough to these countless people in my life and they just add up every year. Life is too short, people come and go, they say, "Some people come into our lives and quickly go. Some stay for a while and leave footprints on our hearts. And we never be the same again"

RESOLUTION

I am not sure if I can do these New Year resolutions because I don't have enough discipline I guess to do it. But for the first time I wanted to achieve something in the next year and the coming year. I will start this year and I will try to revisit it every year. I know New Year resolution are not by force, but they help us do better in life, help us avoid the mistakes which tried to hold us back in the past. That is why I just wanted to:

* Have more faith

* Read more books

* Eat good food (Healthy one, less meat, more fruit and vegetable)

* Listen more to good music

* Be more grateful (7X7X7) to attract positive vibes

* Play more 

* Be more patient and understanding (Especially with my children)

* Learn Mandarin (hahaha near to impossible)

* Attend more training and seminars (on personal and financial aspect)

* Less mindful to negative people and more attentive to the positive one.

* Exercise more (hirap nito need lots of encouragement)

* Find more reason to be happy

So "don't count the years, make the years count" and everything will follow.

Cheers!

Number 1 Rule: Self Discipline

     Christmas is fast approaching and I think just in time to do some posting about self-discipline as part of my instalment article on the strategy on how to pay off debts. The first step or strategy of paying off debts as I mentioned on my previous post about PAYING OFF DEBTS was Self Discipline before you even start paying your debts. December was the most celebrated month of the year because of Christmas time. I remember my mother used to decorate our home on the first day of the BER month and my father never goes home without bringing big lantern after a month of working far away from his family a month before Christmas. How  we celebrate Christmas in the Philippines? If my friends only knew how much I miss Christmas in the Philippines, because Christmas season is the most awaited celebration for us Filipinos. It is the best month of the year for us who worked abroad, and those who migrated to other countries to visit and spend holidays with their loved ones. 

   One thing I miss about Christmas in the Philippines was the Christmas bonus and thirteen-month pay, as an employee then I am looking forward to this on Christmas time because I know a lot of money coming my way, meaning I can start making a list of how to spend my Christmas bonus. I believed then, that so many are expecting to received something from me and it will be a great disappointment to them if they couldn't receive it (me and my malicious mind). But do you know that nine (9) out of ten (10) regular employees, that after Christmas they will add up more debts than their previous year even though they receive two (2) or three (3) times more than their usual salary during December. Why? because the scenario was like this though they receive more than their expected salary, they will spend more than the money they received during the bonus month and this is the usual mistake most of the regular employees. Been there, done that, I even borrow money just to satisfy myself, believing that it's just once in a year that I was able to give, to make the people around me happy, just to feed my temporary happiness of gift giving, just for the sake of Christmas season. I fail to realize that Christmas is not only during December, that Christmas is within our hearts all year round and it depends on how we wanted to celebrate it every day. That after the holiday I left nothing but debts  and I will start the new year with lots of stress and negative vibes. 

         When my husband and I started to learn how difficult life was especially when you have nothing but debts, I decided to put my feet on the ground and started to analyse the situations, to be subjective to everything, to put reason on every action. Thinking, what is more important, is it money, gift, or friendship and my families future. So on the first Christmas that I didn't make a list of names and things to buy but rather debts I need to pay, a lot of words came out, some are hurtful, some are rather judgemental. Yes, it is true that there is no discipline seems pleasant at the time, but painful. It was indeed painful when you heard someone calling you madamot (selfish), kuripot (thrifty) in front of your face. I endure all of that because I need to start  my life in proper order especially in terms of my financial aspect, instead of spending my bonuses by showing off to those people who doesn't even care. Looking back now I can tell that during those time I also learned who are my real friends because they supported me all the way.

        So this holiday season be disciplined enough to think before spending, be wise before borrow money just to have something to give. There's nothing wrong in giving its one of the best attitudes every person must learn and have  but make sure that at the end of the day you will not end up crying because you spend more than you can't afford (just a little trick, just make sure you spend within your means). As I always say this to my children "helping others...by helping yourself first" for how can  you be able to give if you don't have something to give right. Happy Savings and have a fruitful life.

Paying off debt

I am not a financial expert, I am still on the process of learning how to be financially literate. After all of the roller coaster, I had with my husband in terms of our financial aspect I have learned to appreciate and give back not because I am financially capable now but because I know how it feels to have nothing. Though part of our culture was even though you help people in so many ways but they still don't know the word appreciation and satisfaction. That is why I am trying my best to use this blog as a venue to impart to them what I have learned in terms of financial aspect. I wanted them to experience the overflowing of blessings I have now not only financially but in all aspects of life and I wanted them to be financially independent just like us. Though money is not a big factor for happiness (how I wish everyone should know that) but it is one component or aspect in our lives to be worry free especially in our retirement day. According to one Chinese proverb "Give a man a fish and he won't starve for a day. Teach a man how to fish and he won't starve for his entire life." The last post, I mentioned about How to pay off debt, that we need to negotiate and it was one important thing to do. Now I am going to share to you another strategy of paying off debts. Last time my husband attended a seminar about financial literacy in their company and one of the topic was how to pay off debt properly. I told him if we just knew this earlier we were able to pay off our debts more easily, but I think God has a reason why only now that we manage to know all of these things, maybe now is just the right time for us. Below you will see the steps by steps strategy of paying off debts.

* Step 1. Self Discipline & Commitment before you even start
* Step 2. List down ALL your Debts
* Step 3. Identify the MINIMUM Monthly Payment required for each debt.
* Step 4. Compute the Payoff Months.
* Step 5. Determine the Payoff Priority.
* Step 6. Create a complete Payment Tracker Spreadsheets.
* Step 7. Be sure to religiously follow step 1. (Self Discipline & Commitment).

There you go next post I will try my best to discuss one by one in a simpler manner, I just hope each of us will learn from the mistake of others, of our forefather, of our ancestors. Try to analyse Bill Gates quotes, nowadays with so many resources it is impossible not to learn. Happy savings and have a fruitful life.

How to Get Rid of Debt: Negotiate

In my last post Now or Never I promise that I will tell in details how my husband and  I was able to start and get out of our debt. I want to share a lot of things that I knew when we first decided to get out of our debt. We made a lot of mistakes and although we can't go back in time and redo our life again, but I hope that our past experiences can somehow help others by learning through our experiences. 

Bo Sanchez suggested that if you really wanted to be financially free Invest, Invest, Invest, but how can you invest when you have a huge and sizable amount of credit and debt. This is where discipline coming in. Do you really want to be financially free and get out of your debt? have some goals. My goals then were just simply pay off all our debt before anything else, so what I did was I made a computation on how to pay off our lender monthly in a way that it was not difficult for us, my husband then already decided to go overseas. Out of worry that he will not be coming back hehehe me and my malicious mind (thank God he didn't turn his back on me). 

I was left alone physically with all the responsibility. I come up with a proposal, I made a payment plan with his approval of course because the majority of the payment monthly will be coming from him, a proposal on how to pay our lender easily with his consent. Then I negotiate, one thing I've learned when we got into this financial crisis was I learned to negotiate. Some of my lenders became my friends and soon they became my partner in some of my investment. Don't hesitate to negotiate because lenders love to negotiate rather than not paying your debt, don't make your credibility be on jeopardy credentials was far more important than money.

So remember when you cannot pay your debt don't forget to negotiate be honest. After all the negotiation and all of our lender say yes to our proposal we started to plan the next step which is how to INVEST. How we started Investing? What investment? you will find out on my next post for now it's time to say goodnight. Happy savings and have a fruitful life.