Do you Know Where Your Salary Goes?

Again the end of the month is coming and its payroll day again!!! But how do you manage your salary? After receiving the wages of hard earn money, did you still know where it goes?

Where did Your Salary goes?

Most of employee rely on his monthly salary and the most awaited moment for them is the payday. I knew a lot of employee who has a bad habit of spending, before they get the salary it already gone, payday is just a day where they will just paying the debt.

Regardless of how much money you earn, the most important thing as employee must do is to budget your salary properly. Try to go to the mall during salary what did you notice? Did you notice that the mall have a lot of shoppers, restaurant, cinemas and departments store especially during the sales. I remember what my mom call this "one day millionaire".

Your salary is a reward we received for being a hardworking employee for the month. Being an employee alone will never give you comfortable retirement, unless you value and manage your salary properly and start saving a portion on it you will be trap being an employee. As an employee nobody stop you to start saving, saving habit will be your first step to financial freedom. Try to save a small portion of your salary and put it on the bank. If you still buried in debt settle it first before you start creating a savings account. Make it in a regular basis every time you get your salary take it first before your expenses.

Start tracking your expenses and you will notice that most of your expenses is just a thing you want and not the thing you really need. When me and my wife apply this practice, we notice that most of our expenses just wasted in unnecessary things, and we developed a habit of budgeting and up to now we are more conscious with our spending habit.

Here are some tips on how to develop a savings habit regardless if you receive a small amount of salary.

1. List down your expense - the most effective way to monitor your expenses is to list down all the expenses that you have in daily basis.

2. Give up your bad habit - if you have vices try to start quitting on it, you will notice how much money you will save.

3. Discuss and make a budget with your family - always involved your family in budgeting so they can contribute in their simple way that they can give.

4. Always identify the need vs wants - if you are buying something think if you really need to buy this things or can delay after sometimes.

5. Compare your expenses to the salary you receive - if the expenses is bigger your salary need to adjust, either you tighten your expenses or create other income.

Try to apply this habit and be conscious with your expenses, after that your next step is to start investing.

Remember that it not  the salary the you receive but how much money was left to you. It is more a discipline of saving rather than complaining to your salary. There is always a way to get out of our poverty life.

Start applying this habit and go to the next level.. the INVESTING. Never rely on your salary alone. Getting higher salary makes you better but not wealthy.

P.S. 1. Bernard B. Anduyon is an OFW based in Qatar. He is a speaker and trainor for OFIE-M (Overseas Filipino Investors and Entrepreneur – Movement), a small group of Filipinos that advocates and teaches fellow OFWs to be investors and entrepreneurs. He is also a long-time member of Bo Sanchez' Truly Rich Club http://bernard.trulyrichclub.com. 

P.S. 2.  If you, your family or friends are based in Qatar, then I’m inviting you to attend our financial literacy talk series every 1st and 3rd Mondays of every month at Al Thumama, Doha. I give talks on diverse topics such as abundance mindset, financial planning, investing and entrepreneurship for Filipinos. I am also a trainor for PINOYWISE-ATIKHA, promoting awareness on issues affecting OFWs and their families as well as financial literacy.

If you want a financial coaching, you can send email to b_anduyon@yahoo.com

Please like the pages:  

https://www.facebook.com/trulyrichcouple

https://www.facebook.com/OverseasFilipinoInvestorsEntrepreneursMovement

Are You Emotionally Driven?

Investment is often regarded as a strategic, methodological and an entirely rational process. Yet, this is not always the case. In practice, the simple goal of maximizing gains and minimizing losses is very challenging - and often not very logical - for many investors.

Emotion is one of the important factors to be considered when you are into investing. Your decision must be based on logic and on facts, not emotions. This is one of the difficult things to overcome. Sometimes, we make decisions based on our emotions and then justify those decisions with logical reasoning.

Managing emotions is one of the key things to become a successful investor. A few weeks ago, the Philippine Stock market was at its  drop-- from being bullish, it met almost the bearish trend. During that time, all network groups and pages in Facebook have different posts and reactions. Some were happy and started buying and buying more. Others were fearful and sold their shares at the slightest indication of a price drop. Who wins in the end? The wise investor who studies the market situation, manages his emotions and acts according to reason.

A field of study known as behavioral finance is dedicated to studying the emotions behind economic decision-making. Behavioral finance borrows ideas from economics, psychology, game theory and even evolution, to model decisions by individuals. Some of the “irrational” behaviors they observed include: framing, which means the way a decision is presented affects an investor’s action, and loss aversion, which means investors strongly prefer to avoid a loss rather than to miss an equivalent gain.

Another area of emotion-laden decision making occurs throughout the boom and bust cycle of stock markets. Here, the interplay between fear and greed is the chief driver. And unfortunately, these emotions are counter-productive for most investors. In other words, emotions lead to poor investment performance.

While every investor tries to invest with their head and not their heart, he or she will also recognize that markets themselves are a clear reflection of public opinion and trust. Though markets are highly reactive to investors’ emotions, a step back reveals that movements driven by investor sentiments are a lot less unpredictable than one might expect.

Indeed, just as markets move in cycles, investor sentiment also follows a cycle that repeats itself every seven years or so. Emotions evolve as we progress along the cycle and correspondingly affect our decisions. Understanding this cycle of emotions is not just instructive – it can help us generate higher returns by investing at times of fear and being less sanguine when confidence is overflowing. Hence, the trick is to react in ways that will help us make the most of the ride on this emotional roller coaster. 

How would you react?

Emotions to be managed by investor to achieve his/ her financial goals:

• Panic -  an emotion that mostly happens when the market or investment drops a certain limit which the investor cannot resist, the fear of losing mostly in the short -term.
• Excitement - a feeling of great enthusiasm and eagerness. Opposite of panic, this emotion mostly arrives when the investor gains a small profit and feels like an expert.
• Fear – a negative emotion that blocks investors to take risks despite potential gains. Unless we overcome, fear we will never be a successful individual.
• Hope - is a positive emotion which promotes the belief that his/her investments will gain in the right time.
• Thrill - this emotion usually happens to the traders in the stock market, their personality is usually being thrill hoppers.
• Greed - an attitude of investor which usually happens when the market is up and it is the right time to sell but will postpone it believing he /she can still earn more. Example : “I won't sell now, it might still get higher.”
• Envy- a feeling of unsatisfaction with his/her profits when compared it with the bigger profits of others.

As investors, we need to understand that the market is tricky and requires a study to learn on top of studying to control our emotions. It is easy to say "Buy Low and Sell High" but the truth is, we are emotionally driven and get lost ourselves when things don’t happen the way we not plan them to be.

"The world of investing can be cold and hard. But if you do thorough research and keep your head on straight, your chances of long-term success are good".

P.S. 1. Bernard B. Anduyon is an OFW based in Qatar. He is a speaker and trainor for OFIE-M (Overseas Filipino Investors and Entrepreneur – Movement), a small group of Filipinos that advocates and teaches fellow OFWs to be investors and entrepreneurs. He is also a long-time member of Bo Sanchez' Truly Rich Club http://bernard.trulyrichclub.com. 

P.S. 2.  If you, your family or friends are based in Qatar, then I’m inviting you to attend our financial literacy talk series every 1st and 3rd Mondays of every month at Al Thumama, Doha. I give talks on diverse topics such as abundance mindset, financial planning, investing and entrepreneurship for Filipinos. I am also a trainor for PINOYWISE-ATIKHA, promoting awareness on issues affecting OFWs and their families as well as financial literacy.

If you want a financial coaching, you can send email to b_anduyon@yahoo.com

Please like the pages:  

https://www.facebook.com/trulyrichcouple

https://www.facebook.com/OverseasFilipinoInvestorsEntrepreneursMovement

Know Excuses in Investing

It was almost three years now when I started teaching financial literacy to our fellow OFW and Filipinos. It is funny but true that most of Filipinos are have a lot of excuses and alibi when it comes to their investment.

Ephesians 5:15-17

"Look carefully then how you walk, not as unwise but as wise, making the best use of the time, because the days are evil. Therefore do not be foolish, but understand what the will of the Lord is".

Here are some excuses that most of the Filipinos keep telling why they cannot start investing, and its run for a year so they fail to break their poverty.

WHAT IS YOUR EXCUSES?

JANUARY:

It was in my New Year’s resolution to start investing and change my lifestyle, but my 13 month pay and Christmas bonus was already gone paying for my bills, and buying gift to my “inaanaks” and relatives last Christmas season, a lot of reunion and party. I promise next month I will start investing for my future.

FEBRUARY:

It is a love month, I want to have a romantic surprise for my love ones and treat him/her to a great hotel and romantic places and of course I want to give him/her a surprise gift that she/he really ask before. Valentines happen only once a year so I will make it unforgettable and romantic experience. Promise I will start investing by next month.

MARCH:

My son is in the top and honor roll I must treat him, and my daughter will be graduating so we must treat for our family and friends as a gift for them. We are just proud parents and its ok to spend something for them. Next month I will be starting to save and invest.

APRIL:

Oh its summer time and its very hot inside our house we are planning to have summer out of town. We will be on the beach and also try to celebrate Holy Week by doing a pilgrimage. Wow I can wait for our family outing, it’s a great bonding and relaxing time for us. After this summer I will invest.

MAY:

I will prepare something this Fiesta in our town it’s our tradition to thanks God by preparing food and inviting friends. It will be happy celebration this year. After the fiesta I will set aside money for my kids school supplies need to buy them shoes and uniform etc. Maybe next month I can start my investing.

JUNE:

Gosh!!! A lot of books and school supply for my kids, new school year new expenses hayyy… The tuition fee almost increases every year. I really need to   start investing to beat inflation. Next month I will start.

JULY:

Oh my!! Its rainy season again, we need to fix our house specially our roof its already leak and raindrop falls inside our room. We need to renovate our house and be prepare for this season. I need to prepare and set aside money for this.

AUGUST:

I heard from my Filipino – Chinese friend that it is not a good time to invest, it is bad time because it is Ghost month. I will just keep this money in my pocket after this month I will start saving and invest.

SEPTEMBER:

My friends borrow money form and can’t say NO to him, his close friend to us. I can lend him our little savings

OCTOBER:

Wow!!!  Octorberfest again. !!! We will be watching concert and enjoying the party, it’s a whole month of enjoyable nights. It’s time to enjoy and relax for a moment and forget the work.

NOVEMBER:

We will visit the grave of our relatives and a kind of reunion, we will enjoy and it’s semester break for my kids. It is only time we can visit our departed love ones.

DECEMBER:

It’s Christmas time. We will buy new Christmas light and Christmas tree to feel the spirit of Christmas.  We will also go some shopping for the new stuff and gifts for our relatives’ friends and “inaanak”. We will also start going to the malls for our traditional groceries like Ham, Keso de Bola etc.

Now are you wondering why lots of Filipino never starts investing or even start saving? They always make excuses and alibi. They delay and procrastinating is one of the best enemies of investing that block us to start fulfilling our dreams.

Don’t get me wrong, me and my wife also spend time enjoying vacations and holidays, we also have a weekly dates and we also celebrates special occasions in our life such as anniversary, birthday etc. but we budget everything. We spend less but we enjoy being each other. Be wise and practical in spending and celebrating special occasion, you can be artistic and creative in doing that things. You use your gift you save and you enjoy.

The first steps in our dream are one of the difficult things, but once we start us already make a first step to our goal.

To become a successful individual always start with a small things toward your dream, along the way hindrance and difficulties may be present but just keep on moving it is just a test of your perseverance. Successful people failed but they keep on moving and focus on their dreams until they become successful.

The best way to start investing is not tomorrow or next week or next month, the best way is TODAY. Start by learning something and applying a small amount to your investment that you like and keep on learning on how it works, little by little you will notice you become confident and mastering your investment.

“You cannot escape the responsibility of tomorrow by evading it today.” ― Abraham Lincoln

P.S. 1. Bernard B. Anduyon is an OFW based in Qatar. He is a speaker and trainor for OFIE-M (Overseas Filipino Investors and Entrepreneur – Movement), a small group of Filipinos that advocates and teaches fellow OFWs to be investors and entrepreneurs. He is also a long-time member of Bo Sanchez' Truly Rich Club http://bernard.trulyrichclub.com. 

P.S. 2.  If you, your family or friends are based in Qatar, then I’m inviting you to attend our financial literacy talk series every 1st and 3rd Mondays of every month at Al Thumama, Doha. I give talks on diverse topics such as abundance mindset, financial planning, investing and entrepreneurship for Filipinos. I am also a trainor for PINOYWISE-ATIKHA, promoting awareness on issues affecting OFWs and their families as well as financial literacy.

If you want a financial coaching, you can send email to b_anduyon@yahoo.com

Please like the pages:  

https://www.facebook.com/trulyrichcouple

https://www.facebook.com/OverseasFilipinoInvestorsEntrepreneursMovement