PERSONAL FINANCE CRASH COURSE (Charm de Leon)

SAVE
WHAT IS THE POINT
Save
FINANCIAL FREEDOM - Pay yourself first

Financial Freedom Typically:

- Nothing beats sleeping well at night knowing you’ll be fine  Income – Expenses = Savings (Savings = Not constant,
for the next 10 years sometimes ZERO)
- Frequently associated with retirement Ideally:
 Income – Savings = Expenses (Savings = Prioritized)
RETIREMENT
IMAGINE YOU’RE A COMPANY
Current Landscape
 Men 67 years old
 Women 70 years old
 100 Retirees = 2 people are financially independent; 30
depend on charity; 23 continue to work
 Average monthly pension = Php 8000

THE RAT RACE

The Rat Race

- Robert Kiosaki
- Work hard (Fear) > Earn Money > Pay Bills > Lifestyle
(Envy) > Lack Savings (Guilt) > Debt (Shame)
- Pay for expansions first and then pay company expenses
PSYCHOLOGY
SPEND
How do we escape?
Spend
- Financial literacy = know the basic steps of managing your
- Learn to budget
money
- 74.7% Filipinos belongs to LOWER CLASS FAMILIES
BUDGETING RULES
(P328,000/year)
- Only 25% are Financially Literate
- 89% of Filipino youth rely so much on their parents’
financial knowledge
- <5% of Filipino families saves regularly and has a family
budget

Anxiety & Avoidance

- Budgeting without worrying

Personal Finance
- Has a lot to do with Psychology
- Psychology not prepared, unhealthy relationship with
personal finance NEEDS
- Moderate Fear, Envy, Guilt, Shame is good  Rent/House Loan
- Humans are meant to have emotions, harness them to
 Utilities
propel you forward in your financial goals
 Food
 Transportation
WHERE DO I START?
WANTS
EARN  Shopping
 Eating/Drinking out
Earn  Entertainment
- You cannot spend what you do not have  Travel
- Have at least 2 streams of Income (Salary + Side Hustles)
- Online side hustle, graphic design, writing, powerpoint, FINANCE STUFF
excel, painting, baking, cooking  Emergency Savings
- Knowledge & Skills = Additional Income  Investments
o Seminars, online courses, keep learning
 Insurance
 Savings for ____ (Financial Goal)
 Retirement Fund
DIGITAL BUDGETING
- Apps, Excel/Spreadsheet, Websites, Online Banking
 - Fudget App, Moneyfy, Notes app, other apps  Use life savings
 Sell assets/things
MANUAL BUDGETING  Borrow money (utang)
- Bullet journaling, Print outs, Cash envelopes  Fundraise
 Die
Gap
- Earn more and spend less
INVEST
WHY IS MY SAVINGS NOT GROWING?
Invest
- Grow your money
LIFESTYLE INFLATION
Why we need to invest?
Lifestyle Inflation - Due to inflation
- Milktea everyday, taking grab over jeep, stress shopping,
stress eating, wanting the latest gadgets
- It takes discipline: sacrifice milktea (instant gratification)
for condo (delayed gratification)
- Enemy = YOLO, you only die once

PROTECT

Protect
- Against S.A.D. events in life
- Sickness, Accidents, Death and Disability

EMERGENCY SAVINGS
- 3x-6x your monthly expenses (i.e. Php 10,000 = Php - Inflation Rate in PH: Ranges from 2-4%
30,000-60,000)
High-Yielding Savings Account
- ING and CIMB Bank = 4% per annum base interest
- Online banks: no physical branches

WHAT WE SHOULD DO

Bonds
- Debt Security (loan to bank or companies - conservative)

Funds
- Managed pooled funds

Stocks
- Company shares

Real Estate
- Property (Land or Building)

- Emergency savings: money that is already gone WHY IS MY SAVINGS NOT GROWING?

INSURANCE
ASSIGNMENTS

 Know your expenses

 Write down you financial goals

What people usually do