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Our Guide to Personal Finance

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Avatar for FarmGirl
Written by   337
1 month ago

(21:50) 250921N102 Saturday

Magandang buhay, lovely souls! I hope you are doing mighty well this weekend!

I encountered some people who are just like me, getting surprised that it's already weekend. Time follows its own pattern, and as far as we know, it has never deviated from its course. It's just that we feel it passes by so quickly.

This reminded me that I am not getting any younger, and so is everybody else. Days turn into weeks, weeks into months, months into years, and before we know it, we will then be old. And old age comes with different challenges.

And of course, we don't want to be working for money until we are old. And as much as possible we want to enjoy the sweet life while we are still young and able.

Our Guides to Personal Finance

The farm boy and I have had some series of financial blunders in the past that made us experience being broke. After bouncing back from that situation, we both agreed we need to do something about our finances so that we won't find ourselves again in such a distressing situation.

I don't remember how we come up with these or where we might have copied them but I had them written years ago and pinned on our wall. They have become our personal guides to keeping our finances at least in order.

DISCLAIMER: The ideas and thoughts expressed in this write-up are my own opinions and or experiences and should not be regarded as financial advice.

Save and Invest

As the words imply, savings is the first thing we take away from our income and is not lower than 10%. Where possible, we save more than 10%. This idea came from "The Richest Man in Babylon" where it said, "a part of all you earn is yours to keep." This savings will never be touched no matter what need arises. It is intended as savings that will be invested in time.

We are still learning and though we have some investments in stocks, we still have to grow our holdings. We also have some in crypto and thanks to Noise and Read, we are adding to it.

Here in PH, there's a savings option in PAGIBIG where one can save either monthly, quarterly, semi-annually, or annually and share dividends every year. We have been paying our premiums since 2011 and I can say we can see its growth.

Live on a budget

I admit we used to live extravagantly in the past. We never budgeted. We just spent whenever we wanted and never even thought about setting something aside for emergency purposes.

But having learned our lessons the hard way, we started keeping tabs on our expenditures.

Budgeting doesn't mean becoming so stingy to the extent that we do not give in to some of our desires. It means living within our means and still have fun, add to our savings, and investments.

Since we save the 10% from our income, the 90% are budgeted for our living expenses, donations, entertainment etcetera. When we don't spend all of the 90%, we set aside an additional 20% as part of our emergency fund. I can say we never had any difficulty since we started this scheme.

Avoid bad debts

We avoid bad debts at all costs. When we need additional funding at times, we just borrow from my siblings or my parents to avoid incurring any interests and then pay them as soon as we can.

We have learned hard when we overused our credit cards some years ago for some bad investments. Those were mistakes we don't want to repeat.

I think taking a loan is okay as long as the money will be used to create income that will in turn pay off the loan. By then, it is "good" debt. But even though, we still avoid borrowing.

Be incredibly generous.

This is an important part of life I guess. Giving more than what is expected. It's an added joy being able to share a certain portion of one's income with others especially those who need help most.

**Foster high-quality relations

Obviously, this has nothing to do with finances or it has to a certain degree, but it is included in our guide. I guess it is needed in any undertaking or in life in general. "No man is an island" as the famous adage goes. We do need other people in order to live a full and successful life. High-quality relations to me means the absence of toxicity, there is harmony, and there is "give and take." It also means associating with people who share your goal or if not, at least encourage you to be better and do better.

These have been on our list for some years now and had become our guiding principles to handling money and still enjoy life at present.

How about you read stars, have you any principles you follow in matters of your finances? Please share them too, thank you :)

**Credits to Unsplash for the lead image.

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Avatar for FarmGirl
Written by   337
1 month ago
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Comments

Good tenets of a bright financial future ahead. I wish more people took more concern over their finances...it would make a world of difference for a lot of people. I think the most important thing is recognizing when and where things are going wrong, and then setting out to fix them—just as you have done. And you will thank yourself one day for it. :)

$ 0.02
1 month ago

The experiences we have had taught us to get to the bottom of our finances :) That is why I always make ourselves as examples to younger people especially those who are earning on their own to start young and not commit the same mistakes we did when we were their age :D

Thank you :) I believe we will :)

$ 0.01
4 weeks ago

emergency fund is a very important one indeed... and yes borrowing from the family is the best option! sometimes, it becomes a giveaway too! this list with tithes on top :)

$ 0.02
1 month ago

Haha true sis, nalilibre pag sa fam :) and yes to tithes!

$ 0.00
1 month ago

No wonder why you guys are having a good business .. I can tell 🤭 I would take this advice..

$ 0.02
1 month ago

Haha, we have no business sis😁 Good morning and enjoy your Sunday :)

$ 0.00
1 month ago

So pure farm lng. Pra sa inyo lng?

$ 0.00
1 month ago

May separate farm for the market sis. Don galing ang income :)

$ 0.00
1 month ago

oops, I thought it was fiancee. Btw, I try to save but always end up with nothing. I will try to follow your advice.

$ 0.02
1 month ago

Haha😁 Cheering you on your savings goal :) You can do it💪

$ 0.00
1 month ago

The guidelines you gave are all right. We need to save and invest part of our earnings. Not all should be spent. Also being generous brings in more blessings

$ 0.02
1 month ago

Thank you HB :) Kudos to you, you are young and you know those things, I believe you are good on your finances.

$ 0.00
1 month ago

I will copy your style and have this written down and attached to a wall

$ 0.02
1 month ago

Hehe, it's up to you:) We did it to be reminded at all times when we were just starting. Once it becomes a habit, it will be easier :)

$ 0.00
1 month ago

thanks for this ate. As much as I want to save, it'll always end up in someone's wallet hahah

$ 0.02
1 month ago

Haha kninong wallet sis, bigay ko na din wallet ko sa yo bka maambunan :D

$ 0.00
1 month ago

The budget advice is the vital point. We must ensure it first before taking steps.

$ 0.02
1 month ago

It is, that's true. Although the budgeting for us comes after we set aside the savings amount :)

$ 0.00
1 month ago

My wife and I have our minds set on our future and that of our son. We have always liked to save a good part of our income. The health situation of my son makes us always be cautious, in addition to providing him with a future with a little capital saved by us would not be bad at all. We hate debt and we haven't been through it. They are very complicated. Despite not being a financial guide as you say, your advice is very useful.

$ 0.02
1 month ago

I adore you and your wife on how you think of your son's future and your finances. Salute to you both :)

$ 0.00
1 month ago

It's correct that we must not loan money because it may cause to stress. Saving small amount of money will be big help for the days coming, we don't know what is waiting ahead of us.

$ 0.02
1 month ago

I am with you on that Theodore, small amounts can grow as long as it is done consistently.

$ 0.00
1 month ago

I remember I made lots of financial blunders as well last year during the lockdown, I invested in a couple of scams online and lost a large part of my savings. I felt really bad but I told myself I will learn from that experience and I stayed away from any investment online (except crypto 😉)

These days I give myself a monthly budget and try to stick to it and it works most of the time except when I have some unforeseen emergencies

$ 0.02
1 month ago

Oh, scams are nasty. But just like you said, we learn from experience. It's good that you know how to budget while you are young, congratulations!

$ 0.00
1 month ago

Thank you ma'am 🤗

$ 0.00
1 month ago

For now, avoid din talaga ako sa pagkakaroon ng utang kasi binibigyan lang ako ng stress kapag hindi nakakapag bayaf ng tamang oras 🤧

$ 0.02
1 month ago

Tama yan sis, daming napapasubo sa utang, wag na tayo sumali hihihi

$ 0.00
1 month ago

I try to save as much as I can. And I hope I can find other resources for me to earn more.

$ 0.02
1 month ago

That's good sis! Sulat ka sa hive or sa steemit :)

$ 0.00
1 month ago

Iba talaga kapag marunong humawak ng pera. Ako sa super mapagbigay ko inabuso na ng mga kakilala, di ako umuutangbpero sila umuutang, buo nilang kukunin pero pahirapan singilin kaya cguro self savings lang ako at dapat ako lang nakakaalam. Maganda sana yong save and invest

$ 0.02
1 month ago

At least alam mo sis, aware ka na inaabuso ka. You can try to say no pag may mangungutang ulit :D and yes, you can save din for yourself :)

$ 0.00
1 month ago

You have a good financial plan. I also try to stick to something like this. Although, in the last few years, it has been difficult, and almost impossible to save due to the crisis here. My crypto investments are now my savings for the future.

$ 0.02
1 month ago

Thank you, Eliana. It's needed hehe. Glad there is crypto that help us in some ways :)

$ 0.00
4 weeks ago

Ako sis, nganga dati..I know I should have saved and invested. I admit, I had too much fun when I was still single. Good thing magaling humawak ng pera yung partner ko. Nung may work pa kami dalawa, sya ang humahawak ng pera namin. Thanks for the tips and the reminders :) I learned a lot.

$ 0.02
1 month ago

Apir tayo dyan sis, magaling tayo gumastos, lol. Pero kidding aside, it is good that your partner knows how to manage your money. Kami non, pareho kaming lustay :D

$ 0.00
1 month ago

I learned a lot from him sis :)

$ 0.00
1 month ago

Well, I can say one thing while staying with you people, you all have pre planned life. That's tremendous.

$ 0.02
1 month ago

Thank you Irina, not all were pre-planned though :)

$ 0.00
1 month ago

yep.. learned the hard way too.. so always save and invest and don't forget to set aside some for emergency fund... thanks for the reminder sis

$ 0.02
1 month ago

At least natututo tayo sis :) Salamat

$ 0.00
1 month ago

It seems like I invest too much right now that almost nothing is left for savings, whoops. 😅 Maybe 15-20% is a good saving amount per month.

$ 0.02
1 month ago

That's awesome! Yes, the more we save, the better. Congrats to you!

$ 0.00
1 month ago

I am also saving and investing too especially for my NYSC after graduation. This is a compulsory service to all Nigerians to be posted to different states to serve their country and it's a one year service after graduation and for me not to be stranded, I need to save to rent a house, buy things and take care of my house. Also, I have other things I am saving and investing for. All thanks to read.cash and noise.cash

$ 0.02
1 month ago

That is amazing Princess that you know and do all that while you are very young and I must congratulate you on that :)

$ 0.00
1 month ago

I really appreciate you and very happy to find you . someone suggested me to read you're Article it will Give Me Success and more knowledge .
I visit first time on you're article and Best Wishes For You

$ 0.02
1 month ago

Oh, thank you so much, that is so nice of you. Glad to meet you here and all the best to you too. Let's enjoy our journey here in readcash :)

$ 0.00
1 month ago

This kind of guide is really needed for personal financing. I myself was not aware of this, I hope it will be from now on.I think budget advice is important.

$ 0.02
1 month ago

You can start when you feel good about it :)

$ 0.00
1 month ago

Save when I am still young. Saving and live on budget is my one way to live having financial freedom when I am older enough and can't work to earn.

$ 0.02
1 month ago

Congrats and cheers to you on that Maryel :) Cheering for you :)

$ 0.00
1 month ago

I am also cheering with you :)

$ 0.00
1 month ago

My sisters and I have been wary of credit cards because of our parents financial blunders when we were still kids. We werent also properly educated about savings and all that Kaya when I finally got a job panay waldas ako hahahuhu. But now my husband and I have invested on insurance and are now working on building up savings habang maliit pa ang bata ang hindi pa bongga ang gastos 😊

$ 0.02
1 month ago

That's good sis, mahirap din talaga pag hindi naturuan early on. Pero good din kasi at least you now know what to do :)

$ 0.00
1 month ago

I enjoyed reading this article of yours since I'm in my low financial situations. I thought I saved up so much already for the past two years, needed to build for our future house, so me and my hubby enjoyed spending our money for the past three months. And today, I'm at the bottom again. Although, we have savings, but, strictly speaking, that's intended for the house expenses.

So now, I'm doing sorts of work I can just to pay my monthly bills, same with my husband. Whew.

The principles should still be instilled in us no matter how poor or rich we are. Whew. I'm experiencing the hard life now. Lols. Still, let's enjoy life. ☺️

$ 0.02
1 month ago

I congratulate you that you were able to save up for your future house :) I think you will get your way around your situation now :) Maparaan tayo eh hehehe.

I wish ituro sa school yung Financial Education or Literacy para habang maaga, matuto mga bata about handling finances hehe

$ 0.00
1 month ago

Oo sis. About 1/8 ung nasave ko for now eh hehehe.

True sis. Para habang maaga, may financial literacy sila.

$ 0.00
1 month ago

Nice! Kaya yan :) Sana nga maging part ng curriculum someday :)

$ 0.00
1 month ago

I'd have to agree with everything you said here, especially the fact that we need to control our budget. What I do mostly is...I pay myself a certain percentage of my earnings and the rest is directed to my savings.

$ 0.02
1 month ago

Congratulations to you Kris for knowing how to handle your finances :) Carry on!

$ 0.00
1 month ago

Yes ma'am.

$ 0.00
1 month ago

This is so timely, sis. Ang hirap na kasi ngayon, puro out na lang ang pera hehe.

$ 0.02
1 month ago

Kahit puro out sis kung in the long run may IN hehehe. Happy Sunday :)

$ 0.00
1 month ago