3 Effective Ways to Financial Success?

A financial plan is a compass that steers you toward Financial success. It provides the roadmap to achieving your goals, whether it's building wealth, funding your dream retirement, or securing your family's future. While we financial advisors play a crucial role in helping clients navigate these waters, creating your own personal plan is entirely possible. In this article, we'll explore three essential steps to get you started on your journey to wise investment decisions.

1. Know Your Assets and Debts: The Foundation of Financial Stability

The first step to building a winning financial planning is understanding your financial position and your money saving strategy. Take stock of all your assets, which include properties, investments, insurance with cash value, and valuable possessions. Simultaneously, identify your debts, such as credit card balances and loans. The key principle here is simple: your assets should always outweigh your debts. By having a clear picture of your financial standing, you can identify areas for improvement and make informed decisions to achieve stability.

Know your Assets and Debts. Analyze where you are.

Now, if you do n’t have money to pay for your expenses do not borrow money from the bank.  If you have money to pay for the apparels, do n’t swipe your credit cards. The first measure you can do to increase your financial stability is to get out of debt.

2. Know Your Income and Expenditure: The Building Blocks of Wealth Creation

Your income and expenses are the heartbeat of your financial health. Assess your monthly income and compare it to your essential expenses like housing, food, and transportation. It's crucial to ensure there's room for savings, both short-term and long-term. If there isn't, create a budget that allows you to save consistently and allocate funds for future goals like retirement or homeownership. Remember, boosting your income, whether through a high-paying job or entrepreneurial endeavors, can help accelerate your journey to financial success.

Write down your expenses. 

When I went out of college, the goal is to land a high-paying job that would give us a higher income in our pocket.  The income you generated could be derived from your personal salaried income or the income that is generated from your business.

Your expenses, however, are the items that you incur in order to finance your operations.

The correct formula to savings and investment when it comes to expenses is:

Income – Savings = Expenses 

3. Know your Financial Plan: Harnessing Tools for Wealth Growth

Now that you understand your financial position and cash flow, it's time to design a financial plan that aligns with your goals and risk appetite. Explore various long-term investment platforms like BPI Trade, COL Financial, or consider VUL (Variable Universal Life) insurance products if you prefer a hands-off approach. Tailor your investment strategy based on your comfort level and desired outcomes. Additionally, work with professionals like accountants who can help fine-tune your plan to ensure you have enough funds for major life events like marriage, childbirth, or retirement.

Bonus Tip: Cultivate a Positive Mindset towards Money

Emotional and psychological aspects play a vital role in financial success. Adopt a mindset of gratitude and financial stewardship by setting aside a portion of your income for giving back, like tithing. This practice can help alleviate guilt and foster a healthy relationship with money. Remember that managing your finances is akin to managing your physical well-being - when things are off-balance, take corrective measures to steer your financial ship in the right direction toward investment tips for financial success.

Creating a winning financial plan is not reserved for the elite or financial experts. By knowing your assets and debts, understanding your income and expenditure, and crafting a personalized financial plan, you can pave the way to your financial success. Take charge of your financial future, seek education, and build a healthy relationship with money. 

Remember, the journey to financial stability and prosperity begins with a single step, so start today and watch your dreams become a reality.There is a commonality of this behavior to the idea of managing your physical body.  When you doctor addresses your weight as the source of your obesity, he advises you to get well and do exercises every day.   It is the same way with your finances.  When your expenses do not equate to your income, you must do something to stop your excessive spending.  In this way, you will make it right!

Literacy in the Philippines

In the Philippines, financial literacy is an urgent need. Gallup's statistics show that only 25% of adults possess basic money management knowledge. This lack of financial literacy contributes to challenges faced by Filipino families, including limited savings and investments despite years of hard work. The nation must prioritize financial education programs to empower its citizens with the knowledge and skills to make sound financial decisions.

The Philippines needs more literacy programs on how to handle finances.

About the author 

Jack Marbida  is a husband to his wife Wene and a father of 2 little boys Isaac and Israel, he is a financial advisor, speaker, and writer who helps families be financially stable and grow their relationships. He works with families to help them reach their goals by teaching them about financial literacy and helping them develop a healthy relationship with money.

He has been featured in Sun Life Financials and others for his work as a financial coach. He is also the founder of Online Advisors Financial Education, which provides free educational content through blogs and videos.

Jack speaks at conferences across the Philippines on topics such as family finances, and personal and professional growth.  

You can contact Jack Marbida through his social media accounts or email him at papajackph@gmail.com.

Cheers!