It's Time!

March seems to herald everything that pertains to the fairer sex: beach, summer blossoms, and hotter-than-thou temperatures. Incidentally, it is the celebration of women’s month, where equal rights and opportunities go beyond bikinis and piña coladas. Read the rest of this entry »

Something hit me a few weeks ago. It was like a breath of fresh air, much like the first sprinkle of rain after a long summer. I feel the heat escape in such a beautiful rush of emotions. Serenity replaced an otherwise chaotic mix of fear and apprehension for the future. Read the rest of this entry »

Let’s cut to the chase. Every year, the lists of New Year’s resolutions bulge with promises of wealth building, frugal spending, and other moneymaking undertakings. Then twelve months and an empty wallet later, we all feel like a dunce when it comes to our finances.

Well, a dunce I won’t be anymore. So, to the tune of imaginary drum rolls, I herald the start of my Great Financial Adventure 2010 edition. I’ll ward off the temptations luring me to imminent bankruptcy, or abject poverty, whichever comes first.

Rude Awakening: The reason cash is described as cold and hard is exactly that – it could be such a cold and hard endeavor.

Believe me. I’ve experienced the pitfalls that led to being a financial nincompoop, and it helps to mark them as early as you can:

1. High expectations. “Oh yes, I’ll earn my first million this year, but I don’t know how to augment my current income.”

2. Vagueness. “Hmm, a retirement fund sounds nice. Poof, end of story.”

3. Complacency. “Nah, I’ll just double the money I’ll set aside on the next payday, so as to accommodate my shopping splurge this week.”

4. Frustration. “Well, there’s always next year.”

Not-so-Rude-Awakening: Outlive, outsmart, and outplay – money need not be as cold and hard as frozen assets.

Seeing that there are no hard-and-fast rules for financial freedom, I’m assuming that it is but an adventure, like everything else in our life. Thus, I commit to:

1. Outlive my income beyond the next payday.
This simply means that I’ll not burn my payroll to the ground, waiting for the 15th and 30th to replenish my supplies. Outlive the normal cashflow!

2. Outsmart myself when urged to spend.
Any purchase must pass a litmus test, which begins with ‘Free’ and ends with ‘Borrow’. If the object of your desire falls in this conundrum, then there is no sense in parting with the hard-earned cash. Outsmart the biggest hindrance to prosperity, which is actually your self alone.

3. Outplay past failures.
Isn’t it about time to start winning the Battle of Finances? Save. Invest. And know the difference.

Whoever said it’s the thought that counts is a complete fool.

Oh, there’s no denying that Christmas is here. Aside from your calendar only having one page left, the cool morning air serves as a daily reminder. Read the rest of this entry »

Yes, it’s that time of the year again. And no, I’m not just talking about the holiday rush. For us working professionals, it’s a different kind of rush we love to call BONUS.

Made you smile, didn’t I? But notwithstanding the ‘treat others’ and ‘reward myself’ mindset of extra cash, wouldn’t it be great to give a gift this season that literally keeps on giving? I don’t want to sound like Scrooge, but really, there’s a better way to handle your Christmas bonus.

Rude Awakening: Bonus boom and bust cycle

Where has your bonus gone, you ask. Oh, it’s all in your closet, in your brand new phone, and maybe in that swanky 40-inch LCD that you got for a bargain. Let’s face it: we are all conditioned, teased, and eventually convinced to spend recklessly in this so-called season of goodwill and hope. The Christmas spirit has transitioned well into a definition comprised by weekly mall-wide sales, midnight madness, and party packages.

No, this will not be a sermon, but who are we kidding? When we’ve finished spending our bonus on non-essentials, we’re back to the reality of soaring prices of basic necessities. So in today’s cash-strapped reality, there’s no such thing as extra cash.

Not-So-Rude Awakening: Your bonus can come a long, long way – if you want to

See, we need to change our behavior towards our bonus, if we want it to stay in our hands long enough to be transformed into something more profitable. But how?

1. Let it be. Stop obsessing over how to spend your bonus. Instead, go out of your way to make sure that it stays put.

2. Invest. There’s a reason it’s called a bonus – it’s essentially more than your usual provision. If you haven’t thought of where to spend your money just yet, don’t let it sit still and do nothing! Mutual funds cater to different types of people with different financial objectives and investment horizons. So know your options and make your money work hard by investing it.

3. Start a business. If you can’t beat them, join them, is what they say. I’m referring to the innovative entrepreneurs who see opportunities on how to make their money work harder for them. It could be as easy as starting out with selling food, clothing or other basic necessities at work, with very minimal capital needed.

4. Donate. Well, there will be no immediate karmic pay-out in charity, but hey, you feel good, right? And holiday or not, the satisfaction of knowing that you’ve been a big help is priceless.

Now, can you think of other ways so your bonus will not melt like the butter over a bibingka?