financial wellness

Jul

2022

4 More Tips to Improve Your Financial Wellness

Reading Time: 2 minutes

We have provided common sense money advice before. Here are 4 more tips to help you improve your financial wellness. These additional tips should be a big boost to transforming your financial wellness for the better.

1. Pay in Cash

To help you stick to your budget; you need to remove the temptation to swipe your credit card. So it is better to carry cash with you. This way, you can allocate different amounts to different expenses instead of taking out your credit card. You can use envelopes or your wallet dividers to visually distribute your money. With this method, you also get to see how much money you have left. This means that you will be able to say “No” to some expenses or money leaks that is not allocated for in your current budget. Paying for your purchases in cash is one way to help you get closer to your goal of being debt-free.

2. Build Savings

Before you start investing; make sure that you already have your emergency savings in place. Your savings account should be equal to 6 months of your income. This allows you to be able to pay for your basic necessities and regular expenses in case you lose your job. It will also ensure that you have money to support you in case of emergency situations such as needing to repair your house due to natural calamities or needing to buy a new laptop for work, etc. This is different from an allocated savings account for planned expenses. For example, if you want a new sofa; then you can save up for that amount aside from your emergency savings.

3. Financial Health Check

As you are tracking your expenses and trying to stick to your budget; it is important to do a regular health check of your finances. This allows you to see where you can improve things and create a better budget that suits your current needs and goals. If you are paying-off credit card debt, then talk to personnel from your bank to review where you are in your goal. If you are already investing, then review your losses and gains and any potential areas for further growth. More importantly, check the status of your savings; have you maintained it and/or is it growing as your income has grown? What other things can you do to generate more income?

4. Maximize Employee Benefits

One more thing that you can do to improve your financial wellness is to check if your employer provides financial wellness programs. This could be in the form of monthly contributions (thru government agencies) or other programs offered by the company itself with other 3rd party partners. For example, your company might have partnered with a bank to provide employees with special rates for maintaining a time deposit or savings account. Ask your colleagues or inquire from designated personnel in your office if these options are available.

If you are just starting out on your financial wellness journey; make sure that you do your financial wellness assessment first. This way, you know which areas you can improve on and which areas you are good at currently. Don’t forget to keep improving your financial literacy as well. Remember that there is no one budget or investment strategy that fits everyone and works all the time. You always need to be aware about where your money goes so you can adjust your financial strategies accordingly.

Feature Image: Original Photo by Towfiqu barbhuiya on Unsplash.

Apr

2022

Is Having a Credit Card Good or Bad?

Reading Time: 4 minutes

Have you ever wondered whether having a credit card is good or bad for you? For most newbies in their first jobs, getting a credit card is a sign that they are finally independent! It is a cause for celebration and may cause many to eagerly take the irresponsible first swipe.

Being approved for one might seem like an achievement. It’s like announcement to the world that you can now pay for your own bills. But when you see your first bill or several unpaid bills afterwards; your feelings might change and you might feel less independent and more helpless.

For those already mired in debt, it becomes the object of many negative feelings. They might event want to just get rid of it. The usual advise for newbies is to not acquire one in the first place because it’s a debt trap.

The reality is, you can have a credit card and not be trapped in debt. Many have learned this the hard way and have now learned how to handle this financial tool more responsibly. Here are some reasons and lessons on why and how it can be bad or good for you.

The Bad: How NOT to Use Your Credit Card

Let’s try to get the negative stuff out of the way first. Many of the negative feedback that has accumulated around credit cards is mostly due to a lack of understanding. Not knowing how credit cards work can lead to irresponsible swiping.

To avoid getting into the debt trap, educate yourself. Make sure to read the fine print and ask questions about your credit card before your first swipe. Then, make sure to not do the following:

Charge items that you can’t pay off immediately on your next salary schedule.
Exceed your credit card limit. Please don’t do this especially on your first swipe.
Paying only minimum payments.
Making late payments.
Owning too many credit cards. If you haven’t practiced managing just one, don’t assume you can manage more than one.
Lending it to somebody else.

Sadly, the last one is one of the most foolish things you can do when you get your credit card. Peer pressure is a strong influence and most people just can’t say no to a friend in need. Learn to say NO or you might get yourself trapped in debt that is not even your own. You might even lose a friend in the aftermath.

If you are already having problems; there are ways on how to get out of your credit card debt.

The Good: How to Use Your Credit Card

Now for the good news. Being a responsible credit card user means enjoying its many benefits. You don’t have to be burdened with enormous debt as long as you keep these things in mind:

Pay for your swiped items as soon as you get your salary.
Do not exceed your limit. Try not exceeding 70% of your limit. This gives you some leeway for unaccounted expenses that you need it for.
Pay more than the minimum payment. This will ensure that you lessen the principal amount and not just the interest and charges. If possible, pay your card balance in full every month.
Pay on or before the due date to avoid additional late fees and charges.
Keep yourself to one card and learn how to manage it well.
If a friend needs your credit card, ask them to pay you in cash first, then swipe. Make sure to transfer the cash payment immediately as well.

You should only use your credit card for some else because they need it to complete a transaction. This means that they should already have the cash to pay for the transaction in the first place. It should only be a “way” to facilitate the payment and not the actual payment. If it were to be the actual payment, then they should ask to borrow cash from you instead.

Remember that using your card as the actual payment includes interest fees and charges if not paid on time. So if your friend insists that they will pay for the payment using your credit card; make sure they agree to shoulder additional charges if they fail to pay on the due date.

Why Should You Have a Credit Card?

A credit card can provide you with several benefits if you learn how to use it responsibly. Here are some advantages to having one:

Spread Cost

Credit cards allows you to make purchases that may not be available another time. For example, if you don’t have cash yet, you can use your card to pay for the item. You can then pay your credit card at a later date.

Pay Online

Some online services require credit card payments such as some airline companies and other online shops. It is handy so you can pay for the transaction. You can purchase the item you want which is not available or inconvenient to get hold of offline.

Make Reservations

This also usually occurs online. Some companies require a credit card for you to make a reservation. They do this even if they don’t actually use it to receive the payment from. It just serves as a guarantee or insurance of sorts. It demonstrates to them that you are indeed capable of paying for their services or products.

Consumer Protection

This is one of the most basic but also the most taken-for-granted benefit of a credit card. Most credit cards alert you to online scammers on their black list. If you use it to make a purchase from a blacklisted seller; your credit card company may decide to cancel your transaction automatically. They may call you to warn you about the seller so you can choose to cancel the transaction immediately.

If you have issues with a transaction, or the goods you received are faulty; you can request for a refund from your credit card provider.

Get Something Back

Good credit card payers and loyal users are often rewarded with cash rebates or freebies. These can include free items when shopping like free tickets to concerts, exclusive invites to hotel buffets, special events, rebates and many more.

Of course, all these benefits can only be enjoyed if you are a responsible user. You should have a lot of time to practice as it takes some time to accumulate points.

So is credit card, good or bad? The answer depends on how responsible you are at using this financial tool. If you are fairly good at managing your card, then you are on your way to financial wellness.

Updated. First published on Pinoy Smart Living on 2019.01.22.

Feature Image: Original Photo by rupixen.com on Unsplash.

Aug

2021

How to Spot Investment Scams

Reading Time: 3 minutes

The only way to grow your money is through investment. Leaving your money in a regular savings account is never enough because of the low interest rate. More often, inflation will take the value of your hard earned savings. But where do you invest your money? There are many types of investments available out there depending on your age, goal, time horizon and risk appetite. While there are legitimate ones, there are also some which are fraudulent in nature. As an investor, it is important that you know how to spot investment scams.

1. Low or No Risk, High Return

If someone offers you an investment that is low risk yet offers high returns, you are most probably getting scammed. Investing is all about risk. Whether you are buying bonds, funds, stocks, stock option, real estate, antique or any other kind of investment; there is always risk involved. The same is true when you are opening a business.

The general rule of investment is that the higher the risk, the higher the potential return. If the investment being offered to you defies this rule, then it is a scam. These kinds of investments are what you call phantom riches. It simply means that they are dangling the prospect of wealth, knowing full wealth that it is something that you want but can’t have.

Always remember, “If it is too good to be true, it is too good to be true.”

2. High Pressure Sales Tactics

Avoid being rushed. Example high pressure sales tactics include:

Limited Time Offers
Available Only to First Few investors
Invest Today and Get Credits

Although high pressure sales tactics are considered legitimate marketing strategies, scammers used this primarily as their persuasion technique. Their goal is to have you commit to the investment right away so that you will have no time to do your research or change your mind. Never entertain those that give you pressures or force you to make a quick decision.

If you are going to invest your hard earned money, you need to have ample time to think about it and do your research. It is one of the investing rules from The Richest Man in Babylon. Know what you are getting yourself into. Yes, do your research even if the one offering you is a close friend or family.

3. Unsolicited Approaches

If they just contacted you out of the blue; chances are it is a scam. How did you learn about the investment? If you learned about it through a phone call, email or text message from someone you don’t know; Some of them will even ring your doorbell. This is what you call cold calling. Their intention is to sell something or make you invest in something. Although it is not illegal, it is best to be wary of them.

If ever you receive an offer, get the following details:

Full name of the person
Company name and address
Telephone number preferably landline not a cellular number

Do not deal with them if they seem hesitant to give their information. Once you get all these details, hang up. Tell them that you think about it and that you will be the one to call them back. Then do your research. Make sure that the company is duly-registered. It is best also to check if the type of investment is regulated by the government.

4. Requirement of Getting New Participants

Multilevel marketing is a sales strategy wherein distributors are encouraged to recruit new distributors. Many big companies use this as their marketing strategy. Although it is legitimate, it is also very controversial. Many people have been scammed with pyramid schemes. How to spot the legitimate ones from not? Simple, the legitimate ones focus on product sales while the scammers focus on recruitment of new members. If the earnings are dependent on how many people you can recruit, then stay away from it. It is a pyramid scam.

Do not invest in something that you are not familiar with. Do your research first. Take your time. And soon, you will find a legitimate investment vehicle that fits your financial goals.

Feauture Photo by Anna Tarazevich from Pexels

Jun

2021

How to Create Your Safe Space

Reading Time: 5 minutes

Have you ever wondered how to create your safe space? Many of us are so used to the rush of our everyday lives that we have forgotten to consider our own sacred space.

A safe space can be defined in many ways. Basically, it is a place where we can feel safe, free from judgment and where we can do whatever we love doing. It is a place where we can hold open dialogues with those who are most important to us, or even with ourselves. In this safe space, we can feel free to express our innermost thoughts, hopes and dreams. It is also where we can vent out our negative emotions if necessary, without fear of the consequences. Your safe space is your very own magic shop.

Each one of us needs to create our own safe space to help us create balance in our lives. As we go about our daily lives; we move through spaces and places where we need to follow rules and restrictions. We are able to live in this environment because of our personas. But what about our creative, shadow selves? Ideally, our safe space is where we can come home, let go of stress and find comfort in the things we love.

1. Create a Space of Inner Safety

Feeling safe starts from within. Learning how to face the storms of life calmly is a rare trait but one we must learn. Before we can successfully challenge anything outside of ourselves, we need to calm our own hearts and minds. Create your own safe space for inner safety to start feeling calm and assured in your daily life.

Learn to practice meditation to calm your thoughts at the start of the day. Then, throughout the day; try practicing mindfulness. Knowing yourself first and what triggers your positive and negative emotions gives you more control of your reactions to certain situations. Make ritual of your self-care routine. A gratitude journal also helps you to appreciate the positive things in your life.

Another important factor to consider for inner calmness is how you talk to yourself. Smile at yourself in the mirror instead of frowning. This way, you are more encouraged to say something positive about the morning or yourself. Talk to yourself and learn to appreciate what’s positive or good about you. Let your good side shine through by freely expressing your good feelings towards other people as well.

2. Organize Your Physical Safe Space

The next space where you can create safety is in your home. Usually, your bedroom is the first place that comes to mind but you can make your whole home feel safe too. Just like how meditation helps you calm down your chattering mind; you need to create a tranquil atmosphere in your home. This is also where you can display your vision board.

The first step is to declutter your space. Start with your room. Make your bed as soon as you wake up. Inspect your cabinets and drawers and organize what’s inside. Get rid of things you don’t use anymore and give them to someone else or to recycling centers. Keep only the things you love and use. Then, clean your whole room or clean your whole house too. Afterwards, put your cabinets, drawers and desk in order. This is the time where you can decorate or redecorate. Finally, cleanse and refresh the energy of your space by doing an energy clearing routine.

Make sure there’s a place for everything in your room. Don’t forget to return things to their proper places once you’re done using them. Put out the stuffed toys or quirky pillow cases you’ve been hiding and display them on your bed or chair. Put some fresh flowers on your favorite vase or add some plants to your desk. You can even use candles or diffusers as well as warm lights and music to create the calm and comfy atmosphere that will help you relax. Here, you can read your favorite books, write in your journal, do your meditation or yoga or enjoy a restful sleep.

3. Maintain an Emotionally Safe Space

Your social relationships can be your safe space. Even the calmest individual needs their family, best buddies, mentors, team mates to support them through their ups and downs in life. Having a group of people that you can turn to for the different obstacles that you may face is an important part of your life.

These are the people who provide you with the emotional safe space where you can express your feelings without being judged. Instead, they are there to help you solve whatever challenge you are facing. They provide you with the emotional support you need just by listening to you rant about your toxic work mate or how you want to quit your job but you’re too scared to do it.

Surround yourself with people who give you the emotional space to be who you truly are. With them, you can be silly and funny. You can bicker and disagree but you can still enjoy laughing at each other’s stupid mistakes afterwards. They can get serious with you if you need them to or enjoy being spontaneous with you. They give you the truth even if it hurts but they help you wipe away your tears and nurse your wounds as well.

4. Develop Your Financial Safety Net

Our jobs are a major part of our lives. Our main reason for staying in our jobs is the salary we get in return for our services. However, many of us become unhappy in our jobs because we find that our salaries are not enough to allow us to live the life we want. This is why creating a financially safe space is important. Saving money and reducing debt and expenses should be common sense but most of us don’t do this. Many books on wealth can help you transform your mindset about money and change your life for the better.

The first thing you need to do is to track your expenses. This helps you find out where your money leaks are and where you can reduce your spending so you can save more. Next is to create a budget so you can plan exactly where your money goes. This prevents you from missing any payment deadlines as well as helps you prepare for unplanned expenses. Make sure to include “savings” and “tithe” in your budget. If you know about the Law of Attraction, you know that it is important to give back in order to receive more. Whatever you receive, make sure to pay yourself first by putting it into your savings account.

In order to feel financially safe, you should aim to have at least 3-6 months worth of your monthly income in your savings account. This way, you have expenses to cover you if you decide to leave your job and look for something new. You should also aim to pay off your loans and credit card debts. During this process, learn how to manage your credit cards wisely to enjoy their benefits. Another thing you need to learn is how to invest your money so you can grow them slowly but steadily. Investments can provide you peace of mind that you can retire comfortably in the future.

There are other aspects of your life where you can create your own safe space. The best way is to focus on doing things gradually and consistently. By creating safe spaces for yourself, you can also help other people feel safe when they are interacting with you.

Feature Image: Original Photo by Emily Rudolph on Unsplash.

May

2021

Common Sense Money Advice That People Don’t Follow

Reading Time: 3 minutes

Money has always been a top source of stress for most people. If not addressed, too much worrying about money can lead to serious physical and emotional problems. It can even result in a breakdown in relationships. How to solve money problems then? There are tons of financial advice that people probably already heard or read about. In fact, most of these advices are simply common sense yet one the greatest mysteries about life is that no one really follows them. It sounds so easy to do but for most people, it is very difficult to follow. Here are some of the common sense money advice that people don’t follow:

1. Spend Less Than You Earn

This rule is so simple. Just live within your means. Obviously, if you spend more than you earn, that will only spell debt. Even a grade schooler knows that if you subtract more than you add, you will end up with a negative number. You need to have financial discipline; otherwise, it will be very hard to create wealth. Avoid keeping up with the Joneses.

There are many ways to reduce your monthly expenses. It helps to have a budget. The money jar budgeting system is a good money management technique because it not only helps keep your spending in place, it also helps slowly build your wealth. If spending less is really not an option, then you need to look for ways to earn more money.

2. Understand How Credit Cards Function

How many people are buried in consumer debt simply because they do not understand how credit cards function?

Credit cards are very useful. With credit cards, you don’t always need to have cash. You can purchase anything without having to worry of paying them immediately. However, if you don’t have a basic understanding of how it works, credit cards can turn into your worst nightmare. Always remember that you are not using your own money when you purchase items using your credit card but rather you are borrowing the bank’s money.

Credit card companies use the power of compound interest to their advantage. Compound interest is a very powerful mathematical concept that you can use to increase your wealth. Unfortunately, it is a two-edged sword. If used against you, it is a sure way to financial bankruptcy. That is why understanding how credit card functions is a necessity if you have a credit card.

Unless you know how to manage your credit cards, it is better for you to refrain from using your credit card altogether. Use credit cards only in emergencies. Buying because it is on sale even though you don’t really need it is not a valid definition of an emergency.

3. Automate your Savings

One of the lessons of this pandemic is the importance of having a savings account. Life is unpredictable. Saving money can ensure financial stability in case of emergency.

Pay-yourself-first has always been the initial advice that wealth managers will tell you as the first step towards building your wealth. Unfortunately, most people would rather spend or pay everyone else first before themselves. Savings always comes last. Usually, people save using whatever it is that is left (if there is any).

The best strategy to avoid this scenario is to automate your savings. By regularly setting aside a fix amount through automatic savings, you will soon be able to build up your emergency fund. One of the wealth rules of the richest man from Babylon is to always save 10% of income.

4. Seek Help from Qualified Persons

If your financial woes are already big enough for you to handle on your own, then it is time to seek help from other people. If your problems are about money, ask a professional in financial planning to help you. If you cannot afford your own financial planner, then ask a friend who is an expert in handling money.Don’t just ask any friend.

The problem with most people is that they normally seek advice from friends or relatives who are close to them. However, they fail to consider if these people are also having financial problems of their own too.

Think of it this way, if you are in school and you are having problems with your Math subject, obviously, you will not ask your Filipino or Science teacher to help you. Instead, you will seek the help of your Math teacher or a fellow student who is good in Math because they are the ones who can help you.

Remember to always ask the correct persons for advice.

So, If you want to have a better financial life, it is best to follow the common sense money advice that people don’t follow.

First published in Pinoy Smart Living on 03.26.2019.

Photo by Monstera from Pexels

May

2021

Benefits of The Tithe and Giving Back

Reading Time: 3 minutes

Do you know the benefits of the tithe and giving back? The concept of sharing our blessings is a teaching that we often hear as children. Sadly, we do not practice this very much. As we grow older, we don’t often encounter such generosity from other people either. This is mostly due to financial reasons but also due to having a poverty mindset.

In fact, generosity in the form of a “tithe” or a giving fund should be a habit. The tithe should be part of our monthly budget. Here are some reasons why we should develop and maintain the practice of tithing.

An Attitude of Gratitude

Giving is an opportunity for us to share our blessings. It is an act of giving where we are also able to acknowledge and appreciate our own blessings. Whenever we give off ourselves to others (whether thru our time, money or in kind); we also feel a certain fulfillment. We feel an assurance that the world is not so bleak and gloomy after all.

Giving to another also carries with it a wish, a hope. You can even say that giving back is form of prayer. It is a prayer that things will become better for that person or organization that we intended to help out. In these moments, we also become grateful. We are able to be thankful that our own situation is not worse off. We feel gratitude that we are still capable of giving back. This is one of the benefits of the tithe and giving back.

Paying It Forward

The practice of tithing is a way to give back. We do it in exchange for all the kindness and generosity that other people have shown us in the past. It can also be a form of paying things forward. An advance to give thanks for the generosity and kindness of other people that we will encounter in the future. As you give; it gives the recipient the opportunity to grow. They can develop themselves into someone who can be capable of giving back the same way you did for them.

When you practice tithing, the amount you give helps the recipient to expand their options in their own self-development. When they succeed; they will also become capable of giving back to others the same way that you helped them along the way.

Turning Feelings Into Reality

When you are truly sharing your blessings, it should not be with a heavy heart. Tithing is as simple as giving away a certain amount to a charity, a person in need, or even a tip to a kind waiter. You should do so with a light heart and even a smile. If you can do that, then you are truly helping without expecting anything in return. That is how you act when you feel truly “blessed”.

You know that you attract more of what you focus on. If you feel generous, grateful and blessed; you will continue to attract more opportunities that will make you feel this way. Wouldn’t you want to feel this way most of the time, even all of the time? This will definitely help you get out of a poverty mindset.

These are some of the reasons of why you should have a tithe fund. These are the benefits the tithe and giving back. This is the kind of mindset and attitude you should have when giving. The next question is how much to give. In your monthly budget, it is recommended that you set aside 10% of your income as tithe. You will find this recommendation in the Bible as well.

Your tithe fund is where you get money to tip waiters, the stylist and her assistant at your favorite hair salon, the kind taxi driver, etc. This is also where you can take out cash for gifts or when a relative needs to borrow some cash.

Remember that a tithe is different from an offering. You can consider an offering as something extra aside from the tithe.

Updated. First published on Pinoy Smart Living on 2019.10.22.
Feature Image: Original Photo by Katt Yukawa on Unsplash.

Apr

2021

3 Types of Expenses You Need to Manage

Reading Time: 2 minutes

There are 3 types of expenses you need to manage in order to be successful in your financial goals. These can be applied to any items you have on your monthly budget. Identifying these kinds of expenses helps you schedule your expenses. In this way, you don’t fall victim to little money leaks that can ruin your budget.

1. Fixed Expenses

Fixed expenses are the types of expenses that you incur in predictable amounts and in consistent intervals. These usually happen monthly such as utilities, rentals, loans, insurance, subscriptions and credit card payments. These can also include your tithes, savings and investment funds if you add to them monthly.

Since these expenses occur on a regular basis, you can schedule them automatically. This one of the 3 types of expenses that is the easiest to manage in your budget.

With a fixed amount and schedule, it is easier for you to decide which expenses to reduce or remove. This allows you to maximize other items in your budget. For example, you can downgrade your mobile plan subscription. Then, you can add more to your savings or investment fund.

2. Periodic Expenses

Periodic expenses are similar to fixed expenses but they occur less frequently. These kinds of expenses can also be scheduled quarterly (every 3 months), bi-annually (every 6 months) or annually (every year).

The dilemma with periodic expenses is that they are usually necessary. That’s why it is hard to remove them from your budget. These expenses usually include maintenance costs. Examples include oil change for your car, car registration fees, annual membership fees and annual tax fees for a business.

Unlike fixed expenses, we tend to forget periodic expenses. This results in paying penalty fees which ruins your budget. It is very important to include these types of expense in planning your budget. The advantage is that you have more time to prepare for them.

3. Variable Expenses

The trickiest type of expense to manage are variable expenses. These types of expenses don’t occur regularly but they are still important. Variable expenses can be subcategorized into necessary and discretionary.

An example of a variable but necessary expense is gas for your car. This does not occur regularly but you have to budget for it when it becomes necessary. A discretionary, variable expense includes a new pair of shoes or travel funds. These don’t occur regularly but they are important for your well-being.

Discretionary expenses are usually items that you reward yourself with. Sometimes, they can be impulse buys which you incur because you are feeling down and you want to feel better. Your behavior and priorities will define what variable expenses you cut out or save up for in your budget.

Which type of expense do you usually have trouble managing? If you haven’t started budgeting, then the first step is to track your expenses. Then try out the money jar budgeting system and adjust as you need. This will help you control the flow of your money. It is also helpful to know more about the money lessons you didn’t learn in school. Get more financial inspiration for own financial goals with these books on wealth and success.

Feature Image: Original Photo by Sasun Bughdaryan on Unsplash.

Apr

2021

Get Out of The Rat Race

Reading Time: 4 minutes

Do you want to get out of the rat race? Do you know the reasons why you are stuck in the rat race? People stuck in the rat race don’t even realize it. Most people have accepted this situation as their fate. They have become resigned to living with the situation for the rest of their lives. They are teaching the same belief to their children as well. The bad thing is; they believe that there is no escape. Actually, there is a way out; they just haven’t taken the time to learn about it.

What is the Rat Race?

Have you heard the term “the daily grind”? People use this term to describe the rat race. The rat race is the constant struggle of going to work to pay your bills. Your salary is never enough, you borrow some more, you work harder to pay more. Your hard work makes your company rich. The company doesn’t do anything to help you as you continue to struggle to make ends meet. The struggle only gets more difficult as the days go on. This cycle is similar to a hamster running on his wheel. No matter how fast it runs, it doesn’t go anywhere.

Are You in the Rat Race?

The rat race is where we usually go to after graduation. We start to work and we enjoy working. Earning our own money makes us feel independent. After some time, we see and feel the signs of being stuck in the rat race.

Devaluation – You work hard for a fixed hourly or daily rate. Extra work is minimally compensated or recognized.
Repetition – You do the same thing every day and you derive no satisfaction from it.
Justification – You keep coming up with excuses for staying in your job.
Boredom – You can’t wait to do something else.
Disconnection – You don’t feel that your work contributes to any significant difference in other person’s lives or your own.
Drawing Board Syndrome – Your plans to take a leave from work never pushes thru.
Lifestyle Creep – Any minimal increase in your compensation/salary leads to lifestyle creep. You end up burdened with more debt.

The vicious cycle of the “daily grind” is what it’s like to be in the rat race. If you can figure out why you are stuck; you are in a good place to start transforming your life.

In his popular book Rich Dad, Poor Dad, Robert Kiyosaki describes the rat race as a situation where individuals “work for the owners of their company, for the government paying taxes, and for the bank paying off mortgage and credit cards.”

Why Are You Stuck in The Rat Race?

Most of us have parents who have been stuck in the rat race. This makes it seem almost impossible to get out of it. The rat race is a cycle that provides a false sense of security. Here are some reasons why you feel secure in your current job; and why you can’t seem to get out of your current lifestyle.

Your job offers you a monthly income. This provides you the money to support yourself and your family’s needs.
You want to keep up your government contributions to maximize your retirement pension.
You’re putting your dream job on the shelf. Your reasons include: (a) it doesn’t fit in with your current job, (b) it will take special training which you don’t have the money or the time to spare at the moment, and (c) it is not guaranteed that you will succeed in it.
You want to start a business. You need to do and learn many things. Raising funds is necessary to start.
You want to create extra income and save money to invest. Work prevents you from having extra time or energy for a side job.
Your work and salary doesn’t leave room for you to volunteer or support a charity, a friend or a loved one.
You have plans to get a house and/or a car in the future. You have to take care of tuition fees first, loans and other expenses.

These are just some of the most common excuses we tell ourselves which is causing us to stay in the rat race. These thoughts usually interrupt our plans for change.

Fear is Keeping You Stuck

One common factor in these thoughts or excuses is fear. We all fear failure. No one wants to feel rejected. We don’t want to disappoint the expectations of our family and friends. We all fear that things won’t work out in the end.

All these fears had been instilled in us by our parents. Their parents did the same. Fear stems from doubts. Your doubts grow into fears. Fear of what if’s is what paralyses you from doing something to change your situation. The best way to combat doubt is to stop it right at the start by learning.

Get Your Self Unstuck

Most of us adults have lost our curiosity as children. Curiosity is an important component to learning new things. The best way to combat doubt and fear is to educate yourself and your loved ones. Learn what options you have to get yourselves out of the rat race. You don’t always have to stay where the money is. There are other ways to achieve financial freedom.

Start educating yourself by learning from those who have already succeeded. You can start incorporating positive morning habits into your daily routine. Financial literacy is very important to create a better life for yourself and your loved ones. Start managing your finances better. Learn and apply a budgeting system. Tailor your budget to your circumstances. Learn more about how to reboot your finances so you can get out of the rat race.

Updated. First published on Pinoy Smart Living on 2018.08.15.
Feature Image: Original Image by Brian Merrill from Pixabay.

Mar

2021

Reset Your Life Challenge

Reading Time: 2 minutes

Are you happy and content about where you are in your life right now? What aspect of your life do you want to improve? What dimension of your overall wellness do you wish to become better? If you are having problems right now, the good news is that you can actually reset your life or just a specific aspect of your life but you must be willing to make some changes. It won’t be possible if you keep on doing the same things over and over again. So, are you willing to take the reset your life challenge?

The significant problems we face cannot be solved at the same level of thinking we were at when we created them.
– Albert Einstein

1. Assessment

To improve on any aspect of your life, the first step is assessment. Find out where you are right now in terms of your physical health, emotions, finances, relationships or any other aspect of your life. The only way to go forward is to honestly assess your current state.

2. Be responsible

You are where you are right now because of you alone. You are having problems with your physical health because you have not been taking care of your body. A healthy immune system can fight off any diseases or viruses. Your finances are in a mess because you have not been taking care of them. It is the same in every aspect of your life that is failing. It is not because of your parents, your boss, the government or anything. It is all a product of all the decisions you have made in the past. So, stop blaming others. Instead, be responsible for your life. Stop blaming others. The sooner you will accept responsibility for your life, the sooner you will be able to take control of your future.

You are what you are today because of the choices you made in the past.
– Jim Rohn

3. Visualization

The next step is to figure out where you want to go. How do you see yourself in the future? What is your ideal life? Visualize yourself living that ideal life. You don’t have to worry about whether it is possible or not. That is what dreams are for. In fact, the bigger the dream, the better. It helps to start by creating your own bucket list.

4. Creation of Goals

Now, it is time to create a bridge between your present life and your ideal life. The only way to do that is to make a connection between the past and the present through goal formation. Goals are supposed to be SMART. That’s the only way to achieve them.

5. Launch

Once you have concrete plans, the next thing to do is launch. The sooner you implement your plans, the sooner you can achieve that better life. What are you waiting for? Start now and look forward to a better tomorrow. When the clock strikes zero o’clock later, it is a promise of not just a new day but a new life.

6.Persevere

Once you start, learn to persevere. Perseverance means having the determination to continue despite all the obstacles and challenges that come your way. Don’t quit. Never give up.

Goodluck!

Feauture Photo by David Alberto Carmona Coto from Pexels

Aug

2020

Improve Your Financial Wellness

Reading Time: 2 minutes

When we talk about health, normally what comes into mind is physical health. Although physical health is very important, it is but only one aspect of your total well-being. There are other dimensions of wellness that are equally important, one of which is your financial wellness. Numerous studies revealed that the main source of stress for many people around the world is money, or the lack thereof. In fact, the lack of money can lead to negative effects on the other areas of your life. For example, not being able to afford nutritious food or not being able to properly sleep at night. It also brings about anxiety on personal relationships especially when you can no longer provide for the family’s basic needs. Thus, to improve your financial wellness should always be part of your goals.

What is Financial Wellness?

Financial wellness refers to the state of your financial health and your relationship with money. Are you able to handle your money well? Do you have enough to meet your needs? Not having enough of it will have an adverse effect on your health.

Why is Financial Wellness Important?

Financial wellness is important not just for the individual per se but the community as well. Personally, to be financially well means less stress. A person on this state does not have to worry about meeting financial obligations. in addition, there is a wide array of options for the individual to enjoy life.

Financial wellness is also important for families. Children from these families have access not only to optimal nutrition but to good environment and education as well. Strong families are needed to build strong communities.

In the workplace, a happy, satisfied individual is a more productive employee. A survey conducted by the American Psychological Association indicated that money problem is the number one reason why employees are distracted from work. Employees under financial stress are generally unmotivated and has low productivity rate.

How to Achieve Financial Wellness?

To achieve financial wellness, you must first understand what stage are you in in your financial life right now. It also helps to compute your current net worth. Knowing your starting point will make it easier for you to make financial goals. Once you know what your goals are, you can now start your journey towards the improvement of your financial wellness. Just like in any aspect in life, do remember that success does not happen overnight. It takes time and continuous effort to reach your goals.

Success is the sum of all efforts – repeated day in and day out.
-Robert Collier

Launch Challenge

There is a single life rule as far as your financial life is concern that you should follow. It is so simple yet many people take it for granted. The rule is to spend less than you earn.

Follow this golden rule and soon you will be able to improve your overall financial wellness. This rule will help you eliminate debts. It will also help you start building your savings account. In the end, your stress level will definitely go down.

To be able to successfully do this, you need to have a clear idea on how much you are earning vis-a-vis how much you are spending. Thus, it is advisable that you begin to track your expenses on a daily basis. Remember that you can only make good financial decisions if you know where your money is going. It helps also to increase your financial literacy.

Good luck!

Feature Image by luxstorm from Pixabay Images