wealth

17
Apr
2020
Smart Ways To Combat Boredom

Smart Ways To Combat Boredom

Reading Time: 4 minutes

Having a daily routine is a good way to organize your activities. However, when you’ve grown tired of your daily routine, or when your activities are cancelled and you suddenly have nothing to do, boredom can strike. Taking a nap is one quick way to combat boredom but unless you truly need it, it isn’t the best way. You can play games of binge-watch TV shows but they are not that productive. We’re sure some ideas have already popped into your head but why not try some more uncommon ways to spend your free time? Try out these smart ways to combat boredom:

1. Redesign Your Life

Start redesigning your future life with a list. Sit down with some pen and paper and ask yourself these questions: “What do you want to become in the future? What areas of your life do you want to improve and how?” Write down a bucket list of all the things you want to improve in the different areas of your life.

2. Create a Vision Board

Once you have a bucket list of how you want your future life to be, get some old magazines, scissors, glue and cardboard. Sit down for a bit and write down a paragraph to summarize what your redesigned life is like. Take note of the important keywords and find the images that relate to those words in the magazines. Cut them out and arrange them accordingly on your cardboard. Your vision board should remind you of your future goals everyday so make sure to hang it where you will always see it.

3. Set Your Financial Goals

If you’ve been itching to tackle your financial situation, now is the time to do so. Focus on what your short term, medium term and long-term financial goals are and assess where you are now. From here, you can determine what you need to do to move towards your goals. Make sure that you are making S.M.A.R.T. goals so you can measure your progress.

4. Create Your Budget

So you might have your financial goals set but how about your daily, weekly, monthly spending? How do you allocate your money each time you get your paycheck? The answer to that is having a budget and while no one budget system is perfect for everyone, you can start with the Money Jar Budgeting System and tweak it according to your needs.

5. Plan Your Meals

A healthy body keeps you going so you can pursue your goals further. So what you eat is an important part of your success. If you’re going on a diet and even if you are not, planning your meals not only keeps you healthy but also keeps your budget on track. There are ways to get the most out of your meals while saving money on groceries. If you keep these in mind, your body and your wallet will surely thank you. Plus, you can ensure that you and your family get to enjoy all your favorite dishes too.

6. Organize Your Clothes

A messy closet can be a daily scene that seems normal when you are always in a rush to get out the door each morning. Now that you have the time, why not be productive and spend it organizing your wardrobe? You might find hidden gems that you can wear on your next party or items that you don’t want to keep but your friend would love to have. Make sure to check if you have the basic items and make a note of what you need to complete them. If you have a lot of items to let go of, then you can sell them for some extra cash.

7. Compose An Apology

Do you need to say sorry to a friend or family member but haven’t done so for whatever reason? Now is the time to compose your thoughts and learn to properly say you’re sorry. The important thing is to be sincere about it. It would be good to write down your thoughts first and practice saying your apology. When you think you’re ready, contact your friend or family member and ask them to listen to you as you state your apology. Hopefully, your sincerity should win them over and you can sleep with a lighter heart.

8. Hone A Skill

Got a hobby or childhood talent you’ve never had time to practice? Now that you’ve got the time, pick up that guitar, paint brush and canvas, or that manual and start training yourself again. Or you can learn a new skill. All the greats started where you are now and you may not be aiming to be a professional in that field but improving yourself in something you love to do can boost your confidence and help you perform better in other areas of your life.

9. Start a Gratitude Journal

Being grateful is life-changing so why not start being grateful right now? All you need is your favorite notebook and pen, or your mobile phone will also do. Review your day, week, month, and write down the things that you are thankful about. Don’t discriminate between the small things and the big things, they are all equally worthy of being grateful for. You can do this every day before you sleep so you can rest with good vibes around you.

10. Go On a Themed Staycation

This is especially fun to do with the whole family. Since you’re stuck at home, why not indulge in a themed staycation? It doesn’t cost much and it can be fun. It can be a game night, a musical where you are all actors and singers, movie night with kids movies, starting a garden, a home decluttering theme, or even making a game of finding things that you can get rid of in your home. While some things may sound like a chore, if a delicious home-cooked meal is a reward, it should bring a sense of fun into the activity.

These are just some of the things that you can do while you’re stuck at home, alone or with your family. What other things do you do to help ease boredom at home? We’d love to hear your suggestions.

Original Photo by Roman Kraft on Unsplash.

Posted by H.J. Rangas in Intellectual, 0 comments
11
Mar
2020
The Money Jar Budgeting System

The Money Jar Budgeting System

Reading Time: 6 minutes

Do you want to grow your wealth? Then, the money jar budgeting system is for you. It is a system that helps you control your spending habits yet at the same time lets you grow your future wealth.

Most people dream of winning the lottery. However, did you know that according to several studies, 70% of lottery winners ended up broke within 5 years of winning? Similar studies also showed that the higher the amount of winnings, the higher the probability of getting bankrupt. 

Most lottery winners found themselves in even worse financial situation than before they became rich. So, where did it all go wrong? Lottery winners used the money they won to finance a bigger lifestyle. In short, they start to level up and increase their standards of living. They start to squander on depreciating assets such as luxury cars and extravagant vacations. They also start giving away so much money. This phenomenon is what you call a lifestyle creep.

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People who started receiving a large amount of money has the tendency to squander on extravagant lifestyle and depreciating assets like luxury cars.
Image Credit: LIFESTYLE CREEP

A lifestyle creep is a financial phenomenon wherein people suddenly find themselves with excess income and they are not prepared for it. They have no idea how to handle the excess money that they have. Suddenly, life seems more exciting and expensive. What used to be luxuries became necessities. Their spending increases as they begin to eat at fancy restaurants, own the latest gadgets, drive a brand new car and take more expensive vacations. The new spending habits then slowly develops into a lifestyle. It is creepy because the negative spending habits develop gradually and it is undetectable unless it is already a huge problem.  

Lifestyle creep is highly contagious. You can easily be influenced by the people around you, heightened by social media brought about by FOMO or fear of missing out. 

Unfortunately, it is experienced not just by lottery winners but also by people who received retirement and inheritance money, people who had just been promoted and those people who received an increase in salary. You have seen this happen to people around you and even possibly to yourself. 

Sadly, most people are not even aware that they are already victims of lifestyle creep. 

Does it mean that you have to continue living in the same standard as you were before even with an increase in income? Well, not really.

You can make lifestyle adjustments with an increase in income but there is a limit to it.

How to know the extent of allowable adjustments in lifestyle? The key is to have a spending plan or a budgeting technique. If you want to be wealthy, you need to set some financial goals. You need to make short-term sacrifices and stick to your money management system. You need to practice delayed gratification and opt to put your hard-earned income on investments first before spending them on liabilities. 

THE MONEY JAR SYSTEM

The money budgeting technique described below is actually a modified version of the Money Jar System, which was first introduced by T. Harv Eker, businessman and author of The Secrets of A Millionaire Mind. It is also an expanded version of the Abundance Formula (100=10-20-70) of best-selling author, entrepreneur and preacher Bo Sanchez.

The purpose of a budget system is for you to develop spending habits within your means and at the same time to lead you to future wealth and financial abundance.

It is called the Money Jar system because you can literally start by getting 6 jars and labeling them. In this budgeting technique, you need to divide your earned income into six (6) accounts:

1.  Give Account – 10%

As soon as you receive your income, your first expense should go to this account. You probably think that this is insane. Why do you need to give when you have barely enough to cover your expenses?

The purpose of giving is to put God FIRST in your life.

You need to acknowledge the fact that your gifts and talents all came from God. Giving or tithing is your way of saying thank you to God. More blessings will come your way if you learn to share your blessings. 

Do not give the excuse that you are going to start giving once your income increases. Giving is a state of mind. If you cannot let go of your 1,000 if you are earning 10,000, you will not be able to let go of your 100,000 if you are already earning 1 million. 

Why 10%? Several verses in the Bible talk about giving a tenth of your produce back to God.

Make an offering of 10%, a tithe, of all the produce which grows in your field year after year. – Deuteronomy 14:22

The give account can go to:

  •   Your church or spiritual community
  •   Your favorite charitable organisation
  •   A person in need
  •   As presents to relatives and friends on occasions

2.  Financial Freedom Account – 10%

Don’t you just want to wake up one morning wherein there is no need for you to go to work? You work only by choice and not because of necessity. Well, this account is your key.  It is your investment account. It is the most important account for the wealthy.


Financial freedom is the ability to live the lifestyle that you desire without having to work or rely on anyone else for money. – T. Harv Eker

Remember the story of the goose that lays the golden eggs? Well, this fund is your goose. Kill this fund and you kill your source of golden eggs. Do not commit the same mistake as the farmer. You shall NEVER EVER EVER spend this account.

Youtube Video from Anon Animation Ryhmes for Kids
 

Your financial freedom account can go to:

  • Stocks, Bonds or Funds
  • Business Investments
  • Real Estate Investments
  • Insurance

If you have debts, use this account to pay off all our debts first before you start investing. 

3.  Long Term Savings Account – 10%

This account is allotted for long term spending. This fund has the most flexibility because you can use it for anything in the future just in case you need it. It is your rainy day account or your emergency fund. It plays a major role in ensuring your long term financial success. Having money available when you need it can be a life saver.

Sample usage for your Long Term Savings Account:

  • Down payment for a house or a car
  • Your dream vacation
  • Hospital Expense
  • Tuition Fee Increase
  • House Repair
  • Your child’s birthday party

It is highly recommended that you set up a different savings account for this one. Set the account in such a way that it will be hard for you to withdraw money. For example, instead of an ATM account, open a passbook account. You can avail of an automatic save-up account being offered by banks.

4.  Education Account – 10%

You are your most valuable asset. You need to invest in yourself for you to grow. The more educated you are, the more career options you have. Read books. Attend seminars. Develop your gifts and talents.

It was said that this is one of the difference between the wealthy and poor. The poor people have big TVs while the rich have big libraries. That is because wealthy people put emphasis on continuous learning. In fact, about 88% of the wealthy read for at least 30 minutes each day for personal growth or for career development as opposed to only 2% of the poor.

Success is something that you attract, by the person you become. – Jim Rohn

5.  Play Account – 10%

This will probably be your favorite account – the FUN account. It is an account to spend however you want. Use this fund to pamper yourself. Get a massage. Eat at a plush restaurant. Go to a weekend getaway.  Watch a movie or a concert. Buy that latest gadget. You are allowed to shop until you blow this money away. A small indulgence can have a big psychological impact on your money morale.

So, if you want that expensive bag, sports car or luxury vacation, save up for it or increase your income first until it can fit in your 10% budget.

6.  Necessities Account – 50%

This account is for your everyday expenses. Included in this account are your bills, electricity, food, rent or mortgage, transportation, utilities, etc. If you cannot survive on 50%, that means you are living beyond your means. That is a clear signal that you need to simplify your lifestyle.

Follow this system and you will find yourself gradually increasing your wealth. It is going to be hard the first few years but it is all worth it.

First published in Pinoy Smart Living on 01.15.2019

Feature Image by Posted by A.L. Jonas in Financial, 0 comments

26
Feb
2020
Rules to Double Your Money

Rules to Double Your Money

Reading Time: 3 minutes

It is nearly impossible to build your wealth by just relying on earned income. Warren Buffet advices that you need to create a second source of income. Savings alone is never enough for the value of your savings depreciates over time because of inflation. You need to learn to invest your money. Through investing, you are creating a way for your money to work for you. And before you know it, after a few years, your money will be doubled. Thus, it is for your own benefit to understand the rules to double your money.

There are many investment vehicles to choose from. A wise investment should beat inflation. It should also increase in value over time. Moreover, it should also help you achieve your financial goals. 

The Rule of 72

The Rule of 72 will come in handy if you want a quick way to estimate the returns of a particular investment. It is a simple way to find out how long it will take for your money to double given a fixed annual rate of return. It can help you determine how good (or not) a particular investment is.

Time to Double Your Investment  =   72 / Rate of Return

For example, if you are going to invest your money in a 2% return, that’s 72/2 = 36. It means that it would take 36 years for your money to double. A 3% return will take you 24 years, A 4% return will take 18 years and so on and so forth. 

Watch the video from Alliance Group for a simplified explanation of the Rule of 72.

This rule can be used not just in investment but in anything that grows at a compounded rate. That is the reason why it is also important that you understand the concept of Compound Interest.

Compound Interest

Compound interest can either be your best friend or your worst enemy.  It all depends on how you use it.  You can either gain from it or you can loose a lot because of it.  Your life can be much better or much worse than you already have.  It’s your choice.

What is compound interest?  Compound interest is the adding of interest to the interest earned on the principal amount.  In short, it is interest on interest.  The interest is reinvested again and again and added to the principal amount.  Because of this, the balance don’t just grow, it grows at an increasing amount.

Watch the Youtube video by Investopedia to better understand what compound interest is.

Compound interest can either be good or bad, depending on how you use it.  It can be good if you use it on savings or investments.  It can be bad, if you have debts.

Compound interest is the eighth wonder of the world – Albert Einstein

If you understand the concept and take advantage of it, you can learn a lot from it.  The original amount that you have saved and invested will grow at a rapid rate.  An investment left untouched for a couple of years can add up even if you do not add anything later on.

Image Credit: thecalculatorsite

The chart above shows that supposed you invest $1,000 for 20 years and just leave it there, your money will grow up to $7,250 at 20% compounded annually even if you don’t add anything during that period.  This is high compared to $3,000 value of simple interest.

That is the power of compounding.  It will help you achieve wealth even if you don’t lift a finger.  Compound interest is one the main reason you should learn to invest your money. Make it your best friend and it will do wonders in your life.

On the other hand, compound interest can also work against you.  If you have debts, compound interest can become your worst nightmare.  In  the same way that savings can increase, debt can also increase at a rapid rate.

An example of this is credit card debt.  If you only pay the minimum amount due, interest charges are accrued.  By paying the minimum amount due, you are actually just paying a portion of the interest.  Instead of lessening, the principal amount remains the same and additional interests are added causing your debt to balloon.  If you keep this up, it will become problematic in the future.

Don’t make the mistake of making compound interest your worst enemy.

Updated Version. First Published in Pinoy Smart Living on 11.27.2018

Feature Image by Posted by A.L. Jonas in Financial, 0 comments

05
Feb
2020
Wealth Rules from the Richest Man in Babylon

Wealth Rules from the Richest Man in Babylon

Reading Time: 4 minutes

You have been working very hard all your life. Yet, you found yourself in the same financial situation over and over again. Your income is barely enough to cover your basic needs. You are trapped in the rat race and you often wonder, what is it that you have been doing wrong? How come there are some people who are getting richer and richer by the day while you who have been working very hard are getting nowhere? The answers to your questions can be found in the wealth rules from the richest man in Babylon.

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George Samuel Clason, author of the finance book The Richest Man in Babylon gave 7 financial advice to those who found themselves in the above-mentioned situation through one of the parables set in Ancient Babylon.

Wealth Rules of the Richest Man In Babylon

In the parable, the king summoned the richest man in Babylon, Arked and asked him why he became so wealthy. The King wanted to know the secret to acquiring wealth. At that time despite the years of prosperity in the kingdom, many people were struggling financially. It was the king’s desire to make Babylon a city of many wealthy men.

Here is a list of Arkad’s 7 Cures to a Lean Purse:

1. Save 10% of your Income

Saving 10% of your income is the first step towards wealth. Do this each time you earn. It may not be much at first but it will grow over time if you do this on a regular basis.

For example, suppose you and your friend are both earning 10,000 a month. Your friend started saving 10% of his income while you continue to spend all of your income. Obviously, after a year, your friend will already have 12,000 worth of savings while you will have none.

Wealth, like a tree, grows from a tiny seed. The sooner you plant that seed, the sooner shall the tree grows.

2. Control your Spending

The second cure is to control your spending. You might ask how is this possible when your income is not even enough to cover the necessary expenses?

Arkad insisted that it is possible. The key is to differentiate the necessary with the desires. Have a budget and stick to it. You can save money on the little things like cutting down on your expensive coffee habits and your cable subscriptions.  You can save on water and electricity in your home. Stretching your food budget is also one way to save on expenses. The point is there are lots of ways if you are willing.

3. Invest

As soon as you have built up your savings, the next thing to do is to multiply that by investing. You will not be able to grow your wealth by merely saving your money. You need to invest your money too.

A man’s wealth is not in the coins he carries in his purse; it is the income he builds, the golden stream that continually flows into his purse and keeps it always bulging…an income that continues to come whether I work or travel.

An income that continues to flow whether you work or travel pertains to passive income.  Passive income should be the goal of everyone. Only through investing will you be able to let money work for you.

4. Guard your Investments

There are many investment opportunities out there. The key is to choose your investments properly and learn to protect them. Choose something that you are familiar with. Don’t invest in something that you know nothing of. Learn about your investment. Consult mentors or experts in that particular field. Just because you know somebody who got rich in that particular endeavour, it does not mean that you will too.

Also, don’t be fooled with the get rich quick schemes being offered to you. Remember that if it is too good to be true, it probably is. The basic rule of investment is that the higher the risk, the higher the return. The lower the risk, the lower the return.

5. Own your Home

Make your home a profitable investment. Instead of making somebody else rich through your monthly rentals, why not make your monthly payments become equity. It will reduce your cost of living in the long run. You would have also acquired a valuable home.

Moreover, Arkad believes that many blessings will come to a man who owns his house. After all, your home is the place where your family will live. It is the place where your children will grow and a place for you to rest. It is a place of happiness and memories for your family.

6. Prepare for Retirement

Every man should prepare for retirement. When you retire, your ability to earn income will diminish. You will no longer be able to work just like when you were young. It is also during retirement years where your health will most likely deteriorate. Thus, you should be ready before that time comes.

7. Increase your Ability to Learn

If you want to increase your income, don’t chase the money. Instead, increase your ability to learn. Study again. Read books. Attend seminars. Learn from mentors. Be more skilful. By improving yourself, you make yourself more valuable. Then success will ultimately follow.


The more wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.

Want to learn more about the Wealth Rules of Ancient Babylon? Click here to watch video.

*Quotes from The Richest Man in Babylon.

Feature Image by Lisa Fotios from Pexels Images.

Posted by A.L. Jonas in Financial, 0 comments
15
Jan
2020
Setting Financial Goals for a Better Tomorrow

Setting Financial Goals for a Better Tomorrow

Reading Time: 3 minutes

You have been working hard all your life yet you feel like your financial situation remains the same. You still struggle to make ends meet. What is it that you are missing? What can you do to change your financial life for the better? The answer is to define your goals. Setting financial goals is your key for a better tomorrow.

If you want to have a fresh start in your financial life, the first step is to set financial targets. Having a financial goal will help you make better financial decisions. It will also influence your day-to-day behaviour. Think of it as going on a trip. You need to know where you want to go first before you can even plan out the details of your trip.  Thus, setting financial goals is important for a better tomorrow.

So, what’s your financial goal for this year? If you still don’t have one, it is for your best interest that you start having one now. No matter what age or stage you are in your life right now, even if you are already financially stable, you still need to set your financial goals.

Here are the steps on how to set your financial goals:

1. Determine what you want

In setting your financial goal, the first thing that you have to do is ask yourself. What is it that you want? Do you want to get out of debt? Do you want to have that dream house? Do you want to buy a new car? Do you want to go on that dream vacation? List down all the things that you want to have and accomplish.

2. Classify your goals into Short Term, Medium Term and Long Term

It is impossible to achieve all your goals at the same time. Thus, it is important that you arrange them according to what’s important to you. Learn to prioritise. What is it that you that you want to accomplish first?

For example, you are in your 30s. You want to retire wealthy.  You have a child who will start schooling in four years time. You also have a credit card debt that is ballooning. How should you set your financial goals?

Classify your goals into:

  • Short Term – those that needs to be done in the near future or at least within the year. In the scenario above, your short term goal should be to settle your credit card debt first. 
  • Medium Term – refers to a period of time that is not in immediate yet not too far in the future either. It normally pertains to those goals that you want to accomplish in 2 to 4 years time. The child’s tuition fee in the previous example is a medium term goal.
  • Long-term – pertains to goals in the future usually 5 years onwards. If you are in your 30s, retirement goals will obviously fall into long term goals.

3. Estimate the amount that you need

Since we are talking about financial goals, numbers are very important. You need to know the amount that you need in order to accomplish your goal. For example, your goal is to travel. Estimate the amount that you need to cover your travel expenses. Then, figure out how much you can separate each month for your travel goal. Knowing how much you need can give you an idea on how long it will take you to achieve your goals. Remember, goals must be SMART meaning specific, measurable, achievable, relevant and timely.

4. Budget

Budgeting is a must when it comes to financial goals. Budgeting allows you to have a spending plan for your income. Without a spending plan, there is a tendency to splurge on unnecessary expenses. It will also help you stay on track towards the achievement of your goals.

A good way to budget is through the money jar budgeting system. It is a system wherein you will be able to purchase what your needs and wants yet at the same time limit your spending and grow your wealth in the process.

5. Monitor your progress

Monitoring your progress is very important because it keeps you motivated. It will also allow you to adjust if not your goals but the process on how to achieve your goals.

6. Celebrate small wins

Celebrating small wins will help boosts your confidence level. It will make you feel that you are able to accomplish something and that you are now one step closer towards the achievement of your bigger goal. It will motivate you to keep on going forward. 

What are you waiting for? Define your financial goals now. Setting financial goals is your passport for a better tomorrow.

Image Credit: Gerd Altmann from Pixabay Images

Posted by A.L. Jonas in Financial, 0 comments
08
Jan
2020
How To Recover From Your Holiday Spending

How To Recover From Your Holiday Spending

Reading Time: 2 minutes

As you pack your Christmas decorations back in their cabinet, the money that you’ve blown away during the holidays is now finally sinking in. The mere thought of looking into your credit card account balance may even petrify you. If it’s any consolation, you are not alone in your predicament.The holiday spending hangover is ranked as the number one problem by most people at the start of a New Year according to a study made by LearnVest, an online seller of personal finance software. To put your finances in place, you need to figure out ways on how to recover from your holiday spending.


Try out these tips to get your finances back in shape after the holidays.

1. Put your plastic on hiatus.

The first thing to do is to put a stop on your credit card spending. Your bills as well as the interests will keep on piling up if you will continue using your credit card. A hiatus means to pause – pause just until you pay it in full. Use cash for your purchases instead.

2. Assess your situation.

One thing is for sure, you cannot leave your bills unopened. You will have to face them sooner or later (although later is a bad idea because once your bills become overdue you will find yourself facing unwanted late charges). Instead, gather all statements and receipts related to your holiday purchases. Sum them all up. Then arrange them from the highest to the lowest interest rates. Prioritise and settle all those that charge higher interests rates first. Take note of all payment due dates.

3. Set up a payment plan.

Once you have a figure in mind on how much you are supposed to pay off, the next thing to do is to set up a payment plan. The best option is to pay the amount in full. Although it is the best solution, it is not always viable. So instead, come up with a goal or a target date on when you want to fully pay your holiday spending. Once you have a definite goal, you need to have a smaller goal each month. Pay the maximum amount that you can on a monthly basis and calculate how long will it take you to fully pay the bills.

4. Trim your budget.

To speed up your progress, you need to limit your spending at least until all your holiday overspending has been paid off. There are various ways to reduce your monthly expenses.

Aside from trimming your expenses, this is also the best time to start using a monthly budget (if you haven’t started yet).

5. Sell items that you don’t need anymore.

The start of the year is also a good time to start cleaning your closet or your house for that matter. Get rid of items that you no longer need and sell them. The proceeds can be use to pay your holiday bills. By doing so, you not only earn extra cash but you also get to declutter your home and remove stress. 

Finding out how to recovering from your holiday spending should be your first step in having a fresh start in your financial life.

First published in Pinoy Smart Living 01.01.2019
Image Credit: Gundula Vogel from Pixabay Images

Posted by A.L. Jonas in Financial, 0 comments