From any income you make, the basic rule is PAY YOURSELF FIRST. You need to set aside an amount that before you even think of spending for anything. You need to understand and accept that savings is really an expense. It is an expense for your future.
I suggest that you adopt the 80/20 rule: Live within 80% of your income. Pay yourself 20% and use that to jumpstart your investing.
The savings that you set aside regularly will be your first source of capital. It will eventually be enough to start you off on your investment program. You just need to be financially literate. Even if as a student, you feel you did not have a single “business bone” in your body, you can learn simple personal financial management. As a woman, you might feel that you were born for the finer things in life and have no need for all these investment jargon. Change your mindset! You need to learn and it is easier than you can imagine.
The good news is that at any income level, you can plan to be financially independent. The better news is that no matter how small an amount you can start saving, you can grow this money into substantial lifetime wealth. Making your money work for you is not difficult at all. You just need to set your financial goal, be patient and START INVESTING.
FRANCISCO J. COLAYCO is an entrepreneur, a venture developer and financial advisor. He has over 40 years of experience that covers service contracting in the Middle East, manufacturing, trading construction, shipbuilding, management consulting, banking and financial services. He is the Chairman of the Colayco Foundation for Education (CFE) and the author of bestsellers: Wealth Within Your Reach (2004 National Book Award for Business and Economics), Making Your Money Work (Nominated in 2005, National Book Awards Business and Economics), Pera Palaguin Workbook and Money for Kids. The books are available at National Bookstore, most other bookstores or directly from CFE. He joins our website blog to share with ordinary income earners, Overseas Filipino Workers (OFW) and students the simple principles to "Save what you earn and grow what you save." CFE conducts talks, seminars, and workshops. “Managing Personal Finances For The Future” a seminar-workshop developed in partnership with the Ateneo Graduate School of Business, Center for Continuing Education. June 21, 2008, Saturday, 9:00 am to 6:00 pm. For registration and inquiries, please call Marleth Calanog at 830-2050. CFE is also the producer of the PISObilities DVD series, available at your favorite audio-video shops in May 2008. Learn more about the advocacy at www.colaycofoundation.com, email info@colaycofoundation.com, via SMS +63917-8537333 or through (632)637-3741.
2 Comments
Add CommentLunacere
This makes sense. I have a hard time maintaining my savings. I put away more than half of what I earn thinking that more money over short time equal sound financial future! Boy, was I ever wrong. I was always short on cash and end up "borrowing" some from my savings. Lesson learned: be the turtle, not the hare.
April 18, 2008 at 6:53 ambroken_heart
ive always been the thrifty one. I always budget my money even before I get it. I have my savings automatically deducted from my main acct every payday. The result of this: I have enough to spend for leisure activities and still saves somehow.
April 27, 2008 at 3:33 pm