Becoming Financially Free

[bluish_mommy]

if I may add, saving money doesn't also mean you are financially free. saving money is not enough, the money saved must earn interest, and not just interest, it should be invested to something else that should have a higher rate than Inflation rate. dapat matalo nya lagi ang inflation rate, otherwise, yung itinatabing pera sa bank, kinakain lang ng inflation rate.  maraming hindi nakaka-realize neto.

[MoonshineLady]

saving money doesn't also mean you are financially free. saving money is not enough, the money saved must earn interest, and not just interest, it should be invested to something else that should have a higher rate than Inflation rate. dapat matalo nya lagi ang inflation rate, otherwise, yung itinatabing pera sa bank, kinakain lang ng inflation rate.

hi sis! ano po masusuggest nyo kung saan pwede iinvest ang money para kumikita instead na isave lang sa bank?

[Annie M.]

It's been years since I subscribed to this thread and today, I am proud to say that I have achieved some degree of financial freedom. For me, this freedom means:

1. Having a 'f*ck you' fund -- Enough money to cover my expenses for more than a year should I decide to quit my job. Because if this, I am not a slave to anyone. I won't have to put up with a boss I hate or policies I don't agree with because I can quit anytime and be fine financially. I can say f*ck you to a job or a situation and leave if I want--and that's freedom.

2. Owning our home and car outright. My husband and I have paid off our mortgage and we bought our car cash (kasi second hand lang naman yun). There is a certain liberty to knowing na kahit magkaron ng financial challenges along the way, we never have to worry about putting a roof over our heads or losing our car. That to me is freedom, too.

3. No credit card bills, no loans. ZERO DEBT. No stress. This means freedom to invest our earnings for the future, and freedom to give to charities.

Currently, our saved-up money is earning enough interest to pay for little luxuries like travel once a year. Our goal is to build it up some more so that it earns enough to pay for our living expenses na. Wala pa kami dun sa true sense of financial freedom, but we celebrate little victories along the way.

I'm here to say that it can be done talaga. There is no big secret. We just stick to our budget, we don't upgrade your lifestyle even if we get a raise/promotion, and we automate savings.
 

[kvandenhaak]

Mortgage or housing loan is okay because you get equity when you decide to sell it later. Besides, house is a necessity of life. Depending on the situation, it is usually much better to pay mortgage than to rent because like I said, you get the equity out of the mortgage you pay. Ang rent, wala na yun once naibayad mo na.

As for credit card, because we are in the 21st century, take advantage of the convenience it offers like rebates, points and cashback. Just make sure you pay the full amount every single time.

[lonely_dad]

mas madali din ma achieve ito kung wala pang anak

[jmeangeL]

^----korak!

Let's be realistic.  Kids are good to have.  God gift.  Pero naman, wag silang idamay or gawing dahilan ng paghihirap sa buhay.

As for being financially free, I was almost there, but had to do 3-steps back.  Bad business decision.  I thought I had it in me to have a retail business.  Mahirap pala talaga.

Now, I'm trying to pay down all debts... again!

And use our power to borrow from banks while the interest rate is low and buy properties that would pay for itself.

It might be stressful, but so are other business ventures.

[bluish_mommy]

hi sis! ano po masusuggest nyo kung saan pwede iinvest ang money para kumikita instead na isave lang sa bank?

for me, i have a portion of my cash invested to a cooperative na every year may average earnings na 16-20% 

[MoonshineLady]

for me, i have a portion of my cash invested to a cooperative na every year may average earnings na 16-20% 

wow ang laki nyan ah! pwede po malaman anong coop po yan? TIA!

[lonely_dad]

instead na terms, i normally buy COD sa mga stock inventories ko para me additional discount na 3-5%
di mo naman kikitain sa bangko yung ganun kalaking discount
iirc parang nasa 1% lang per annum ang interest sa bank

[izabelle]

mas madali din ma achieve ito kung wala pang anak

I have to agree with this. Kapag no kids kasi wala ka naman pag lalaanan ng pera mo kundi sarili mo lang and investments mo. Unlike when you have kids, you really need to provide for them lalo na education na sobrang mahal if ayaw mo ng substandard.

However, I think that having kids din should serve as a greater motivation to be financially free.

Sobrang malayo pa kami ng husband ko sa ganitong aspeto but we are slowly working on it. We are aiming for early retirement kaya ayaw na din namin mag anak ulit. Tama na isa for us.

[hisana]

^
I agree regarding the increased motivation when you have kids. We have this friend we've known since college, and now he has three kids already.  Lagi nya kinukwento yan, na dati raw he says na okay lang yung so-and-so sweldo, but when he had kids, he pushed and pushed himself further. Now, mataas na ang position nya sa isang company sa atin that deals with luxury brands. We never even expected na mapupunta sya dun, it's so out of his old character, hahaha. Pero he took the risk. Now, he has the big house, the cars, the investments, and serious plans for the future. Paulit-ulit nya sinasabi sa amin ito, for motivation. Nabobother yata sya sa aming single lifestyle, LOL, but he does give good advice.

[bluish_mommy]

^yes, I can so relate with your friend. madalas rin kasi naming i-advice yung single friend namin the same thing eh, because Time waits for no one. =)

[izabelle]

^^ relate din ako sa friend mo. haha!

Yung sister ko kasi single pa and sobrang magastos nya as in. Super shopping every week. Wala kasing ibang responsibility bukod sa sarili nya. I told her to get insurance/investments habang bata pa. Nagsisisi ako na late na ako kumuha ng insurance (28yrs old) ang taas tuloy ng premium.

Dapat pala nung nagkawork ako when I was 19yrs old kumuha na ako agad.

[Carecare]

^ako din sis late na nagstart sa VUL ko like around 27 yrs old na ata ako.. sayang tlaga.. anyone tried investing/acquiring foreclosed properties? Any tips?

[sweet angel]

^ok lang yan mga sis, mas late pa nga ako...37 ako nung kumuha ako ng vul  ang mahalaga nakapagsimula tayo at sana tuloy tuloy na ...

[izabelle]

^ True. Better late than never.