Moneybility e-Book Notes
~ Sunday, March 26, 2023 Blog Post ~
1. A comprehensive and credible body of information about managing your money
2. You become financially secure, resilient, and sleep better at night.
3. pension fund
4. Achieving financial wellness — Having control over your money, making responsible money decisions, and meeting your financial obligations; It’s for everyone.
5. a) 7 in 5 consumers continue to struggle in debt;
b) 55 percent of consumers still have a hard time paying for food and other necessities; and
c) Only half of the households can cover necessary expenses for two weeks if they lose their income.
6. Doing well financially
7. Just as anyone can start, anyone can also start over.
8. Vicious loop
9. A regular source of income gives you peace of mind and stability. The emergency fund gives you confidence and protection from a crisis.
10. R&R — rest and recreation; You don’t want to worry about the financial burdens of taking time off.
11. FinEd 101: Spend less, save more.
12. FINANCIAL HEALTH — Hinges on how you manage your money; Includes how you:
a) Budget (Save and spend);
b) Invest;
c) Insure your assets;
d) Plan your retirement; and
e) Other financial components of your life.
13. Investing, when done right, provides a great rate of return, which, in turn, can be your retirement fund.
14. Interest is the “cost of convenience” for having access to money now than later.
15. Insurance — Unplanned life events include medical emergencies, catastrophes, and diseases that impact your earning ability.
16. Insurance protects your assets, like home, car, and for some, wealth.
17. With the rising cost of goods, it is best to supplement your retirement money with other savings and investments.
18. Money can be used as a/an:
a. CURRENCY — Something that can be spent or saved; and
b. ASSET — Something that can help grow your money and build wealth.
19. A big salary does not translate to success. Earning more will not make one’s money problems go away. Your lifestyle and responsibilities change over time, and so do your expenses.
20. Invest in something you believe in.
21. Don’t splurge on things that have no value in your life in the long run.
22. 7 Key Areas of Financial Health — Is where the journey to financial recovery starts:
a. Income
b. Expenses
c. Savings
d. Investments
e. Loans and credit
f. Insurance
g. Pension
23. Money habits to practice:
a. Have multiple sources of income
b. Have insurance that covers different aspects of life
24. You’re financially healthy.
25. An MBTC study confirmed that consumers’ financial worries are worse than ever.
26. Heavy financial stress
27. You feel inspired when you think about money.
28. Prioritize improving your financial health.
29. Put your mind at ease.
30. I have clear financial goals that I want to achieve.
31. I have a detailed plan to reach my financial goals.
32. I have a plan to save enough for a comfortable retirement.
33. I am aware of my investment options.
34. I have a portfolio of investments.
35. I have a backup plan in case my investments don’t work out.
36. Check-in needed — There are more than a few challenges in your long-term financial situation which can have you working past retirement age.
37. Consider spreading your money across several bank accounts to hold on to a considerable amount.
38. Do retirement planning early to make it easy to build a nest egg. The sooner you start, the more ready you’ll be for retirement.
39. The pursuit of money should not be the one financial goal that overshadows everything else.
40. Making money is not the end-all, be-all.
41. Keeping quiet about your poor financial health — Struggling silently is a recipe for conflict, especially if your family depends on you.
42. Explore ways to augment your income to earn and save more.
43. If you’re doing well financially, then continue what you’re doing and you’ll be fine. Your future retired self will thank you for the steps that you take to achieve financial health.
44. EMERGENCY FUND
a. Single and no dependents — Emergency fund should be 3 to 6 months of one’s average monthly expenses;
b. Married or breadwinner — 2 years’ worth of expenses
45. You have a timeline for when you finish paying off each loan.
46. Set aside money for important investments like the education of your (future) child.
47. Investment portfolio diversification minimizes your risk of loss.
48. Seizing opportunities that produce more “eggs” or investments is better.
49. Ideally having more than one source of income
50. Financial burden and stress
51. Build an emergency fund that is readily accessible, preferably some of it in cash or most of it in a savings account.
52. I feel financially secure, even in the face of unexpected expenses.
53. I have a set of clear financial goals.
54. Have an emergency fund that covers 3 to 6 months’ worth of expenses if you’re single, and up to 2 years if you’re the family’s breadwinner.
55. Have a broad set of investments (stocks, bonds, mutual funds, etc.).
56. Start exploring your retirement options.
57. Start or invest in a business on the side.
58. Budgeting is an important life skill that can help you get better at managing money.
59. While money alone cannot buy you happiness, it is easier to be happy when you do not have to stress about having enough money for food or for paying bills.
60. The cost of living can vary, depending on where you live. Living in large cities often means greater economic opportunities and salaries, with higher corresponding costs. On the other hand, people who live in the provice have lower costs of living, though earnings also tend to be smaller.
61. A sense of urgency is necessary to craft a proper budget, so you can keep things realistic.
62. We cannot control things like the increasing cost of goods and services and the wage market, but we can control what we do with the money we have.
63. What you want out of life may not be the same as others, so do not worry if your journey looks different from everyone else’s.
64. Keep your goals simple, easy to do, and realistic to keep yourself from being overwhelmed. Take baby steps you need now so you can set yourself up for giant leaps in the future.
65. “Livable” monthly expenses is the amount that lets you stay on top of your spending, enjoy life, and sleep well at night, while still being able to save.
66. “Untouchable money”
67. “Fun money” is for “me time” activities like:
a) A trip to a beauty salon;
b) A road trip to the nearest beach; or
c) A regular Friday night out with friends
> “Fun money” affords you simple joys that make you happier and a better person.
68. Take out the “wants” you can do without for the meantime and convert these expenses into savings.
69. Households with incomes on the lower end of the economic scale
70. Budget template’s elements:
a. A view of your total income;
b. Your expenses broken down into various categories;
c. The money left if you subtract your expenses from your income.
71. Note your income for the month, then subtract every expense you make. This step will show the money you have left, so you do not end up overspending.
72. Income is:
a. Your monthly paycheck or take-home pay
b. Your earnings from a side hustle
c. Your investment earnings
d. Regular remittances sent by a relative abroad
e. Business profits
73. The anatomy of a personal budget
74. Expenses should be less than your income for you to have funds left over for savings, investments, and emergencies.
75. Income — Expenses = Savings and Investments
76. Essential expenses (Needs) VS. Non-essential expenses (Wants)
77. Savings and investments are where money is treated as an asset rather than a currency that is spent.
78. Store cash in interest-bearing accounts as an added protection against inflation.
79. Budget needs to be adjusted; Spending behavior needs to be corrected.
80. Having 2 dependents means that their expenses are also much higher. In addition to their individual needs and goals, they must prioritize the present and future well-being of their young children.
81. Their biggest expenses are for their house and car payments, which will become theirs once their loans are fully paid. They can expect to have more to spend or save once the expenses for their house and car are fully paid.
82. Do not compare your financial or budgeting journey to others.
83. A goal is not about what you accomplish. It’s what you become. — Michael Hyatt
84. Reasons that hold consumers back from saving money and preparing for the future:
a. Lack of knowledge on how to boost their savings, considering inflation
b. Saying that they are not earning enough money to save
c. Saying that there is not enough money left to save
d. Starting to think about saving money only when they approach retirement
e. Attitudes like “bahala na” and YOLO (You only live once)
85. Save money for financial emergencies and medical expenses.
86. Save money for:
a. Life’s uncertainties
b. Retirement
87. Your savings should also increase as you grow older.
88. With inflation, tuition fee will increase in a few years.
89. Tuition fees also multiply and vary depending on the number of children and the courses they take.
90. The latest government data by the central bank shows less than 3 out of 10 households have savings, so unexpected medical bills can be a financial burden to families and individuals.
91. Health or life insurance can cover medical expenses, but this depends on the amount of money you can set aside for paying insurance.
92. How much you need to retire comfortably depends on the lifestyle you want.
93.The central bank shows that a huge population of consumers are not even covered by any of the pensions available to them like SSS and GSIS. Thus, they work beyond their retirement.
94. moneybility.ph
95. Also, pensions are not enough to sustain consumers in their retirement years.
96. Very few consumers save for an emergency fund. When medical emergencies happen, many suffer financial distress, as they desperately find immediate sources of funds to cover the cost of hospitalization, doctor’s fees, medications, and related expenses. In some cases, they drain what little savings they have left, or worse, they borrow money to fund this unplanned expense.
97. Having money tucked away in a savings account offers you peace of mind and increased happiness.
98. Having money to fall back on when financial problems happen lets you sleep better at night.
99. EMERGENCY FUND / “CASH CUSHION” helps in funding unplanned expenses without touching the money one has set aside for spending on essentials.
100. Don’t put your emergency fund in any banking or financial service that requires clearing or processing time before it is released to you.
101. Inflation is troubling if your salary or income stays the same. This would force you to live frugally, lessen your expenses, and be more wary of what you’re buying.
102. Time Deposit — Maturity date is the time when you can withdraw your time deposit without penalties.
103. The funds you keep in your time deposit are those that you don’t need for the time being.
104. Time deposits give better interest rates than your traditional savings accounts. The longer the maturity of time deposits, the higher the interest earned.
105. Make saving automatic.
106. For long-term savings, find an account that will not let you touch your money for a long time.
107. Create different accounts for different savings goals.
108. If you’re unable to pay personal loans and credit card dues every month, finance charges and penalties can eat up your savings. Prioritize paying your debts first, so you don’t drain your savings.
109. With less expenses, you can put that money into your savings.
110. Rewards or cashbacks from banks and credit cards are benefits.
111. Every amount unspent is money saved.
112. It is important to know what you are saving for, so you can set clear and specific savings goals.
