We should enjoy our hard-earned money today and in the future.
~ Friday, January 12, 2024 Blog Post ~
I participated in a financial literacy webinar yesterday, Thursday, January 11, 2024. I just wanted to gather more relevant insights that can be helpful to my personal finance journey. At the end of it, I won a merchandise from the webinar’s organizer.
I found the online seminar enriching and really worth my time. The resource person is a key figure in the finance, business, and real estate industries. He is also the proprietor of a leading asset management firm.
It’s the start of the year and I certainly want to begin 2024 right similar to the past years. The New Year is an opportunity to commence a new leaf and have a fresh look within this new period.
With an opportunity to start a new leaf, January is a time for me to reassess my financials to jumpstart my 2024. I’ll definitely carry on looking at and concentrating on my financial life and improve it for the rest of my life.
Yesterday’s webinar enabled me to discover more about the right asset allocation, in which I can be in a position to take advantage, whatever the markets do. Diversification and asset allocation are musts or imperatives in managing investment portfolios.
Since I’m a risk-averse or conservative investor, having considerable fixed income investments is appropriate in my case.
I also learned more about how to achieve capital appreciation for the future, despite the very, very volatile experiences that may come to investors like myself, such as the events in 2023. Last year, wars and geopolitical tension, inflation, and rising interest rates adversely affected global investors.
The webinar’s speaker talked about how I can achieve a financially secure future, which is my primary goal for saving and investing my hard-earned funds based on my values and interests. Here are some of the main takeaways from the educational online seminar:
1. The webinar’s resource person advised sticking to effective investing strategies and be steadfast.
2. To attain my money resolutions for 2024 and become much better financially this year, I can benefit from the “clean slate” or “fresh start” effect new years always bring.
3. When it comes to working on achieving my money resolutions, I should adhere to a habit-focused system. This financial approach is based on what I do consistently.
4. The webinar speaker recommended exposing oneself to financially responsible and accountable people. The latter are those who want to discuss money and do not see it as a taboo subject.
Moreover, the resource person affirmed that being with a group that talks about how money has empowered them is educational. This specific type of horde is worth befriending for they are inspirational. Hence, I should be in a community that discusses financial responsibility and my future financial wellness.
I should also avoid falling into temptations like going to the mall and performing online shopping often. Anyway, I absolutely don’t have any problem avoiding such unnecessary expenses because I’m a hardline miser.
5. My financial destination or goal is actually a specific number or amount in my investment account. It sets my direction towards the levels of achievement, milestones, or results that I want to have in my life.
6. Affirming that I will be financially free equates to claiming that I already am that status. Financial freedom allows me to do anything I like because money’s impact is irrelevant. Additionally, by being financially free, my decisions will not be hampered by money because I already have enough.
7. Financial freedom of choice is doing what I want to do. The income is coming and it’s passive and does not involve me, my expertise, or my time.
Furthermore, having financial freedom of choice involves myself already having money that is enough for my needs. It involves possessing what the speaker referred to as an “emancipation fund” or a pension, which comes to me every month no matter what happens.
Plus, having financial freedom of choice includes possessing emergency funds that put me in a position of stability, keeping me grounded and able to weather financial storms.
8. A real millionaire has seven sources of income. He derives his financial gains and sustenance from a business, investments in real estate, precious metals, artwork, and all that stuff, and an extra sideline or side hustle.
9. The speaker mentioned that compounding power is the most potent force in finance according to Albert Einstein. The relativity theorist’s exact words were, “The most powerful force in the Universe is compound interest.”
Einstein pertained to compounding as one of the best “miracles,” as interest is added to an investor’s investment principal. Then, that added interest also earns interest.
10. Retirement age is the time of unproductivity. Borrowing money for a child’s college education is possible. However, in retirement, nobody will lend money to a retiree.
Hence, it is important to raise funds for this life stage and this activity should be one of the important goals people must have.
11. To become financially free, it pays to be savings-focused and have separate investment portfolios for one’s particular needs.
The webinar I attended concluded with the speaker answering the query I submitted. My question was:
Hello Sir,
I’m a frugal saver and investor in my late 30s and I like the financial stability I’ve achieved. It’s certainly reasonable to save and invest. But we should also enjoy some of our hard-earned money. Do you recommend being miserly or a penny-pincher? How should people like me enjoy our hard-earned money?
The speaker found my question — the last one on the webinar — very, very important and profound. He affirmed that we should not just reserve our money for the future, but also for the present and enjoy it today while we still can. After all, nobody is guaranteed tomorrow or the future.
The webinar’s resource person cited that financial goals have deadlines and that’s when the money saved and invested should be spent.
Indeed, we should enjoy our hard-earned money today and not stash all of it for the future. Being a lifelong personal finance student, which began seven years ago, I certainly made perfect sense during the webinar’s Q&A session yesterday.
The speaker’s precise words are below:
Yeah, JP, I’d really like to answer this last question of Sheena. Kasi it’s really very important, ‘no? She’s a frugal saver when she was starting.
But she’s asking, “When do I now enjoy my money?”
And that’s the reason why I go back to your SHORE (5 Things to Consider When Investing: Size, Horizon, Objective, Risk tolerance, and Experience) earlier, right? The objectives have to include intermediate goals because some of the goals that we dream of have deadlines, right?
At the age of 50, I had my own Ferrari, right? I wanted a red Ferrari that’s convertible. Probably a lot of financial advisors will pop their eyes out and say, you know, “Why did you do that? That’s financially irresponsible!” Hey, that’s my dream. My dream is to be a reality. And the reason why it’s a convertible is because I like my hair wind-blown. Can you imagine if I have that same car today? There’s nothing to get blown anymore.
I even tell my wife, “When will I have a Ferrari? Kapag nakaupo na ‘ko tapos tumutulo na laway ko because pinapaarawan na ‘ko? (When I’m already old and paralyzed and my saliva is already dripping because I’m being exposed to sunlight?)” No. You have to be cognizant of the fact that both intermediate goals and long-term goals have to be both fulfilled. And financial planning and financial responsibility is not just taking care of the future. Remember my definition of wellness? Today and in the future.
So, financial freedom of choice today and in the future. It’s not reserving everything for the future because what if something happens to you? You don’t want your lapida (tombstone) to say, “Here lies someone who wants to be happy tomorrow.” You don’t want that. You like money to work for you.
Money is a tool. It’s not an end. It’s a means. So make sure it works for you and, most importantly, your loved ones. I guess with that, JP, that’s my last statement for everyone. We do what we do for people we love, for real value and quality of life. Money is just a tool to make those things even better.
Yesterday’s webinar propels me to further focus on my wants and likes and my own financial track to achieve my life plans. The unnecessary time wasters and distractions are just going to be there, yet I absolutely do not have any trouble dismissing them. I’ve achieved considerably, savings and investments-wise. I have done it for myself. Per the speaker, I’ll have to give myself a break and reward myself then.
