Insights on Money & Motivation | Road to Financial Independence

This is our first installment of our Weekly Roundup Fridays. This week’s post is on Insights on the Road to Financial Independence.

Lucky are those who’ve inherited millions from their parents because they won’t have to work themselves out to the bones to earn money. They just need to manage their fortune wisely. But if you’re starting from scratch, the road to wealth isn’t easy; it can’t be traveled fast.

Even the initial phase of developing good spending habits is a very challenging feat for many of us. More so if we dream higher and aim to get rich. Like fad dieting, we may falter in our self-discipline and get attracted to the usual luxuries – such as gourmet meals, signature outfit and gadgets – we’ve been trying to avoid. The couple of thousands we’ve been trying to save up for months wasted away just because of that 1-hour hangout in the mall.

Coping with the guilt is even harder. At worst, many would just settle down with the idea that wealth isn’t really just for them. Many of us may say “I don’t deserve it” and “I just don’t have what it takes” as we totally drift away from the financial road we’ve started to tread. The next thing we realize is that we’re back to the normal life of splurging and impulsive spending again.

Like all other goals, achieving financial independence requires self-awareness, self-discipline and personal strategies to develop good habits permanently. It also helps to apply the insights below to help you strike a balance between good personal financial management and fun. These ideas might also motivate you to continue your journey toward wealth.

“Your past doesn’t determine your future”

If you’ve done the “one day millionaire act” a couple of times, make sure to identify your spending triggers to stay away from these occasions. Be aware of your own weaknesses and strengths. Then, get over your past mistakes and learn to put your best foot forward at all times. It might also help to use your idle time on productive, income-generating endeavors.

In her post entitled 8 businesses you can do on weekends, KC Kalpo says there are actually hobbies that you can turn into a source of income. This includes:

Writing
Web Development
Photography
Baking
Graphic Designing

Many actually do these on a daily basis just to earn extra cash. If you want to follow suit, you might like to use these 5 mobile apps to boost your productivity:

Google Docs – to store your files in one single, secure storage
Evernote – to take notes more efficiently
Box – to share documents and digital files conveniently with colleagues
Toggl – to track your time spent on a specific task
Instapaper – to save nice content for reading on your idle time

“Unless you want a luxury trip, it’s really not necessary to be rich to travel.”

It’s also important to give yourself a treat every once in a while. Give yourself that much craved cup of Starbucks coffee or designer dress if you’ve achieved something at work. However, retail therapy is really just a short-term treat. If you like to make the most of your bucks, it’s good to use it for travel. As they say, “buy experiences not things.” Travel opens your mind to the different lifestyles people live, such as those in slums or villages. The good thing is that you don’t need to spend your entire savings for your trip. Just visit Lyza R Sabornido’s FAQ.ph Lifestyle column to find interesting information about some of the country’s less trodden vacation spots.

As much as she writes about the country’s pristine natural wonders, Lyza R. Sabornido also writes about current events, social issues, stories of places as told by the locals and Filipino culture and foods.

“Financial literacy gets you a very long way”

The road to wealth always starts with financial literacy and motivation. Earning millions doesn’t really matter that much if you’re also spending more than you’ve earned. So apart from earning more, it’s equally important to learn how to use money wisely. Where should you start?

Join events – One of the best ways to educate yourself about money is to join events and forums. That being said, Chinkee Tan should be one of the speakers you might want to listen to. According to Tan, it’s wise to think about the positive side of things, always. Never lose sign of the positive things and don’t get sidetracked by the negativities in life. Start developing new habits, especially that of saving and conscious spending. Doing this will allow you to brave through the failures, challenges and trials in life. Positivity can even save you from depression. Tan also mentions about the three core aspects of financial freedom:

Vision and Goals – These should be SMART. That is, specific, measurable, achievable, realistic and timely.
Strategy – Be very clear how you’re going to achieve your goals. It’s highly recommended to create weekly goals and milestones.
Action – Carry out what you’ve planned consistently and religiously. Remember, self-discipline is the most important key in building wealth. You should be able to control your money, or else it will control you.

Do your own research – Aside from participating in events, it’s also wise to just do your own research. Read at least one money-related article every day. Or if you’re not that into reading, you can watch financial videos. You can browse LoansolutionsPH’s blog MoneyGuru, to stay updated with the latest trends and financial tips. Learn the important jargons of the industry such as interest rate, investment vehicles, compounding effect and loans. To get started, you might like to check out these popular Filipino authors on today’s most informative financial magazines, Entrepreneur.com.

Angelica Louise G. Dantes – She writes about various money-related topics covering personal financial management, SMEs, employment and entrepreneurship. Read her article called Are Entrepreneurs Born or Made? Goto King Founder’s Entrepreneurial Journey Leads to an Answer and Head Start: 5 Important Lessons That Can Improve Your Personal Finance. These will inspire you to manage your money wisely and think of a business that relates to what you really love.
Jimbo Owen Gulle – His stint as one of the editors of The Manila Times and Summit Media has given him a very solid background on the type of financial information Filipinos need. He’s also an expert voice on entrepreneurship publishing viral articles like How to Build the Next Mang Inasal?, The 9 Traits That Goldilocks is Looking for in a Franchisee and OFW’s Housing Firm Caters to Pinoys Abroad Who Want Property Back Home.

“Invest in things greater, better and long-lasting than yourself”

Material things will show signs of wear and tear and, eventually, break down. Cars and gadgets are such things. If you want your money to last long, invest it in something that will outlast you. You might like to buy real estate properties, in which case you might like to refer to JCariola for practical advice. JCariola’s real estate blog can guide you through every aspect of the industry, from purchasing to managing and making money from your property.

Investing in stocks is another good option. However, this choice requires you to be very keen with the details and numbers. Besides, you should have an anticipative eye, investing in businesses that would yield higher ROI. Although many people might consider this topic difficult, there are actually ways to get yourself oriented with stock investing. You might like to refer to Efren ll. Cruz for tips on this topic, specifically in his column on Inquirer Business. You can read Six Commandments in Stock Investing and Get out of Debt, Permanently to get started.

Final Thoughts

The road to financial independence may be tough and long. But there are several ways to get there. Just find the strategy that best suits your personality and lifestyle so that you’ll be able to stick with this for a long time. Bear in mind the insights mentioned above to guide you through your financial choices and never lose sight of the silver-lining when times get tough.

LoansolutionsPH is an advocate of financial freedom and choice. When it comes to borrowing money, it has been our mission to help people come to an informed decision.