on RICH FOR LIFE

September 08, 2009

WHERE DO I PUT MY MONEY?

As the dust settled after my very exciting wedding day, we had to decide what to do with the money that we have. (parang Mikey ang dating)

Do we buy the LARGEST HDTV IN THE WORLD?

IMG_0430

or let the money work for us?

The problem with most of us clueless people is that we work for money when money should be working for us. In the Philippines, 98% of the people live from paycheck to paycheck. We have become slaves to our paycheck. We let money dictate how we live our lives. It should be the other way around. Dictate what your money should be doing for you.

Where did we put our money?

Step 1: Pay off your debt – since we were debt free, we went to step 2

– pay off your credit card debt, student loan, auto loan. It would be great to start your marriage debt free! It removes the burden for you and your wife.

2. We opened an emergency fund account.

An emergency fund is liquid money that you promise not to touch unless emergency arises like lost of a job, hospitalization and window shopping. Remove the last option! A basic emergency fund would cover your projected 3 months living expenses. So if you have a monthly living expense of P40,000 you must have at least P120,000 in the bank. Some people I know stored upto 6 months of living expense in their emergency fund.

3. We bought essential home appliances.

4. Bought some insurance. – more on this by my guest bloggers next week.

5. Made some investments – low risk and high risk investments. More on this on my next blogs.
I did make some dumb investment decisions again!

6. Building our emergency fund to one year.
still in the process of finishing this one!!

7. Set up a retirement fund.

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