Posts from — September 2009

A few days ago, I started to blog more and more about personal finance. While I’ve been doing research on a lot of aspects of personal finance, I discovered that there was definitely a very small number of blogs focusing on personal finance in the Philippines.

Although I’ve been acquainted with SVB(via another blog I have), easily one of the great personal finance bloggers who writes on numerous blogs including her own, The Digerati Life, she mostly focuses on the US economy. The only personal finance blogs I’ve read that focuses on the Philippines are Tyrone’s Millionaire Acts, Celine’s Frugal Pinoy, Pinoy Money Talk and Inquirer’s Money Smarts.

Perhaps it’s a great idea to get a round up of all the Filipino personal finance bloggers. It would be very helpful for readers to get a lot more personal finance information if there was an actual list of the personal finance bloggers.

Anyway, here’s a list of interesting blog posts that I read in the past week.

4 ways to fund your children’s education. I’m already decided on taking #3, Save and invest on your own. Although there is risk, I don’t believe it’s less riskier than getting so-called guaranteed educational plan (CAP, etc).

How much happiness can money buy?. I believe money cannot buy happiness. What it can buy is security. In turn we can focus on other things that make us happy, like family and friends.

The Personal Finance Hour, Episode 20: Spending Smart with Greg Karp. I enjoyed this personal finance hour episode. What I particularly liked are the tips when buying at stores. Another interesting phrase I caught was about US tap water being safe drinking water. You’d probably get sick after a week of drinking tap water in the Philippines.

I’ve always been a reader. I like to books about personal development, health and finance. With the recession already here and the call for saving is getting louder than ever, I’ve mainly focused on reading about personal finance.

Of all the personal finance books I’ve read in the past, I’ve really liked and recommend a few books. These books have been a great help to me in my goals to reach a financially independent lifestyle in the distant future.

Debt Repayment

• The Total Money Makeover. This book has been a great instrument in fast-forwarding my debt repayment plan. Dave Ramsey have always said that personal finance is 80% behavior and 20% head knowledge and it makes sense. Using the famous Debt Snowball, I’m reduced my debt. I’m almost through paying my credit card debt and I’ll be left with the mortgage.

Budgeting

• All Your Worth. While the book gives details a six-step plan for getting your finances in order, the best tip that can be pulled out of this book is the Balanced Money Formula. The Balanced Money Formula is by far the simplest budget system I’ve ever encountered which divides your take home pay into 50% – must haves, 30% – fun money and 20% – savings and investments.

Investing

• The Automatic Millionaire. This book greatly motivated me regarding how small amounts (‘latte factor’) can add up in the future. The book is something to read if you want to get motivated into saving and investing.

Financial Independence

• The Millionaire Next Door This book is the sum total of a study in the life of millionaires. It actually surprised me. The outcome of the survey was light years different from what I expected. I imagined having nice cars, having big houses. Instead, millionaires lived modestly and below their means.

There have been tons of financial blogs, books that have crept up since the start of the recession. Most of these bloggers and books come up with financially good ways to get in a better financial shape.

Personal finance is actually easy. It doesn’t require you to be a rocket scientist to get ahead financially in life. That’s actually a good point. It means that the common person like me can do it.

Easy? Can be done by practically anyone? Yes. There is but one rule that you should try to think and do everyday…

Spend Less than You Earn

If you spend more than you earn, you wouldn’t be able to save. If you buy things that are over the budget, you end up using debt.

The advice seems very basic but this is one thing a lot of people are failing to do. Remember that the only thing that makes you wealthier is regularly spending less money than you make..

The Bible is known as the book of answers. The Bible gives us advice that we can apply to our own life on limitless topics. It isn’t impossible not to find advice about money, career and personal development.

Every Friday is Bible and Money Day at Pinoy Smart Life

The rich rule over the poor, and the borrower is servant to the lender.
Proverbs 22:7

The quick lesson here is to never owe anyone money. That’s how you evidently work for credit card companies when you use your credit card and pay interest. If you are in debt like me, it’s probably time to pay up and work until you are no longer a slave to your creditors.