EVERYDAY I WAKE UP AND PRAY TO GOD TO GIVE ME WISDOM AND HOW TO MANAGE MY RESOURCES.
BREAKING DOWN Financial Literacy
Financial literacy also involves the proficiency of financial principles and concepts such as financial planning, compound interest, managing debt, profitable savings techniques and the time value of money. The lack of financial literacy may lead to making poor financial choices that can have negative consequences on the financial well-being of an individual. Consequently, the government created the Financial Literacy and Education Commission, which provides resources for people who want to learn more about financial literacy.
LET ME WALK YOU THRU – WHAT MY PRINCIPLES IN PUTTING MONEY TO WORK
The main steps to achieving financial literacy include learning the skills to create a budget, the ability to track spending, learning the techniques to pay off debt and effectively planning for retirement. These steps can also include counseling from a financial expert. Education about the topic involves understanding how money works, creating and achieving financial goals and managing internal and external financial challenges.
Identify your current asset position and plan how you want to get to your future asset position as soon as possible so that you have a choice to work or not work and pursue things that you love to do moving forward as your money will start working for you. MONEY MUST MUST MUST go to work. Don’t use them for buying things that you do not need…you are making the MONEY TO BE LAZY!!! TRULY LAZY!!!! Make them work hard for you from today!!
ECONOMIC LIFE VALUE AND HOW IMPORTANT IT IS?
The value of life is an economic value used to quantify the benefit of avoiding a fatality. In many studies the value also includes the quality of life, the expected life time remaining, as well as the earning potential of a given person especially for an after the fact payment in a wrongful death claim lawsuit. The question to you is; how expensive are you? Everyone have a value – what is yours…
What is the meaning of economic life?
Economic life is the period over which an entity expects to be able to use an asset, assuming a normal level of usage and preventive maintenance. Economic life can also refer to the number of units produced; for example, the economic life of a vehicle may be 100,000 miles, rather than three years. How many miles do you have before you call it day for your Life?
HOW TO CALCULATE ECONOMIC LIFE VALUE?
Depreciation is calculated by multiplying replacement cost by the effective age of the improvements divided by the total economic of the subject. The underlying assumption of the economic age/life method is that deterioration occurs at a constant average annual rate.
HOW TO MAKE YOUR MONEY GO TO WORK?
- Start with 20% savings of our income each month before you spent
- Trust Compoundment
- Establish top 10 companies that’s doing well in Philippines – invest with them
- Look for a Mentor
- Build an Income Generating Asset
If you don’t start your program and follow these steps – you will follow what everyone believe – retire at age 60 (crab) – retire early and enjoy your life – make sure you money goes to work.
AN EXAMPLE OF YOU PLANNING FOR YOUR CHILD EDUCATION
You have 2 Choices:
- Start investing in the best 5 companies in the stock exchange for 15-18years; when your child needs it for higher education;
- 5% of your income should be allocated for this purpose
- Ensure you establish each month purchases
- Monitor the dividends and capital appreciation
- Each the journey
- Borrow from the bank
- Pay interest and suffer till your child graduate
I believe we all can be happy everyday if we start making sure that money goes to work and not man go to work.
Article by: Sharon – CEO FINWAZE.