I just realized, it's April Fool's Day today -- my advice is, don't be a fool when it comes to money. Here is a quick tip when it comes to #MoneyManagement (yes, I made this infographic just for you!)
A strong base is built first at the foundation which held up the whole structure up to the summit. The same thing when it comes to money matters. When it comes to a financial pyramid, a very good foundation can make your finances unshakable, strong and solid.
In order to build a very good foundation, you should learn how to follow a certain order of building it.
Make sure to prepare for the UNEXPECTED first. Life is full of uncertainties, be sure you will always have a fall back in cases of unexpected occurrences in your life like early death, critical illness or disability. There is no point in saving for your retirement first when you or any of your dependents suddenly get sick. You will end up burning through your savings. Get a Term Insurance for income protection and Health Insurance to supplement your HMO (because HMO's have limited coverage only).
Once you already have PROTECTION, then INVEST. The best wealth building strategy is to invest EARLY, REGULARLY, and over a LONG PERIOD OF TIME. Always remember, the FUTURE is longer than the present. If you are working only for the PRESENT, what will happen if you stop working? Life has to continue. The money you saved in the present will be spent in the future, so make sure it could last you until your last breath.
And, when you have accumulated your wealth, it’s time to protect it and make sure it stays with you and your family. Learn how to spend your retirement income and protect your estates from tax thru Estate Planning. The current estate tax in the Philippines is 6%. If you have over P50,000,000 of assets under your name and you die all of a sudden, your heirs have to pay around P3,000,000 in Estate taxes before they can even get a hold of your assets. There are deductibles like for funeral costs and family home, but those are little. They also have to pay this within 6 months from the time of your death. Otherwise, they will incur large penalties.
Do something TODAY that your future self and your loved ones will thank you for.
YES, You have to do it today, and not delay (you will not be young and healthy forever). The only thing we can control in this world are our actions, so ACT WISELY :)
Got questions on HOW TO START with all these? Just fill-up the contact form or hit the action buttons in my website.