The Three Big D’s of Personal Finance

The journey to personal finance is not easy. It requires three big D’s: drive, discipline, and determination.

Drive. This is what fuels your desire to effectively manage your finances. This is simply what motivates you in your journey to personal financial freedom. This is your WHY.

I believe we all need to have this big drive in order to push us to action. It is the fire that will keep burning inside you. Without this, our journey will be meaningless.

Ask yourself, “Why do I want myself to be financially free?”

Discipline. Discipline is necessary in order for you to be able to attain your personal financial goals. You need to be able to stick to a certain habit every month. If you want to be able to save for an emergency fund, you should be able to religiously allocate a certain amount for the fund every month. And you need to be able to continuously do it until you reach the desired goal.

It will not be easy at first especially when you are just starting your personal finance journey. The key here is to remember your big drive. Your drive will remind you to continue doing what you have started.

Determination. Ultimately, determination leads to success. When you continue doing a certain habit for a certain period of time, you will reach your goal. In personal finance, determination is very important. Why? You need time to be able to grow your savings and investments. Have you seen someone who has become financially free overnight? I bet the answer is a big NO.

For example, preparing for retirement will take a long time. This needs your determination to be able to set aside a certain amount every month.

Drive, discipline and determination are the three big D’s of personal finance. Without it, the journey to personal financial freedom will be meaningless.

Money Tips for Single Moms

It’s not easy to be the sole breadwinner and pay for all the bills every month. But if you have a stable and high income earning job, I have some practical tips for you single moms out there.

1. Do not include the child support in your monthly budget. Why? This forces you to live on your income and helps you make better financial decisions. Also, there will be times that it will be difficult to collect child support.

2. If the father continuously gives child support, save it in a passbook savings account or try to invest it in a good financial product.

3. If you have 13th month pay or other bonuses, try to set aside a certain amount for your child’s tuition fee.

4. Encourage your children to learn to make money for their wants. They can sell their old clothes, books or other things that they don’t use. They can take advantage of their social media accounts to sell their stuff.

5. Set a certain amount of fun money for your children every month, especially in their teenage years. They will be socializing more and hanging out with their friends. Once they reach the limit, remind them that they have used their fun money for that period.

It all takes discipline. Living on one income is a challenge but it can be done.

Financial Planner’s Training

This year, I fulfilled one of my goals.

I attendedĀ the Financial Planner’s Training of the Personal Finance Advisers (PFA). I have been planning to attend this training for some time. I just couldn’t find the time for it. This year, I took the time to attend it.

I learned a lot from this training aside from personal finance. The estate planning module was overwhelming. It opened my eyes to the different tools that we can use to plan for our estate. I wish I had taken this training when I became an independent Oracle Consultant 10 years ago. Why? That was the time that I really needed to know a lot of personal finance stuff since I started earning more.

But I am still glad that I attended the training early this year. I started the year right! Although I am 40 and feel really mortal, I feel more knowledgeable and equipped to approach how I should be saving and investing for my retirement.

Also, I passed the exam. I am now an Associate Financial Planner.