Financial tips for the youth

This is roughly the text version of my talk this Oct 20 @ 2PM onwards thru YEP: Young Entrepreneurship Program 2020 by DTI R7 & GBG Cebu with the theme ‘Brand You’ via FBLive & Zoom.

Here’s the 12 steps financial checklist I compiled:

#1 Self Awareness

If knowledge is power, what is more powerful than knowledge? The answer I choose is Habits. For even if people have the financial knowledge, they may still be swayed by their habits. An example of this is cigarette smoking. People who smoke are aware of this and yet they smoke anyway.

Self Awareness on your spending, cash inflow and outflow. Why you spend it. From there you can discover your good and bad habits.

#2 It starts with the budget

Budget is a very basic financial plan that anyone can use. Budgeting is about determining where you are, the current state of your finances

#3 Identify Goals

Have rough picture of life you want to live, goals you work towards, determine the distance from where you are to where you want to go. You can then consolidate this with your budget by putting a price/cost on your goals. Then it becomes one step closer to reality for you now know how much you need to save/earn/invest.

#4 Get a financial buddy a.k.a accountability partner

Financial decisions are hard but it becomes easy when you have someone who is also trying to better their financial life and keep you consistent in moving towards your goals. Also, it helps to have someone to discuss these things with or share ideas

#5 Start your emergency funds

Before doing anything else (insurance, investments..etc.) do this first. Set aside 3-6months worth of salary or lifestyle expense.

#6 Get educated on money & scams

Understanding how money works is the first step toward making your money work for you. If you do not know what you are getting into, then you are basically gambling the money you worked for.

Knowing about how investments, insurance, banking and the like works will increase your vigilance against fraudulent schemes and scammers out there as well.

#7 Health is Wealth

This is more of a reminder especially that we are currently experience a global health crisis. Although we have the knowledge about a balanced diet and exercising, many of us still avoid it. You just can’t read about push-ups, you have to actually do it.

#8 Create financial strategy

Now you know about your income capacity, money management and growing options, you can now strategize for the next years. Whether that's increasing current income, adding more than 1 income streams, career promotion and the like steps.

#9 Execute or finally apply your financial knowledge

Get insured (life, income, family, health, properties). Start investing in one investment vehicle, stabilize it first before expanding for diversification.

“You can be young without money, but you can’t be old without it.” – Tennessee Williams

#10 Consider automation, tech

Consider utilizing technology (Excel, mobile and web apps) and also automating your savings, investments or payments which can save you time and expenses. Consider telemedicine as well.

#11 Don’t forget to pause - for money mental health

Have money check-ins with you financial buddy. Celebrate small successes. Remember why you are doing this and not be obsessed with money. We are all pursuing our own happiness.

#12 Ask for Help

Don’t be afraid to seek out & work with specialists such as: Financial Planners (like myself), accountants (taxation), lawyers, fitness experts and the like.