Wednesday, January 14, 2009

Financial Freedom: 5 Easy Steps to Financial Freedom According to One Who Works for BDO

I was watching Pia Hontivero's show on ANC, ShopTalk, last time and the topic was of so much interest to me. The guests brought in some Powerpoint presentations about their topics, and I was lucky enough to write down some important points. Here's one, 5 Easy Steps to Financial Freedom (which in my opinion, not that really easy :-))

1. Know Yourself
  • list down your monthly expenses
  • list down your monthly income
  • list down your assets, value it
  • list down your liability and monthly amortization
2. Know Where You Want to Go
  • list down your objectives
  • list down your "wants"
  • list down your dreams (like early retirement, buy a car/house, etc.)
3. Know How to Get There
  • set a plan on paying down debt, cutting expenses
  • savings, 80-20 rule
  • investment, simple first
4. Just Do It (implement your plans)
  • open a bank savings account
  • open a "big account" for investments
  • pay your debts
  • implement your plans
5. Review
  • do a quarterly review of your plans and where you are

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