Thursday, August 25, 2016

2016 Family and Finance - Learnings

Last July 30 2016, R and I attended the Family and Finance seminar at CCF Center. It was a whole day seminar from 9 AM - 5 PM. It was jam-packed day with several speakers specializing on financial matters.  

It started with a lot of laughs. Randell Tiongson was the first speaker and he talked about how to set financial goals for the family. He said that a person has the following objectives for saving or setting these financial goals, they are namely: Stability, Travel, Education, Brand, and Car. He said that the 1st step is Cash Flow Management. Where we need to:
> improve our cash flow - make more money and spend less money
> get out of debt
> set up your emergency fund
> get protected from life's risks
> invest for the future

Invest in yourself. Build your own skills. Read.
Inflow of cash should be greater than outflow. Have discipline.If you can't control your money, making more will not help.
Do budgeting. Talk about your budget.
Spending and saving is a behavioral pattern. Find the deeper reason.
Going in debt is a wisdom issue.
Emergency funds should have three to six months worth of income.
Ensure proper protection for all your assets - life, wealth, and insurance.
Invest in your future - what are your investment goals; prepare for retirement.
Have a time frame. You should match long term instruments with long term plans.
Know your risk tolerance. Never invest in something you do not understand.
Diversify while identifying what you really want.
Come up with a financial plan that takes into consideration risk tolerance (>Funding>Monitor>Adjust) and key goals (>Options>Educate).
Invest early, wisely, and regularly. 
No such thing as a "best investment".
Know your purpose. 
Provide. Protect. Pastor. 

Sample personal goals:
Short Goals - Capital Growth, Couple Travels/ Recreation, Maintain Lifestyle, Emergency Fund
Mid Goals - Home improvement, family travels, health plans for family, business expansion, and parent support
Long Goals - Education for kids, retirement, more properties, and more businesses

 Second speaker was Chinkee Tan on how to discuss finance as a couple. He talked about Matthew 18:19. Couples who pray together have more power especially in agreement. Trust is the foundation of a relationship. He also discussed about giving money to people, he said that there has to be a limit on how much money you can use to help people. Charity starts at home. You can never give what you do not have. 
In handling money, it is always a couple decision. 
For debts, always assume it will not return. Just give it away. 
Wives need financial security.
Husbands wants stability.
Spending budget - Plan income and expenses. Argue to agree. Fight to reconcile. 
During disagreements, find wise mentors.
How to resolve money conflicts:
> Focus on the issue not on the person (1 Cor 13:5)
> Focus on the resolution not on your feelings.
> Focus on your role not on your goal (Eph 5: 22-25)
> Focus on GOD not on your situation.

Third speaker was Edric Mendoza who talked about how to teach kids about money. Solomon was the richest man in the world, check proverbs 22. You can learn from him. Values before skills. Make sure to START RIGHT.
STewardship (v2) - saving and investing - ITF, 20% value invest
hArdwork (v8) - earning - jobs vs allowance (chores are not jobs; give them projects for allowance)
shaRing (v9) - giving - giving fund
Thriftiness (v3-9) - spending - find the best deals and tithe young

Save 20% of your total income - Gen 41:34
Piggy your loose change
For sharing, give children allowance to buy gifts for siblings not for themselves.
Giving fund to give to other people.
Only lend money you are willing to give.
Thriftiness, proverbs 3:9 - ask God where to put your money.
Put 10% in tithing. 
Learn to say no to the small things so that you can say no to the big things. 
Do not over emphasize materialism. 
Do not open all gifts at the same time. Open once a week. 
Practice restraint and do not spoil them. -

How to kickstart your financial journey by Edric Mendoza:
1. Assess your monthly cashflow and make sure its healthy
    a. Segment expenses (Monthly Salary = Fixed expenses + Variable expenses + Savings)
    b. Calculate ratios of the segments
    c. Check ratios (last 3 months average to compute)
        20% savings
        10% tithe
        10% giving
        10% variable expenses (personal)
        50% fixed
2. Set financial goals
    If you do not have goals, you just have dreams. Make sure to climb the right mountain.
    Remove loans. Good debt which is a debt for something that appreciates in value. Bad debt is a debt you cannot pay.
    a. Kill bad debt. Do the snowball approach. Find the highest interest rate per annum and the total debt amount. OR. Kill the lowest amount first or the one with the lowest total amount first.
   b. Cut where you can especially in variable expenses
   c. Tithe and give. Only lend what you are willing to give. 
   d. Build emergency fund.3 to 6 months expenses. Find out how long to find a new job and adjust the emergency fund value. Some even have an emergency fund for your emergency fund.
   e. Life Cycle Planning. Look at the major milestones of your life and plot immediate expenses.
3. Create a plan
    #What return do i need?
    #What are my options?
    #How much can i invest?
4. Look at your options
    a. Ownership: Stocks, business, real estate, foreign exchange, alternatives/collectibles
    b. Lending: Bank deposits and bonds
    c. Cash Equivalent: Money markets
Starting investment options:
CA/SA bank - .25% per annum
Time Deposit - .75% per annum (pooled funds options - governed by SEC - corporations) (goverend by BSP-banks)
Time in the market is better than timing the market. 
Choose a good company and stay long. 
It is not how much you make but how much you save.  

 Last speaker was Joby Soriano who discussed how we can understand the biblical perspectives on money.
There are 2350 bible verses about money. Because money is the primary competitor with christ for the lordship in our lives, which is why its discussed in the bible so much. 
We have to remember that God is the owner of everything we poses. When we believe that everything belongs to God, when something god/bad happens to what we possess it will change our attitude to make us happy/sad; because we will be content.
Do not owe anybody. Be honest in all your dealings. God is the master and owner.
God is the controller of our lives. We can be content because we know that God intends to use every situation and circumstance for a good purpose in our lives for as long as we are living a godly life.
God is the provider of all our needs. We can be content when we trust God is faithful in fulfilling His promise to provide according to our needs.
We must be faithful with the amount God has given us. 
We must be faithful with what God has given us or He will take it away.
We must be faithful with the use of another's possession.

Above everything, life is not about money or having a comfortable life. We always have to go back to what we are called or made to do. Having been blessed on things, it is our responsibility and duty to share what we have to others. 


Anonymous said...

Nawala notes ko dito :( thanks for posting! <3 -MC