How do I build my future?

It’s been a year past that I got a job and earned an income. And, I have to admit that the salary I am getting from the job is not that substantial for my future life. Time will come when I don’t have enough enthusiasm to work, and that I have to face the age of retirement. So, the questions are, “How will I survive when I retire? Where can I get money for my daily sustenance?  How can I provide the needs of my family? How can I ensure the education of my children?”

How will I be sure to answer these questions? I start building my future.

This is a quite motivational saying which says, “One way to predict your future is to create it.” So, from the time I landed on a job world, I lived within my means and started creating the future I planned and wanted to have.

Herein, I wrote every step I did on how I create the rung of my future ladder so to have something to step on towards financial freedom.

Make a budget. It’s truly hard to save and make a budget, but it’s much harder to pretend that you have a lot of money. Yes! It’s harder to pretend that you have money where the fact is your wallet is crying out.

I live within my means. What I always do before the payday is I budget everything. I budget the necessary things I need to survive. The wants? Well, I will have them next time. I will surely have them.

Start budgeting with this formula: income - savings = expenses. I see to it that 20% of my income first goes to my savings.

Have an emergency fund. It took me half a year to save for my emergency fund. An emergency fund is thrice the income you are getting now. This is a saving that will insure you for the worst scene where you land out of job and being cut out of earning money. This emergency fund will keep you peaceful from money worries until the time you get another job.

Engage in business. With a minimum salary I am getting from my job, it will surely take me 2 to 3 years before I will have my emergency fund, will have insurance, and will do investing. To maximize the flow of my income, I engage in business.

I started with having a loading business. Though this business only gives me minimal return, what matters is that it greatly helps.

Find a mentor. “Nothing beats someone looking for a mentor.” These are the words of my mentor, Mr. Edmund Yao Lao. He is a registered financial planner in the Philippines. He is also an assistant managing director at World Financial Marketing Alliance Inc. Moreover, he is a certified investment solicitor on Mutual Funds at Rampver Financials. He was a former Sales Engineer at United Neon Advertising, Inc.

No man is an island. Whether we accept it or not, we need someone who will guide us and give us advice in the path where they are already there.

Avail insurance. Only 4% of the world population has insurance, and I am happy that I belong to this 4%. I know that there’s nothing certain in this world, but those wise enough who prepare for the uncertainties are those who know that they will never be left unaided when this time comes.

I purchase my life insurance at FWD Life Insurance. This is a promising insurance company in Singapore and Hong Kong and aims to be on the top in our country.

Invest. Sad to know that there is only 1% of the world population who is investing, and I am also happy that I belong to this 1%. Investment is a commitment to use money in order to expect to gain more money in a long period of time. This is the reason why the rich get richer and the poor get poorer. Many don’t know that there are vehicles which let the hard-earned money grow and beat inflation.

In my case, I invested in a mutual fund at Philequity Fund Inc. under Rampver Financial. Mutual Fund is an investment program funded by shareholders that trade in diversified holdings and is professionally managed. So, even though I have zero knowledge in the stock market, I leverage the expertise of the fund manager and expect that 10-20 years from now, my money will grow, hoping that I am financially free in the future.