A MEANINGFUL GUIDE TO
PERSONAL FINANCE
Simple steps to financial freedom and achieving the success that you have defined for yourself.
You have what it takes! No matter where you are on your journey, I hope this gives you some new insights, and helps you execute to make your dreams a reality.
DEFINE TRUE ABUNDANCE
WHAT DOES SUCCESS LOOK LIKE TO YOU?
1. Everyone has a different definition, and it’s important that you have a clear idea of your own.
2. Remember that a goal without a deadline is just a dream – so take the time to really think about what matters to you, and do what you can to make them happen.
3. Having a successful life doesn’t necessarily mean having a lot of money – but managing it right gives us the chance to focus on the other areas of our lives that matter to us most.
QUICK STUDY:
- I personally divided my life into 5 areas: spiritual, relationships, career, personal and financial. These are my priorities, and you can choose your own.
- Imagine what you want your life to look like in those areas after a specific time (in 30 years, 10 years, 5 years?)
- Then, break down your goals into years, months, weeks and days. What are the things you can do today to help you get to where you want to be?
Life takes turns, gives us new opportunities and changes as it always does, but being aware and intentional with our actions can create a positive impact.
People often overestimate what they can do in a year, but underestimate what they can do in a decade. Try to see the bigger picture (your long-term goals) and break them down - you’ll have a better idea of the small steps it will take to reach them.
WHERE ARE YOU FINANCIALLY?
KNOW YOUR STARTING POINT
1. Sometimes people are too focused on where they want to be, that they don’t take a closer look at where they currently are. Having an overall view of your resources now will give you a better idea of how to move forward. Having a grateful and positive mindset will always help too!
2. Earning higher income doesn’t mean higher assets. You save what you keep, not what you earn. The recommended formula you’re probably very familiar with: Income – Savings/Investments = Expenses.
3. Though budgeting is very important, it’s more fun to increase your income. If this is something that interests you, think of ways for alternative income sources.
Spend on what’s important to you, cut down on what’s not. I used to be stressed about deciding whether to buy this thing or that, ordering the expensive meal I wanted or settling with the more affordable option.
Being mindful of your goals and current resources also opens a new door to financial clarity: Knowing what you truly want, and knowing how much you can guiltlessly spend, all without straying away from the long-term goals you’ve set.
QUICK STUDY:
- Determine your inflows (income) and outflows (expenses) every month.
- What is your current net worth? How is it changing through the years?
- What alternative income sources would you be interested to create?
Be guided with your own Personal Finance Kit! I’ll be sharing a simple guide and excel templates so that you can easily create your own inflow/outflow and new worth dashboard. Don’t worry, it’s free.
Sign up here so it can be sent to you once it’s ready!
KNOW YOUR STRATEGY
BUILD A PATHWAY TO YOUR SUCCESS
1. After you establish your goals and have a better view of your current finances, it’s important to remember that you should create a strategy based on your own needs.
2. The management of finances differs for each person because we all have different goals - and our portfolio and strategies should be aligned with them.
3. This lessens the effects of unwarranted negative risks on your long-term financial future because you act based on what is best for you, at any given time, and not purely on the general economy or market situation.
4. Example:
Person A: Capital Appreciation – Growth Strategy
Person B: Wealth Protection – Low-Risk Strategy
QUICK STUDY:
- Know your investor risk profile by taking this quiz (coming soon).
- There are a lot of different allocation recommendations out there. Here are some:
The Abundance Formula 10-20-70 (by Bo Sanchez): 70% expenses, 20% savings, 10% tithes
50-30-20: 50% on needs, 30% on wants, 20% on savings
60-40: 60% fixed expenses, 10% retirement savings, 10% long-term savings, 10% short-term savings, 10% fun and entertainment
BASICS OF INVESTING
LET YOUR MONEY WORK FOR YOU
1. It might be tempting to invest in risky funds before securing your basic financial needs first. It’s more enticing to use a seemingly quick, and easy way to grow money. Don’t do it – what if emergencies happen and you aren’t ready? This can easily wipe out the finances you’ve worked so hard to build.
2. To give you an idea of the different investment instruments, here is a basic wealth accumulation pyramid as a guide. Note that you don’t need all of this, and it can sometimes vary (like for entrepreneurs who focus on their business), but – spreading risk by diversifying, and having your basic security needs like an emergency fund are essential.
WEALTH ACCUMULATION PYRAMID
Level One: Basic Security Needs
Emergency Fund (3-6 months of income), Adequate Life Insurance, Health Care Coverage, Disability Income Coverage
Level Two: Short-Term Investments
Commercial Papers, Time Deposits, Treasury Bills, Money Market Accounts
Level Three: Long-Term Investments
Bond and Equity Mutual Funds, Individual Retirement Accounts, Developed/Rental Real Property, Government Bonds, Estate Tax Fund
Level 4: Growth Investments
Growth Mutual Funds, Business Endeavors, Big Capital Stocks, Undeveloped Real Property (raw land)
Level 5: Speculative Investments
Art, Metals, Stones, Small Capital Stocks, Venture Capital
QUICK STUDY:
- Which investment instruments do you already have?
- How is your portfolio diversified? Is a big percentage of your funds focused only in a few instruments? Are you comfortable with this or should you look at other options?
- Which investment instruments do you need? Do you have sufficient insurance coverage? Do you have an emergency fund to provide you with a buffer during uncertain times?
EXECUTION IS KEY
MAKE IT HAPPEN
1. I’m sure this isn’t the first financial guide you’ve seen. There are many everywhere! But the most crucial step would be to execute. Start building your investment portfolio now, no matter how small it is.
2. Start and improve by at least 1% every day and you’ll see amazing results.
QUICK STUDY:
- I distribute various investment instruments. Rest assured that these packages come directly from credible and established partners. Fees (paid to me by the institutions) are standard, as if you went directly through them.
- What I offer is an overall view of different options in the market, and unbiased recommendations based on your specific needs and preferences.
- You are not required to get any of these through me – this site is meant to help you, and I genuinely wish you success in all your endeavors! But if you’d like to look into any of these options, I’d love to assist in any way that I can.
LINKS:
EMERGENCY FUND/
SHORT TERM INVESTMENT:
Commercial Papers
INSURANCE:
Life Insurance
Non-Life Insurance
Healthcare
MUTUAL FUNDS:
Mutual Funds
Forms and Guidelines
REAL ESTATE:
Pre-Selling
Secondary Market
STOCK MARKET
ONLINE PLATFORMS:
MyTrade*
UTradeph*
* contact for more information on creating an account to buy and sell stocks on online platforms
CONTINUOUS GROWTH
GROW THROUGH LIFE
While some basic practices remain the same, some strategies that have worked for you before, might need to be tweaked as you grow and face new opportunities. Having a growth mindset opens new doors and exciting possibilities – both in finance and our overall lives.
I provide various tools – news, information and spreadsheets on this website that you can use anytime, so that we can grow and learn together. Numbers don’t define us, and these resources are meant to motivate and empower you to create the life you’ve always wanted and enjoy the journey along the way.
I’d love to help you throughout your process and become your partner in achieving the success that you have defined for yourself. With passion and purpose, let’s create a meaningful change in the world, one step at a time.
I wish you happiness and true abundance, always :)
SINCERELY,
PEEVEE
I’D LOVE TO HEAR FROM YOU
Feel free to contact me below, or e-mail info@vibrantinvestor.com.
Thank you so much!