Coach Amos: July 2013

Saturday, July 27, 2013

Only Buy What You Can Afford

You cannot keep out of trouble by spending more than you earn. Abraham Lincoln, 16th President of the US, 1881-1865

Personal debt is a huge problem in the Philippines, when you consider the fact that collectively we have amassed credit card debts of 10 billion pesos.

The trend is similar when it comes to interest free purchases. People are increasingly being sold on the premise of buy now, pay later, with alarming consequences. Too often, people don’t pay the balance of their purchase within the interest free period, resulting in massive financial penalties. Put simply, people end up paying so much more than the items value all so they can have it now.

Having it now is why people get themselves into debt in the first place. If they don’t have the money, they can simply reach for that credit card or purchase on interest free finance. It can certainly lead to trouble in the form of bad debt, so is it really necessary to get that LED television now? Is it really necessary to take on debt to buy that latest handbag or the flash fridge for your new kitchen? Do you really need to buy a new lounge?

When it comes to spending money, my advice is plain and clear: Only buy what you can afford! If you don’t have the money, save the money or look for ways to increase your income to facilitate that purchase. Whatever you do, don’t buy now and pay later via a credit card or interest free deal.

Here are my tips to help you get in a position to make purchases using your own money and NOT credit:

Cut your credit cards up: Credit cards just aren’t worth the stress! Cut them up now.

Pay down your credit cards: Use savings if you can, but get rid of them ASAP!

Get a debit card: These are great for paying bills and making purchases that re-quire a credit card. A debit card is like a credit card, but it uses your own money instead, so no debt!

Get into a saving routine: With careful planning and a commitment to budgeting, you can get into an effective saving routine.

Create a short term savings account: This is for things like purchases and holidays the things you might otherwise pay for using credit. Remember, you have cut your cards up and you don’t use them anymore. Commit to building a short term savings account you can use to finance your purchases, and you won’t need to resort to credit.

Commit to increasing your household income: There are plenty of ways you can do this, whether it’s selling something online or opening your own eBay store. Do your research!

Buy secondhand: Forget expensive interest free purchases and using credit buy secondhand! Ebay is a great place to buy if you ask me, so whether it’s clothing, shoes, appliances or furniture, take a look at eBay!

Avoid shopping centers for entertainment: Get out and explore a national park or take a day trip. Avoid shopping centers!

Buy only what you can afford it can be done and you’ll never go back to credit!

Helpful Tips for You:

Cut your credit cards up

Pay down your credit cards

Get a debit card

Get into a savings routine

Create a short term savings account

Commit to increasing your household income

Buy secondhand

Avoid shopping centers for entertainment

Shared by Coach Amos

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Blog by John de Ridder, 0419-427-419, john@focusyourmoney.com.au, Canberra, Australia

Sunday, July 14, 2013

No Goals, No-Glory

To attract money, you must focus on wealth. It is impossible to bring more money into your life when you are noticing you do not have enough, because that means you are thinking thoughts that you do not have enough. Rhonda Byrne, Author of The Secret.

Everybody wants more wealth, and you already know that those with money have a healthy attitude towards it. They think the right way about it, and they treat money in such a way that it stretches and multiplies.

Living the lifestyle you want and having the money you need to make it happen is all about one thing: Setting goals. You know that you attract money to you through your thoughts. It really is that easy. By focusing on abundance, you attract into your life experience abundance. It certainly can be more money if that is what you want. But to make it all happen, you need to focus on your goals. What do you want to achieve when it comes to your financial status?

I always encourage my clients to sit down and think long and hard about exactly what they want when it comes to their money. That’s because you need to give every dollar that comes into your household a job otherwise that dollar will disappear and you won’t know where!

Here is the goal setting process I encourage you to follow right now:

Set specific and measurable money goals: There is NO point being vague at all, because that indicates you are not serious about attaining your goals. Take a pen and paper and write down specific and measurable money goals. A specific and measurable money goal is: I will save P5000 per month, every month from 1st January 2013.

Clear your bad debts: Bad debts include credit cards and interest free purchase debts. Clear these ASAP by paying more than the minimum. Use savings to do this just ensure the debts are cleared ASAP.

Once your bad debts are cleared, commit to saving: Saving is important when it comes to achieving financial independence, so set a figure you wish to save every month as a minimum. Have long term savings you don’t touch and short term savings you can use for bigger purchases like a television or holiday. Your short term savings account will basically be a debit card.

Set your budget and stick to it: What money comes into your household and what money goes out in overheads? Allocate a job to every peso that comes in. It may be paying P250 per week on the internet, P2500 per week on groceries, P1500 on entertainment, P1000 on fuel for the car. Set your budget and stick to it! It will help you to achieve your financial goals and that includes clearing bad debts and saving.

Commit to increasing your household income: You already know what money comes in and where it all goes. Keeping in mind what your money goals are from step 1, it is time to look at increasing your household income. Again, when it comes to increasing your household income, write down specific and measurable goals, e.g. I will increase my household income by P5000 per month by the end of June 2013.

By setting goals and following a plan, you will turn your financial goals into a reality. And you will most certainly get the most out of your money!

Helpful Tips for You:

Set specific and measurable goals

Clear your bad debts

Commit to saving, once bad debts are cleared

Set your budget and stick to it