Sunday, June 15, 2014

Setting your Blueprint to Financial Freedom

   It is impossible for an engineer to build a house without a blueprint. So is with financial and investment. It is impossible to achieve your financial freedom if you do not have your goals and financial plans. Financial goal is like the design of your dream house that you want to achieve. You need to create the blueprint so you can have that! The good thing in financial blueprint is that you do not need an engineer or anyone to do that for you. You can do your own financial blueprint, but you can ask guidance from people who already achieve their financial goals.

Photo (c)

Financial goals often change.

The best structures and buildings in the world were first created in papers called blueprints, which have been revised many, many times, before they turn into reality. Just like your financial goals, it may change from time to time depending on your status and life preferences. So you need to revise your blueprint as well so you can fully build your solid financial foundation!

Maybe this time, you are still young and single, and your financial goals might be:

Barkada trip
Treat mom and dad in Boracay
Buy new bag for little sister

Those are just simple financial goal, and yet you still make up your financial blueprint on your mind so you can achieve these goals. You might plan to avoid unnecessary snacks so you can save money to join your barkada trip and treat your family.

As time grows, your way of thinking will mature. You are now thinking for your future. You have now higher financial goals such as:

Buy a new house for future family
Buy a car for family travel and vacations
Save for wedding and marriage expenses

After getting married, your financial goals will change again.

Children's Birthday celebrations
Education for children
Family trip and vacations
Retirement savings

Those are examples of the changes of your financial goals. Along with these, your financial blueprints should improve as well.

So how do you create your Financial Blueprint?

Every structural blueprint started from the imagination of the engineer. Your financial blueprint will also come from your financial goals, or your desires.

First, you need to realize your Short term and Long term Financial Goals.

Short term financial goals are those you can achieve within few months or few years, like barkada trip, or family party.

Long term financial goals are those you need to prepare for. These are goals that require more serious blueprints and plans so you can achieve them. Long term financial goals include your retirement plan. You need to prepare for your retirement now while you still have your income from your job, and that is a challenging part.

If you want to achieve your financial freedom, you need to focus more on your long term goals. I did not mean to forget about vacations and other short term goals. I just want to emphasize that you must be more serious with your long term goals.

Most people do not realize their long term goals. So most of their life, they are broke, and retire penniless. They often focus on their short term goals. They often save only for their trips, gadgets and other happiness they want. Mostly, they save nothing for their future.

In setting up your Long-term Financial Goals, ask yourself:

When do I want to retire? Age 40? Why do I want to retire early?
What age do I want to marry my girlfriend? How much money do I need?
Where will my children study? How much do I need for their college degree?

Once you have the Financial Goals, you can do your Financial Blueprint.

Example, you are planning to save for your child’s college degree, you may invest your money in Mutual Funds. For 10 years or more, your money invested in the mutual fund will surely grow.

Aside from Mutual Fund, there are many other Financial Vehicles you can use to achieve your Financial Goals. Make sure you educate yourself first before riding into that vehicle!

Act now, and don't delay

P.S. We are providing Free Financial Coaching Seminars conducted by the Bo Sanchez Truly Rich Makers Team - IMG in Makati. Click this to register: Truly Rich Makers Financial Coaching 101

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