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The First Thing You Should Focus On Starting Your Journey To Financial Freedom


Friday, May 23, 2014
Are you emo?

I get around 50 emails a day.

Every day, I receive tons of emails from you guys. Here’s the breakdown of those emails:

- Some emails ask me for tips on investing: around 10 emails

- Some emails ask me how they can get started in getting their own VUL account: around 5 emails

- And some emails ask me why I colored my hair into a reddish hue, why I’m a licensed financial advisor when I graduated nursing or why I like Asian groups: around 3 emails

And as for the number of emails that ask me to help them start working on their finances?
 That’s roughly 22 emails!*


The First Thing You Should Focus On Starting Your Journey To Financial Freedom
That’s right. Majority of my email is from readers who want me to help them start saving, start budgeting, start investing, start being wealthy – the list goes on! The email template looks like this:

“Dear Lianne,

I like your blog. My name is Echizen Ryoma and I’m a professional tennis player. I receive a lot of money every month because I’m good at what I do. But then, with all the money I get, I still couldn’t manage to start saving and investing.

Actually, I saw your sample budget and even though I started making my own, I still think that I couldn’t follow it! Also every time I see a mall sale, it’s like my wallet has a life of its own. How should I stop this reckless spending?

Help me. Thank you!”

So, does this sound like you?

I can relate. In fact, I sounded like this as well when I first started out in personal finance. I knew I wanted to save. I knew I wanted to invest. I knew I wanted to donate to charitable organizations.

But I didn’t.

Why?

It’s because even though I knew I had to do something, I still didn’t do anything.

Why?

I didn’t do anything because I didn’t have an emotionally powerful reason to!

Why should you save money? Wala lang.

Why should you invest for your retirement? Trip lang, sabi kasi ng friends ko.

Why should you spend your money and do priority purchasing instead? Ewan.

To be effective at doing something, you’ve got to be emotionally invested in it.



The First Thing You Should Focus On Starting Your Journey To Financial Freedom

The intensity of your emotion can dictate the intensity of your dedication.

Most people believe that for you to succeed in personal finance:
1. You’ve got to have an MBA or a PHD.
2. Or you’ve got to be significantly knowledgable in Calculus or Analytic Geometry.
3. Or you need to be highly attractive.

Well, if that’s the case, then I only get one out of three! (I don’t have an MBA or a PHD and I’m not that great at Math...)

Seriously, though, people believe that being wealthy is a series of steps that you should methodically follow. First, increase your income, then get protection, then accumulate assets – the list goes on.

On the contrary, wealth is a mindset. Yes, I agree that following the hierarchy of financial management is important. But!

You’ve got to establish your Emotional Cause (EC) first before doing anything else.

Why save money? Is it because you want to have an emergency fund for your family so that if something unexpected occurs, your loved ones won’t have a difficult time? The EC should be important to you.

Why invest for your retirement? Is it because you don’t want to be a burden to your future children? Or is it because you want to travel the world with your partner without worrying about the cost? Find an EC that’s intensely powerful.

Why invest for your kid’s education? Is it because you want your kids to live a comfortable life because you love them so much? Your EC should trigger a deep emotional hunger within you.

Why deposit regularly for a life insurance? Is it because you know that nothing’s sure in life so you don’t want to take the risk of leaving your loved ones financially burdened? Knowing your EC won’t make you feel exasperated. It’ll make your feel empowered!

Making an EC is easy.

Right now, simply write down one group of people who matter to you. For example:

* Your family (your parents, your siblings, your life partner and your children)

Then, list down the financial goals that you can think of as related to the group of people who matter to you.

* Your family (your parents, your siblings, your life partner and your children)
- Life insurance for yourself
- Investment for your retirement
- Investment for your kid’s education

Now, make an EC for each financial goal:


The First Thing You Should Focus On Starting Your Journey To Financial Freedom

* Your family (your parents, your siblings, your life partner and your children)

- Life insurance for yourself: I know that untimely death is possible. I don’t want to take that risk of leaving my family poor, broke and financially burdened when something happens to me. If I don’t have life insurance, how can my loved ones pay for funeral expenses? Since ___ is my budget for that, I’ll start with talking to a financial advisor into getting the best life insurance for me right now.

- Investment for your retirement: There’s a possibility that I pass away untimely, so I’ve got life insurance for that. But what if I live too long? Who will cover my daily needs when I’m already unemployed and old? I don’t want to depend on my children. They might get annoyed if I burden them for money. My SSS pension wouldn’t be enough! Inflation’s too high already. Instead of spending money for this sale, I’ll invest for my retirement while I’m still young and able.

- Investment for your kid’s education: Yikes, the tuition fee increase is at 8.5% yearly? My gosh, my bank account only gives me 2%! Talo pala ako. I’ll invest for my kid’s education now. I don’t want my children to live an uneducated life. I brought them to this world so it’s my responsibility to make sure they go to good schools! I’ll start by asking a financial advisor to compute my target tuition fund then we’ll go from there.

Once you’ve already established an EC for every financial goal, resisting the temptation to give up will be easy!

Mall sale every week – or securing the finances of your family?
Mall sale:                                                                            
P2,000/month (P500/week)
*VUL with death benefit of 1.030 million:                    
P2,000/month
(Sun Maxilink Prime proposal for a 24-year old non-smoker female. Please email me for your own personalized proposal.)

A cup of branded coffee everyday – or a worry-free retirement living in the future?
Branded coffee everyday:                                                
P3,000/month (P100 for 30 days)
* VUL with projected retirement fund of 8.1 Million at age 65:
P3,000/month
(Sun Maxilink Prime proposal for a 24-year old non-smoker female. Projection is at the assumption of 10% annual average return. Please email me for your own personalized proposal.)

A 2-hour X-Men movie for you, your partner and your 1-year old kid – or a fully funded college tuition?
X-men movie for 3 people:                                  
P1,500/month (P500/person in a 4D cinema!)
* VUL with projected tuition fee fund of P423,582 when your kid’s 18 years old:
P1,500/month
(Sun Maxilink Prime proposal for a 30-year old non-smoker female. Projection is at the assumption of 10% annual average return. Please email me for your own personalized proposal.)

Instant gratification feels great! But, the feeling of satisfaction you get from them goes away as quickly as it comes. It’s like hooking up with someone and spending the night.

Delayed gratification such as investing for the long-term is more powerful. Yes, you’ve got to work for it at first, but the rewards will be far greater and far fulfilling. It’s like courting and finally spending forever with the person you love.

You’ve got the options. You’ve got the knowledge. You’ve got the Emotional Cause for all your financial goals.

Now, what should you do next? It’s already May 23! Your salary will come again next week.

Do you want to say yes once today – or say yes many times tomorrow?

The decision lies with you.

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Get a FREE Life or VUL proposal - personalized and made especially for you. Or,  open a mutual fund account now. Let me help you. Simply fill out this form. 

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Want to get started managing your money/budgeting/investing? Contact me, your trusted financial advisor, through the following: 

Email: liannemarthamlaroya@gmail.com
Twitter: @MsLianneLaroya
Mobile: 0916 737 8741

And we can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works.

If you find this post helpful, please SHARE it to your friends. Who knows, you might help them by educating them. :) Thank you, wonderful people!

Live wisely,






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