Australia: My Experience With The Stock Market - Part 4

Aside from stonks, I was also researching about ETFs (exchange traded funds). It's like mutual funds but no. Then I came across spaceship voyager  then raiz .  If you want to know more about the two, you can refer to this  article . Below is a summary: 📌Make sure you understand the product and the risks involved before investing.  Source: Update: I opened an account with Raiz and will do a review after a few months 😊 . If you want to get started, maybe you can use my referral link here  to have  $5 for me, $5 for you! Thanks!   

Financial Planning: How to Begin? - Part 2

After knowing your financial standing, you need to set your financial goals clearly but before that, you need to understand the basic financial terms such as compounding interest, time value of money, inflation, types of income, types of debt, leverage etc. Also, I would like you to understand the financial planning pyramid. This will be the basis of your goals.

As you can see, before you start accumulating your wealth, one has to protect itself first from unforeseen events such as death, illness, disability, job loss or accidents especially if you are the breadwinner of the family by getting insured as soon as possible. Because as you grow older, premium payments for insurances will be more expensive. This will also actually help you upon wealth distribution.

For those who cannot afford insurances provided by private institutions, I would recommend that you at least pay those government backed insurances such as SSS, Pag-ibig for retirement and Philhealth as health insurance.

Have an emergency fund of at least 3-6 months of your monthly expenses. This should be readily accessible.

Picture source: web

While building your wealth foundation, list down all the things you want in life. These things should be SMART - specific, measurable, attainable, relevant and timely. Sort them according to your priorities - short-term (1-2 years), medium (2-5 years) and long-term (more than 5 years). Then monitor it every month if you are hitting the target or not.


Main goal: What do you want to achieve in life? You need to know this so that you know where to go. It's like traveling. If you don't know your destination then it's pointless.
Short-term goals: Get protected by
  • getting insurance - VUL/Term/Whole within the year with a budget of Pxxxx. Can start by September
  • emergency fund - Target amount of Pxxxx to be completed on .... Already have Pxxx. The balance will be paid starting September. Monthly savings would be Pxxx.
Medium-term goals:
  • Travel fund - travel to Hongkong on .... Budget of Pxxxx. Compute how many months are you going to save before the travel date. Example: Travel date: September with a budget of P20,000. Ticket to be booked around March costing around P6,000 (on sale). Hotel to be booked around June. Can start saving by January. Monthly savings should be P20,000/8 months (Jan-Aug) = P2,500 per month. By March you will be able to save P7,500 for the ticket and by June a total amount of  P15,000 - P6,000 (ticket)= P9,000.
  • Memorial plan
Medium to long-term goals:
  • House & lot - Target date: 2018, Amount: Pxxx exclusive of furnishings, Furnishings budget: Pxxx, Loan or cash, Loan: how much is the downpayment plus other fees. Monthly amortization inclusive of MRI and fire insurance etc. After getting all needed information, compute if you can afford or not, how much are you willing to save and when will you start saving. The same as above procedure.
  • Business fund
Long-term goals:
  • Retirement fund
  • Education fund for my baby

So what are your goals? Do you know how to achieve it?


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