00:00Hi, guys, and we are back in Straight From The Expert with our very knowledgeable and amazing finance expert, Sir Fitz Velia Fuerte.
00:08When talking about investments, naturally, we'll talk about the budget, our money, and how we'll use it.
00:22But since we're in the adulting era, we can't avoid getting splurged a little.
00:28Which eventually affects our budget for investing.
00:33Will you please teach us how to, quote-unquote, heal our inner child properly?
00:39So that our wallets and funds won't get damaged with what we thought are small expenses.
00:46But when you put them all together, it's actually quite big.
00:50First of all, since we already talked about investments, it's very important that you learn how to budget.
01:01Because where will you get money to save and invest if you're spending all your money on everyday expenses?
01:09So it's very important to start with learning how to manage your money.
01:14Believe it or not, the first step is to track your expenses.
01:19Don't think about budget first.
01:21Just take note of where your money will go and where you're spending it.
01:26Because once you know what your common expenses are, it's easier to first allocate a budget for, for example, food, transport, etc.
01:38And even give yourself a budget for the wants, for the healing of your inner child.
01:45Because it's not a bad thing.
01:47And I understand that sometimes you need to buy things that you feel you deserve, things that make you happy.
01:53The only thing for me is to make sure that you're not overspending.
01:57So how do you know if you're overspending or how do you know exactly how much your budget is for your shopping?
02:04Then you first track your expenses so that you know exactly that this is your limit on spending.
02:11What's the key on how to manage our bonuses wisely while, you know, properly rewarding yourself, but still, you know, leaving some for investments?
02:23For me, your priority should be to pay your debts.
02:27Because yes, you deserve to be able to buy new things, but you also deserve to not be stressed by the so-called collecting agencies, right?
02:38Because you're going to buy beautiful skincare products.
02:41It's useless if you're stressed because you're going to have wrinkles on your mind because of your debts, right?
02:46So prioritize paying your debt.
02:50Once you've paid your debts or your loans are okay, I think you can choose where you're going to use your bonuses.
02:59You can probably buy something that you've always wanted, something that you've been longing to buy for yourself.
03:06Because yes, you deserve this, but prioritize paying your debts.
03:09That's my simple request.
03:11It's a waste of the extra money that you'll get, so at least pay off your debt, your loans.
03:18I see now everything is pretty clear, but where do you suggest we invest our bonuses?
03:24If we want to invest that bonus, where would you suggest that they do it?
03:28That's very interesting because people are different.
03:33My usual question is, what is the thing that you want to buy and when is that?
03:39Because your investment choice will depend on your financial goal.
03:44Now, for example, if they say that they don't have a goal, which is the common answer,
03:50then I tell them, then the best goal is to put that money in a low-risk investment
03:57because it now becomes part of your emergency fund.
04:01If you don't have a plan to buy, just put it in your emergency fund.
04:06So where can you put it?
04:07You can put it in a time deposit or money market fund, any low-risk investment.
04:11But if you really have a specific goal in mind, that will change everything.
04:17Speaking of budgets or fits, is it right for those who earn a lot online
04:20about the way they divide their salaries or their incomes?
04:24Like for example, 50% for the bills and then 20% for let's say the ones, 30% for something else.
04:30Is that format right?
04:32I like that strategy, the 50-30-20, the 50% of your salary for the needs, the bills,
04:41then they say 30% for the wants, for your shopping,
04:45then 20% for savings or investment.
04:49I like that because it gives you structure.
04:52But you don't have to be strict about it.
04:56You use the 50-30-20 as starting numbers and then you adjust it.
05:02Sir, question.
05:02What are some helpful tips to properly track our budget or our investments?
05:08For me, the best budgeting strategy is the one that you can do.
05:14There are a lot of apps.
05:16There are a lot of budgeting strategies.
05:19And for me, experiment on what you enjoy doing.
05:24For example, what we mentioned is the 50-30-20.
05:28There's also the envelope method.
05:30I've read 70-30 and all of those budgeting strategies.
05:35There are also apps.
05:36I heard from a friend that there's a good budget app.
05:41Then my mom, she only uses a notebook and paper.
05:44That's where she budgets.
05:46For me, I use Excel and a spreadsheet.
05:48For me, try those and see what's convenient for you,
05:54what won't make you lazy, and then stick to that.
05:57It doesn't matter what budgeting strategy you're using,
06:02as long as you use it.
06:04Because you'll download a budgeting app,
06:07you'll get confused, you'll get lazy, you won't track it.
06:10So maybe what's on your notepad will work for you.
06:14Or probably a spreadsheet.
06:16For me, the Excel spreadsheet worked for me.
06:19I know there are a lot of high-tech apps and software.
06:23I don't use them because I'm already used to my spreadsheet.
06:27So the best budgeting strategy is the one that you can,
06:31you will enjoy using.
06:33Okay, Sir Fitz, before we wrap all this up,
06:37before we end this episode,
06:38what is the most important thing that our viewers
06:43should remember once they start investing?
06:46Maybe the most important thing to remember is
06:49personal finance is personal.
06:52Our situation is different,
06:53our resources are different,
06:54our access to opportunities are different.
06:58Let's not compare ourselves.
07:01I hear people say,
07:03I should have a car at this age,
07:05or I should have my own house.
07:07But maybe it's because the pacing of your life is different,
07:11the opportunities you encounter are different.
07:13So it's always important to check who you were last year.
07:23And if there's improvement,
07:25there's progress,
07:25then you're doing good.
07:28Personal finance is personal.
07:30The investing strategies, budgeting strategies,
07:34find where you will enjoy the strategy,
07:37your budgeting, your allocation,
07:39what you can do with your salary,
07:42that will be your allocation of your budget.
07:45So try to avoid comparing yourself to people you know.
07:50Instead, use them as your inspiration and motivation,
07:53but make sure that you are only in competition
07:56with who you were in the past.
07:58So make sure that every year,
08:01your finances improve.
08:03And I'm very sure through the years
08:06and up until you retire,
08:08you will be able to build a lot of wealth.
08:11Sir Pit, where can we reach you?
08:13Social media accounts, your office,
08:15where can we find you?
08:17If they're interested to learn more about personal finance,
08:21I have a portal.
08:22It's readytoberich.com
08:25So all the links are there,
08:26go to our YouTube channel,
08:28Facebook,
08:29Instagram,
08:30Twitter,
08:30or X.
08:32So they can just go to readytoberich.com,
08:35but I hope they can check out our YouTube channel.
08:38So youtube.com slash readytoberich YT
08:42I put YT for YouTube.
08:43And our Facebook page,
08:45facebook.com slash readytoberich.
08:48But for my other social media accounts,
08:51it's on my portal,
08:52readytoberich.com
08:53Thank you so much guys for watching
08:55and for more helpful and informative videos like this,
08:59visit gmanetwork.com slash lifestyle
09:02and follow them on Facebook, Instagram, and X.
09:05And also please follow me on all my social media accounts.
09:08I have Instagram, Facebook,
09:10just go to billie.hackinson
09:12Maraming maraming salama,
09:13thank you for watching,
09:14and until our next episode.
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