Concepts and Principles

Let us Retire, strong and ABLE.

Think of this,

Study

We need to study for 20 yrs of our life.

Work

We need to work 40 yrs of our life.

For retirement?

Retired

Enjoy our retirement fund for 20 yrs.

(1) If we got lucky to live for 20 yrs from retirement age

(2) if we got lucky to have sufficient fund to sustain our retirement.

Financial stability can be defined as having the financial foundation in place to ensure that your basic needs are covered and that you are in good position to reach your financial goals. Just like any goals in life, getting financial stability and becoming financially successful requires the development of good financial habits.

Let me share our concepts and guide you to our financial stability journey. Mind setting is the first part of the strategy to achieve your financial goals. I will divide this first part into three categories, the realization, risk and regular mind.

Realization

Realization is a gradual or sudden understanding or comprehension of something. We first must realize what are our goals in life. Financially speaking, at what age do you plan to retire? What are your plans when you retire? Would you enter the world of business? There are some of the questions that we need to answer.

Based on my own experience, I started investing year 2013, I placed my first 13th month pay at the stock market. Like any goals in life, it may not all be easy, success is never guaranteed. But those failing years have taught me to learn from my mistakes and eventually rise to my success and started my new journey.

Learning institutions are built for businesses. Education students for example, aside from teaching the foundation of education, they are likewise taught on how to be a good employee soon when they finish their training, to accurately serve a particular company. But these learning institutions did not teach these education students on how to build your own business and be the administrator of their own industry. With these, we need to realize, what do we really want to achieve in life. I believe that you never change things by fighting the existing reality. To change something, build a new model that will make the existing model obsolete. To make new model, we should never stop learning. Making a notebook 365 is significant for me and might be a benefit for other people too. Through writing your daily experiences you will learn new things every day and these sums up with total of 365 learnings in a year.

According to Bible

We must open our minds to realize that there are lots of opportunities that we can make to reach our goals in life.

Risk

Risk involves uncertainty about the implications of an activity with respect to something that human value, such as health, well-being, wealth, property, or the environment, often focusing on negative or undesirable consequences.

In any decision in life, risk may be present. If we decide to start a new business, we may start with little investment. Little investment means small risk to the things that we value. Then as we comprehend, we can increase little by little.

Life is like a casino, we take risk. The first risk that we take is when we send our children to school, we spend for their education, without knowing if they will or not prosper in the future, yet we still take our chances. We can’t achieve our goals unless we take chances.

Those taking the high risk immediately may not be aware of what are they doing. To decrease the risk that we are taking, we must set our rules and policies. Analyzing and processing of ideas must be done to come up with great strategy and control.

The Regular (or Traditional) Mind

There are two different types of thinking: traditional and modern. The traditional thinking assumes that the “sacred canopy” provides the context for all human life. They tend to be expressed in a prohibited activity which “thou shalt not” do and in a series of virtues that point a person in the direction of the best possible life. On the other hand, the most basic rule for modern person is to maximize personal freedom. They want to be free to pursue their own ends with the limit is where another is hurt. Try to compare the pictures of traditional and modern women wearing a Filipina costume. Both represent a Filipina costume, but the modern woman, wear the costume with some adjustments to adopt to the present fashion without doing harm to other people. Hard work is one of the keys in achieving one’s goals in life. Traditional thinkers believe that millionaires have seven sources of income these are the earned income, profit income, interest income, dividend income, rental income, capital gains, and royalty income. On the contrary, modern thinkers believe on passive income ideas, that are all based on latest technology.

Go to Understanding Risk for the next lesson

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