Saturday, 18 March 2017

How much money you need for retirement?

This money formula for retirement fund is from Mr. Money Moustache; Multiply your Average Monthly Spending by 25 years , this is the amount you need for retirement then invest it on investment that can give 7% yearly returns. You can have 4% withdrawal every year from the funds, the remaining 3% from returns is considered the inflation rate.

The big question here is how you will achieve that retirement amount. Here are 3 important tips;

First, Increase the percentage of your savings rate. Let's say you are earning 20000 and able to save 10% monthly increased it to 30% or increased your monthly income by 10% , the amount of savings will increased by 10%. Consistency is a key.

Second, Invest your savings from tip 1,  mid to high risk investments such as stocks or mutual funds that can give at least 8% returns. Knowledge is a key.

Third, Side hustle. Earning on the sides and creating money machines will definitely helps you filled in the retirement funds. Cash cows from your skill or talent is a key.

Looking forward to your retirement.

Sincerely yours,

Jonathan Ruiz CPA, MIB
Newbie Mentor

Thursday, 16 March 2017

3 Habits that can Change your Financial Future

There are habits that affects our financial future. Who you are right now is the results of your habits. Most successful people developed good financial habits.

If you want to have a brighter financial future then it's the right time to start making decisions.

I want to share with you 3 habits that can change your future;

First, Gratitude or Appreciation. Starts and end your day with gratitude. Appreciate small little blessings everyday. Focus on what you have rather than on things that you don't have and stop comparing yourself with others.

Second, Take control. As Jack Canfield quotes " Take 100% responsibility of your life" , stop playing the blaming game and acknowledge that there are things that beyond our control. Be mature enough to take the challenge of your financial journey.

Third, Handle money with care. Money is not the end goal though having much of it will give a comfortable life. Treat money as a tool of happiness, you can send street children on school, donate to charity or victims of typhoon, build a church, etc.

Looking forward to your brighter financial future.

Sincerely yours,

Jonathan Ruiz CPA, MIB
Newbie Mentor

Tuesday, 14 March 2017

Retire Early

Retirement is a state where you can relax on a beach, travel to most exotic places, eating at expensive restaurants, spending money on luxury items, and enjoying the retirement funds. This is a famous definition of retirement.

As a finance advocate, the meaning of retirement is having a piece of mind without worrying about money, doing what you love and a state where passive income covers living and luxury expenses.

If you are an OFW, these are 3 important tips on how to prepare for your early retirement;

First, Don't spend 100% of your income. This is practical tips that most OFWs ignore, every paycheck allocated to expenses and remittances. You will never be able to retire if you are going to support your whole family clan. Start setting aside small percentage for yourself.

Second, Invest for retirement funds. Investing on stocks, bonds, mutual funds, real estate, etc. Pick one investment for your retirement and don't touch it until you stop working. Make sure that it will be liquid or can be liquidated easily at the time of retirement.

Third, Master One Skill. At the time of retirement, your funds might not be the amount you expected (as stock market goes up and down or a financial crisis hit ). Have one skill that can bring an extra income or why not create a money machines from that skill.

Retirement is your next stops.

Sincerely yours,

Jonathan Ruiz, CPA,MIB

Newbie Mentor

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