Learn how to build your wealth and manage your budget responsibly while still allowing yourself to heal your inner child. All of that and more, here in the second part of Straight from the Expert: Why Investing Early Matters with Billie Hakenson and financial expert Fitz Villafuerte.
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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.