Financial planning

If there is one lesson I learned from being unemployed that is to plan my finances. I’ve been doing this budgeting for quite sometime but only for the household. It gets depressing when you see your resources depleting and you don’t have an income to replenish your savings. It was like Superman’s strength being drained off by Kryptonite.

This week, when I am quite in the brink of depression some good things came up. I risked a certain amount of money for a small business so I can recoup what I lost in my savings. I took my chance into this business because I saw how fast the return of investment is.

I also “might” get into freelance publicity (not press relations because it involves doing media rounds which if I get employed I won’t be able to do) services.

And then, there is the market research consultancy that I am doing with my friend from my previous company. This one, I am determined to pursue because market research is a lucrative business especially with the competitive environment of commercialism. Manufacturers will always want to outshine each other with their “more improved” products. I’ve learned the basics of market research and although there are still so many things to know but I’m willing to do that.

I also fixed my ebay store and will convert my Multiply account to an online bookshop (Bookshelf). The income may be small but it’s fun selling books and dealing with other ebayers. I’ve always dreamed of having my own bookshop, something like the one in “You’ve Got Mail” or “Notting Hill.” Nothing big like Fully Booked at The Fort (this is what I call Heaven on Earth with four-stories of nothing but books!) or my favorite meeting place with friends Powerbooks in Greenbelt; just a small intimate bookshop with limited editions of award-winning titles. But for now, I’ll settle for my humble Amazon.com like online bookshop.

Hopefully, I’ll get that job in a non-government organization which advocates something that is very close to my heart. Raquel said she feels optimistic about it because it’s something I am used to doing.

With all these opportunities after a brief storm in my life (my Arthur is right, when it comes, it comes in bundles) I am bent on making good decisions financially. I am more aware now of how important financial planning is because when I resigned from that *&^%$# company, I didn’t have a plan.

Last night on “Oprah,” I was inspired by the confession of financial adviser Suze Orman who was once in debt of a quarter of a million dollars. I am inspired that with that experience she is teaching women to be knowledgeable when it comes to finances and learn how to plan. These are just few of the things I learned:

1. When you don’t know what to do with your money (if to invest on individual stocks or mutual funds) do nothing. It is safer not to touch your money if you are not knowledgeable with the market. Be an all or nothing investor.
--What I did when I was in this situation was I asked friends who already have investments in certain products and certain companies. I always went with the most trusted friend. I already discussed in previous post what I decided to go for Mutual Fund (Balanced).

2. You are your best financial adviser because only you know your needs.

3. If you can raise kids and manage your home, you can manage your finances.

4. Pay your debts. If you can no longer pay credit cards at the usual rate, you can always negotiate payment schemes of two to four years to pay perhaps. --Always aim for debt independence. Hold the future for a while and try to deal with your credit problems today (which I will do as soon as I get the job. BTW, I discarded ALL my three credit cards and it feels so good).

5. When paying credit card debt, pay the one with higher interest rate (even if its smaller in amount) than the ones with lower interest rate (even if this is much bigger in amount than in the former).

These are just few of the things I learned and I have clippings of write-ups in the Inquirer about managing your finances. I am also trying to learn basic Accounting (God, why I hated Math?) I hope I can maintain this enthusiasm. “My Arthur” asked me why I’m doing this. I told him my objective. “Gusto kong yumaman.”
This is what unemployment did to me.