FINANCIAL LITERACY

OFWs’ REASONS 7. To Travel and See Other Countries. 5. To Save for the Future 6. Self Development

INCOME Your Bank Account Support for Parents, Relatives Your Children’s Education Household Expenses Insurance Premiums Where does your Money go? FACING THE REALITIES Others Pay off debt for the trip

Know the difference Your NEEDS Your WANTS

SAVINGS Refers to the part of your disposable income (take-home pay) that is not spent on consumption

Be Disciplined! Income – Expenses = SAVINGS  Income – SAVINGS = Expenses PUT SAVINGS FIRST. x

Redefining Savings It must be defined as an EXPENSE . It is an expense that BUYS your FUTURE .

FINANCIAL STAGES

Where does your Money come from?

CASHFLOW QUADRANT (Four ways that money may come your way) Work for yourself Work for somebody else Go into business Make your money work for you RAT RACE

CASHFLOW QUADRANT (Four ways that money may come your way) Work for yourself Work for somebody else Go into business Make your money work for you FAST TRACK

The CASHFLOW GAME INCOME EXPENSES ASSETS LIABILITIES

CASHFLOW 1 INCOME EXPENSES ASSETS LIABILITIES Job or Profession - Larry Gamboa Think Rich, Pinoy!

CASHFLOW 2 INCOME EXPENSES ASSETS LIABILITIES Job or Profession - Larry Gamboa Think Rich, Pinoy!

CASHFLOW of the RICH INCOME EXPENSES ASSETS LIABILITIES Job or Profession - Larry Gamboa Think Rich, Pinoy!

In fact, we can be RICH!!! We can attain FINANCIAL FREEDOM!

FINANCIAL STAGES Where do you want to be in the future? Where are you now? Man At Work 1 Man & Money At Work 2 Money At Work 3

Three STEPS to achieving FINANCIAL FREEDOM: Plan 1 2 Save Invest 3

PLAN The FIRST STEP to achieving FINANCIAL FREEDOM:

The SECOND STEP to achieving FINANCIAL FREEDOM: SAVE!!!

SAVINGS Saving is a conscious and deliberate way of setting aside a portion of the personal income.

OBSTACLES TO SAVINGS Lack of Financial Literacy – Spending on liabilities or items that decrease in value over time; not knowing how your money will grow or work for you Culture of Dependency - Being overly dependent on others

MAKE YOUR MONEY GROW Invest your savings in money-making assets. MAKE YOUR MONEY WORK FOR YOU. INVEST The THIRD STEP to achieving FINANCIAL FREEDOM:

CASHFLOW of the RICH INCOME EXPENSES ASSETS LIABILITIES Job or Profession - Larry Gamboa Think Rich, Pinoy!

INVESTMENTS Investment is the commitment of funds made in expectation of some positive rate of return . If the investment is properly undertaken, the return will be commensurate with the risk it assumes.

THANK YOU AND GOOD LUCK