What to do with excess funds after kids graduate

david isaiah angwayCongratulations!  As a parent whose child has just graduated from college is an accomplishment you should be proud of. Alas!  No more fees and bills to worry about and you have excess funds or you have enough money to sustain you in retirement. The majority of Filipinos today, once their children finish college, splurge on things they cannot afford just to celebrate. They use credit cards to make sure everything is accommodated. This is just bad consumerism. This gobbles up even your future savings and prevents you from investing more.

The following are ways to maximize the deployment of excess funds after the children complete college and one retires in comfort.

Explore new heights—If you still have children in college or high school, look for more opportunities to increase your income potential by developing a business that is sustainable. I know it’s complicated, but remember to do some risk management by studying the market, or join a trusted existing MLM company and look for a franchise that works for you. I know it sounds odd, but if you want to increase your earnings, you have to take risks and step out of your comfort zone to avoid losing. The worst thing in life is living with regrets.

Start fresh—If you are the breadwinner and you did your fair share in supporting your siblings, you need to make sure that you have left something for yourself, as well. At this point, commit yourself to changing your financial status and get into the fast lane. If you don’t have savings yet, and an emergency fund or the value of insurance is not enough, prioritize them by developing a habit of putting money to your bank in a bimonthly basis. Sooner or later it will grow. Once you are secured and established, your next challenge is to focus your attention on investing.

Prioritize your emergency funds—When you are single and you have no one to support, that’s better. Make sure you understand how much you earn and spend accordingly. Base your monthly emergency fund with the way you spend. Look for opportunities to make your money grow, like investing in real assets instead of spending it on the newest gadgets and the latest fashion. Perhaps, you can invest your money in a business that’s close to your heart.

Pay all your debts—You will always be the slave of the lender if you don’t pay your debts. The interest rate will compound and the more you delay payment, the more it eats you up. The various financial products won’t help you thrive if you are buried in debt.

Invest in yourself—Your decision reflects your value system. Fix, update and constantly upgrade your financial I.Q. It will help you last another decade.  Attend financial seminars. Buy books on personal finance. Read up and follow the best bloggers on personal finance you can find.

Give yourself permission to fail—You got an excess fund that you can use, the great thing about that is you get more options compared to yesterday. Remember that all kung fu masters were once students themselves. They kept grinding and exercising their talents. They never stopped even after they stumbled but learned through the process. Many people are afraid to fail. That’s normal. But if you don’t fail no learning happens.

Get your act right—Try to do everything to maximize every single peso and it will surely payoff. When you are faithful, I know you will receive more.

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David Isaiah E. Angway, RFP, is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 54th Registered Financial Planner program on May 28 to July 16. To inquire, e-mail [email protected] or text <name><e-mail> <RFP> at 0917-9689774.)

 

 

 

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