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• Financial Literacy


  The skill to comprehend all money matters from acquiring to managing, investing, and helping others
• Financial Freedom


  One's independence from financial worries, debts and obligations
• Financial Planning


  A process to help one to make literate money-related decisions that can lead one to fulfilling life aspirations
• Three Major Components of Budgeting

  • Income - money received, especially on a regular basis, for work or business or through investments
  • Saving - money allocated for future use
  • Expense - money used for the cost of something
• Pocket In


  Shows the breakdown of all your incomes in a month
• Pocket Out


  Tallies all allocated expenses
• Pocket Left Over


  Excess money after all your expenses are deducted from your total income
• Principles in Creating a Good Budget Plan


  • Define and understand your current financial reality and habits
  • Set your financial goals to determine your savings allocation and other course of actions
  • Allocate first a percentage of your income for savings depending on your set financial goals then whatever is left will be budgeted for expenses (Income - Savings = Expenses)
  • Identify and clearly specify important expenses from unimportant for proper allocation
  • Lessen your expenses as much as possible
  • If all your expenses are important yet bigger than your income, then you must find other sources if income or sacrifice some
  • Ensure that your Pocket Left Over is zero or more to avoid getting into debts or credits
  • Identify all your current flows of money, where it is going and how much is left each payday
  • Define your short, medium or long-term financial goals so you can incorporate each of them in your budget plan
  • From your total income, you have to deduct a certain percentage of savings equivalent to your financial goal
  • Differentiate needs from wants
  • Imagine a way to minimize the cost in implementing your budget plan
  • Only prioritize those important and urgent expenses and stick within your spending plan
  • Having excess money in your pockets after spending your allocated expenses means savings
• Guidelines for a Self-Disciplined Spending


  • Bring a record of your budget plan for daily reference
  • Track your daily expenses
  • Find ways to save from your allocated daily expenses
  • Avoid impulse buying
  • Spend on useful and purposeful things and not for status symbol or mere convenience
  • Buy quality yet inexpensive things
  • Research and ask help for major spending
  • Less is more in truest sense
• Managing Expenses

  Knowing your budget allocation, working within it and finding ways to lessen its actual spending. It also means evaluating your current spending and revisit every expense in your budget
• Managing Debts


  Knowing when to borrow money, settling financial obligations as soon as possible and avoiding credit dependency
• "Getting a loan without a financial plan is a financial suicide."
• How to Avoid Financial Bottom or Bankruptcy


  • Check if you have the budget for loan repayment
  • Clearly define a very important objective of getting that loan
  • Research if you are getting the best loan offer in the financial market
  • Have a backup financial plan to fast track the payoff loan or to prepare for unexpected financial obligations that may affect your budget
• Reasons People Get Trapped in Debts


  • Unexpected and unbudgeted financial obligations
  • Expensive medical expense
  • Impulsive buying
  • Calamity funding
  • Death-related expense
  • Estate taxes
  • Uninsured accidents
• Backup Financial Plan


  Finding ways to generate more income; and allocating budget for insurance protection, which includes but not limited to personal life and accident insurances; education, medical and health insurances, non-life insurances for your house, car and other properties; and travel and liability insurances
• Insurance is a means of protection from financial loss, which every person must prioritize to allocate budget
• Generating more income

  Can be done through sideline works, businesses, or investments feasible to you
• Communication


  A two-way process
• Simplified communication process


  1. Sender sends a message

  2. Receiver gets the message and personalizes it

  3. Receiver, in return, sends feedback and thus become a sender

  4. Original sender now becomes a receiver and real feedbacks to the

  5. A new communication sequence is initiated
• Three areas of communication


  • Nonverbal communication
  • Assertiveness
  • Conversation skills
• Nonverbal Communication


  "The most important thing in communication is hearing what isn't said." Peter F. Drucker, 1909-2005, Australian born, American Management Educator
• Roles of Nonverbal Communication Cues

  • Repetition
  • Contradiction
  • Substitution
  • Complementing
  • Accenting
• Quick Tips for the Art of Conversation


  • Do not dominate a conversation
  • Show interest and curiosity in others
  • Strive for a balanced of give and take
  • Be an active listener by maintaining good eye contact and asking pertinent questions
  • Train yourself to relax by using visualization, meditation, or other relaxation methods
  • Do not interrupt
  • Maintain and open mind
  • Try to avoid topics such as sex, religion and politics
  • Be prepared by staying on top of the latest news, developments and world events
  • Be approachable
• Assertiveness


  Expressing your point of view in a way that is clear and direct, while respecting others
• Types of Communication


  • Passive - "I don't mind...that's fine...yes alright"
  • Assertive - "That's a good idea, and how about if we did this too..." or "I can see that, but I'd really like..."
  • Aggressive - "This is what we're doing, if you don't like it, though"
• Prosocial Communication


  Promotes the well-being of other people
• Varied Ways in which Following Principles of Interpersonal Communication may Lead to Prosocial Communication

  • Communicating with cultural sensitivity
  • Listening empathically
  • Confirming
  • Advising
  • Complimenting
  • Mentoring/sharing
  • Communicating politely
  • Arguing fairly and constructively
  • Responding to the dark side of interpersonal communication