EXPLANATION

SPENDING
- is an act of disbursing money or paglalabas mo ng pera sa mga bagay na gusto mo
bilhin
-if budget goals serve as financial wishlist, a spendin plan is a way to make those
wishes a reality. Turn them into action plan and there are practical strategies in setting and
prioritizing goals and spending plan

1. Setting budget goals required forecasting and discussing future needs and dream with the
family. It gives you a roadmap of the things you are expecting to accomplish in the near future,it
is important to have a list kasi nga po magiging gabay mo ito para malaman mo kung ano ang
goals na gusto mong maachieve at nachieve mo na

2. In order to achieve your goals you need to classify your goals into categories : short term goals
(less than a year), medium term goals (1-5 years ) and long term goals ( more than 5 years) .
short term goals is immediate for needs and wants, medium term goals is for you and to your
family and the long term goals is extend well into the future such as planning for retirement
( SSS)

3. Before assigning priority to goals. It is important to determine the cost of each goals the
greater cost the more you sacrificed the other goals, you need to consider your capability to
achieve that specific goals kasi kung unang goal mo palang is malaki na ang cost paano naman
yung iba , halimbawa sa shorterm goals mo andaming wants na nakalista how about the medium
and long term goals kaya you need to estimate, how capable you are to achieve that goals para
malaman mo kung ano ang halaga ng bawat isang goals

4. On our list of goals we need to consider the factor that will affect our goals, ano yung mga
bagay na makakaapekto sa mga goals natin , especially the inflation , if you have a short term
goals inflation is not a big problem, kasi immediate for wants and needs naman ito pwede
maachieve in a short period of time. but for medium and long term goals does . as time passes
your listed goals become pricey depends on the value in the local market or global market

5. Upon knowing the future cost goals next is to determine how much each goals you want to
get, this is where budgeting comes in so that you can manage what you spending and you can
achieve all you goals

6. Your list down goals helps you how much you need to spent and estimated cost sa mga bagay
na importante and this will help you to make a good decision, alam mo kung ano yung mga dapat
mong unahin kung ano ang pinaka importante at hindi dapat unahin.

7. It is important that you have a time each goals when you will achieve it kasi maganda na may
sense of direction ka na dapat this year naka accomplish ka na or nachieve mo na ito ganun .
 INVESTMENT AND INVESTING

- this is an act of generating income and increasing value over time and for your future income
so we as a future teacher, when you have save more money than what you expect at a time of
need ,consider investing this money to earn more interest than what your saving account is
paying you, there are many ways you can invest your money but consider the 4 aspects :

1. It depends to you how long you keep it or let your money earn more , atleast 10 years
maybe? Sabi nga the longer , the better the value of your investment increasing over time An
investment time horizon, or just time horizon, is the period of time one expects to hold an
investment until they need the money back. Time horizons are largely dictated by investment
goals and strategies. For example, saving for a down payment on a house, for maybe two years,
would be considered a short-term time horizon, while saving for college would be a medium-
term time horizon, and investing for retirement, a long-term time horizon.

2. Expectation return to your investment is an important finacial concepts that you calculating
and monitoring your expected return of a specific investment para alam kung may profit pa ba or
loss na ang investment mo because it can help you to make a better investment decisions

3. Ika wpara sayo will kaba na maloose the shortterm in order to earn more iba saatin oo o hindi
kasi diba even a short term investment still a investment or valuable pa rin . lalo na kung isa kang
fundamental INVESTORS OR CONSERVATIVE you don’t drop money into things that may
not pan out dapat matalino pa rin tayo hindi kaialangan ng sacrifices to earn more but to have a
good decision making The longer the time horizon, the more aggressive, or riskier, a portfolio
an investor can build. The shorter the time horizon, the more conservative, or less risky

4. There are many types of investment that you can invest in . it seems that you have a selection
where you can trust your money in a long run. Meron tinatawag na market stocks,funds,bonds,
life insurance or real estate investment

SAVINGS

- having a saving is very important because it keep us out of dept and loans with high interest by
saving some money and putting it in asavings account so that we can prepare for unexpected
bills and for secure your financial future but in our situation as student we must have learned or
practiced this skill of savings . so in the future you can apply it to be come a financial
independent

EMERGENCY SAVINGS FUND

- to understand easily the meaning of emergency fund is different or separate to savings account
or bank account . emergencies , by its nature , are unpredictable it can derail your financial
stability like a sudden illness or accident, unexpected loss jobs, or even a surprise home and car
repair that can devastate your family day to day cash flow if you aren’t prepared kumabaga its is
a expences for unforseen situation thats why if you receive bonus from work ,an income and
refund or earning from additional or side jobs use them as an emergency fund . it refers to
PHILHEALT and INSURANCES

THERE A RE 10 REASON WHY YOU SHOULD SAVE MONEY

1. To become a financial independenjt you must have a sufficient income,savings or investment

2. Because when we have savings , we can buy what we need or wants, especially when it
sale ,rather than using credit cards to buy kasi may mga charges pa yan or mag fees thus it is
better to have savings to have a better better spending choices. And also Did you know the
50/30/20 budget rule by elizabeth warren it is a guide to achieve a fianacial stability by
dividing after tax income in 3 categories of spending 50% for needs,30% for wants and 20% for
savings

3. By your savings you can buy a house or car madali nalang yun iprocess Especially kung
bibilhin mo ito ng naka promo or sale madali nalang kung may savings ka dimo na kailangan
mag loan na may malaking interest or installment dahil ang mga bagay ay nadadaannaman sa
pag iipon.

4. One of the reasons for saving is not only to spend on our luxuries but to prepare for our future
lives . uhm financially speaking saving money for your future is one of the best habits you can
develop to become a financial secure.

5. In out of dept
6. To augment annual expences
- magdadag ka ng mga taunang bayarin kung gusto lalo makasave o kung may pera is mag
adnvance pay ka na

7. To settle unforseen expences

8. To respond to emergencies
9. To miltigate losing your job or getting hurt
10. To have a good life