financially literate mom


This post was originally published in the blog WAHMmy – Third World Style.


Series 2 of the training series at the Wealth Academy is the “Financial Planning and Goal Setting Workshop.” I was finally able to attend it yesterday at the IMG office in Chino Roces Ave. in Makati.

This training series focuses on having a financial “check up.”  First, the speaker will guide you in assessing your assets and liabilities to find your net worth.  After that, you will also evaluate your monthly expenses against your monthly income to come up with your cash flow value.  If you have a positive net worth and positive cash flow, then hats off to you! You’re doing great! However, still try to find ways to make sure that you will be able to continue managing your finances and not overspending.  Make sure you know how to make that last all throughout your retirement.  If you do not have yet a retirement fund, start researching about how much money you need for this and how to go about setting it up.
If you have a negative net worth and positive cash flow, it means you lack investments and you have not prepared for the long term.  It’s not too late, though! Since you have a positive cash flow, it means you have some money to put into investments.  Look for ways on how you can start investing and minimize risks by increasing your financial IQ.  However, be careful when investing because it is very important to have a solid financial foundation.
If you have a positive net worth but negative cash flow, it goes to show that you are living withing your means.  You need to reevaluate your spending habits because sooner or later, you will be needing to tap into your assets just to provide for your monthly needs. And if this continues on, there is a possibility of ending up with a negative net worth as well.  Also, find some ways of increasing your cash flow by getting another source of income.  You can get freelance jobs or better yet, start your own business.
However, if you have negative net worth as well as a negative cash flow, then it’s high time you make some drastic changes.  The first thing you have to do is to cur down on your expenses.  Analyze how you spend your income and from there, learn to prioritize. It will also be a good idea to look for additional means of income to increase your cash flow and avoid debt.
These things can definitely be challenging.  But if we increase our financial IQ and study about financial planning and management, we can get on track sooner and more efficiently.
The training and seminars at the Wealth Academy can address all these concerns by educating people about the importance of financial literacy, as well as providing platforms to apply what you have learned.
If you want to know more about the Wealth Academy, you can check these links: