11 Steps To Financial Independence: Your Financial Planning Guide

Your Financial Planning Guide
11 STEPS TO FINANCIAL INDEPENDENCE

FUNDAMENTAL STEPS TO BUILD
WEALTH AND SECURE YOUR
FINANCIAL FUTURE
Start Your Financial Journey While You Are Still Young!
TONETTE V. CORREA
Licensed Financial Advisor
Sun Life Financials, PH
https://www.facebook.com/TonetteC/
email:
Congratulations for taking a big step towards your Financial
Independence!
The information and wisdom I’m going to share (this is only between
you and me, okay? ;-) ) are basic and some of the steps are not
directly related with money.
Let me guess, the main reason why you want to build and
accumulate wealth is that you want to be financially free and secure
in the future.
Am I right?
Before we dive into our 11 main steps, let’s have a little activity.
Go to a quiet room, pause for a while and ask these questions to

yourself:
What does Financial Freedom mean to you?
Is it the ability to live a rich full life without worrying about money?
Is it to retire early much sooner than the average retirement age?
Is it the capacity to provide a quality life for your loved ones?
Is it the freedom to travel anywhere (with family) and money will

never be an issue?
Is it having a peace of mind knowing you will not be a burden to your

family when you get old or if something unexpected happens you are
protected?
Financial Independence is very personal and it means different
to everyone so you need to know what kind of lifestyle you want
to live to feel you are financially free and stable.
Where are you today?
What is your financial status?
Where do you want to be tomorrow when it comes to your finances?
What is your biggest why?
If you fail to answer these questions, I’m afraid you will have a hard
time achieving your financial goals and dreams. You need to start
from a place of clarity and purpose because money will not flow
easily into your life when you feel uncertain and confused.
This is one key area most people missed out. They are not clear
WHY they want Financial Independence in the first place!
What is Financial Planning?
Financial planning is designed to help you get your finances in

order, to help you get out of debt, and achieve your financial goals.
Financial planning if done right will help you achieve a comfortable

life free of financial stress. This will work best if you have a mentor
or financial advisor that is guiding you throughout your financial
journey.
Many people think that financial planning is too complicated and

overwhelming but there are basic steps that you can START NOW
which will pave your way to financial freedom and live the ideal life
that you desire.
The 11 Basic Steps to begin your own journey to
FINANCIAL INDEPENDENCE!
Step 1. Check Your Money Mindset
“If you want to change the fruits, you have to change the roots.”
--- T Harv Eker
Money Mindset is the beliefs and behaviors you hold towards money
that developed over time. These are thoughts and emotions came
from your life experiences that greatly affect your ability to achieve
your financial goals.
Most of them are acquired from our ancestors, parents and the
people around us while we are growing up. This is the right time to
review and release money beliefs that are not serving you well.
Here are some of the common unhealthy money mindsets that you
need to become aware of:
* Money is the root of all evil.

* Investing is only for the rich.
* Money is not spiritual.
* Success is not possible without a college degree.
* I came from a poor family.
These unconscious beliefs are controlling you; your decision making,

emotions, attitudes, mentality, and behavior. A negative mindset
about money will slow your progress towards achieving your financial
goals.
Having a healthy mindset is an integral part of personal finance. If

you want to build wealth and secure your financial future you need to
weed out your limiting money beliefs and replace them with positive
healthy money beliefs.
Step 2. Change Your Old Money Habits
“It’s not your salary that makes you rich, it’s your spending
habits.”--- Charles A. Jaffe
In order for you to shift your money mindset and improve your
finances, you need to quit old money habits that sabotage your
finances.
Examples:
* Spending more than you earn.

* Spending money as soon as you get it.
* Impulsive purchasing and not having a budget.
* Using your credit card to pay bills.
* Not being prepared for an emergency.
Overcoming these habits will take a while but it’s all worth it! You can
start small by paying yourself first, (10% of your salary will go to your
personal savings account) before paying any bills or expenses.
Step 3. Take Care of Yourself
“Health is like money, we never have a true idea of its value until
we lose it.” --- Unknown
In pursuit of wealth, people frequently neglect their health. They push

their body to the limits and practice unhealthy habits such as not
having enough sleep, lacking exercise or physical activity, and
consuming food that is not nutritious.
If your physical body is not in good condition how can you enjoy the
money you have accumulated? Take care of yourself, your personal
well-being is as important as your finances.
Of course, your health is not only about your body but it includes your
emotions and spirituality. Make sure you have time to relax, have fun
and strengthen your spirit.
Step 4. Be with Successful People and Learn from Them
“Who you spend time with is who you become. Change your life
by consciously choosing to surround yourself with people with
higher standards.” --- Tony Robbins
Wealth Mentors say that your income is in direct reflection of the 5

individuals you most consistently spend time with.
When you are surrounded with people that are smarter and more
successful than you are, you put yourself in a challenging position
which will help you grow massively. You can do this by getting a
coach or a mentor, by joining mastermind groups (online and offline).
Attending seminars, workshops or events where they might be.
You will learn better from these experts compared to reading financial
books. They also have a healthy mindset and positive energy that
can highly influence you.
Step 5. Educate Yourself and Consult a Financial Advisor or

Planner
“One of the causes of Financial Stress is not the lack of money

but the lack of Financial Literacy.” -Chinkee Tan
Learning financial management is now easy. There is much

information online where you can learn how to manage and grow
your money.
However, if you are truly committed to learn and practice personal

finance consulting a financial advisor is necessary. Find financial
experts that will guide and carry you throughout your journey to
Financial Freedom.
There are many Financial Experts that offer free financial

consultation. They can help you bridge the gap from where you are
right now to where you want to be when it comes to your finances.
Of course, don’t just blindly follow advice. You need to do your own
research on top of what you are learning from these experts.
Get a mentor or financial advisor who shares the same personal

values as yours, who are reliable and trustworthy. Remember this is
YOUR MONEY you are working and growing.
Important Notes:
The first 5 steps are the true building blocks of creating wealth
and improving your finances.
People often fail to manage their finances well because they mostly
skip these steps and forget how money really works!
It all starts with having a good mindset and practicing healthy daily
habits. Investing in yourself by keeping yourself fit and healthy.
Investing by building a relationship with successful and inspiring
people, learning personal finance and consulting experts because
without their help and support, attaining Financial Independence will
be slow and overwhelming journey.
Now that we have covered the fundamentals, let’s get into how you
can manage your money, secure your future and protect yourself
and your family.
Step 6. Track your Expenses and Create a Budget
“A budget is telling your money where to go instead of

wondering where it went.” --- Dave Ramsay
Setting up a budget and tracking your expenses is a good

foundation and without it, growing your money will be a challenging
one. Don’t be hard on yourself. Make it simple like create a monthly
budget then write down all your expenses.
When you practice this simple method, you accomplish two things;
one is you will know if there are expenses you need to cut out and
number two is if the money you are making is enough to cover your
primary expenses.
Step 7. Set up an Emergency Fund
“The first tenet is an emergency fund. Even before you save for
retirement that needs to be put in place.” - Barbara Steinmetz
An emergency fund is money set aside for emergency purposes and

unforeseen circumstances such as a calamity, medical expenses, or
job loss.
The main reason for having an emergency fund is to prevent you

from borrowing money when unexpected things happen or when
financial problems arise.
Your emergency fund should have at least 3-6 months of your salary
and the best place to keep it is on the savings account. Commit
yourself in savings 10% of your monthly income for one year until you
reach the required amount.
Step 8. Increase Your Income Flow
“It’s simple arithmetic, your income can grow only to the extent
that you do.” - T.Harv Eker
Time to make more money! Find a part-time job or start a side hustle.
Don’t rely or depend on one source of income and find a way to make
more money on top of your regular paycheck. There are a hundred
ideas you can generate extra income (like online based jobs) even if
you have a full-time job. Choose profitable gigs that suit your
schedule and will not put your health at risk.
Having extra cash will facilitate in building your wealth and achieving
your financial goals faster!
Step 9. Manage Your Debts Wisely (If you have one)
“Investing for the future is important, but get debt-free first. That
frees up your income so you can win.” - Unknown
There are two kinds of debt; good debts and bad debts.
Bad debts are borrowed money that doesn’t generate a return of

investment like purchasing goods or services charged on your credit
cards or taking personal loans.
Good debts are borrowed money that will grow in value or will bring
long-term income such as an investment, business or student loan.
If you have bad debts right now, you need to start knocking it off. The
longer you keep it, the more it’s going to cost you and ruin your
financial progress.
First, you need to pay off any high-interest debt (10% or higher). This
kind of interest can quickly accumulate and will likely result in a
lifetime of financial trouble.
Think about it, the monthly payment you are paying on your credit
cards can be used to save up for something else. Or better yet, invest
it in while compound interest is able to work greatly in your favor.
Settling your debts takes patient and determination. Start with simple
actions such as sticking to your budget and leaving your credit card
at home to avoid impulsive purchases.
Step 10. Get Insured
“If a child, a spouse, a life partner or a parent depends on you

and your income, you need life insurance.” --- Suze Orman
Consider getting a life and health insurance policy. You’ll never know
what will happen to you and all it takes is ONE accident to ruin your
financial future if you’re not insured!
You don’t want that, right?
Find a simple policy that covers your needs and benefits and will suit
your current situation. It is better to consult a financial advisor or
wealth coach and be clear WHY you are buying an insurance policy.
Health and life insurance will also protect the wealth you are building
from any unexpected life events such as early death, serious
illnesses, accidents, and disabilities.
When it comes to growing money and securing your financial future,

age does matter! The earlier you start, the lower your monthly
premium will be!
Step 11. Start Saving and Investing
“Aral muna, Bago Invest” - Aya Laraya
One of the best ways to improve your finances is through investing

(stock or mutual funds) and when you invest early the more
compound interest work at your advantage.
However, before you explore the world of investing, I recommend

learning the basic of investments and protection products and
concepts. After all, you are investing your hard earned money so
better to get proper information.
You may also consider getting the help of a fund manager to guide
you which investment vehicle is the best fit for your financial goals.
The road to financial independence is not easy; it takes patience,

determination, and a long term commitment. It has a process, a
gradual step by step process and not an instant thing.
There will be ups and downs, detours and adjustment along the way
and having a financial expert at your side will help you maintain your
focus, minimize the risk, devise an investment strategy and know
when to take advantage of investment opportunities.
Don’t rush the process, take the first step and gradually follow the
next step. Of course, it’s also important that you are enjoying your
journey to financial independence.
Do you need help in setting realistic financial goals and create basic
financial planning?
Let’s connect and chat by clicking this link.
https://www.facebook.com/TonetteC

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Your Financial Planning Guide

11 STEPS TO FINANCIAL INDEPENDENCE

Start Your Financial Journey While You Are Still Young!

Go to a quiet room, pause for a while and ask these questions to

What does Financial Freedom mean to you?

Is it to retire early much sooner than the average retirement age?

Is it the capacity to provide a quality life for your loved ones?

Is it the freedom to travel anywhere (with family) and money will

Is it having a peace of mind knowing you will not be a burden to your

Where are you today?

What is your financial status?

Where do you want to be tomorrow when it comes to your finances?

What is your biggest why?

Financial planning is designed to help you get your finances in

Financial planning if done right will help you achieve a comfortable

Many people think that financial planning is too complicated and

Step 1. Check Your Money Mindset

* Money is the root of all evil.

These unconscious beliefs are controlling you; your decision making,

Having a healthy mindset is an integral part of personal finance. If

Step 2. Change Your Old Money Habits

* Spending more than you earn.

Step 3. Take Care of Yourself

In pursuit of wealth, people frequently neglect their health. They push

Step 4. Be with Successful People and Learn from Them

Wealth Mentors say that your income is in direct reflection of the 5

Step 5. Educate Yourself and Consult a Financial Advisor or

“One of the causes of Financial Stress is not the lack of money

Learning financial management is now easy. There is much

However, if you are truly committed to learn and practice personal

There are many Financial Experts that offer free financial

Get a mentor or financial advisor who shares the same personal

Step 6. Track your Expenses and Create a Budget

“A budget is telling your money where to go instead of

Setting up a budget and tracking your expenses is a good

Step 7. Set up an Emergency Fund

An emergency fund is money set aside for emergency purposes and

The main reason for having an emergency fund is to prevent you

Step 8. Increase Your Income Flow

Step 9. Manage Your Debts Wisely (If you have one)

Bad debts are borrowed money that doesn’t generate a return of

Step 10. Get Insured

“If a child, a spouse, a life partner or a parent depends on you

You don’t want that, right?

When it comes to growing money and securing your financial future,

Step 11. Start Saving and Investing

“Aral muna, Bago Invest” - Aya Laraya

One of the best ways to improve your finances is through investing

However, before you explore the world of investing, I recommend

The road to financial independence is not easy; it takes patience,

Let’s connect and chat by clicking this link.

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