20 Personal Finance Tips For 2009

1. Track every penny of your spending for two weeks.

2. Establish due dates for your financial goals.

3. Pay yourself first; use direct deposit to save easily.

4. Get your free credit report at ww.annualcreditreport.com. ( note: only accessible through ISPs located within the United States and its territories)

5. Pay down credit card debt.

6. Evaluate the cost of your current lifestyle.

7. Make one change in your spending each month.

8. Teach your kids the difference between wants and needs.

9. Build a rainy-day fund.

10. Read the fine print to understand credit card interest and fees.
11. Save your change.

12. Create a written spending plan for each paycheck.
13. Pay bills on-time, every time.

14. Learn to balance your checkbook.

15. Buy a shredder and use it.

16. Participate in your company's 401k.

17. Protect that important number. Don't carry your Social Security card in your wallet.

18. Start a holiday fund.

19. Know your credit score and what it means.

20. Start making changes today. If you need help, contact Consumer Credit Counseling Services.

source: kmbc.com
image: www.crosland.com

The Economic and Financial Learning Center (EFLC)

By Doris Dumlao
Philippine Daily Inquirer



An interactive one-stop shop FOR economic and financial education run by the central bank, Bangko Sentral ng Pilipinas (BSP), will open its doors to the public this month.

The Economic and Financial Learning Center (EFLC), one of the central bank’s biggest programs in its financial literacy crusade, was launched in October and will be fully operational this year.

“The launching of the EFLC symbolizes BSP’s commitment to institutionalize and sustain a comprehensive financial education program for Filipinos,” Monetary Board member Juanita Amatong said.

The EFLC is a one-stop center where researchers, students, visitors and BSP staff may access data and information produced and acquired by the BSP in the areas of central banking, economics and finance. It integrates modern technology by providing information through conventional books and magazines, multimedia formats such as CDs, digitized books and interactive learning modules.

“Through the interactive modes of learning, including computer-based games and multi-media learning tools, we hope that knowledge about economics and finance can become more exciting for visitors,” Amatong said.

The center will also consolidate materials on economic and financial education programs undertaken by various departments of the central bank, including digital archives of BSP video materials to make them more accessible to the public.

Amatong said financial education is crucial for a population that has been traditionally underserved by the financial system, making them more vulnerable to making uninformed financial decisions.

“The financial landscape we are in today is much more complicated than ever,” Amatong said. “As a result, financial know-how has become not just a matter of convenience but an essential tool for ordinary people to cope with normal and abnormal fluctuations in economic activity.”

She noted that lack of financial knowledge could lead to poor financial choices which could be harmful, not only to the individuals concerned, but to the nation at large.

“Regrettably, low-income families that lack basic financial literacy are the most vulnerable to sudden economic shocks. This, in turn, may have significant implications on social dynamics. I believe that through financial education, we can change financial behavior for the better, and ultimately ease social and economic tensions,” she said.

The other steps taken by the BSP to contribute to better financial literacy are the following:

• Through a partnership with our Department of Education, it has developed teaching guides and pilot tested them in nine regions around the country.
• It has conducted financial literacy campaigns for overseas Filipino workers (OFWs) and their families to inform them of alternative uses of their dollar remittances, including savings, investments in financial products and business ventures as well as to familiarize OFWs with the consumer laws and BSP issuances relating to consumer protection
• It has also conducted a financial education program for microfinance clients.

Revisiting a Classic: 'Your Money or Your Life'

By EILEEN AJ CONNELLY, AP Personal Finance Writer

There are countless personal finance books that advise readers on budgeting, investing and paying down debt. Few leave the tips aside and ask you to question your relationship with money and the reasons you spend what you do.
"Your Money or Your Life," urges readers to re-examine everything about their financial lives through a less materialistic lens. Originally printed in 1992, the classic title has been updated and reissued at a time when the frugality it advocates might look much more appealing.


The book encourages readers to shed the viewpoint that more is always better, and offers nine steps that have the potential to help drastically reduce expenses and reshape the role that money plays in your life. Some of the steps are time consuming, like determining how much you've earned during your lifetime and producing an inventory of everything you own. And some, like determining your "real hourly wage" — by factoring in how much time and money you put into your job when you're not at work — can be eye-opening.

The Associated Press talked with co-author Vicki Robin about the philosophy behind "Your Money or Your Life," and what it has to offer in today's economy.

Q. Do you think the book's emphasis on living within your means has a new relevance in the current economic climate?


A. People have leveraged themselves to the hilt and are in shock that the system has let them down. I think the book provides a very helpful framework for people to take stock, and begin to track the flow of money and stuff in their lives, so they can get a clear picture of their relationship with money.

I don't mean to imply that people have been drunk, but in a way, debt has been sort of a binge. In the old days, we could binge all the way until we were out of money. With the advent of credit cards, we could binge with nobody watching. But what do you do when you wake up on Jan. 2 and realize you made a fool of yourself? You have to forgive yourself, take stock of where you are. You need to make some amends, and make some resolutions. I would really love it if people chose this moment to ask themselves where they are and where they want to go.

Q. You state that the nine steps outlined in the book can help reduce expenses an average 20 to 25 percent. How is that possible?


A. It is an enormous number, and I'm not saying that's the goal, I'm saying that's the result of paying attention. The book is about awareness, very precise awareness of what's going on.

The key to that reduction, is that when people determine their real hourly wage, on average they find that 20 to 25 percent of their nominal wage is their real hourly wage. Once people start paying attention to that, they start to look at the small, unconscious daily luxuries, and the bigger things. Every aspect of one's expenses comes into the "Is it worth it?" scrutiny, not necessarily the belt-tightening scrutiny.
Q. Is it really possible to convince people to step back from the consumer-driven idea that "more is better"?


A. The concept of "more is better" has been constructed by the industrial growth economy and aided and abetted by the advertising industry. Up until we were educated into more is better, we were naturally frugal because we understood that there's only a limited amount of stuff, and there's only a limited amount of needs.

I think this has been educated into us and I think we can easily educate it out of us. But politically and socially, it's going to be a tough row to hoe.

Q. Another concept you challenge is the idea that people define themselves by their jobs. What's wrong with identifying yourself through your work?

A. We're trying to break the stranglehold of identification with only compensated work. I think it dishonors the many other things that people do that are not compensated for financially.

There's many roles that we assume in life: sister, brother, mother, father, daughter, son, worker, community member, friend, volunteer. So we're just suggesting to not say I am a (profession) in such a way that it devalues the rest of your life. If you start valuing everything in your life, then you start realizing that your work is not everything. So you can make sure that you have enough hours of the day for other things that are important to you.


Q. Your book has been criticized as presenting a New Age, "hippie" or "tree-hugger" philosophy that many might find hard to embrace. Are you concerned that could limit its reach?

A. Christians have said it's a Christian approach to money. Buddhists have said it's a Buddhist approach. Frugal people have said it's an approach to frugality. I don't think it's New Agey per se, I think it's pragmatic.
Q. You don't give a lot of specific financial advice in the book. Does it contain anything for people who don't follow all nine steps?

A. Most people don't follow the whole program. But people frequently say it changed their life. One woman said she didn't realize until she did an inventory of her closet that she had many, many white blouses. She realized that every Friday after work, she'd go to the store and she'd buy herself a pretty blouse, because she "deserved it." If it's only that, if you read the book and wake up to a shopping habit, it's enough. Even if you stick a toe in the water, some realization happens. What we're simply trying to add to the conversation is that your own awareness of what makes you happy and what you spend your money on is important.
Overview of the Revised & Updated 3rd Edition

In an age of great economic uncertainty when everyone is concerned about money and how they spend what they have, this new edition of the bestselling Your Money or Your Life is an essential read. With updated resources, an easy-to-use index, and anecdotes and examples particularly relevant today — it tells you how to:

• get out of debt and develop savings
• reorder material priorities and live well for less
• resolve inner conflicts between values and lifestyle
• save the planet while saving money
• and much more

In Your Money or Your Life, Vicki Robin shows readers how to gain control of their money and finally begin to make a life, rather than just make a living.

The book is available at www.yourmoneyoryourlife.org

image: www.simpleliving.net