My family attended the Feast at PICC on February 24. It is the happiest place on Earth. Bro. Bo Sanchez gave an inspirational talk on how to prosper in our lives, not only in our financial life but also with our relationship to God. We learned the seven practical strategies in becoming truly rich. Bro. Bo showed seven jars which illustrate the allocation of our money to achieve financial freedom.
Truly Rich Strategy No. 1: Emancipation Fund. This is the fund that will free us from financial bondage. You need to set aside at least 20% of our monthly income into this jar. The money should be placed in facilities that grow and multiply. Examples of these are the stock market and mutual funds to name a few. The money will be allocated for your retirement which will help in sustaining yourself in the later part of life.
Truly Rich Strategy No. 2: Emergency Fund. Bro. Bo advised that at least 3 to 6 months of your monthly salary should be accumulated in the bank. Since the money in the bank is liquid, you can immediately access the money when emergency occurs. You need to prepare for any emergency as this can happen anytime. You can allocate 5% for this fund every month until you reach the target 3 to 6 months of your salary.
Truly Rich Strategy No. 3: Everyday Fund. You can allocate 50% of our monthly income to everyday expenses. Depending on our lifestyle, you can choose to spend lower than 50% but not more than 100%. This practice will discipline you in living within your means.
Truly Rich Strategy No. 4: Empower Fund. This is the fund for your specific dreams like vacation trips, renovating the house or buying the gadget you want. You can allocate 5% of your income into this jar. This will ensure that you will not be deprived of your wants in life.
Truly Rich Strategy No. 5: Enjoyment Fund. The money that you will allocate into this jar can be used for entertainment like watching movies or dining out with friends. Bro. Bo advised to allocate 5% of your income in this aspect. You can enrich your relationship with others through this. The scripture also says something about this
Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. – 1 Timothy 6:17 (NIV)
Truly Rich Strategy No. 6: Education Fund. It was noted that in order to grow your income, you need to grow yourself. Investing in yourself for seeking that knowledge you need to become an expert in your chosen field. Because of this, your financial life will drastically improve. You need to allocate at least 5% of your income in empowering yourself in getting the right tools and trainings for your career, business or personal development. Attend seminars, get financial coaching and network with other like-minded individuals.
Truly Rich Strategy No. 7: Eternity Fund. Set aside 10% of your monthly income and give tithes or do charitable acts. This is the longest term investment you will have since you are storing your treasures in heaven. God is your business partner and it is just to give some of the fruit of our labor to Him through His works.
It was a day full of wisdom on prosperity. Bro. Bo brings to life the personal finance principles he share in his books and financial coaching in Truly Rich Club which I am also a member. Always remember that the real purpose of money is to love others. With this, we will have a happy, healthy and holy money which can be an instrument to bless others.
How can you have a happy, healthy and holy money? Share your thoughts and meet us in the comments.