My Personal War on Financial Freedom

I always imagine to land a job on the best companies after college. Thanks for my ambitious attitude I ended up with the best companies in their own crafts. I had the best company in managing people, landed a job in a financial institution under the umbrella of their multimedia services. I was able to help my mom send my sister to the school she wants in college and take the course she dreamed. Own a house through mortgage have a phone for my so called internet/online business and of course have my own pet etc. Is this all that it takes so you could say you are financially free?

At 20, the way I look at financial freedom is to have a job. I thought that having a job will secure me all through out. Of course, we all need a stable job to buy the things we need and sometime the things we want. The job will help us make through the so called personally quest to be financially free. I always thought that Social Security System will provide me with the things I need because I am eyeing for their upcoming pension.

Now at 30, financial freedom struck with a crystal clear realization that all the while I thought I was doing right. Don't get me wrong I am always thinking of how I could juggle for financial freedom when I age incapable of going to work anymore. I always thought that if I pay my Social Security System regularly I will secure my future. Later did I realize it wont but it will be of help to pay your monthly bills.

Here's what I learned along the way.

1. SAVE - Is one of the biggest contributor to you becoming financial capable at the age of 50. So here's how it would look like. Lets say you started working at the age of 25 and you wanted to retire at the age of 50. It would mean you'll have 25 years to save before you retire. Php 500 per pay day can go along way. So when you started working at age of 25 and you regularly save Php 500 of your salary it means that when you reach the age of 50 you'll have approximately Php 300,000 in your bank account. When you say SAVING it means you shouldn't be using it no matter what it takes.

Question is can you retire if you only have SAVINGS? The answer is NO. In my idea, you can't retire if you only have savings because as you age it means your expenses in medicine and doctors fee will increase as well.

When you say savings, you have to consider your daily expenses in the future, health care when you grow old and of course that includes your ability to enjoy the amenities you used to have when you are working like the basic necessities such as phone bills and cable TV.

2. Invest - I learned it the hard way. Investment is really huge factor in securing your financial freedom the moment you retire. I was talking to some of my friends and we were discussing how far we have gone to securing our future or when we retire. I realize that I was so far behind compared to their achievement. I also realized that I lack planning on my SAVINGS and INVESTMENT. When we say investment, my friends refer it an asset that yields MONEY that will add up to your savings. If this is their definition, is GADGET consider an investment? NO when they say investment I learned that it should be long term and it should yield.

I love The Suzy Orman Show and according to her, when making a decision you need to follow simple rule: People First, then Money then Things. Putting this in perspective in terms of investment. I would say that house first then start considering investment that will yield money in the long run.

Here's how they generate more money, they have mutual funds, they trade at stock exchange and they have online businesses and other income generating investment.

Here's their advise knowing the fact that I am a regular employee with no other source of income and that I am simply

3. Spend Less - Less expenses means more money to save. During our chit chat with friends I later found out that they are spending less. I mean they don't have the most expensive phone out there. I noticed that they aren't