No Non Sense Personal Finance is an interesting book and a meaningful tool to help us develop an attitude of learning and equip us with financial literacy. Mr. Randell Tiongson, one of the Philippine’s best and renowned finance speaker, emphasized the importance of investing in our best performing asset – that is us.
Randell promoted 5 step by step guide to sensible personal finance that would help us in our situations.
1. Improve cash flows.
“The way to wealth is spending less than what you earn and investing the difference.”
This book is just perfect but not limited to overseas workers. Most of us are too overwhelmed to having much that we forget how to make our wealth grow. Even more, it is common for most of the low income earners to overlook the fact that they are also eligible for improving cash flows. The emphasis here is our behavior in handling our personal finances, not the amount of money we have.
“There is nothing wrong with spending on the things that we want. What is wrong is when those spending affects our financial well-being and prevents us from achieving our goals or, worse, causes us undue stress.”
2. Getting Out Of Debt
In order to live a life of peace and harmony, Randell encouraged us to step up by having zero debt as a new status symbol. It is not easy to find the exit but the guru raised a good point here. “Personal finance is really more about behavior and not so much skill, especially on matters of debt.”
I didn’t have any idea about the snowball debt effect until I read it from this book. Pay off the smallest amount and enjoy seeing your debts get fully paid.Then you will be motivated to pay the next bigger ones. Just like the snowball, it gets bigger and bigger.
3. Setting Up Your Emergency Fund
“Things do happen, and they won’t happen at a convenient time.” Reading this encourages me to continuously allocate funds for emergencies, which is equivalent to 3 to 6 months monthly expenses, that will never be touched unless it is really an emergency.
Apart from financial peace, this book also educates us on how to handle financial risks. “When you have established an emergency fund (along with other important things like life insurance, non-life insurance, and health insurance), you avoid more unfortunate things from happening to you. You will also be less likely to go into debt. In other words, you’re making sound decisions to plan for problems before they actually happen.”
4. Getting protected from life’s risks
This book helps us how to get started with life’s risks and stresses out the importance we get by getting protected. I honestly never thought about it. I do have insurance plans but I never paid enough attention to the possibilities around our family’s future. Really, I appreciated Randell for writing No Non Sense Personal Finance. The brief overview of each type of insurance gives us an understanding of the kind of protection that suits our needs.
It is never a question of whether we are an advocate of what. It is all about enjoying protection from potential threats.
5. Investing for your future
This book helps us build our future with confidence, overcoming inflation matters, and looking through possible investment options, and spreading risks through diversification. So if you are confused and don’t know when to start investing, i suggest you get a copy and start reading. It will allow you to understand your need for investments and the benefits in parallel.