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Personal Finance: Financial Management of a Working Individual

Updated on October 3, 2013

Basic Knowledge on Financial Management

Prior to my contract as a seafarer late last year, 2012, I attended a Financial Management (FM) seminar in a cooperative level.

Since, a cooperative is composed of individual shareholder, I will share with you the basic know-how in understanding FM on an individual level.

For a working individual, like me, I am going to concentrate on the going ons and outs of my money. It has to be the Cashflow.

I made a hub regarding Cashflow as board game and as working individual, I still belong to the Rat Race group, wherein my income is only spent on basic needs, such as food, shelter and clothing. I can never save enough for my future use, like hospitalization or even vacation.

Terms to understand on FM (Financial Management)

  • Assets - is composed of Current Assets, like: Cash-on-Hand, Checking Account, Cash-in-Bank, Investment, among others
  • Liabilities - pertains to expenses (Loans, Mortgages, Bills, among others)

It's not only the businessmen, politicians and private individuals with high-paying jobs that should declare their assets and liabilities.

As taxpayers, you and I must be reponsible in handling such monetary issues.

Samples of my Payslip as a seafarer (Photo Source: Ireno A. Alcala aka travel_man1971)
Samples of my Payslip as a seafarer (Photo Source: Ireno A. Alcala aka travel_man1971)

On my Personal Finance

Let me share with you the percentage of my net income this month as a seafarer:


  • Basic Pay is about 50 per cent of my cash pay every 15 days.
  • Bonus, Fixed Overtime, Productivity Incentive, Cost of Living Allowance (COLA) and Commanding Allowance are on the last 40 to 50 per cent


  • This consists of my contribution on SSS (Social Security System), Pag-ibig Mutual Fund, Phil-Health and Witholding Tax


  • It consists payment on my Sick Leave, Vacation Leave and the 13th Month Pay

As part of a private company, some benefits like that of a government employee are not included, like the Night Differential, Clothing Allowance, among others.

With this kind of Payslip, I used to send my basic pay at home, in order to pay the bills (electricity and water payments).

The rest will be saved on my ATM through our bank provider. From it, I will get my expenses on personal needs, such as clothing, toiletries, internet loads ( to stay online on HubPages) and payment for small loans on board ship.

Use your TALENT

In order not to be wasted, you must use your money and personal expertise in order to achieve less-worry life this year or even in your lifetime.

Remember the parable from the Bible, even the Son of God, JESUS, teaches us to use our money or TALENT wisely.

Allocate money for your expenses and also try investing for your future.


Financial experts will say that it's always risky when you invest. But look at those risk-takers. They're the ones having the SUCCESS these days.

Don't be like the man who just buried his talent on the ground.

It will never grow a tree nor it can never be a fertilizer on your plant.

Be like ANTS: Save for the rainy days.

The bottomline of a stable personal financial status is through saving.

Look at the lowly ants. Armies of those red ants will build their mound and store bits and pieces of food they can find around their surroundings.

When the wet season or rainy days come, they will never worry about food shortage.

How about the GRASSHOPPER?

If you compare us on this happy-go-lucky insect, we usually hop in order to enjoy the latest fad in fashion, gadgets, night life and other vices.

But, if we will all think twice, how much worth will my savings give me? The immediate answer will be financial security.

After we pay all our monthly dues, as in personal loans and debt, we should always set aside SAVINGS from our earnings.

How can we do it?

Learn from the ants.

Things to remember in Personal Finance

  • Banking And Bills- is all about savings and checking accounts; loans, credit cards and mortgage accounts
  • Reporting - weekly events, monthly and yearly features on cash flow, personal investing and additional transactions
  • Help & Support - customer manual and email support
  • Archiving & Security - account information, personal numbers and bank information
  • Tax Options - financial information regarding deductions, tax with holdings (withholding tax) and capital gains

Nowadays, managing personal finances can be easily documented through the use of Personal Finance software.

By using it, stress will be lessen, money leaks will be prevented, you can gain better investment and the result will be an increased personal net worth.

Financial Planning 101 Introduction | Financial Management | Personal Finance Money Management c/o ilexFS

Learning Personal Finance with Jack Kapoor, Les Dablay and Robert J. Hughes

Aptly titled as Personal Finance, this bestselling book at Amazon draws people in all walks of life, from the academe up to the streets, just to know and learn tips in maintaining affluence on financial or money matters.

College students, mostly in America bought the book for reference, the same with their professors in accounting.

As part of a review: It provides comprehensive coverage of personal financial planning in the areas of money management, career planning, taxes, consumer credit, housing and other consumer decisions, legal protection, insurance, investments, retirement planning, and estate planning.

If I could buy this book this year, I will surely be provided with easy-to-understand topics that will help me be financially stable throughout the year.

Jeff Madura and his book

Jeff Madura is a published author. A published credit of Jeff Madura is Introduction to Finance (The Addison-Wesley Series in Finance).

The main feature of Personal Finance is its hands-on approach keyed to the concepts readers need to build their own financial plans. The text's six parts are all pieces of a financial plan; Chapter 22 is the capstone. A running example throughout the book and a variety of end-of-chapter cases reinforce the practical aspects of planning.

Weekly Topic Inspiration for Jan. 7-13, 2013

Weekly Topic Inspiration screenshot (Photo Source: HubPages via Discussions page at Forums)
Weekly Topic Inspiration screenshot (Photo Source: HubPages via Discussions page at Forums)


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    • travel_man1971 profile imageAUTHOR

      Ireno Alcala 

      5 years ago from Bicol, Philippines

      @MsDora: I'm always keeping my fingers crossed. With all hopes and perseverance, I can have a breakthrough this year with His intervention. :) Thank you for remembering me, Ms. D.

    • travel_man1971 profile imageAUTHOR

      Ireno Alcala 

      5 years ago from Bicol, Philippines

      @carol7777: Yes, that's true. with all the allure of fanciful things in order to be abreast with your 'sossy friends' you are always tempted to buy those gadgets and signature clothes and shoes.

      Now, I know better.

      Thanks, Ms. Carol for dropping by. :)

    • MsDora profile image

      Dora Weithers 

      5 years ago from The Caribbean

      Travel_Man, haven't read you lately. You're still doing a very good job of sharing and teaching from your own experience. Thanks for these tips on financial management. Hope you'll soon get a breakthrough and be able to save.

    • carol7777 profile image

      carol stanley 

      5 years ago from Arizona

      Well done...I think the saving idea is so necessary especially in today's landscape. People just have this spending thing. Get a few dollars and off they go. We all like to buy things but a having a forced savings probably is the way to go. If you don't have the money you cannot spend it. Maybe cut up credit cards..Oh NO! Great hub and voting up and sharing.

    • travel_man1971 profile imageAUTHOR

      Ireno Alcala 

      5 years ago from Bicol, Philippines

      @faythef: Thanks for finding this article viable to people, such as you. :)

    • faythef profile image

      Faythe Payne 

      5 years ago from USA

      great article..voted up


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