money Financial Planning

[JohannBeckham]

erdnazurcaled, it's more expensive to live, than to die (especially these days humahaba ang buhay ng tao. people sometimes live up to their 90s these days). So with that fact, you have to prepare for the cost of you living longer, which means you have to invest more money para may mapagkukunan ka kapag tumigil ka na magtrabaho or you do not have regular income coming from your salary job.

 

I'm not saying that life insurance is not important, it is. It is important especially if you have people (e.g. family) who's dependent on your income. If all you have is life insurance and then for some reason you're not able to work (because of disability, etc.) say at age 60, but you live until you're 90 years old, where will you get money to spend for your food, housing, transportation, healthcare, and other miscellaneous cost? Don't just work and pay insurance but work so you can invest, so that you'll have passive income coming in when you stop earning income from your work. Plan to live, not plan to die.

 

Basta ako meron life insurance (hindi naman kalakihan Pero pwede na din) at may funeral plan.at least kahit Mamatay ako Mamaya meron magagamit Yung mga iiwanan ko na pang kape sa mga magtityagang maglalamay at pampalibing sa akin.

[Papa Popoy]

Basta ako meron life insurance (hindi naman kalakihan Pero pwede na din) at may funeral plan.at least kahit Mamatay ako Mamaya meron magagamit Yung mga iiwanan ko na pang kape sa mga magtityagang maglalamay at pampalibing sa akin.

Yung mga iiwanan mo may pangkape, pero ikaw ba may pangkape ngayon? 😂✌

Dont get me wrong...pero sana isipin mo rin on how you will enjoy your life habang buhay ka pa..just my 10cents

[JohannBeckham]

Be hopeful sir, habang buhay may pag asa. Try lng ng try.

 

There's tons of blogs, podcast and Youtube videos related to financial independence. The cure to speculation is education kya educate yourself as much as you can.

 

Sa Pinas i listen to youtube videos of Marvin Germo. He's good stock market analyst. Randel Tiongson i think has a block, thats a good read as well.

 

Since OFW ako, I also read internation Financial blogs like mrmoneymustache.com, millenialrevolution.com, chosefi.com, etc.

 

There's tons of free resource so have faith, kya mo yan at makakaraos ka rin.

[kuworuru]

Any tips on how to be financially sound for those who are low wage earners?

 

I'm currently earning 20+k a month, I also got a plan from Sunlife (captain's fund/insurance)

 

I'm not targeting to earn millions but I just want to be financially secure and to have an emergency fund.

 

Hey, Mr. Bushido,

 

Not sure if these items have already been covered by the other members:

 

1) 20+k a month is pretty decent. Just to give you an idea, I've coached people who are below minimum (though first turo ko is for them to switch jobs haha), or minimum wage earners. While wala pang super successful, we've managed to get over the "isang kahig, isang tuka" mentality. Don't beat yourself up. I would say that you're above at least half of the population already (even more, most likely)

 

2) Good job on getting insurance. Not sure about your background, like ilang taon ka na, or ano ginagawa mo sa buhay, but I think that having an insurance policy is a responsible decision. especially if you have other people relying on you. So lamang ka nanaman sa ibang mga kababayan natin. nice one!

 

Onto some specifics. Unahin ko yung madali:

 

3) Emergency fund: Most financial advisers would recommend having at least 6 months worth of you salary stashed up in your bank account. The idea here is to have liquidity. Meaning hindi siya tied up sa kahit anong instrument and kaya mo siya bunutin anytime. Kaya emergency fund. Basic rule is to have this established first before playing around with investments. This is your insurance policy in case your investments go south. Halimbawa, nag invest ka sa business, pag may emergency fund ka, kahit matalo sa negosyo sa short term, good ka pa. You'd be surprised at the amount of business people that i met who stopped otherwise successful businesses dahil lang kinabahan na sila na if they inject any more capital into their business, wala na silang gagamitin for rainy days. Ang nangyari is that they passed on good opportunities because they felt that they couldn't shoulder the risk. That's a different topic, but additional anecdotes lang.

 

4) Ito yung mahirap: Financial Security.

 

First off, define first what you mean with financial security. Through the years, I've found that everyone has a different definition for this.

 

To give you an idea, for me, when I was starting out, I viewed financial security as the ability to do anything I want without worrying about anything else. Medyo broad, yes, pero ang trip ko lang, yung tipong gagawin ko lang yung gusto ko, dahil gusto ko, hindi dahil kailangan magbayad ng tuition, kailangan ng pampagamot ni tatay, kailangan ng whatever. This was my ultimate goal. Through the years, nadagdagan siya ng ibang goals like tulungan ko relatives ko, tulungan ko ibang tao magstart ng business, tulungan ko employees ko na magkaron ng stability, etc. Pero what allowed me to do that was that i was working toward a goal of not worrying about anything.

 

Most ng mga nakakausap ko, mostly friends of friends, employees, etc., and definition nila nito ay: Sufficient income to secure a house, schooling for their children, and a "decent life" for their family. Medyo broad rin, and usually we drill down and work on the actual numbers, but this is a good starting point, and I'll assume na nandito ka rin. Though feel free to correct me.

 

Ang haba na ng post so bullet points lang ng ano kailangan gawin short term:

 

1) Monitor your spending. Saan napupunta yung 20+k mo? Marami sa atin hindi na pinapansin ito, pero hindi narerealize na kalahati nalang kinikita nila after rent, utilities, etc. and sometimes that "occasional drink/party/dinner out" is hitting their finances quite hard.

 

2) Make sure to pay yourself first. This will be the base of your emergency fund, and eventually your funds for investment. Marami dyan nagsasabi na 10 to 20%, may iba mas malaki pa. Personally, I tend to pay myself around 60% of what I earn from all streams. Some would say it's impossible, but to give you context, natuto ako ng disiplina nung 20+k pa lang rin yung kinikita ko, I made sure na sakin yung 14k ng salary ko to build up emergency funds sa start. Mabilis lang naman e. Sarili mo lang kalaban mo, kung kaya mo ba to "miss out" on certain things. Once you get to that point, transferable siya na hindi na nagmamatter kung magkano kinikita mo basta guideline lang na 60%. Kung hindi talaga kaya, PM mo ko, pagusapan natin spending mo, I'm sure meron pa matatanggal dyan para ilaan sa "savings."

 

3) Once oks na yung 1 and 2, start ka na to invest. Ito yung mas madugo na part, pero siya rin yung pinakamasaya. marami inputs yung iba nating ka-MTC, it all boils down kung ano trip mo, and san ka pinaka comfortable. To illustrate, here are some examples from people I've worked with in the past, na roughly nasa same bracket mo when they started out:

 

* Single Mom (employee) - Door to door (eventually referral) Sales. nagbebenta ng fast moving goods sa mga kumare at kapitbahay. low margin (8 to 10%) pero fast moving talaga and eventually economies of scale dahil bulto na siya kung kumuha. Started with 3k capital na pinautang ko to prove na gagana yung business na naisip niya.

* Bachelor (former officemate) - Stock trading. On the side lang ginagawa during "free time" pero manages to get around 8 to 16% per annum. paulit ulit sinasabi sakin na wala naman daw guaranteed (alam naman ng lahat haha) pero manages to buy me drinks every now and then to thank me for the coaching. So kung hindi siya kumikita, ano pinanlilibre niya sakin? hahaha!

* Myself back in 2012 - Buy and Sell business online. Medyo matrabaho pero nakahanap ng pagkakakitaan na product. Margins were around 20%. So sa puhunan na 10k, once mapaikot, may 2k ako per deal. Crafty akong bata and lucky to have leveraged some contacts from my first salary job.

 

Reply lang or PM lang kung may mga questions. Good luck, Have fun!

[neville]

Finally entered stock market investing. My FA advised me to read more analyses and news and to start learning how to read charts.

 

I'm feeling a little overwhelmed now. But heck, if it means reaching my financial goal, I might as well grin and bear it.

[neville]

Almost stressing over the 10 year personal financial plan.

 

Since my second job is slated to last for 3 to 5 mor years, I wonder where else can I find a job like it. Short of entering the flesh trade...like I'd even do it, or would get clients... considering my age, body type, and snark. Haha

 

Hey, I can't help but overreact. My long term goal is to be worth at least $1 Million in today's value. I'd like to retire in utter comfort sans worrying over where I'd get the funds to buy a nice thing or to travel to a country I find interesting.

[neville]

Poor mindset: I can't do it.

 

Rich mindset: How do I do it?

 

 

 

****How then? 😊

[baMbee🐝]

Nice. Pwede na ring magcomment dito at sa stocks sinve sa finance industry na rin.

[neville]

Market going nuts it affects even my mutual funds.

 

Must stop myself from looking at my portfolio before I suffer from a heart attack. 😆😆😆😆

[Kaka_shi]

paadvice po ng best insurance company

[JohannBeckham]

paadvice po ng best insurance company

 

There's so many variables required to be filled in before anyone can answer your question like:

1. What do you want to insure e.g. life, car, house,funeral, health/hospitalisation?

2. What's your budget?

 

Personally since I live in Australia (I've been living here for a while), I don't think I can recommend any insurance but maybe the community would be able to help.

 

But If I'am you, here are few thoughts:

1. VUL is a crappy insurance for 99% of the population, don't buy them. Separate insurance with investing ALWAYS

2. Buy "Term Life Insurance" instead

3. If no one depending in your income e.g. you're single, you don't need millions in life insurance, unless you want to be buried like King Tut

4. If you have dependends, get 8-10x of their expenses as life insurance coverage (e.g. kung kaya nila mabuhay sa 300,000/year, insure 2.4M-3M for them.

5. Have 3-6 months of expenses as emergency fund. This is one of the best insurance against the F*CK up of life

6. Get disability insurance.

7. If you're employed check if you have health insurance already covered. If not, get one.

8. If you're insurance premiums is greater than your savings/investment, you're an IDIOT.

9. Focus on investment. Once youre investment e.g. rental, stocks, is able to cover for your life expenses, you're self insured so you don't need life insurance perse.

[mister_mahilig]

Totally Agree ...VUL is the greatest SCAM in the Philippines! It is not the best insurance product for YOU! Only insurance companies make money!

[JohannBeckham]

Guys what are you financial goals for 2019?

[MRROUGHSEX]

Guys what are you financial goals for 2019?

Continuation lang of my life goals.

 

That would be:

* Reduce total debt to $58K by year end (currently at $74K)

* Grow retirement savings to $160K by year end (currently at $140K)

* Anticipate house value to appreciate to $272K by year end (currently at $252K)

* Increase college savings of children to $20K by year end (currently at $12K)

* Buttress business fund to $58K by year end (currently at $49K)

Edited January 3, 2019 by MRROUGHSEX

[JohannBeckham]

Is that debt, debt on mortgage? Your doing good dude.

 

My financial goal for 2019 is to exceed 2018 savings rate of 55% of takehome pay.