Practical Money Tips for #Adulting 101

So this morning, as I was preparing for work and having my breakfast, I grabbed my mug of steaming hot coffee and brushed through the newspaper for some interesting news articles (not all articles catch my attention, especially the nasty ones like political bouts and dramas). 

One write-up caught my choosy eyes though. The title goes: "City Scholar sends a Thank You Letter to the Mayor". And I skimmed thru that and after reading it, I closed the newspaper, sipped the remaining coffee in my mug and thought about the scholar subject in the news bit *and the many graduates like her*. 

After graduation, for sure, companies will be waiting for her--if not proactively get her. So she will have a nice paying job to fill her pockets. 

But for how long? So I thought about writing this blog post.

Read more »

Understanding the SSS Contribution Table and why you should not depend only on SSS for your retirement

Just recently I saw a Facebook update from Philippine Social Security System on the pension (or retirement) benefits one can avail for a certain amount of SSS contribution. 

The amount shocked me that it lead me to investigate further the math (or computation) behind the said values. 

As part of our Global Campaign for Financial Literacy, it is very important to understand what benefits we are getting for what our money is paying for. Thus, today, let us dissect and understand the SSS contribution table (as of 2017) and learn why we should not depend only on SSS for our retirement. 

We should not only depend on our SSS for our retirement

This is the image uploaded by the Philippine Social Security System (SSS) in their official Facebook Account: 

SSS Contribution and Benefits (source: SSS Facebook Page)

Now looking into the values:

Juan contributed every month 110.

Every year that's 1,320.

Thus, for the next 20 years of contribution that would be 26,400. 

While Pedro contributed every month 1,760. 

Every year that's 21,120.

Thus, for the next 20 years of contribution that would be 422,400.

Thus, Pedro contributed 16x more than Juan. 

Now, before we proceed with the shocking part, let's us understand first the SSS contribution table (data as of 2017).

SSS Contribution Table 2017 (source: www.sss.gov.ph)

For a Range of Compensation (monthly salary) there is an equivalent fixed Monthly Salary Credit. 

The current SSS contribution rate is 11% of the monthly salary credit not exceeding P16,000 and this is being shared by the employer (7.37%) and the employee (3.63%).

Self-employed and voluntary members pay the 11% of the monthly salary credit (MSC) based on the monthly earnings declared at the time of registration.

For OFWs, the minimum monthly salary credit is pegged at P5,000.

For the non-working spouse, the contribution will be based on 50% of the working spouse's last posted monthly salary credit but in no case shall it be lower than P1,000.

Source: www.sss.gov.ph

Now, going back to the above image, after 20 years of contribution, both Pedro and Juan applied for retirement and will be receiving the following pension benefits:

Read more »

9 gift and date ideas: how to save money on Valentine's day

It's another season when you will find it hard to find a seat in a nice restaurant if you didn't call to reserve and when flowers are at their most expensive prices.

Valentine's Day isn't meant to make you rob the banks just to get your loved one something nice. Technically, it is not just about gifts either. It is a Saint's feast day and modern day has just commercialized it. And because of the joy of tradition, this once-a-year celebration of love calls for something extra special for your loved one. 

So what can I get her without spending too much but not look too cheap? What can I prepare for him that does not require money, but show him my love and sincerity?

Fear not, hopeless romantics! Lo, and behold, we have collated some ideas that might help you survive the day of hearts (and red shirts, teddy bears, chocolates and flowers).

Here are 9 Valentine's day gift and date ideas especially when you are on a budget: 

Valentine's day ideas? Try breakfast in bed.

1. Breakfast in bed

Given that you are living together with your loved one, whip up a little surprise. Research for something to prepare - sunny side up, french toast and some hot choco with mallows. Find something doable for your cooking skill. 

Buy the ingredients beforehand and prepare it while your loved one is still sleeping. You could cut up the bread into hearts, or get heart-shaped chicken nuggets, form the egg into a heart - whatever rocks your boat. Add in a few flowers from the garden outside. Serve it right when you wake her up. 

Valentine's breakfast date is served! 

2. Candlelit dinner date at home

In case you don't live together but you could make him come over to your house, you could always do the dinner. Make chicken or pasta or whatever you can do that is decent enough for the event. 

Got no cooking powers? Pick up the phone for delivery! He wouldn't mind a big mac. 

Light up some scented candles, chill the wine and you are good to go. 

Extra brownie points if you set up the mood with some sweet violin background songs from YouTube!

3. Small meaningful gifts

If you really want to give something other than food, you could always give small gifts with BIG meanings. 

Find something sentimental for both of you, maybe an item from your first date. You could also collate some photos from the past and make a scrapbook. 

You could buy something small and place a card to explain what it symbolizes. 

There is also a message board made with small chocolates or candies to stand for some words (google it now!). 

4. DIY Valentine's cake or cupcake

If you could, make a chocolate cake! There are even instant cake mixes in boxes that are so easy to do. Prop up some sugar flowers or sprinkles and you become like a pro. 

Take these instant cakes into a new level by making them into mini cupcakes and spell out "Happy Valentine's day" or something sweet - a letter for every cupcake. 

Who wouldn't want cakes or chocolates or both?

Read more »

Childbirth tips: 10 ways to save money when having a baby

Congratulations! If you are reading this post, then a bundle of joy must be on the way. If not, congratulations still! This could help your future family or your neighbor's family cut-off some unnecessary expenses on childbirth.

In every aspect, preparation is key. 

Here are 10 childbirth tips on how you can save money when having a baby:

Having a baby soon? Preparation is the key.

1. Check your Philhealth 

Philhealth can deduct a substantial amount from your bill. Both you and your newborn (to be declared as dependent after you give birth) are covered. 

Philhealth discounts on the professional fees of your doctors, and the giving birth fee itself. In case you newborn needs medication right after birth, it deducts an amount too, per case. If you are employed, most likely, your contributions are up to date. 

Nevertheless, it does not hurt to check with the HR. If you are voluntarily contributing, check if your payments are up to date.

2. Check your company healthcare

If you are employed, chances are, you are entitled to short-term healthcare. Some company healthcares provide assistance for childbirth. 

Some, including mine, luckily, provided 14 free prenatal consultations. Fourteen consultations was just enough for the 9 months of conception. Scan through your healthcare policy booklet if your private OB-GYN is accredited, or ask help from your HR.

3. SSS

Technically, your maternity benefits from your Social Security System pays you for the days you have to stop working in preparation, during, and after childbirth. Though if you choose to, your SSS benefit could help you with the hospital bills. 

4. The Hospital Hunt

The bigger the hospital, the more likely it would cost more. Lying-in clinics or birthing centers would really turn out cheaper, if you are comfortable with it. 

Research through the internet for approximate rates in the hospitals and clinics near you if it fits your budget, ask some friends who have given birth recently or ask your OB-GYN for suggestions. 

Some online forums really offer help too, so go ahead and ask.

5. The Bundle Benefit 

Most hospitals and birthing clinics offer maternity packages to Philhealth members. Packages include the prenatal consultations down to giving birth. 

The good thing with packages is that, you pay it every time you visit for prenatal check-up, so it is not heavy on the pocket. 

Another good thing about packages is that they offer plenty of seminars, from breastfeeding and taking care of your newborn upto family planning post partum. 

Research and ask around to see which hospital carries the package you need.

Read more »

Wedding Financial Planning: How to prepare for your big day

The jittery feeling and excitement may have not settled down after the proposal or the decision you both finally made to tie the knot. 

And then you go to Google, type in the search box: "Things to prepare for wedding"

Hands up, ladies, we are all guilty of this.

From wedding invitations, decorations, color themes, wedding gowns, venues, entourage and guests - these all need preparation. 

But what MAY come last to our minds is how to get these all items ready. We need the moolah.

Here is our friendly advice (from experience) on how you can prepare for your big day - a wedding financial plan. 

Disclaimer: Please note that this worked for us, and it MAY or MAY NOT work for you. If it is sensible (and humane) enough, do give it a try.

Are you ready for the BIG day, especially financially? 

A little background of my husband and I: we have been together for 7 years, so naturally, getting married has been talked about. And because that is where we intended to go, we started saving for it in about 1 year before we wanted to get married.

Separate Bank Account for Wedding Budget

Though we both have different savings accounts, we set up a separate bank account for our wedding budget we call it "Wedding Fund."  

Every pay day (or commission cycle), we would set aside 20% of our income to our wedding fund. Initially, our goal was to put up minimum 100 thousand pesos (but it went up to almost 300k!): that is 50 thousand pesos per person. 

We monitored our savings monthly and encouraged each other. We raced as to who gets to the 50k mark first. There were times when we slacked off, and times when we did great catching up with the goal. It was challenging, but it was actually fun. 

What happened? We really did it. Hooray! We were financially ready! 

Read more »

52 Week Money Challenge + FREE Downloadable Template

It's the start of the New Year and people now are making resolutions. 

"I will finally exercise every day."

"I will eat healthy foods." 

"I will save money"

"I will hear mass every Sunday!" 

and more...

One of the famous "challenges" especially during New Year is the 52 week money challenge. 

Do you accept the 52 week money challenge?

The challenge starts with 50 pesos and the amount you need to save increases by 50 pesos every week until the end of the year (for 52 weeks). 

Example: 

Week 1: Jan 1-7: You need to save 50.
Week 2: Jan 8-14: You need to save 100.
Week 3: Jan 15-21: You need to save 150, and so on and so forth. 

When you continue saving this way, you will be amazed that you will be able to save 68,900 pesos at the end of the year just by saving increments of 50 pesos per week! 

Amazing isn't it? Don't believe me? See the table below:

Read more »

Want to get rich fast? Learn to sell

Wealth file #8: 
Rich people are willing to promote themselves and their value.
Poor people think negatively about selling and promotion. 

The word "selling" has been tainted with not so good impressions. We Filipinos, in one way or another, hate being sold. Like:

- When we go to the mall, looking for a good dress and the saleslady keeps following us.

- We walk on the street and salespeople are giving out flyers aggressively. 

- Or when our insurance agent keeps on calling us.

These situations have left "selling" a bad taste in our mouths. However, as we said in cash flow planning, to increase our cash flow, we need to earn additional sources of income or manage our expenses.

In simple terms: earn more or save more.

Related content: 4 Sources Of Income To Increase Your Cash Inflow

The best way to earn more is basically to sell something. Personally, I love selling. Because when you are in this kind of career, you control your income. It is results-based rather than time-based. (More of this on wealth file no. 11)

Want to get rich fast? Learn to sell.

However, when you take a closer look: rich people are willing to promote themselves and their value while poor people think negatively about selling and promotion. In other words, almost all rich people are salespeople but, again a big BUT, they are not just selling products or services for money rather they promote themselves and the value they can give to the world. They are doing a higher level of selling.

Here's a collection of the mission of powerful companies showing the value they offer to the world:

Read more »

Budgeting Technique: The Money Jar System

The money jar system was introduced to me by T Harv Eker's Book: Secrets of a Millionaire Mind. It a budgeting technique that automatically designates a specific percentage to certain jars or accounts. The recommended percentages are as follows:

10% - financial freedom account

10% - long term savings for spending

10% - play account

10% - education 

10% - give

50% - necessities. 

money jar

The above percentages are just basic guidelines but can be adjusted according to your situation. But it is important that all of the accounts are allocated as it complies to certain universal laws. The purpose of the above accounts are as follows: 

Read more »

How to Create a Money Magnet

Financial freedom happens when your passive income is greater than your expenses. It is the main objective in winning the money game: to be financially free. And to achieve that a financial freedom fund should be in place. 

However, saving and investing in a financial freedom fund may take a long time. To hasten this fund, we need to create a money magnet machine to build this fund faster and ultimately reach financial freedom.

The money magnet concept is based on the law of attraction stating that "what you focus on expands" and "where attention goes, energy flows and results show." To hasten building your financial freedom fund, then one must create a money magnet. Here are the steps in building a money magnet: 

Be a money magnet

Read more »

Financial Management for Couples

Our budgeting strategies changes as we grow old. When we were still kids, we don't need to do budgeting but most likely, everyone of us has tried saving using the piggy banks. When we were in college, we started to know basic budgeting like saving for our projects or worn-out pants when asking for money from our parents no longer applies. When we started to work, unless we are a credit card addicts, we are forced to set aside budget for the things we want to have and budget the remaining balance to survive for the next payday. And our budgeting strategies just keep changing as we grow older and older. 

Today, let's take a peek at some financial management tips for couples by our very own co-authors and their unique way of blogging:     

financial management starts at home 

Read more »

Why the Rich get Richer, the Poor Poorer and the Middle Class Stressed out?

Why do the rich get richer, the poor get poorer and the middle class stressed out? This is a question we often hear and the common answers are, “because of the government, taxation, access to education and income opportunity.” Partly, they may be correct. But one of the best answers to this question depends greatly on the mindset of the person. Today we debunk what the wealthy, the poor and the middle class buy on “payday” to answer this question.

What the wealthy, the poor and the middle class buy on "payday"

Read more »

Stop the dream boards and make them come true

Everyone is familiar with the “law of attraction” and that is why most of us, surely, have had these dream boards. We understand the importance of visualization and that we cut down some pictures of your dream house, car and/or vacation. The challenge however, is that these dreams remain dreams even until now. Years have passed and they still remain as dreams, until such time we remove our dream boards and bury them together with our heart’s desires.

One of the reasons why our dreams will never really come true is because we still need to turn them into financial goals. Here are 3 ways how to turn your dreams into financial goals, stop the dream boards and start achieving them:

Turn your dreams into reality

Read more »

How to create a cash flow plan - budgeting basics

"A budget is telling your money where to go instead of wondering where it went." -John Maxwell

Budgeting is one of the tools needed in financial planning. It is writing down what you have today (income and expenses) and spending your income on paper before the month begins.

make a budget plan

Read more »

Increase Income by Managing your Cash Outflow

In a cash flow diagram, there are two money streams: the cash inflow and outflow. To increase one's cash flow is to manage these cash flow streams: earn additional income for the cash inflow stream and manage expenses and budgeting for the cash outflow stream.

Today, let us learn how to increase our cash flow by managing our cash outflow streams.

Increase income by learning to manage your cash outflow

Read more »

4 Sources of Income to Increase your Cash Inflow

In a cash flow diagram, there are two money streams: the cash inflow and outflow. 

To increase one's cash flow is to manage these cash flow streams: earn additional income for the cash inflow stream and manage expenses and budgeting for the cash outflow stream.

Today, let us learn how to increase our cash inflow by earning additional sources of income.

Increase income to increase cash inflow

It is important that one must understand that there are two types of income: active and passive income.

Watch the video below to learn how to increase your cash flow by earning additional sources of income: 

Click here to subscribe in our YouTube account for more financial video training  

Active Income

Active income is the type of income that when you work, you earn and when you don't work, you also don't earn. Sources of active income usually come from employment and self-employment.

(1 & 2.) Employment and Self-employment

To earn adittional income, after having a full-time (8 to 5) job, one may venture into a part-time job like personal tutorial, be a fast-food crew or be a part-time teacher. 

For professionals, one can have a private practice, private clinic or be a consultant. The challenge of having a lot of active sources of income is that our time is limited and it also affects our physical health. By the time we get sick, our income also stops.

Passive Income

Passive income on the other hand is when you don't even work or with little effort, you still earn. 

Thus, learning how to earn passive income is the key in having multiple income or cash inflow streams. Sources of passive income come from businesses and investments.

Read more »

100% Savings Formula to build Wealth

Saving money is a habit and so is spending. While most of us are already "masters" in spending, we need to understand that saving bears equal weight with spending and our saving habits can determine whether we are ready to accumulate wealth. When one receives income from a job or salary, a lot of people are using the wrong savings formula. How about you, what is your savings formula? Here are 4 savings equations and see which one is yours.

Read more »