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:

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Step-by-step guide: How to open an account in BDO

In building a solid financial foundation, it is important to build from ground up. We start first in protecting ourselves through healthcare and life insurance. We must make sure to eliminate our debt. Then we need to build an emergency funds before investing. 

In building an emergency fund, the best way to do it is opening a bank savings account. If you noticed, the interest rates of the banks are very minimal because, the bank knows that anytime you can withdraw money (as in the case of ATM card and/or checking accounts).

Thus, having a bank account is perfect for building an emergency fund. Today, let me share to you a step-by-step guide how to open an account in BDO. 

Bank accounts are perfect for emergency funds

Banco de Oro (BDO) is one of the major banks in the Philippines. A pretty stable company and a part of the SM group of companies (Henry Sy's companies - the richest man in the Philippines). 

I personally am a client of BDO and I love their online banking facility especially their funds transfer and bills payment.  

Thus opening a bank account in BDO for emergency funds is a perfect choice. Below is the requirements and the step-by-step guide in opening a savings account in BDO. 

BDO Savings Account Requirements:

1. Two Valid IDs - Examples: Police Clearance, Passport, Barangay Clearance, Voter’s ID, NBI Clearance, Senior Citizen Card, PRC, Postal ID, Philhealth, Driver’s License, and etc.

2. Proof of Billing - This will be used to verify your address. Examples: Phone bills, electric bill, water bill, credit card bill, etc. 

3. Two copies of latest photo - you might want to bring a 1x1 and/or 2x2 photo. 

4. Initial deposit requirement - bring cash. Different account types have different initial deposit. Might as well bring a substantial amount of cash. 

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4 Ways of Borrowing Money Responsibly

When it comes to personal finance, tooics usually revolve around three things: saving, investing, and debt.

And debt seems to be the most of the three as even people not interested in personal finance will encounter and use it.

And today we have guest blogger Kyle to help us use debt responsibly.

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How to Upgrade to IMG's New Preferred Membership Online

Good news to IMG members and partners!

Just recently, International Marketing Group has upgraded it's membership into IMG preferred membership with added benefits! On top of the top 10 membership benefits, here are some added perks and privileges exclusive for IMG members. 

The New IMG Preferred Membership

Below is an email sent from IMG's newsletter:

To our dear IMG members and partners:

Since the launch of our new IMG Preferred Membership, many of our members who have availed of this membership have been enjoying a new world of exclusive perks, exclusive discounts and exclusive benefits.

In connection with this, we would like to inform you that, starting Wednesday, March 1, 2017 (12:00AM, Manila Time), all new IMG membership applications will already be Preferred. As such, the new membership fee of P4,500.00 will already take effect for Philippine code and for International membership,the new rates that will apply to your respective country will soon be available in our ejoin site. Likewise, the new fee of P1,500.00 will apply to all Accreditation Renewals (all codes) and P700.00 for all Membership Upgrade (all codes).

Besides our Top 10 benefits, our IMG Preferred Membership initially offers these additional privileges in partnership with the following providers: 

1. Fidelity Mutual Life

Fidelity Life is a mutual benefit association exclusively created for the IMG Preferred Members. It provides IMG Preferred members P50,000.00 life insurance with free memorial concierge service through Everest. As an additional benefit, the IMG management has successfully negotiated the waiver of membership fee that is usually required from all Mutual Benefit Association members, for all new IMG Preferred Members until further advise...

2. Everest Memorial Services 

Everest Memorial is a 24/7 FREE concierge service for IMG Preferred Members and their immediate families. Our trained Family Assistance Officers will help members in organizing personalized funeral plans when they need it. During the very difficult time, our preferred members and or their family members need not look for the best-priced suppliers; nor coordinate set-up and deliveries of funeral services. Members will just focus on giving the perfect send-off to their loved one and Everest will do the rest.  Everest is prepared to provide the convenience and peace of mind when you need it most... 

3. Ozone International 

Ozone Therapy has been popular with people from all age categories: from the younger generation who uses ozone therapy as a disease-preventing measure, to senior citizens who want to maintain an active lifestyle, and even to patients who use Ozone Therapy to complement their prescribed medical treatment. This medical breakthrough is now available to all IMG Preferred Members at a special discounted rate of P5,000/session (P1,000 discount) or P50,000/program (P10,000 discount).

Please check your emails to read full email newsletter from IMG. 

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IMG Convention: Global Campaign for Financial Literacy

Last February 5, 2017, IMG once again went to the Lion City - Singapore - for its first convention for the year 2017. Members from various parts of the world and their invited guests came to take part in the event held at the huge Max Pavilion of Singapore Expo.

IMG SG Convention 2017 - Max Pavilion, Singapore Expo

Everyone wore their white campaign shirts for the first time to unite for IMG's Global Campaign for Financial Literacy. With its theme, Convention of Campaigners, it was a different convention because there were no WSB trainers from US and Canada and no economic and financial updates from our investment mentors. 

Instead, the focus was on strengthening the WHYs of those who want to join in the campaign of having 1 million financially educated families by 2020. It was very timely and relevant because as a campaigner, one had to have a strong conviction to campaign in spite of the challenges faced. 

IMG's Global Campaign for Financial Literacy

Sharers were picked from among the newly promoted SMDs as well as those who have been successful in doing the IMG career for many years. 

They were people from all walks of life, from various professions and social status but  each with a unique story to tell - a seafarer who got sick he got a wake up call on his spending habits, a teacher burdened by medical expenses of family members, ordinary employees buried in debt, corporate executives laid off from work, high school graduates who learned to dream big, savers who sought more guidance to teach their spendthrift relatives - all their past struggles and how their desire to change their lives for the better led them to IMG. 

And how through IMG's platform of financial literacy, financial solutions and the system, they saw hope for a brighter future for their families and want others to experience the same.

Many were inspired, some were brought to tears. And as an IMG member for almost 5 years already, I was also moved because I was reminded of my WHYs of continuing to share about the IMG mission. 

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Vlog: International Marketing Group (IMG) Singapore Convention 2017

Last February 5, 2017, IMG held the Convention of Campaigners in Max Pavilion Singapore EXPO. It was a blast attended by thousands of IMG members all over the world gathering for one noble campaign: The Global Campaign for Financial Literacy - 1 Million Financially Educated Filipino Families by the Year 2020!

IMG Convention of Campaigners 2017 (source: IMG official)

Check out this Vlog from one of our IMG campaigners and experience the look and feel of being part of IMG's convention.  

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Work from home ideas: 10 ways to make money online in the Philippines

Not enough savings? Buried in debt? Living paycheck to paycheck? 

Sometimes, managing (especially reducing) our expenses isn't enough. You don't want to get sick because you cut eating meals into twice a day instead of thrice. That's going to be an additional financial burden.

Do you want to work from home?

The solution therefore is to earn additional sources of income. And now because of technology, people can actually make (additional) money online now in the comforts of their homes. 

Here are 10 ideas how to work from home for Filipinos and start making money online:

1. Freelance work or online jobs

Because of technology, a lot of jobs are now being outsourced all over the world. Thus, online jobs are now available. 

Luckily, Filipinos are known to be skillful, full of talent and hardworking. Earning few dollars is already a big thing here in the Philippines.  

Thus, a lot of Filipinos today are doing virtual assistant jobs. A lot are doing it as a part-time income online but some already made it a full-time job. 

Just imaging working at the comforts of your home. No more heavy traffic and you own your time. 

However, freelance work and online jobs may not be easy. It requires skills, dedication and constant learning but is truly doable. 

Here are some skills and services that are perfect if you want to get a freelance work online: 

- Graphic Design

- Android/IOS Application developer

- Content Writing

- Virtual Assistant

- Technical support/Customer Service

- Social Media Marketing

- Email Marketing 

- Online Video editor

- Logo Design

- Data Entry and Online Typing Jobs

- Search Engine Optimization Services (SEO)

- Internet Research

- and many more..

Famous sites you can go to:

International freelance websites:

- Upwork (www.upwork.com)

- Fiverr (www.fiverr.com)

- Freelancer (www.freelancer.com)

Filipino Freelance websites:

- VirtualStaffFinder (www.virtualstafffinder.com)

- MyOutDesk (www.myoutdesk.com.ph)

- OnlineJobs.ph

2. Sell stuffs online and/or build eCommerce website

You can sell physical items online like clothes, gadgets, even cars or basically anything. By using media like Facebook or Instagram, you can create your own business page where people can inquire, ask quotations and schedule for meet up. 

Transactions are usually done by meeting up or through delivery. However, a word of caution as scams are also evident online, so its best to be careful especially when payments are done online. 

Another way is through building an eCommerce website. Where you can set up an online store, have a secure payment process (usually through PayPal) and have an effective delivery system. 

3. Blogging

Blogging was once done as a hobby, but now can be a lucrative source of income online. A blog is basically a website where you can write anything you want. Usually informative, educational, entertaining or inspiring. 

You can be a food blogger, travel blogger or even a financial blogger. Then by building significant number of readers, visitors and traffic to your blog, you can then monetize it by adding relevant advertisements. 

Online advertising works the same with physical advertising. Have you seen those big banners with "Ads space for rent?" A company can rent a space in your building and place an ad banner. Same thing with online advertising, an advertiser will rent a "digital space" in your blog. 

Make money online as a blogger

However, just like physical advertisements where a good location is a big factor (where a lot of people can see the ad), your number of online visitors called traffic, determines how well you will earn as a blogger.

That's why choosing the right niche (specific blog topic) is also very important if you want to be a blogger and earn through advertisements. 

Good niches that can potentially receive good traffic are:

- news

- showbiz

- technology (especially gadgets)

- food and lifestyle

- travel

- relationships, family and marriage

- and even finance 

Turn your passion into profit, create a blog that you love to write about, work from home and make a decent money online! 

4. Affiliate Marketing

Affiliate marketing is basically promoting other people's products online. Unlike an e-commerce website where you need to sell your own physical products online, by being an affiliate you just promote somebody else's products and receive a commission when someone buys from your promotion. 

An example would be by being an affiliate of Amazon or an affiliate of Lazada here in the Philippines. You just apply as an affiliate, fill-up some forms and upon approval, you will receive a unique code called an affiliate link. 

This affiliate link will be coded specifically to you. Meaning, when one clicks your affiliate link leading to a certain product and that person buys you will receive commission in return. It works like a referral system. 

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