Cashflow is KING!

Yes it's true. Cashflow is KING. There is no secret to financial planning. It is only about cashflow. The key to successful financial planning is making your cashflow positive -  always. It is okay to get into debts but it has to be good debts. Debts that will create a space in your balance sheet, a portion for you to create an inflow (income). 

Does it sound too technical? Let me make it simple. 

Cashflow according to investopedia.com is Free cash flow is defined as a company's operating cash flow minus capital expenditures. This is the money that can be used to pay dividends, buy back stock, pay off debt and expand the business

source: http://www.investopedia.com/terms/c/cashflow.asp

Alright, simpler hehe cashflow is simply inflow (income) minus outflow (expenses). If managed very well, there will be more opportunities for the household to spend for fixed and variable expenses such as paying off debts, adding investments to your portfolio and many others. 

If you are at the peak of your career, very well ! make sure to plan for your future goals so you would be able to match your current investments to achieve your future goals. However, kung  ikaw naman ay puro utang ngayon, don't worry, there's always a way! Ano ba ang dapat gawin? 

1. Worry not kasi laging may pag asa basta lakasan mo ang loob mo na matatapos din lahat yan. Everything is temporary

2.. Manage your expenses. Write down your daily expenses and make a weekly summary para alam mo kung saan ba napupunta ang bulk ng expenses mo

3. Make a balance sheet. Hindi naman kailangan sobrang complicated ng worksheet. Maraming downloadable. Or simply list or your Assets (liquid assets - income and other income, non-liquid - real estate etc.) and your Liabilities. 

4. Identify from your balance sheet kung ano ang pwede mo na ma-dispose or ibenta. (If there are liabilities na kailanga mo na talaga bayaran)

5. Identify from your expense tracker kung ano ang unnecessary expense. Whatever is the amount, pwede mo ito allocate sa ibang bagay na mas dapat pagka gastusan. 

6. Make a budget. Discipline your self to work an a budget. Although, siempre minsan may unnecessary expense kaya nagugulo ang budget, pero kaya nga dapat may emergency fund para in cases your car broke down etc. doon mo kukunin. 

7. Have faith in God. Mag tithe ka. Sabi ka sa Malachi 3:10 "Bring all the tithes into the storehouse, that there may be meat in my house, and try me in this, said the Lord: if I open not unto you the flood-gates of heaven, and pour you out a blessing even to abundance" 

Give so you will receive. I can attest to this, God provides one way and another. But give and build his storehouse. At totoo ang sabi nia, "TEST ME IN THIS" basta magtiwala ka lang. 

Hence, after all what I said, always try to achieve a positive cashflow. Kasi tulad mo rin, at one point in my life hindi ko ito narealize. I should have monitored it long time ago. Just like you, I had huge debts, and yes I am still paying some of it. Discipline is important, lalo na if you really want to have a comfortable lifestyle. Hindi naman pwedeng puro work work work ka nalang diba? sabi nga ni Robert Kiosaki, na kaya nga tayo nagsisikap para we can enjoy the fruits of our labor at lalong hindi naman dapat tipirin ang sarili dahil ang purpose nga natin kung bakit tayo nag wo-work ay para mag improve ang lifestyle natin at ng family natin. 

So again, always remember that CASHFLOW is KING!

Happy saving and investing,
Jendee S. De Guzman
Insurance Agent
*Registered Financial Planner 
(currently undergoing certification / thesis writing)

When can we really get out debt?

A lot of people are struggling on how they will get out debt... In fact, ang iba ginawang lifestyle ang may utang. Sabi nga ni Sir Randell Tiongson, RFP, "Zero debt should be the new status symbol" which is true. Sa atin nga bang mga pinoy, ang utang ay ginawa na din natin lifestyle?  (Note: Good Debt is Different from Bad Debt)

Madami sa atin na ang gusto lang kasi ay magpasikat, I am sure that you have heard this a lot of times from other authors and as according to Dave Ramsey  " 'We buy things we don't need to impress people we don't like." Pero ano nga ba ang dapat nating gawin maliban sa putting off a systematic way of paying debts? 

Friends, there may be one thing that we are lacking of and that is giving back to the Lord. According to Malachi 3:10 "Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it."

As a an ordinary citizen of the world, of course nagkaroon din ako ng utang lalo na when I was younger (in my early 20's) and no one was teaching me about money management. Today, I am paying off debts systematically and happy to say that I have accomplish a lot of things in this part. However, recently I realized na oo nga ano maybe the reason why matagal bago ko natapos ang lahat ng ito ay dahil hindi ako aware na dapat unahin natin ang storehouse ni Lord. 

I remember a story of Joel Osteen from his book Break Out! He wanted to purchase the land where they are renting, the place where they built the church for Lakewood pero masyado itong mahal so they prayed for it and continue to tithe to the Lord, the place was originally priced at  $400 Million pero ito ang nangyari, the place they were leasing was appraised and dahil sila ang may current lease sa lugar for 60 years they are in the position to be offered to buy first, and guess what, they just have to buy the place for $7.5M. God is working behind the scene. Again, in the book of Malachi it says that there will not be room enough to store it basta support the ministries of God and he will take care of you. 

Friends, sometimes you may think that debt is inevitable, pero nothing is impossible with God. We just have to believe. Kaya may pag-asa pa :) 

Praying for all of you. 
JSapo-DeGuzman
Financial Adviser - Pru Life UK 

image from www.autoloansolutions.ca

Automatic Savings Program: Your ASP!

There are a lot of things you can read about financial freedom. Pero, meron ba doon na in an instant masasabi mo na tumatak sa isip mo? You may find over the world wide web na halos pare pareho nadin ang sinasabi nila. Kaya nga kung minsan hindi mo na alam kung saan ka magsisimula dahil naunahan ka na ng pagkalito sa dami ng gusto mong simulan ...

There's one principle I have always believed (I mean isa sa madaming I always believe in) and that is the AUTOMATIC SAVINGS PROGRAM. Ang isang ASP ay maaring naka auto deduct sa iyong bank account, or sa salary mo because of your shares of stock sa company or cooperative, or maaring something that you have enrolled in thru your bank and/ Or thru your MF (Mutual Fund) or VUL (Variable Unit Linked) account. 

Isa lang naman ang pinaka importante dito, kailangan AUTOMATIC. Dahil kung hindi ito automatic, tatamarin kang ipunin ito, because you will probably say next month nalang. Thus, delaying your power to maximize your potential to earn. In fact, you are also skipping the power of compound interest. Ang compound interest ay may certain levels, if na miss mo ang first cycle, lagi kang back to zero. Kung ipon-withdraw-ipon-withdraw ka, hindi mo na maximize ang compounding dahil lagi kang nagsisimula sa ZERO. E pano kung nagising ka sa katotohanan at 55 years old ka na? Oh no!!! huli na ang lahat, 5 years to go gusto mo na pala mag retire at kahit singkong duling wala ka naipon.  

Don't make things complicated, just set up an Automatic Savings Program for yourself as a basic rule, Anyway, at the end of the day, you have saved something for yourself. But of course, maraming components ang financial planning kaya dapat aralin. 

Whatever your financial decisions maybe over a period of 10-15 or 20 years before retirement, there's something to always look forward to. Setup your ASP. 

But of course tulad ng paalala ni Sir Aya Laraya of Pesos and Sense aral muna bago invest, kaya ang pag iinvest ay lagi dapat pinag aaralan at pinag paplanuhan.

Ang next step, saan naka allocate ang Automatic Savings Program mo... :)

Praying for your success, 

Jendee

Image from Investopedia

Mga Bagay na di mo Naiisip Ngunit Alam Mo

May mga bagay na hindi maaring hindi mangyari sa lifetime ng isang tao:

1. Die too soon
2. Live too long or
3. Get succumbed into a Critical Illness

Para sa isang pinoy, who has worked for so many years and whose focus is the basic needs of the family, would you like to use your saved up funds in the bank if by chance you were diagnosed with a critical illness? Hindi ba't parang sayang naman ang naipon mong pera? Also, your money in the bank will be frozen for a time unless nag undergo na ng judicial proceedings. 

What if, it's not critical illness but it's dying too soon ang hindi mo inaasahan? You did not plan that well which made your family get into chaos dahil hindi na nila alam saan pa sila makakahiram ng pera pang bayad sa everyday bills, and oh! of course ang lifestyle that you provided them when you were around. 

But if you live too long without illness, how can you sustain your daily needs kung wala ka namang ipon? Can you imagine yourself being left to the relatives who wishes na sana kunin ka na ni Lord dahil hindi ka na nila kayang alagan? Not in a bad way but just because they have their own basic needs to sustain. 

Hmm, mga bagay na di mo iniiisip ngunit alam mo.

source: http://www.dreamstime.com/stock-image-stick-figure-unhappy-family-fun-cartoon-divorce-abuse-concept-image33512931

Saan nga ba Ginagamit ang Universal Account?

Most people say, "Di ko kailangan ng insurance, bahala nalang mga anak ko sa amin?" . Is that the same thing you are imagining today? How are you sure that your kids can take good care of you 100% while they are also feeding their children (and sometimes their spouses who cannot contribute to the finances of the household) - the worse, is even the relatives, or friends of relatives and of the spouse's at minsan pa nga  pati friends of the friend of the relative of the spouse (huh?)

Is this the picture you have in mind? 

Again, a universal account is an account that addresses both insurance and investments. 

Ang tanong, when do you need it?  Kung malapit  ka na magkasakit? kung matanda ka na? bata pa or earning an income? 

In my opinion, get a policy as soon as possible.  Regardless of age, you should start getting one right away as soon as maintindihan o ang investment instrument na ito. Mas mahirap kung, dahil parang pakiramdam mo too late na and lalong wala ka pang gagawin.

(Given that you are able to set aside a certain amount to address premium payments in the next 10,15 or 20 years). A unit linked account is for medium to long term savings, so if you opt to withdraw funds from it after 3 mos less than 5 years, hindi ito ideal. VUL requires you to save long term. 

When you get a Universal account or Unit Linked investments, there must be a purpose? Anong purpose nga ba ng isang VUL?

A VUL is like hitting two birds with one stone. You have an insurance coverage and plus nalang ang investment. You have health benefits and living benefits. For health benefits, of course standard ang Death, Disability, Critical Illness, Hospitalization and Accident coverage. While the "Living Benefit" Part can address the ff: 1. Income Replacement

a. INCOME REPLACEMENT 

For example, you are earning Php50,000 today and your expenses is around Php30,000/mo. That means, kung may mangyari sayo, who is going to support the Php30,000 / month that you contribute to your household? 

Php30,000 x 12 mos =   Php 360,000 (May ganito ka bang savings ngayon kung sakali may mangyari sa iyo at hindi ka maka survive for 1 year? )

Ang mahirap pa dito is kung ikaw lang ang sole source ng income na iyan? at kung ma prolong ang hindi mo pag balik sa trabaho, halimbawa, maaring in the next  2 years. 

Php30,000 x 24 months = Php 720,000 (saan mo ito kukunin? )

PS. An emergency fund is still a MUST! it is 3-6 month equivalent of your expenses kept in a bank with an investment strategy under "low risk" category. your Income replacement fund from your VUL will take over should your emergency fund cannot cover. 

b. CRITICAL ILLNESS

 kung sakali ang need mo naman is to address critical illness expenses and you needed at least 1 Million para ma enjoy mo pa ang buhay mo kasama ang pamilya mo, mayroon ka ba ngayon na madudukot nang hindi ka nangungutang or nagbebenta ng mga ari-arian?  If you  have other investments, would you like to touch your hard earned money or investments  for hospitaliztion at tingin mo hindi naman ito maubos kung sakali need mo ng minimum 2M for kidney transplant and dialysis? 

Don't you think it is best that whatever you have worked for, for years can become a legacy to your children? 

c. ANOTHER SOURCE of RETIREMENT FUND

Most people who own a VUL account would like to address their need for retirement. Hindi ba ang sarap sa pakiramdam ng di natin poproblemahin kung aalagan ba tayo ng anak natin or hindi? 

Hindi ba masarap pakinggan na tayo pa mismo ang pag aagawan ng mga anak at apo natin pagdating ng panahon? 

How does it sound to you, giving your children the freedom to use his money for his own family and do not feel disappointed when he is not able to give you an allowance to buy medicines?

How to compute for your retirement need: 

(This computation does not address inflation yet, for an accurate computation of your retirement funding, email the author of this blog at jendeesapo@gmail.com)

Using Time Value of Money:
(Edited April 21, 2017)
Factors:
4% Inflation
10% minimum rate of return on investments

My last note, sa tingin mo saan mo gagamitin ang isang Universal Account? how sure are you with your future if after reading this, you will still do nothing? 

Jendee Sapo - De Guzman, RFP
FInancial Planning Advocate

jendeesapo@gmail.com

jendee@personalfinance.ph

Bakit ka Takot Sa akin? - Insurance Policy

My dear friends, I would like to dedicate this article to my fellow insurance agents, financial consultants or financial advisers who get the following responses from our clients, friends and relatives. I would like to address their common fears about an insurance policy. (feel free to add/comment)

I have been a client of Pru Life UK since 2008 before joining the agency force in 2012. I too, had the same questions in my head but took a step ahead of my fears because of its value and also, I trust my agent (who is now my boss) who explained to me what the policy can do to my dreams and goals and to my loved ones too!

-------------------------
If the an Insurance Policy can talk to you, these might be its answers to your fears:

1. Hindi ko na kailangan nian kasi dipa ako mamatay.

Policy: I am not only for the dead. I can also help you with your dreams and goals. I have relatives called Variable Universal Life or Unit-linked form of investment where we can also address your need for cash in the future. But God forbid and you die at an early age, the proceeds of your policy will go to your beneficiaries to provide food on the table or education to your children or let's just say, income replacement.

(I got into an accident in 2011, may car was sandwiched by a toyota fortuner and toyota vios along SLEX bound to manila:  should our creator decided to take me, how can I help my parents with my brother's education, who at that time was still on his 3rd year in college)

2. E diba nagsasara yung mga ganyan?

Policy: Insurance companies have been here in the Philippines for more than a hundred years. In fact,        insurance companies are regulated by the insurance commission and there are policies which insurance companies need to comply with to continue their operations here in the country. Also insurance companies are also re-insured on a bigger scale to protect their policy owners. 

You may even check if the company I am representing is at the list of the Insurance Commission at                  www.insurance.gov.ph

Also, insurance companies are regulated by the Insurance commission and one of the policies is to maintain 100 RBC ratio. If the insurance company did not meet this criteria, the insurance company is required to submit an explanation to IC.

The RBC ratio is equal to the total available capital divided by the RBC requirement of a company. - Philstar.com


(Read: http://www.philstar.com:8080/business/2017/01/19/1663883/ic-implement-improved-risk-based-capital-system)

3. Madami na ako insurance e!

Policy:  Wow! that's great that you are being protected by my friends also. May I ask, how much is your coverage?  Is it sufficient in case you needed 1 Million last night for an illness? or is there a particular purpose why you got your policies because, I understand that you have dreams for retirement, education, major investment and others... So are your investments sufficient to fund those golas?


Are you also aware of the scratch the last 4 digits? For example: If you are insured with Php 1,000,000 today, remove the last 4 zeros and that will give you Php 100. Divide 100 by 2 and that leaves you with Php50. Are you aware that it only means that you will leave your family with Php 50 per day assuming that your money is placed only in the bank with 2% interest?

(Got my 1st policy when I was 24 years old and my focus was more on investment, Got another policy when I was 29 and focus is on protection, at my age, I already have 2. I have clients who started very young and already have 3 policies!)

4. Hindi ko na kailangan nian kasi healthy naman ako eh. 

Policy:  Alright, if that's what you believe in. Do you know that according to statistics and as published at the Philippine Daily Inquirer in Oct. 20, 2010 that 1 in every 6 people worldwide will be afflicted by stroke and there's only a 2 seconds interval before the next stroke claims another victim regardless of gender and age? So how prepared are you? 

(From the same source, Philippine Daily Inquirer: 1 in 3 Women will suffer from breast cancer before turning 75, and in the Philippines 33% will not survive and according to Dr. Magnaye of the Philippine College of Surgeons, that age is no longer a factor )

5. Hindi naman nakaka claim dyan eh!

Policy:  My friend, my relatives and friends can attest to making an insurance policy alive. You can ask your insurance agent to show you reports on claims of the policy owners. I am sure that each of  them has stories on how me - a Policy - has helped so many for more than a  100 years.

-----------------------------------

Dear friends, as a final note on Insurance Policy, read and understand the passage from the Insurance Philippines Magazine

Life Insurance - Its True Value 

Jendee Sapo - De Guzman, RFP®

Associate Financial Planner (AFP) - Global Certification

Chartered Trust and Estate Planner Graduate (CTEP)

Build up Your Back-up Fund

Pinoy sa buhay ngayon, it's important that you build up your savings fund. Our question (as always) is, anong savings while wala namang natitira sa sweldo mo? 

If you want to become financially free, you have to make a decision. You have to be determined that you really want to become free. Regardless kung anong reading materials ang aralin mo and seminars that you already attended, without the DECISION and DETERMINATION hindi mo rin mararating ang maging financially free. 

Usually a back-up fund is equivalent to 6 - 8 months of your salary. That is the same amount of time which  your family will adjust if something happens to you. It is the same fund they will use if you are not able to get back to work within that time period and to pay off your financial obligations because of illness, disability or maybe accident. Also, during that period they can determine if you are still capable of working on the 9th month. 

So if you can't get back to work anymore, they have 6-8 months to adjust and plan ahead. 

I feel you, it is not that easy. If you cannot still save at least 25% or your income, why not save at least 10% or kung padin talaga kaya then save 5% or maybe just keep on saving php100 or 500 every payday. 

Once nasanay ka na in saving first before spending, it will become a habit.

But first of all, make a DECISION, gusto mo ba talagang ma achieve ang financial freedom? so be DETERMINED to become financially independent!

Visit www.cha-ching.com and learn the four money smarts with the gang!

Pinoy, How is your spending this holiday season?

Few days to go and 2014 will say hello! kamusta naman ang spending natin over the holidays??? I know that a lot of pinoys out there have spent so much this holiday season, some may have spent onto something they have been waiting for, some may have spent their bonuses and salary for the gifts and all and maybe some really planned on spending their bonuses this season.. 

Para sa mga kababayan natin who have gotten beyond their budget this holiday, I hope the tips below will help. 

1. Credit Card

It's always best to pay your bills in full. Just in case, you can't really pay in full, pay at least half or the minimum due but do not purchase anything just yet if di pa tapos ang utang mo sa credit card mo. 

2. Income VS Expense

Again, it's always important that after all the eating and dining this holiday season, get back on track, make sure that you always prepare your income vs expense sheet para alam mo if there are items you need to adjust. 

3. Budget plan

For those who are into gadgets, maybe yung iba sa mga kababayan natin bought gadgets or appliance on an installment basis, make sure that you update your budget plan every month so you know which items (again) to adjust. (in fact, you should have been doing this all along kasi from your income vs expense sheet and budget plan, malalaman mo din if you can really afford to buy a gadget, an appliance or anything na makaka apekto sa cash flow mo)

4. Do not repeat your stupid ways this coming 2014

Since you have experienced na magka utang or mabaon sa utang noong 2013, Huwag mo nang ulitin ngayong 2014. Otherwise, di ka na makaka angat. You will become a forever slave to your creditor. Sabi nga ng ibang financial experts, you work just because you got to pay debts. 

5. Discipline

Finally, all your ways such as trying to fix  your cash flow, managing your income and expenses will become useless unless you have the discipline. Regardless of the amount of income we have, if we don't have the discipline to manage our own finances wala tayong mararating.  

When you are buying stuff, pwede mo naman i-plano diba? 

Sabi nga ni Mr. Vic Garcia who is the author of Kuntento Ka na ba sa Kaperahan Mo, and many other books na you ask yourself these questions when buying something: 

Buying Self-Test

1. Gusto ko ba talaga ito? 
2. Kailangan ko ba ito? 
3. Kaya ko ba itong bilhin? - is this within my budget? 
4. Gusto ba ito ni Lord para sa akin? 

and if any of these 4 questions will give you a "No" huwag mo nang bilin ang bagay na gusto mo. :) 

Discipline is key.

So, Pinoy, Kamusta nga ba ang spending mo this season? 

I hope that these few tips can help in managing your finances and getting back on track this 2014. 

Happy new year Pinoy! 

Save Save din Pag may Time! ;p

Let me use a very common expression today of the youngsters, "save save din pag may time". In fact, it's true, we got to save as much as we can and not only when we have the time. People think saving should be the last on their list once they get their sweldo. Some folks use this format:

Income - Expenses = Savings

Kaya nga lalong di nakaka ipon because it's not your priority. It should be like this:

Income - Savings = Expenses

Don't worry about how much you can save, in reality, you should really be saving at least 10-20% of your income, but if you can't, then start small, sabi nga ni Randell Tiongson, RFP - baby steps. You can start saving 300 or 500 pesos every payday or if you can't keep 300 or 500, then why not 100 pesos.

There are a lot of reasons to save for; your medical expenses in the future, educational fund for your children, major investments and of course retirement. If you will not focus on expanding your net worth, kawawa ka naman pinoy by the time na 60 or 70 ka na (well if you live that long, but according to studies, humahaba ang life span ng pinoy) e sino mag aalaga sayo? Would you like to rob your children of their freedom ? would you like to be a burden to your children? Hindi ba masarap sa pakiramdam na pinag aagawan ka ng mga anak at kamag anak mo instead of being put away because you are such a burden?

Ito pa ang matindi, binilin ni God maigi sa atin ito that A good man leave inheritance to his children's children but the sinner's wealth is laid up for the righteous - Proverbs 13:22. We should be vigilant in laying up the foundation of becoming financially free for our family and become your childrens' role model in handling finances.


P.S.

let me share with you how worrying about finances can affect your IQ, I got this from Pru Life UK Official Facebook Page

Kaya pinoy, save save din pag may time! :)

Jendee S. Sapo
Financial Consultant
Pru Life UK
jendee.sapo@prulifeuk.ph

Variable Unit Linked - Why do You need one?

Few years back, people can only hear about savings or insurance or investments. Until such time, that all these services meets at one certain point and gave birth to a program called Variable Unit Linked or Investment Linked Insurance.

It's a good thing that in 1996, Pru Life UK (Pru Life UK Official Web Page) pioneered the Variable Unit Linked program where both insurance, savings and investments can be offered to us - Pinoy.

VUL is designed for medium to long term goals. According to studies only a small percentage in the Philippines is insured so what will happen to the large chunk of the population when they get sick or die prematurely? Don't they love their families too?

On Protection

Let me refer you to the illustration below (Taken from  Pru Life UK Official Facebook Page)

What will happen if these will happen to any of us? We don't know what tomorrow brings to us and our family and it is always best to become even more vigilant on preparing for the future most especially if you have dependents. These are the things a Filipino doesn't know anything about (or just not aware of). Is it because of our culture? that probably we expect to be dependent on our relatives when it comes to money or sickness? or is it because we can just say "bahala na" ?

Have we not thought about those who depend on us? Do we  like to leave them debts (utang) when we die? or when we are hit by a critical illness? Imagine how every 1 in 6 Pinoy is hit by stroke and there is only an interval of 2 seconds? who are the people you are thinking of now? the faces of your family members that flashes before you?

On Investment and Savings

Einstein said that the eighth wonder of the world is compound interest.

That is true because given the "time", there is so much we can do with our money. Given that age is the same (24 years old) , and you invested your money with different fund instruments - bank, mutual funds, stock market, variable unit linked product and real estate, there are opportunities to double your money several times in your lifetime!

Another factor that will matter is the time you decided to save. See illustration below:

With Mr. Early Saver, though he saved only in 5 years with a total of P 600,000, his total returns by the end of 20 years is around P 4 Million! While Mr. Late Saver he has to save for 15 years just to get the same amount. But here is the thing, at this point in time, regardless whether you are the early or late saver, it's important to save and be determined to change your financial life!

Now why VUL and why do we need one? In a variable unit linked product you will have the following:

1. Protection plans that will cover your emergency needs such as critical illnesses, disability, hospitalization
    and accident.

2. Savings - You will also have the opportunity to discipline yourself to save for retirement and other major
    purchases

3. Investment - a VUL product can give you the opportunity to invest in the stock market and as well as in bonds or combination of the two.

Simply put:

*This is an example of a VUL product for a 30 yr old male, who is saving P 5,000 every month. 

I hope that this article, again, enlightened you on what is available in the market. Should you need assistance on VUL and if you think this is something that matches your need in terms of investment and protection, don't hesitate to email me or leave a comment below with your email address.

Happy investing!

Jendee S. Sapo, RFP
Chartered Trust and Estate Planner Graduate (CTEP)
jendeesapo@gmail.com

Tips on Saving and Budgeting

So this is the first of the articles I am going to write for Pera Pera Lang Pinoy (PPLP). 

 Today, I would like to share with you ideas on saving and budgeting. In fact, there are a lot of tips available in the internet, but let's just focus on two things: 

1. Reduce your expenses 
2. Increase your income 

 Those two are the facets of successful savings also. If you think kulang ang kinikita mo, might as well, write down all the expenses you make every day and prioritize. Make a budget, kung ano lang muna ang importante iyon muna ang bilin. E pano naman kung lahat importante? That's the time you increase your income. Ibig sabihin lang is that kulang talaga ang monthly income mo. 

 In terms of increasing your income and reducing your expenses, there are a lot of things you can do: 

1. Earn from you skill/talent (Baking, Graphic arts or multimedia, tutoring, singing,online job, MLM etc) 
2. Sell stuff you don't need (Pwede kang mag garage sale) 
3. Bring your baon (either going to school or work)
 4. Bring your own coffee (kung kaya naman di bumili ng mamahalin na kape, bring your own,healthy na brewed pa!) 
5. Discipline - Wag nang bilin ang mga bagay na di naman talaga kailangan o pagkagastusan, o kaya naman ay makakapag hintay, ito ang tinatawag na delayed gratification :) 

 Below are some tips from Pru Life UK on how to loose some pounds!

Hope that this article was able to give you ideas on financial planning. :) happy sunday!