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Money Saving Tips for New Parents

Having a new bundle of joy brings so much excitement in the family. This change in the family brings so much excitement in budgeting too…or challenge? Becoming a parent also means forgetting your late night meet up with friends and staying away from the shopping malls to buy your personal stuff.

As new parents, sometimes you are in a blind spot and you just live paycheck to paycheck because your focus suddenly becomes the basic needs of your family, especially of a baby.
As a mom with an 18month old daughter, I would like to share with you main items on how I and my husband were able to save while enjoying being parents.

1. Breastmilk or Formula Milk?

Today, breastfeeding becomes a priority (RA 100028). When I was still pregnant in 2015, I researched on it and just like new moms, I feared that I might not have the physical capacity to breastfeed my little one.

There are support groups you can go to if you need more information, the very first person to go to is an OB-GYNE, also a lactation expert and you may also want to check The Breastfeeding Pinays FB Page which is recognized by the DOH.

In financial planning, consider both. What if breastfeeding is not possible? A formula milk allocation in your cash flow should be reflected every month. A formula milk today costs Php 700 – 1,500 per week depending on the brand.

If you are lucky to breastfeed your baby, then in replacement of formula milk fund are milk storage bags, breast pump kit and breast pump and bottle hygiene kit fund in your cash flow which may cost you Php 500 – Php 1000 per month for the milk storage bags and breast pump hygiene kit while a onetime payment of Php 2,000 – Php 5,000 for a breast pump kit.

To save up if your baby is on formula milk, you may ask a budget friendly brand without sacrificing the wellbeing of your baby.

2. Baby Clothes and other stuff

I bought new born clothes which are good for two weeks only because I am glad to receive hand me down new born clothes. I am lucky to have a mother in law who took care of her grandchildren’s newborn stuff for years and all clothes look as if it was just bought a few months ago
.
You may want to consider a baby shower not only because, as couple you want to celebrate that moment, but of course friends would really love to give you gifts that you or your baby needs as he or she comes out into this world.

Make a list also of the remaining stuff you might need such as the bottles, sterilizers, medical kits and others with prices then make a comparison among shopping malls or stores so that when you
are going to prepare before the baby comes out, you know where to go to. This also helps you to not go over budget.

When my daughter turned 1 year old, she received a whole new set of new clothes and shoes as gifts too!

3. Vaccines

Allocate at least Php 3,500 per month for vaccine. There are vaccines that will range from Php 1,500 to Php 5,000 or more depending on what type of vaccine. If for example, your budget of Php 3,500 is not consumed then add it up to the next month. With the kinds of viruses and diseases today, it is best that you follow the vaccine schedule of your baby. I have friends who are near their local government health center, it is cheaper to get the vaccines from there and of course, you are lucky enough if your baby’s Pediatric doctor is a relative, you’ll sure save a lot.

There are some parents who say that if a baby is exclusively breastfed, vaccines are not needed. Seek the help of an expert before you make a decision.

These are just 3 items to consider not to mention the type of hospital you prefer to deliver your baby. Government assistance is also a great help in the funding that you might need when the baby is coming out. Some parents prefer a private hospital, maternity hospital or a doula.

Whatever amount you are able to save, allocate the difference to investments to prepare for your child’s best future, a major planned expense and of course your retirement.

Jendee S. De Guzman, RFP

Associate Financial Planner – (AFP)

Chartered Trust and Estate Planner - Graduate

Life Insurance Advocate
jendeesapo@gmail.com

Personal Finance: Sunshine After the Rain!

Recently, I was interviewed by a student who was tasked to make a write up for her journalism class and an HR Practitioner, who is making a research on money habits of high maintenance executives in the country today. The interview happened on two different occasions and both set of questions touch on saving, investing and risk management or may I say personal finance.

During the Q & A, it reminded me about my journey in personal finance. In 2003, Just like a typical fresh graduate, I landed a career in one of a well-known engineering company in Quezon City and as a fresh graduate no one taught me about the habit of saving. All I know is to receive my salary, help my family pay bills, eat and save whatever is left – in my wallet. Yes, not even save in a bank.

Investing to the stock market, mutual funds, UITF, VUL or risk management through insurance is an unfamiliar ground to me. Fast forward 2011, I found myself, on my 4^th employer with at least a VUL (Variable Unit Linked) in place, with very little savings, with 2 credit cards – which I thought  were  extra cash for me and unhappy with career. One thing is the same since 2003, I have not developed a habit of saving and investing. Why?

No one taught me about personal finance. No one even approached me and told me that managing your money can determine a successful retirement or an achievement to unlock dreams such as travel goals, business goals and many others. Imagine, that has been 8 years, by the 8^th year who knows I might have achieved bigger monetary dreams and goals.

But as what Bro. Bo Sanchez said in one of his books; your past does not define your future. Hence, in 2012 I joined one of the top life insurers in the country and I got exposed to risk management and get to know a lot of financial experts in all areas of financial management – not only insurance - whom I gained ideas on personal finance.

Invest in Yourself

Since joining the life insurance industry in 2012, I realized how our culture as Filipinos differ from other countries. The habit of saving, investing and security is not inherent to us. Also, as what Mr. Efren Cruz, RFP wrote in his book, Taming the Rebellious You, our brains are designed to be loss averse. Thus, humans are not really into spending for something to save because the brain is trained to see that as something at a losing end.

What I did, the moment I realized there is something wrong on how I handle my finances (gosh! I was still single at that time but no savings at all!!) – I started to invest in myself by reading books on finance such as books by Mr. Chinkee Tan, Bro. Bo Sanchez, Mr. Efren Cruz, Mr. Ardy Roberto and many others. I started to attend seminars such as iCon of Mr. Randell Tiongson, RFP, the Financial Fitness Forum and Financial Advisors Congress of RFP Institute and learned even more about programs to enroll with when I attended another iCon event in 2015 that leads me to attend a course on Personal Finance which is the Registered Financial Planner (RFP) course in August of 2016.

Execute

Since the certification process as RFP, I began to love to beauty of Personal Finance and how the different areas of financial planning matters in a household. Now that I am married with an 18month old daughter, I realized that execution is crucial to calibrate our goals based on the resources we have.

Areas on Financial Planning

In financial planning, the areas to consider are Cash flow management, Insurance Planning, Investment Planning, Retirement Planning, Educational Planning and Estate/Wealth Management. With these areas to consider, it is important to match the current resources available for you and your family to achieve a certain goal.

The common question of a pinoy, “Ano ang pinaka best na investment?”, the answer is always, it depends. You match a certain investment vehicle according your goal (Retirement, Education or Major future purchases). Considering the inflation rate of the country that averages at 4% over the last 20-30 years, your money in the bank may lose its value by the time you retire after 20 or 30 years. Planning is important.

Financial planning may seem simple looking through its technical aspect but our day to day money decisions are influenced by our behavior or emotions. For the past few years of my exposure in this industry, determination and discipline are key attitude to financial freedom.

Regardless of how much time you spent on reading and attending seminars, without determination to calibrate your money decisions and discipline to implement your plan, after a year or another 5 years, a financial planner will lecture you about this all over again.

Personal finance in a nutshell is both technical and emotional indeed. At the end of the day, what matters most is that you are able to put everything in order. There is always a sunshine after the rain anyway.

Jendee S. De Guzman, RFP

Associate Financial Planner – (AFP)

Chartered Trust and Estate Planner - Graduate

Life Insurance Advocate
jendeesapo@gmail.com

                                  image from: http://blog.instavest.com/top-5-personal-finance-podcasters

When Debts can be G.O.O.D?

The Filipino culture pushes every Pinoy to avail loans. As an example is the saying that "mag loan ka sa SSS para lumaki ung pwede mo i-loan in the future" have you heard of this statement before? I have heard it several times.. and just like you, (or maybe not) I had an SSS loan when I was employed. 

The Filipino culture pushes us na maging gaya gaya. I remember, when I was in grade school, merong negative na pag uugali ang mga pinoy and I believe it has an impact on our financial habits. Nandyan yung kailangan magpa impress kahit di naman dapat? I have seen families broken because of financial struggles. Others, just because of utang na loob, they feel obliged of paying for whatever means even the loan has been paid off. 

Ang isa pa na naka ugalian ng mga pinoy ay gawing retirement program ang mga anak or emergency fund ang parents... At dahil hindi standard sa atin ang lumago ang financial knowledge, a typical pinoy will find himself drowned in debts. 

image source: http://www.kiplinger.com/slideshow/credit/T025-S001-proven-tactics-to-overcome-big-debts/index.html

So paano na? According to BSP survey

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Household liabilities are in the form of consumer and real property loans

With respect to liabilities, few households had outstanding loans on their residence (3.7 percent) and other real property (5.8 percent). A bigger percentage of households had outstanding consumer loans such as motor vehicle loans (13.5 percent); personal, salary, all purpose loans (20.9 percent); and credit card loans  (3.9 percent).

The main sources of funds of households vary by type of loan. These included government housing institutions and money lenders for real estate loans; in-house financing for motor vehicle and appliance loans; banks for credit card loans; and money lenders and cooperatives for other loans.

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There is another portion of the demographics who wants to get out of this trap, and there is something inside that really wants to break Free!!!

It is not difficult to get out of debt, nor easy. But it is important to be humble enough to accept that you have debts. Also, wag tayo mahihiya that we are willing to make things better for us and our family. So how do you start? 

1. Make an inventory of your debts, the interest rate and the amount that you pay for each month

In this way, you will be able to prioritize which is which. Which debts should be paid off first. Either you pay off the one with the highest interest rate or use "Snowball Effect" (CTTO Dave Ramsey). By using the Snowball effect, you will pay off the ones with the smallest interest rate first. 

2. Update your SALN (Statements of Assets and Liabilities) 

I have clients who were able to write off debts because we were able to identify, which assets (paper assets, movable assets etc) can be a source to pay off debts

3. Look for a Loan Restructuring Program that can help minimize or eliminate the loans should none of your Assets can be used to pay off debts

4. Finally, never get into bad debts anymore. 

Disclaimer: If extended family is involved, it is a different story :)

I am also a typical pinoy, there are debts in the past that I am still paying today. However, with courage I am committed to make the best future possible for the generations to come. I am committed to change lives too!

If you need help, shoot me an email, FB me  Or refer me to someone you know who is having sleepless nights because of debts. 

Debts can be G.O.O.D (Getting Out of Debt) after all. 

Jendee S. De Guzman, RFP

Associate Financial Planner – (AFP)

Chartered Trust and Estate Planner - Graduate

Life Insurance Advocate
jendeesapo@gmail.com

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!

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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.

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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!