Top Hard Core Productive Strategies

http://www.flickr.com/photos/48805491@N00/3206216434

I love waiting.

Or better yet, I have learned to enjoy waiting.

Why?

Because while I am waiting for my MDs for coverage, I get to do a lot of things.

I get to check my stocks portfolio online (both directly and indirectly), I get to answer queries on Messenger about investment, I get to read a chapter of a book or a newsletter from the Truly Rich Club, or I can write a blog post.

Today, I was able to enroll a workmate to the Truly Rich Club (yes, he entrusted me his credit card details -- that was something, by the way), I had a quick but insightful chitchat with two other medical reps from different companies about investments, resolved IL policy concerns of friends, and exchanged messages with a colleague and convinced him to blog about his "supermarket bagger to SMPH investor" experience.

The list goes on.

During these waiting time that I am productive. Let me share with you the productive strategies that my mentor taught me.

Top "Hard Core" Productive Strategies

1. Write a Plan for the Day 

http://www.flickr.com/photos/33472412

Every night, I spend 30 minutes before going to bed to write my "Things To Do" for the following day. By doing this, I also prepare my itinerary and become more productive. This also assures me that I do not miss doing something important. I have a planner wherein I scribble my thoughts and plans. I also use Google Calendar which notifies me of my schedule via email, a pop-up message on my tablet, and via SMS.

And when I turn on my laptop, I use a free software called TeuxDeux to plan my day. It even has a "Someday" for future plans.
   

2. Wake Up One Hour Earlier

I am a mother of two very young kids and I am an employee. When the kids are up and when my boss sends me a text message at early morning, there is nothing much else that I could do. I have a family and a job to attend to PRONTO!

So what I do is wake up early to be able to do other things outside family and work. This is when my mind is still fresh, and the house is peaceful. I remember waking up almost everyday at 5am to write a new blog post.

3. Set Deadlines and Be Accountable

http://www.flickr.com/photos/73645804@N00/3596406125

My mentor taught me that deadlines are powerful, and that a plan without a deadline is just a nice idea. If it is a real plan that you want to accomplish, you need to set a deadline.

Do you dream of growing your money through investments?
Or starting a business?
Or doing what you love instead of being stuck in your day job?
Or learning internet marketing?
Or writing a book?

Most of the time, these dreams are just dreams because you do not set a deadline. Set a date. Mark it on your calendar. And then tell people about it and be accountable!

And because these dreams are announced, you will be forced to do them.

4. Launch Imperfect Products

This is not about defective or sloppy products. This is about not being a perfectionist. This is the winning formula: Launch partially perfect products and improve them along the way.

5. Focus on What Only You Can Do

This strategy multiplies your productivity by tenfold: You have to focus on what only you can do.

Usually, the problem is, we think we will do everything. This is mainly because we have an employee mindset. Remember how we are expected to multitask as employees?

But real entrepreneurs are paid for their ideas, not their labor.

Let me give you an example. The business I started with a partner is a business center in our province. We own the business. But we have a group of hardworking and trustworthy staff who does errands for us, organizes seminars and hire agents. We also have subdistributors and retailers that help us in growing the business. And what do we do as owners? Marketing. Because it is mainly what we do best.

Recently, I sold all my shares and withdrew everything in my COL account. This is where I directly invest in the stock market for the past four years. Now, for my stocks investment, I choose to do it indirectly through my VUL with Insular Life.

Why?

Because I need to do less stuff with my 24 hours. I will let the experts do what they do best. My fund managers will buy me the time that I cannot give myself. They will manage my portfolio for me, passively grow my money, giving me the time to do more important things for myself.

Final Note

Instead of playing games during your idle time, why not play REAL GAMES instead? Your passion, that is your game.

May you find these strategies helpful and my prayer is that you apply them and replace busyness with a real business.

P.S. I hope you find this post helpful. And kindly click the SHARE buttons below. Thank you very much.

My 13th Month Pay was Gone in Three Days

Writing a new post took a while.

Why?

Because I've been spending my time lately trying and learning new things to continuously be the best version of myself over time. With friends almost my age (some are even younger) experiencing critical illnesses, and others even dying unexpectedly, this is what I realized -- YOLO (You Only Live Once) is not just a phase nor a phrase. YOLO is real.

Last month, I began trying to live a healthier lifestyle through doing the ketogenic diet, intermittent fasting, and yoga. I am blessed with friends, who I taught about financials in the past, who are now teaching me these things that I have no idea of. And, so far, so good. I am loving the results that I am seeing and I am somehow getting a hang of these things now.

I pray that we may all be fully alive every single day for God's greater glory.

So, What Happened With My 13th Month Pay You May Ask

It was a Friday when my much awaited 13th Month pay was remitted to my payroll account. The next banking day, Monday, everything was spent.

Here is where my money went:

1. I invested in God's Work

One of my mentors said that this is the best investment and over time, I realized that this is true. And because many of us do not see the real value of tithing, we miss out on these huge blessings that God wants us to abundantly spoil with.

As written in Proverbs 19:17, it says, "He who is kind to the poor lends to the Lord, and He will reward him for what he has done."

Sometime in 2015, I was in awe, and I still am until today, when I was invited by The Feast Bay Area (my spiritual family) to stand at the PICC Plenary Hall stage (Wow!) in front of thousands of its attendees (5,000 at least, Wow again!) to share how God has blessed me because of tithing.

To read more about this unbelievable experience, click
Generously Blessed by Tithing.

Every time money comes in, this is where a tenth of it goes.

2. I invested in the Stock Market

If you have been reading my blog, this is expected. And because this was my bonus, I invested it directly in the stock market buying additional shares of my favorite blue chip companies.

Prior to receiving my bonus, I was able to invest indirectly in the stock market thru my VUL. Here, as my fund value increases, so does my insurance coverage. The money I paid for my premium came from another investment's income. And because I am my own insurance agent, the commission that I will be receiving from that premium payment will be reinvested again.

As I have read in a book, it takes 21 days to develop a new habit. And this cycle of investing and reinvesting is one habit that I have developed over time, that doing it has become automatic.

Instead of being caught in the cycle of living paycheck after paycheck, spending everything that you earn, try developing a new habit of paying yourself first through investments. Over time, these small amounts can make money for you exponentially.

3. I invested in Knowledge

As Warren Buffett said, "Ultimately, there's one investment that supersedes all others: Invest in yourself. Nobody can take away what you've got in yourself, and everybody has potential they haven't used yet."

Another thing that kept me preoccupied for the past weeks is the Registered Financial Planning (RFP) course which I enrolled in to become one of the best Financial Advisors. I wanted to increase my competency and be fully equipped with knowledge when I do financial planning for myself and for my friends, especially when I am their top-of-mind Financial Advisor.

One of the speakers sent me a message on Facebook stating, "I wish you well on your financial planning journey. Hope you can figure out your own plan and help others with theirs. Cheers!" This is my passion and purpose in life, and becoming an RFP will play a very important role in achieving this.

After that Saturday class, I paid the course fee in full with my 13th Month Pay.

4. I invested in Myself

Okay, I will be human in saying that at my age of 35 today, the thought of sagging skin freaks me out. At this moment, I may be in the "accumulating stage" financially; but physically, I am at the "preservation stage" and try to stay at this phase for as long as I could. (Lol!) 

So after RFP, I went to this well-known dermatology clinic for treatment and consultation. And every time I take money out of my pocket, even with these things, it is always a decision of price vs value. Price is what you pay, value is what you get. The value validates the price.

And because it has been my go-to derma clinic for the past three years, I know that their services is value for money indeed.  

 

And finally...

5. I invested in What Makes My Soul HAPPY

After all, what is the point of working, earning and investing without some fun, right?

I began investing for my retirement at the age of 31. I felt that was already late. For my younger friends who I have taught about investing for retirement, I always tell them that they will be richer than me because they have more time to grow their money.

If you are reading this post and haven't began preparing for your retirement yet, please do it NOW. You will thank me later.

I do not encourage the idea of depending your retirement fund on the government or your company. We ourselves should take charge of this. Backed up with what I have learned on the time value of money at RFP, I can determine how much retirement fund I would need to live comfortably and how much do I need to invest now to get that target fund when I reach 60. And knowing just how much the government gives to our retirees, and the unsureness of job security, I am learning to swim now before the boat sinks. If you do not invest and act now, retirement will be the scariest thing.

Okay, this is beside the point.

The point is, because I felt I began late in building my retirement fund, I invested as much as I could, and as often as I could, to somehow makeup for those lost years. But here is another thing that RFP taught me -- What if that retirement (or the future) doesn't happen?

And on the other hand, for those whose state of mind is always at YOLO, how will your future look like?

You need to strike a balance for your today and your tomorrow.

As for me, with the remaining part of my 13th moneth pay, I scheduled a "soul searching" trip, as what my Keto coach said (Lol!) up north for the coming week.

And remembering how overwhelming God made me feel during the Hillsong Conference I attended in 2016, I registered for the early bird rate and grabbed that seat sale for Hillsong Conference 2018 in Sydney. Trusting God, I know everything will fall into place.

Tell your money where to go, instead of asking where it went.

My 13th Month Pay wasn't anywhere near the six-digit mark. I work as a rank and file. But again and again, it is not how much you earn, but how much you save and invest.

And honestly, my bank account balance may be back to "normal" now, but I am very happy where my bonus went -- every single peso of it! Besides, it wasn't actually gone just like that. All these that I have invested on will pay off later in time.

Final Note

Let me share with you one of the many valuable lessons the RFP has taught me:

"A sound financial plan is allowing to live the lifestyle you deserve today while getting a better life in the future."

Look where you are now (Point A), see where you want to go (Point B), and then figure out how to get there. That is Financial Planning. And this is where your 13th Month Bonus plays a very important role in helping you get from Point A to Point B.


Be very blessed!



P.S. I would love to hear your thoughts! Drop me an email at financialplanningforpinoys@gmail.com. Thank you!

 

Our Daughter was Hospitalized for the First Time and What Her Pedia Told Us was Unexpected

Last night, I was browsing through my Facebook feed when I saw a shared post by a client/friend (photo below), with a sad face and a broken hearted emoji.

As a working Mom, I think we all go through this phase. Because when my daughter Gaby was three years old (she is 14 now, time really flies!), her frequently asked question to my Mother was, "Nay, bakit si Mommy puro na lang work, work, work?"

Incidentally, my friend's daughter is also three years old now.

I messaged my friend with comforting words that everything will soon be okay. She mentioned that her daughter is currently sick, and so she filed for an emergency leave. 

Back in 2017, my youngest daughter was hospitalized. And because of what her Pediatrician told hubby and I were unexpected, I thought of writing the post below, as it may resonate to other working moms.

My ultimate goal has always been to become a full-time mom, and part-time everything else. I want to witness my daughters as they grow everyday, while I also grow old with them. I want them to be really close me, that I will be the first person they would go to for whatever reason. I want them to be my best friends, and hope that they do, too!

That was my BIG EMOTIONAL WHY.

And so I continuously learn about money through mentors, books and seminars (even until today), I worked as hard as I could, I grabbed every opportunity for side hustles so I can earn more, and I invested as much as I could.

By God's grace, in May of 2018, I was able to quit employment and became a full time mom!

As they say, when your why is strong, the how will be easy. 

If you are a working mom who dreams of being a full time mom, may this post inspire you and encourage you to believe that nothing is impossible. I pray for abundance into your life, that your cup overflows, so that you can create the life that you want, and be able to share so much blessings to other people.

Be very blessed!

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

It was almost midnight on a Sunday when my husband and I rushed our five-year old daughter Elise to the hospital due to asthma. At 12:20 am, she was admitted. That was the first time that she was hospitalized.


I slept beside her that night while her dad, who is a doctor, stayed close to us, monitoring our daughter every now and then.


Come Sunday morning, our eldest daughter Gaby, who was nine, came in with my brother, and stayed with us until evening. Because Anna was feeling better that day, she and her Ate enjoyed playing while on the bed, tracing their hands and coloring. We were able to watch three movies on Fox over lunch, snacks and dinner. Overall, it was a fun day spent as a family, aside from the fact that we were spending it in the hospital.


Monday, I took a leave from work to take care of Elise. So did my husband. Thankfully, all of her lab tests were normal. We spent another day just drawing, eating, cuddling and sleeping. She was A-Okay. We knew we can go home the next day.


Then came Tuesday. From the time she woke up, she looked exactly the same when we arrived that Sunday night. She was very moody, crying and complaining with every move. She appeared to be very sick again.


When her Pediatrician did her rounds that day, I asked if we could go home. And this is what she said, "Napansin ko sa mga pasyente ko, kapag alam nila na uuwi na, biglang nagiging matamlay. Ayaw nilang umuwi. Kasi ngaun lang nila nakakasama both parents ng matagal." (This is what I noticed with my patients. When they knew that they will be going home, they become downhearted. They don't want to go home, because only during these times that they get to spend long hours with both parents.)


And as a mom, those words struck a cord in my heart. Very painfully.


We went home that day, and I extended my leave from work for another day to spend more time with my daughters.

What The Pedia Said Left Me With These Thoughts In My Head...

1. If I began investing from the time I began working, maybe I would have had enough money now to support our family even if I stop working so I can just take care of my kids.


2. But because I did not do what I stated above and with the situation that I am in right now, being a working mom to two very young kids, how much money do I really need to save or invest before I can actually quit my job and live comfortably (modest) as we do now?


I believe at some point, many working moms have faced this dilemma.


If you are single, I encourage you to invest as much as you can, and as early as you can, so you can have more options later in life.


And if you are in the same situation as I am, I suggest that you lay down or list down everything that you own, and everything that you owe. Check your financials for you to see exactly where you are right now. Are you still living paycheck after paycheck? Or are you a few paychecks away from your goal of living on just the interest of your investment?

This Rock Bottom Moment

I don't want my kids to wish to be hospitalized just so my husband and I could spend long hours with them.


I want to see myself being a full-time mom, and part-time everything else. That is my ultimate dream.


And investing is my bridge to that dream. As Mr. Rex Mendoza said, President and CEO of Rampver Financials, "Do not invest for the money. Invest for the purpose."

One Last Note

If you said "relate much" after reading this post, please drop me an email at financialplanningforpinoys@gmail.com. I would love to hear your story. Thanks!


Cheers to being full-time mommies!!!


P.S.

If you want to finally begin your investing journey, send me an email at financialplanningforpinoys@gmail.com and I will share with you how I began mine.


P.S2

Help me spread financial literacy. Please click the SHARE buttons below. I would appreciate it very much. Thanks!

BTID and VUL from the Point of View of Someone Who Does Both

I have been talking to a friend for the past month because she wants to get a VUL. Her husband, on the other hand, is a fan of buying term insurance and investing the difference or BTID. He is also a Truly Rich Club member like me.

Definition of Terms

Investopedia defines term insurance as a policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. BTID is buying term insurance and investing the difference directly in paper assets like mutual funds, bonds, UITFs or stocks. 

On the other hand, a Variable Universal Life or Variable Unit Linked (VUL)  is a form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount of VUL is flexible and may be changed by the policy owner as needed. A VUL can also provide you with accidental death, disability, hospitalization and critical illness benefits.

The Question: Can you compare BTID with a VUL?

I have read similar posts on the Internet comparing the two. There was even a post that says you can't compare them in the first place because they address different needs.

From my point of view, I can compare both, simply because I am doing both. And I will be sharing with you in this post what I have learned, without bias.

In my opinion, I do not think they address different needs. Both BTID and a VUL address the same insurance and investment needs that most of us have. The difference is simply which would work effectively for you?

How much insurance do I need?
And how much do I need to invest to achieve my financial goals?


And here is where your trusted Financial Advisor plays an important role. As one, I do the math with my clients. With the information they provide me with, we compute for our his/her adequate insurance coverage, target health fund, target retirement fund, and target educational fund, whichever is applicable.

The Question: Which is Better? Doing BTID or Getting a VUL?

Recently, I have read a post that says getting a VUL is DEFINITELY NOT BETTER than BTID. I disagree.

Flashback to 2013

As many of you know, I began getting a financial overhaul in 2013. The book My Maid Invests in the Stock Market by Bo Sanchez was a wake up call and my journey began with the help of the Truly Rich Club. One of the many things it taught me was to BUY TERM INSURANCE and INVEST THE DIFFERENCE or BTID -- and that is exactly what I did.

I bought term insurance, and invested the rest of 20% of my income (20% for investment is a good start) directly in the stock market through COL Financial. COL Financial is the largest online stockbroker in the country today.

Although I have term insurance with my current company, I still got one with Insular Life in November 2013. Why? Because I will NOT be employed until I am age 99. And remember, we buy insurance not just with our money, but more importantly, we buy insurance with our health. Get insurance while time and health are still on your side.

For 1M life insurance coverage, and additional 1M if death by accident, my premium is only Php5,320 every year from age 31 to 41. I told myself then that it is very likely that I would already have 2M after 10 years, so the 10-year coverage would be okay.

I even wrote a blog post about this years back with the title I Bought My Peace of Mind and Family's Security for Php5,320 Only.

As one of the TRC mentors would say, "The purpose of insurance is simple. That when God calls you home, your family won't go hungry." And that was my thinking until recently, when I fully learned and understood the purpose of insurance.

 

And then I remember a mentor from Insular Life asked, "Why Not Get a VUL Instead?"

And this is what I told her, "Why would I pay for a fund manager when I already know which companies to buy, when to buy and when to sell them?" Everyday, the Truly Rich Club provides us with what we call a SAM Table that contains their recommended companies, buy below prices and target prices. For the INVEST THE DIFFERENCE part of BTID, I rely on this.


I also have that belief that insurance charges with a VUL are very expensive. Later I realized, that insurance charges are generally inexpensive, especially if you are still young and healthy. (I will explain this further below.)


She added, "But what if something happens to you? The only investment with insurance is a VUL." Back then, I thought that was merely what my term insurance will be for -- to make sure that my family won't go hungry when God calls me home -- and so the 1M coverage will be enough.

Fast Forward to 2016, I Became a Certified VUL Fan

What made the shift, you may ask? As more people ask me for financial advice, I continued to grow myself as a Financial Advisor through reading and attending trainings. Over time, these taught me what BTID and a VUL actually means for a long-term investor. And by long term, it does not only mean the time when your toddler enters college, or you being retired. By long term, it means until you "expire.".


Let me cite the reasons what caused the shift to happen.



1. The purpose of insurance is NOT just to make sure that my family won't go hungry when God calls me home.



Insurance has a lot of purpose. Not just to feed my family.


Insurance can assure that my kids will finish college, at a university and with the course that they prefer, provide them with allowance up to a certain age, and maybe even with a small capital in case they want to start a business. 


Insurance will pay off my mortgage and other debts. As of this writing, my husband and I have a car loan, and we also began paying for a lot in Tarlac and a condo unit in Manila. I make sure that our insurance policies EACH has enough coverage to pay for all these, so that one will not be burdened in case of sudden demise of the other.


Insurance will pay my final (hospitalization and death) expenses. 


Insurance will continue to support my charitable institution. 


Insurance will pay my estate tax. Estate tax is defined as tax on the right of the deceased person to transmit his estate to his lawful heirs and beneficiaries at the time of death. As I have read before, "If you do not have a plan for your money, the government has."


And obviously, my 1M term insurance will not be enough to cover all these. 




2. I can use my insurance even while I am still alive.



My term insurance covers only my life. My health, my limbs and my eyesight are not covered. My beneficiaries receive my insured amount if and ONLY if I die.


With a VUL and its riders or add-ons, I can use my insurance even while I am alive. In case of hospitalization, I am covered. In case of temporary or permanent disability due to accident, I am covered. In case I lose my limbs or eyesight due to accident, I am covered. In case I am diagnosed with dreaded disease, I am covered.


You may say that you can also include these add ons to a term insurance. Yes, BUT if nothing happens to you for a particular year, the premium you paid for that year goes down the drain. And every year, as you grow older, the premiums increase because your risk of getting sick or dying also increases.

3. Insurance charges in a VUL are expensive is just a MYTH.

This is one of the reasons why I did not like VULs before. I have always believed that insurance charges in a VUL are expensive. This is just a MYTH.

TRUTH is, the cost of Php5M life insurance coverage, Php1M dreaded disease coverage, Php3M accidental and disability coverage of a not so healthy (meaning with borderline sugar level) 34 year old is only Php1,793 every month. Just that.

Not only that. The younger and healthier you are, the cheaper it is.


You may ask and verify with your Financial Advisor from insurance companies how much are the admin and acquisition charges of your VUL, as these vary with different companies. But basically, the insurance attached to a VUL is also a term insurance.

4. Your investment in a VUL can be ESTATE TAX FREE.

A few months ago, I wrote a blog post about the investment part of my BTID asking my online stockbroker what happens to my investment if I die. It is the same question that my mentor from Insular Life asked me three years ago. One of her concerns was estate tax. But because I have a 1M term insurance anyways, I just brushed off that topic back then.

From that inquiry, this is what I learned. MY MONEY IN THE STOCK MARKET, just like my money in the bank and other assets, FORMS PART OF MY ESTATE and is therefore SUBJECT TO ESTATE TAX. 

You may read the full post here: I Asked COL, "What If Account Holder Dies?"

I was thinking, if my money in the stock market grew to millions over time, and I die by accident and my husband has no idea about COL (I've tried explaining it to him more than a couple of times but he is not the admin type of person), what happens to my money?

With a VUL, my beneficiaries get my insured amount plus current fund value in FULL if I die. Tax free. Our InLIfe policies are kept where my husband keeps his BIR documents. If something happens to me, I told him to just bring my insurance policies to any Insular Life office. As a matter of fact, he does not need to bring my policies. InLife can check their records on their system. (Think HASSLE FREE!)

5. With a VUL, as my investment grows, so does my insurance coverage.

My first VUL with Insular Life was an investment for my retirement fund, and originally has the Minimum Guaranteed Death Benefit (MGDB) for the insurance part. But after realizing the many purpose of insurance, I have increased my sum insured, and I have also added the accidental, disability and critical illness riders.


Every time I make a top up to increase my fund value (investment part), my insurance coverage increases, too, by 125% of my top up amount. Meaning, every Php10,000 of top up to my VUL increases my sum insured by Php12,500.


And even if I do not make a top up, the death benefit is always sum insured PLUS current fund value (investment part). As my investment grows, so does my life insurance coverage.

6. Having my VUL is the cheapest way to increase my net worth.
 

In 2013, I was flat broke living paycheck after paycheck. It was December 2014 when I got my first insurance policy with a 1M coverage. Just like that, my net worth (more like my "LIFE'S WORTH") became 7 digits. 


And because I know how much I am "worth" right now, I take care of myself more. Remember how you handle that signature leather bag, not putting it down on the floor and having a seat space of its own? Or how you clean your Limited Edition shoes before storing them? Or how much you spend on the tempered glass and case for your latest phone? It is the same logic why I take care of myself. 

Remember, YOU ARE AN ASSET, and in God's eyes, you are worth so much more. 

One Final Note

Today, I choose growing my money through a VUL for the many reasons I have stated above. And yes, I still invest directly in the stock market but only up to a certain amount.


You may opt to do BTID or VUL, whichever you think works better for you. 


Consult with your trusted Financial Advisor and continue growing yourself in financial knowledge.


As for my  34-year old friend who I mentioned above, her VUL has been issued recently. With her Php6,667 monthly premium for 10 years, this is what she gets:


- Php2M life coverage PLUS actual fund value in case of natural death
- Php4M life coverage PLUS actual fund value in case of death by accident
- Php2M lump sum in case she is diagnosed with dreaded disease
- An estimate of Php4M fund value when she retires at 60.


As Warren Buffett says, "Price is what you pay. Value is what you get." PRICE refers to her Php800,000 total premium in 10 years. VALUE refers to the insurance and investment she gets. I am sure you would agree with me when I say that is VALUE FOR MONEY indeed.

And the joy of insurance and investment is this...

Knowing that my insurance coverage is actually enough, and knowing that I am growing my golden nest egg for retirement, I enjoy sound sleep every single night, free of any financial worry. I choose to make small sacrifices today, instead of sacrificing my own future and the future of my dependents.


Last night on my way home to Tarlac, as I drive along McArthur Highway, I passed by Shell, Jollibee, Robinsons and SM Tarlac. That was probably a 2 km stretch. And within that 2 km, I felt happy knowing that I have a (small) part in these giant businesses. I may not be seeing huge profits now, but I know that as these companies grow, so does my hard-earned money.

At the end of the day it is all about DISCIPLINE

Because of Facebook, my colleagues know that I invest in the stock market, both directly and indirectly. And during our National Conference, some of my workmates, who are from a different region, would meet with me and ask me how to start investing directly in the stock market. I would spend almost an hour talking to them, teaching what they know, and when I ask them after a week if they have opened an account, their answer is NO. I ask them again after a month, or after a couple of months, and they will tell me that they do not have the time for it yet. Honestly, it was disappointing because I value my time so much. Wasted time is always worse than wasted money.

And then there are those friends and colleagues who really want to start investing but want the easiest, most convenient and hassle free way to do it -- and they did it through getting a VUL with Insular Life and with me as their Financial Advisor. I have friends turned clients for the past years who would send me messages like, 

"Thank you very much sis. Kung di mo ako tinuruan about financial planning, malamang di ko pa sinubukan. Four years na policy ko on Feb 13, salamat sa'yo."

Just imagine what four years could do for you and your money, and the things you missed in those years simply because you did not have the time for it yet. With an InLIfe VUL, application to approval can be done in 30 minutes. Initial payments are done online. E-policies are sent to your email. You can even pay your premiums monthly (annual premium divided by 12, no extra charges) through our Auto Debit facility, allowing you to invest part of your income every month on your preferred fund/s based on your risk appetite -- all on AUTO MODE.

Disclaimer:

The details stated in this post are based from what I have learned and experienced over time. The VUL that I am referring to is my VUL from Insular Life. Its features may or may not apply with VULs from other insurance companies.


Be very blessed!

 
P.S. I hope you find this of value. Would appreciate it very much if you can share this to help spread awareness and financial literacy. Thank you!

The Four Basic Rules To Remember In Stock Market Investing



One time, I received a tweet from my friend. He has read my article about investing in the stock market. Being a banker, he agrees with the idea of money growing over time but then he says, "Crucial here is choosing the companies to invest in. Many companies close in five to ten years time."


True. I totally agree.


In stock market investing, based on my personal experience, there are only four basic rules to remember and they are as follows:


 
1. Diversify.  

 
Diversification in the stock market is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.



My stocks portfolios, both directly and indirectly, have a good variety of stocks from various industries. I have banking stocks, consumer, conglomerates, industrial, property, power and telecommunication.



Directly, I follow the recommended stocks of the Truly Rich Club. With a membership fee of Php497 monthly, I can sleep well at night knowing that over time, my money will grow through the companies I buy today.



Indirectly, I have invested (and am insured) through Insular Life's VULs. VULs are the ONLY investment with insurance. This is what makes it different from all other forms of investment like mutual funds, UITFs, and bank accounts.



Through my VULs Equity Laced Funds, their fund managers who are backed up years of investment expertise, do all the works for me while I do other things. Currently, I have investment in their Equity Fund (45 actively managed blue chip companies in the PSE), Select Equities Fund (Top 10 companies in the PSE) and Guardian Fund (Next Top 10 in the PSE).




Because I know the stability of INSULAR LIFE, the first and largest Filipino-owned insurance company in the country, now at 108 years, and  being the first insurance company to open during Yolanda, it does not only give me sound sleep every night because of the investment part. More importantly, even if God calls me home, I know my loved ones will still be well taken cared of because of the insurance part. 


The fund managers take care of the risk, the insurance takes care of my fears.





2. Buy only the giants, and 3. Buy lots of giants.



These are blue chip companies. These are strong, stable companies that stay even when the stock market crashes. As what Warren Buffet said, " Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years."


I remember a speaker in one of the seminars I attended bought stocks of PLDT back in 1986 when the market was down. PLDT was priced at Php3.60 per share back then. In 2016, PLDT sold at Php3,200 per share. So, you can just imagine how much money he made just by being "greedy when others are fearful."


There is this book that I am currently reading. The Tao of Warren Buffet. It says, "The great secret to getting rich is getting your money to compound for you, the larger sum you start with, all the better. As an example: $100,000 compounded at 15% for twenty years will grow to $1,536,653. But let's say you lost $90,000 of your initial capital before you even started and could only invest $10,000. Your investment would then only grow to $163,665 in year twenty, for a profit of $153,665. This is a much smaller amount." That is way of losing money.


This is the very simple reason why I encourage everyone not to invest just the minimum, or their spare amount. From investing 20% of my income when I began in 2013, I now invest 50% of my income and live within minimum. And, yes it's not easy, but it is possible.



4. Have a long-term horizon for your investments.



I am often asked if there is a holding period for money invested in stocks. There is no holding period. You can sell your shares anytime and withdraw your funds anytime. But since we are here for the long term and our favorite holding period is forever as Warren Buffett would say, it is better that you have a separate fund for emergency. A short term perspective only exposes one at risk to sell shares at a "bad time." This is also what differentiates investors from traders.And remember to have the discipline to stick consistently buying shares and growing your portfolio based on these rules.



Cheers to long-term investing!



P.S. Are you thinking of directly investing in the stock market? Bo Sanchez' Truly Rich Club walked me through it starting Day 1. To begin your journey as well, CLICK >>> HERE


P.S2. Do you want to invest in the stock market but do not have the time to learn and monitor your stocks? Get your own VUL instead, make your money grow while being insured at the same time. Send me an email at financialplanningforpinoys@gmail.com.



Reference:

http://www.investopedia.com/articles/02/111502.asp




P.S. For your investment and insurance concerns, send me an email anytime at financialplanningforpinoys@gmail.com and I can send you a  quotation for FREE.

My Nine-Year Old Daughter is Excited About The Stock Market -- And I Think You Should Be, Too!!!

Over the weekend, my nine-year old daughter, Gaby, asked me a random question.


She asks, "Mommy, ilan Mondays meron sa one year?" (Mommy, how many Mondays are there in a year?)


I estimated 52 (Remember the famous 52-week challenge at the start of the year?) and asked her why.


With a big smile and eyes wide, looking excited, she said, "Kung iipunin ko ung Php100 ko every Monday, meron akong Php5,200 this year?!?" (If I save my Php100 every Monday, I will have Php5,200 by the end of the year?!?"


I said, "YES. Pag inipon mo yun sa stock market, magiging Php14,500 pag 18 years old ka na." (Yes, and if you invest that in the stock market, it will grow to Php14,500 when you turn 18.)


She exclaimed, "WOW!!! Sasabihin ko kay Nanay." (Wow! I'm telling grandma.) She calls my mother, Nanay.


Last Christmas, she received Php6,500 as cash gifts. She spent Php900 at Toy Kingdom, gave Php2,000 to Nanay, and told me to put the rest at Insular Life. This is how influential we are to our kids. 

"Schools teach you how to work hard for money, but don't teach how to make money work for you." - Robert Kiyosaki

Gaby came back to me and said, "Hindi nila maintindihan." (They do not understand.)


That is the problem. Growing up, we are only taught to do well in school, get a job, and work for money. We were only taught about active income, wherein we exchange our time for money.


We were never taught how to make money work for us, or passive income, which is money making more money even while we sleep.


Personally, I never knew that money could work for me -- until I learned about investments, the stock market, recognizing opportunities and getting mentors back in 2013.

If Only I Knew Then What I Know Now

This is what I often tell my friends, and what I encourage in this blog: Start investing TODAY, not tomorrow.


If you are single, female, INVEST TODAY so that when you are married with kids, you can spend your time taking care of your family full time.


If you are single, male, INVEST TODAY so that you can say, "Okay, honey, no problem with me," when your wife asks if she can quit her job to take care of you and your kids full time.


If you are married, INVEST TODAY so that when the time comes that you have enough money working for you, you can pursue your passion, and live your purpose.


If you are working and happy with your profession, INVEST TODAY so that you will have a retirement fund that will allow you to live worry-free in the future, not depending on your kids, your SSS or GSIS pension, or your company's retirement package which you do not exactly how much.


As for my daughter, I teach her to INVEST TODAY so that she would not need to loan from banks when she wants to build a house, buy a car, or start a business. I do not want my kids to be slaves of debt. She may not understand the idea of how she actually earns through the stock market yet, but eventually, she will. She began her first business at age 4 selling loom bracelets to relatives, and she has developed the habit of saving; so, that is a pretty good start, and I am very proud of her.

If I invested Php50,000 per year for the first 10 years that I was working...

I began investing in the stock market when I was 31, as soon as I learned about it, but I could only wish that I understood it sooner. I am 34 as of this writing.


In 2003, I was lucky enough to land a job a month after I graduated. I worked as a bank teller for more than a year.


After experiencing a lot of cash just passing through my hands literally, I made a career shift and went into sales.


Aside from my basic salary, I have my allowance, my commission, and my bonuses. But because I always have this thinking that my ATM gets replenished regularly, I spent everything I earned. The idea of "not working" never crossed my mind.


There were only two things I knew about money then -- working for money, and spending it all.


Thinking now, if I invested even just Php50,000 per year of my hard-earned money in the stock market through a VUL, with an average return of 10% per year, my Php500,000 investment could have been Php894,405 today -- without me doing anything.


Even if I stop putting in more money, my Php500,000 could have grown to Php17M when I am 65. That's a whopping eight-digit retirement fund!!!

You did not came across this post by accident, there is a purpose...

It was in 2013 when I reached my "financial rock bottom." Because I had no money, I felt like I was enslaved from the circumstances that I got myself into at that time.


I met my first financial mentor, Bo Sanchez, who eventually became my spiritual mentor, at his How to Heal Yourself Naturally seminar while I was accompanying my mother. That seminar was not for me. Today, I realized that I was not there by random.


The following day, I signed up at his Truly Rich Club, his membership site for financials. The next Sunday, I found myself praying to God at The Feast Bay Area. The following month, I was at the TRC's Wealth Summit where I met other mentors. From there was the birth of this blog, the discovery of my passion for writing, and my life purpose of promoting financial literacy. And as they say, the rest was history.



My financial mess then is now my message to the world that I am telling you now through my blog.


You may be financially lost right now, just like how I was in 2013. I pray that this post empowers you to do something about your financial life TODAY.


Or you may be well-off, I pray that you continue to grow financially so that you can use money for its main purpose which is to love and serve many.


Acquiring wealth is not about having a lot of money. It is about having a lot of options. Use investing as a bridge to your dreams. Learn how to make money work for you.

And Let Me Share With You Something About My Money-Savvy Daughter

Photo above is Gaby's passbook.

I was telling a friend that Gaby has Php8,000 plus in savings today. He exclaimed, "Wow! Ang dami nyang pera." (Lol!)

For a nine-year old, well, probably, yes. She opened her savings account last July 2017, and four months later, she has Php8,802.17.

Every time money comes in, she saves. And these money are from her Php100/week allowance, cash gifts during her birthday last July, and cash gifts for doing great in school. Yesterday, I received a text message from her teacher that she qualified for the inter-school quiz bee happening in January 2018. Kindly include her and her schoolmates in your prayers. Thank you very much.

She uses this money to buy stuff that she likes. As you can see, there was a Php700 withdrawal noted with a Shoppee. She bought something online.

As Christmas approached in September, she began making her list, and bought gifts with her own money. Now she only needs to buy gifts for six people, that includes me. Nice.  

When she goes to the mall with me, she brings her own wallet. Because she is spending her own money, money that took time and good grades for her to earn, it makes her think twice, even thrice before paying for an item. She already knows what is "mahal" and was is "sulit."

And at a young age, how does she know about these things, you may ask?

Well, (ahem!) but here is where our role as parents comes in. We, ourselves, need to be financially literate so we can teach these things to our kids -- things that we were never taught of in school, and probably will not be taught our kids in school. We must take that initiative.

I do not want my kids to make the same financial mistakes that I did spending everything I earn, or the financial mistakes that my parents did, not preparing for their retirement. I want that cycle to stop with us. And with the rate that we are going today, we will.

Aside from Savings, She also has Insurance and Investment

In 2014, I got her and my other daughter Elise, an insurance policy with a Php500,000 coverage and a guaranteed cash receivables every two years starting in 2020 (she will be 12 years old by then, while Elise will be 8 years old) for the rest of their lives. Pretty cool, right?

And since we will not be needing those receivables yet since my husband and I are still in our prime years, that money will be invested in a VUL, also for our kids. And then that cycle of earning, investing, and re-investing goes on -- with money working for us full time.

Learn how to make money work for you. And then teach these to your kids.

Be very blessed!



P.S. I hope you find this post helpful. Kindly click the SHARE buttons below.

P.S2. Do you want to start investing in the stock market? Send me an email at financialplanningforpinoys@gmail.com or drop me a message on Facebook.

The Personal Finance Planner by Budget Squad Manila

Photo credit: Budget Squad Manila

 

 

Before 2016 came to a close, I was invited by Budget Squad Manila on the launch of their Personal Finance Planner. For the record, this was my first invitation as a blogger. Thank you girls for the opportunity.

 

 

 

Budget Squad Manila are two ambitious, independent and radical young women (Michelle and Stephanie) who aspire to see a financially educated and financially free Philippines in their lifetime. They firmly believe that financial education is the first step to financial freedom.

 

 

 

The Personal Finance Planner is the brain child of Budget Squad Manila. After flipping through the pages, let me share with you the features of this planner.

 

 

 

The Personal Finance Planner Is Available In Black & White

 

Adult coloring books have been a thing for a year or two. If you are a fan of such, you can express your creativity in every page of the planner. The drawings were created by two young student artists, Marie and Raph. Hats off to you, guys.

 

 

And It Is Available in Colored, Too!

 

 

 

 



For the "non-artsy" like me, I prefer the colored version of the planner. It gives me more time to focus on writing content.

It Has No Month and Date

With this, you can use it any time, of any given year.

Personally, I believe that taking your financials seriously is not something that you do on impulse. For me, I had to reach financial rock bottom back in 2013 before I had the courage to tell myself, "I will never be broke again" and actually act upon that situation.

Because the planner has no specific months and year, it is like saying, "Use me when you are ready."

But of course, the earlier you start, the better.

 

It Includes a Pro Tip Every 30 Days

These Pro Tips can guide you in making your baby steps towards everybody's goal, which is achieving financial freedom. Read them, and more importantly, apply them.

It Tracks Your Daily Expenses

I track my daily expenses. As in everything. From the Php15.50 fish balls I ate during merienda to the Php42,400 VUL premium that I pay on certain days.

And every time I tell my friends about it, they find it "toxic." Truth is, yes, it is but only AT FIRST. And then it becomes automatic as you do it often.

And by often I mean only 21 days to be exact. Study says that it takes 21 days to develop a new habit. So, the first 21 days of tracking your daily expenses will be tough, and then it becomes as automatic as your breathing.

Doing this helped me BIG TIME in knowing where my money went. In September 2016, I spent Php40,000 on paying in advance for my October travel -- plane tickets, hotel and park tickets. Then the following month, I spent another Php40,000 during the trip itself, and plane tickets for my trip this July. That's Php80,000, which I could have spent instead for my RFP classes, and registration for the Hillsong Conference, and Kerygma Conference this year -- and still have extra cash to invest. Lesson learned.

It Has A Monthly Financial Statement

At the end of every month, there is a page for your total income and expenses. You can monitor here if your income is increasing and your expenses (especially the unnecessary ones) are decreasing over time.

Where to Buy?

The Personal Finance Planner is available for only Php499.  It is even open for distributorship so we can help spread the word. May it serve its purpose of helping every Filipino achieve financial freedom.

You may email Michelle and Stephanie at budgetsquadmanila@gmail.com




Be very blessed!