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!