Getting a Home Loan? Consider Having a Life Insurance Policy for your Bank's Mortgage Redemption Insurance (MRI) Requirement. (May apply to existing home loans, too!)

 

It was four years ago when I received an unexpected call from my husband's colleague. And his first question to me was, "Joan, kapag ba kukuha ng insurance policy, kailangan bang magbayad na agad? Eh ipapa-medical pa Misis ko, hindi pa sure if ma-approve agad un." (Joan, when applying for an insurance policy, do I need to pay already? My wife will still go through medical, and it is not yet sure if she will be approved.")

I told him I'm not sure about the process with other companies. But with Insular Life, I informed him that his wife could apply for an insurance policy now, and have the initial premium debited from their bank account once it is approved. Being more comfortable with that, we set a meeting that same week.

During that client call, the couple told me that they are applying for a Php7-million home loan and are planning to use the life insurance policy for the Mortgage Redemption Insurance or MRI. An MRI is a form of life insurance that pays off the insured's outstanding mortgage balance in case of his or her untimely death. This is one of the bank's requirements when applying for a home loan.

Many may oppose shelling out precious pesos for an MRI, as they feel that they already have too many financial obligations. But the truth is, an MRI does not only protect the bank, which the insurance guarantees that the bank will be paid back the amount it has lent, but more importantly, an MRI also protects the insured's surviving family as it settles the outstanding home loan balance.

The excess of the insurance benefit as the home loan balance decreases, will be given to the beneficiaries. 

If you have an existing life insurance policy, you can assign your policy to your bank, regardless of which bank you are getting the home loan from and which company your life insurance policy is from. If you have none, the bank will require you to get an MRI, which is usually incorporated to your housing loan payment.

But because the MRI is renewed every year, the premium payment goes down the drain in case nothing happens to the borrower on that covered year. This makes getting a life insurance policy instead the practical option for such purpose as no premium goes to waste.

My client applied for a Php7M life insurance policy with Insular Life, the first and largest Filipino-owned insurance company, and the only mutual insurance company in the country today. We then attached a Php1M critical illness rider to the policy, wherein my client gets that Php1M lump sum 30 days after diagnosis of any major critical illness, regardless if she is still paying off her home loan or not. With InLife, you can apply for a maximum of Php10M for this rider. 

Over the paying years, their home loan balance decreases. And if anything happens to the insured, only the outstanding balance goes to the bank. While the excess from her Php7M life insurance policy goes to her beneficiaries.

When the loan is paid off, what happens to the policy?

Since a life insurance policy is a whole life coverage, it is assigned back to her beneficiaries from the bank after the home loan is paid in full. My client can keep her Php7M life insurance in force, plus gets to enjoy the investment part of the policy once she retires. 

My client is known to be frugal and very good in handling money. This is also the reason why she referred me to her friends who also applied for home loans. As she said, "Reasonable kasi yung angle na un." (That angle is reasonable.)

And now, they are on their fourth year!

Four years of paying their home loan.

Four years of paying her life insurance policy.

And every premium paid guarantees that their home loan balance is paid in full incase of the borrower's untimely demise.

It also guarantees a Php1M lump sum in case of critical illness diagnosis.

And helps provide a golden nest egg for retirement.

And that is VALUE FOR MONEY indeed.

P.S. I hope you find this post helpful. Kindly click the SHARE button. Thank you so much in advance!

P.S.2 Are you applying for a home loan, or you currently have one, and you are considering getting a life insurance policy, too, for that same purpose as above? Email me at financialplanningforpinoys@gmail.com to ask for a quotation. You may also message me through Facebook at Financial Planning for Pinoys.

Be very blessed!

Productivity Hacks for Financial Advisors I Learned from Eric Feng

 

I was browsing through YouTube for new things to learn and came across a video by Eric Feng. Eric Feng is one of the world's most acclaimed motivational speakers. His voice is broadcasted live over thousands of people around the world. He delivers speeches to thousands of people worldwide.

His mission is to help service professionals globally to become known, loved and respected. 

I found his content to be of value, and so I am sharing key takeaways with you in this post. Below are productivity hacks for Financial Advisors:

1. Have a strong why

As Financial Advisors, we are often faced with rejections, seen zones, criticisms, and disappointments, among others. And when these things happen, a strong why will give us the strength to persist until we succeed.

According to him, "When you don't find a strong why to stay in the business, you will have hundreds and one excuses to quit this business the minute you face a challenge."

I believe it's time we go back to our vision boards and ask ourselves why are we in this business to begin with? If you do not have one yet, create your mission statement. So that each time challenges happen, you will find a bigger reason not to quit.

2. Do not be scared of failing

I remember a quote from Thomas Edison. He said, "Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." FAIL is just First Attempt In Learning. And failure is just feedback. Do not take it personally. What matters is that we can always try again; and more importantly, we learn from these failures, and that we learn fast.

In addition, Eric encourages us to reflect on the following questions:

• What did I do/not do that led to this "failed" outcome?
• What can I learn from this?
• How can I do better the next time around?

3.  Do not be too salesy

According to Eric Feng, there is a fine line between being salesy and being helpful. When you talk about your products, you are being too salesy. But when you talk about problems you helped solve, you are being helpful. Instead of being product-focused, be customer-focused. 

4. Love insurance

Determine your energy level when you talk about insurance to your friends and prospects. Where does it fall below?

1 - Fearful

2 - Uncomfortable

3 - Apathetic (no feelings)

4 - Pushy

5 - Passionate

Fear may come from uncertainty. You also likely believe that your prospect has a negative sentiment towards insurance.

Discomfort comes from a lack of knowledge and confidence. You can overcome this through sufficient practice. 

Apathetic means you are not emotionally connected with what you are selling, that you are just providing information about your product. If so, your prospect will prefer buying from a website instead.

For number 4, you feel excitement during your presentation, but that becomes a problem as well, as this excitement merely comes from closing the sale. You become pushy, and thus becoming salesy.

The best energy level is at 5 as your equally excited and passionate because you know how amazing insurance is, and you are excited to share this good news to the person in front of you. Focus on your client's benefit, not on your benefit.

5. Do not expect overnight success

There are a lot of rewards that come with being a successful Financial Advisor. We often see the six figure monthly income, all expenses paid trips, luxurious vacations and a comfortable lifestyle. But what we do not see is the hard work, sacrifices, and long hours that have to be made in order to achieve this kind of success. 

Success is not overnight. But rather, success is over time. 

6. Manage your time well.

Time is our most important asset. Block time for prospecting and appointments. This means use your time intentionally. If we are not protective with our time, many other things will try to take away our time. 

Set aside time daily for prospecting, at least 10 hours per week. The goal of prospecting is to help you get leads, who you can then set for appointments.

As Eric Feng showed in his video, I began plotting my schedule in a spreadsheet.

Reasons why you need to block time in advance for appointments:

• Seeing the empty time slots will motivate you to fill them up with names
• If you don't block the time in advance, someone else will end up taking it away. It could be your mom, your friends, or your pet dog.
• It makes it easier to fix appointments with your prospects. Instead of letting them think of when they are free (which may take forever), you give them options based on your available time slots. This makes it so much easier to fix appointments.

7.  Do something after learning

Now that we have learned six productivity hacks from Eric Feng, nothing will change if you do not do anything about it. 

Thank you so much for reading until the end. I hope you find this post helpful, and you may share it by clicking the buttons below.

Got questions? You may also send me an email at financialplanningforpinoys@gmail.com.

Share in the comment section which of these hacks are going to work on in the next seven days. Be very blessed! 

Find Your Surrendered Place by Bo Sanchez

 

Allow me to share with you valuable snippets from this book, Find Your Surrendered Place by Bo Sanchez.

In this book, Bo will teach you to surrender fifteen attachments. Some of which are below.

On Surrendering Ego..

"But in the Surrendered Place, I saw how insane this was all was. Here's what I heard from God:

          Focus only on what you can do. I don't ask you to offer the success from the work of your hands, but only the work of your hands. This is enough. For your labor of love -- not the outcome of that labor -- is where true peace and happiness come from."

On Surrendering Your Fear of Death..

"Every day, as I tried to inhale enough oxygen to fill my weakened lungs, I realized how foolish I was not to think about my mortality.

Because my next breath is a pure gift.

It may be given.

It may not be given.

Here's what I heard from God:

          Unless you embrace the raw truth that your life hangs by a very thin thread that can snap at any moment, you will never know how to fully live with joy, gratitude and generosity."

On Surrendering your Stress..

"Every day, I surrender everything to God constantly.

Emotionally, I'm not attached to the outcome. 

I resolved in my mind that I cannot control results.

I can only control the work of my hands."

On Surrendering the Delusion that Life Continues Forever..

 

"First, go into meditation and quiet your mind for a few minutes. Be aware of your breathing. Be aware of God's presence around you.

Then ask yourself this disturbing question, "What if I were to die five minutes from now?"

When I think I will die in five minutes, suddenly all that becomes totally irrelevant. I no longer care.

Dear friend, live each day with total surrender.

This is how to have peace beyond measure.

Bo also shared Six Practical Steps to Overthinking

Step 1: Tell a new story

Step 2: Find safe people

Step 3:Make gratitude your core identity

Step 4: Enlarge your circle of control

Step 5: Move your body

Step 6:Absorb sunlight daily

At the end of the book, Bo says, "Finally, Apply What You Learned in This Book

Shift mental states.

Get into your surrendered place.

Be in the present moment.

Practice mindfulness.

Practice meditation.

Stop rushing.

Stop multitasking.

Surrender everything to God.

He then ended the book with two epilogues.

At the back cover, it wrote, "In 2021, Bo Sanchez had COVID-19 and his near death experience changed his life forever. Through that crisis, he learned to enter into what he calls the Surrendered Place. "I didn't want to leave. I wanted to live there for the rest of my life," he said of that place. Today, he enjoys inner peace amidst life's stressful situations. Now, he wants to share this spiritual gift with you."

Final Note

If you are like me wherein there are days when you feel overwhelmed with stress, I highly recommend this book, as it taught me to surrender everything to Him as I can only do so much. I have now learned to connect my limited resources to God's limitless power. I encourage you to offer your finite abilities and skills to Him, and claim His miracles in your life.

I have also began meditating, starting my day at 6am and joining The Feast's Summons to Your Surrender Place. You can check their Facebook page, The Feast PICC AM, and you may also join via Zoom HERE.

To get a copy of the book, visit www.feastbook.ph.

Be very blessed!

P.S. I hope you find this post helpful. If yes, kindly share this post so we can bless and inspire more people. Thank you very much!

Today is Our Kids' First Day of School, and How this Lead Me Back to my Passion and Purpose

 

Originally, we enrolled our kids for online learning this school year, just like the past two years. But during the orientation, I learned that online class will not be the same as before. After discussing the changes with my husband, we decided that face to face learning would work better for our kids, and so we immediately informed the school that we are making the shift. This was two weeks before the school starts. 

Among all other things, taking care of my kids has always been my top priority. I try my best to be as hands-on as possible. And so looking at their schedule, I asked myself, "How do I squeeze in time for work?"

And today, on our kids' first day of school, I was reminded of one of the biggest blessings of my work, which is TIME FREEDOM. I am a Financial Advisor of Insular Life, and it may sound as a cliche that we set our own schedule, but the truth is we actually do. 

Let me share with you my schedule for today:

I woke up at 630am.

Spent time on meditation, followed by breakfast. 

My kids were up by 730am.

I then prepared their breakfast, then began doing the laundry. (This, for me, is an act of love.)

They fix their bed, then later washed their plates.

At 10am, they began preparing for school.

I was done with my laundry, took a bath and at 11am we were already having lunch. 

We left home at 12nn. Their class starts at 12:20pm.

I then went to the grocery and did some errands.

To secure a nice parking space, which is nearest to the gate, I was back in school one hour before their dismissal.

I exchanged messages with my clients and posted on social media while waiting.

By 5pm, we were already home, enjoying our afternoon merienda.

And because it is my mother's birthday the next day, my daughters and I began making a DIY money bouquet for her. We were done two hours later.

We then had dinner at 730pm.

By 10pm, they were already in bed.

As for me, this is the time when work begins (think night shift). As I am writing this now, it is already 1:24am. And the funny thing is, although I have been up and about for the past 19 hours, I do not feel that tired at all. 

And tomorrow, I will be delivering a policy to a client while my kids are in school.

Thank You, God.

Prior to this blog post, the last one I wrote was more than three months ago. I used to write almost every week. 

What happened?

Just like many of us, I had a long list of to-do's, and feel that I have so little time. And today, God reminded me to delegate what I can, and focus on developing and delivering the gift that He has planted in my heart, which I believe is writing. I got 80% of my clients because of my blog. 

My posts have blessed many, and God has abundantly blessed me, too, through it.

I am an introvert, and although TikTok and reels are the "in" thing now, I remind myself of what I read in the book The Abundance Formula.

It says, "God has given you a song to sing -- and an audience who like that song. Focus on that song and that audience."

It does not matter what you do. The world is your stage. You have an audience, and your audience is begging you to give your best performance every single time.

Be very blessed!

P.S. Would you like to take your shot at this career as an InLife Financial Advisor and enjoy the perks of working from home and have the time freedom to take care of your young kids? Email me at financialplanningforpinoys@gmail.com.

Develop the Habit of Paying Yourself First

 

I recently became part of a financial Facebook group, and there I realized that I am not alone; that there are many of us who are part of the Sandwich Generation, who have been working for years but on some days we feel "stuck" where we are financially as we need to support our aging parents while building the life we dream for ourselves, and for our own family.

Instead of feeling "stuck," let us feel blessed for having the capability to support two generations, and still be able to live the life of our dreams. As what I recently heard from a podcast, Ms. Eleanor Lee Teo said, "The money we make is not for us, it's for other people. Being able to manage your money is a superpower, that not everyone has the gift; but we all have the opportunity to learn it. So please, make it a priority. Learn it, understand it, harness it; and when you do, go out and help other people. Do it for them. At the end of the day, I promise you, it will be the most fulfilling thing you've ever done in your life." (I will be sharing more of this in a future post.)

Let me share with you what I have learned over the years..

-----

Today is payday. Yay! And while there is this unending list of things we need to pay month after month -- from insurance premiums, monthly loan amortizations, bills, groceries, gas and toll allowance, Shopee finds, etc. (the list goes on..), I hope that you are making it a priority to PAY YOURSELF FIRST.

Admittedly, this is one of the worst financial mistakes I have made in the past, which taught me a very valuable lesson.

And I am sharing this with you here so that you can avoid committing that same mistake.

My Personal Story

It was in 2013 when I found myself flat broke and living paycheck after paycheck. Because I was well compensated at work, with bonuses and incentives, I spent my money knowing that my payroll account gets replenished two weeks after.

Every time I would get a salary increase, my standard of living also increases. This is what we refer to as lifestyle inflation.

Then one day, it hit me. I was already in my early 30s then and have been working for more than a decade. Although I did not have any liabilities, sadly, I did not have any assets either. It was a rock bottom moment and at that point, I had the humility to admit that I was broke, and made the decision that I want to get out of that cycle.

I Became a "SEMINAR-ian"

From spending money on stuff, I began investing first in knowledge. I signed up for the Truly Rich Club. I bought and read financial books. 

I attended one seminar after the other. I attended the Wealth Summit, Money Summit, and even the Franchise Summit.

And because these seminars are paid (as charging a fee separates the committed from the non-committed), I made sure that I apply the things I learn from the speakers.

Then I enrolled in an Online Marketing Course and Book Writing Course, which I came to know from the seminars I attended, as I was searching for other ways to grow my income while I was also in the process of lowering my expenses.

That Online Marketing Course led to the birth of this blog, which has been my way of reaching out to as many people as I possibly can. As an introvert, this blog is my way of sharing my message to the world, and blessing and serving others.

I Began PAYING MYSELF FIRST with 20 Percent of My Income

My mantra became, "Twenty percent of what I make is mine to keep."

Aside from my day job, I tried a lot of side hustles for that additional income. I sold brand new clothes from Bangkok, sold ukay-ukay, organized farm tours, became an affiliate marketer, became a distributor of an organic liniment, and became an insurance agent. I wanted to earn as much as I can so I can retire from work as early as I can.

And where did I put this twenty percent?

I began investing in the Philippine stock market, as this was the easiest and most affordable way to start. I opened an account with an online stockbroker with my Php5,000, and bought minimum shares of stocks of blue chip companies payday after payday.

I also insured my future income by getting my first life insurance policy.

By God's Grace, I was able to quit employment in 2018..

My ultimate goal was to be able to quit employment and be able to take care of my very young daughters as a full time mom, and do everything else on the side.

By God's grace, I was able to quit employment in 2018. My ultimate goal has been ticked off! From seeing them four times a week when I was still working, to waking up next to them every single day! It was pure bliss! I was not only witnessing them grow over the years, but I grew with them as well. Our bond  has been the closest! 

And because my husband has been providing for us, always giving us more than what we need and what we could possibly want (let me also take this opportunity to honor and thank him for being the best husband and the best father anyone could possibly pray for), I stopped having new dreams. I stopped having big dreams. I did not only retire from a job, but I retired from life.

And today, four years later, I am making a bold decision not to live that way anymore..

It was such a blessing that I came across the podcast episode I mentioned above. It was as if God was speaking to me through her message. And I also remembered what I have read from the book Hey, Is That Really, Really You, Lord? by Rey Ortega years back. He said, "Retirement is an insult to God who has blessed me with a heart that keeps on beating for the dreams and hopes of others."

Final word.

Developing the habit of paying yourself first is not for you alone. It is not just for the fulfillment of your dreams. But also be able to help fulfill the dreams of others through you. I pray that we learn to live a life bigger than ourselves, so that we continue to grow as much as we can, earn as much as we can, and be able to give as much as we can.

Wake up everyday with that burning passion, and there will never be a day that you will feel "stuck" again.

Be very blessed!

P.S. I hope you find this post to be of value. If you think someone you know can resonate with the message I am trying to convey, kindly share this post. Appreciate it very much!

Investing Is Just A Plan

For the past two weeks since we had our 2022 Market Outlook with WeLead Advisory, an independent company that spends more than Php2M every year mainly on research, I have been on Zoom meetings with friends, relatives, and doctors who I used to cover when I was still working as a medical representative. I have known them for at least ten years. Some of them have also attended the Market Outlook, and decided to take the investment opportunities presented during the webinar.

In less than two weeks, I was able to collect a seven digit amount of total premiums (investments) from merely three clients! That is the highest I have in such a short period of time! And this is not to brag. But to share with you what I realized -- people want to invest, they are looking for ways to invest, and that they have money to invest. 

Why and how?

Because of the pandemic, these clients have increased their income, and have also increased their savings. And now that inflation is at 3% last January 2022, and time deposit rates are on an average of 1.2%, people are looking for ways to grow their money. They are investing for their long term financial goals, and are willing to take only a minimal risk.

Specifically, a client said, "Ma'am Joan, basta ang gusto ko lang, kumita ung pera ko after more than five years. Ma-beat man lang ang inflation." ("Ma'am Joan, all I would want is for money to grow in more than five years, and be able to beat inflation.")

Honestly, this is also what I would want for my own money. For me, a small profit is better than a big loss. And this is why I closely monitor my investments, and this is also what I do for my clients. Prior to policy signing, I tell them that I will be regularly sending them updates that will have an effect on our investments. And they appreciate that. I also make it known to them the investment strategy that we will be doing, and that I will be inviting them in Market Outlook webinars in the future.

One of my recent clients have attended the Market Outlook last February 12, and still attending the rerun happening this Friday, March 12. My other clients are also very much looking forward to attending the rerun, too!

Why?

Because they know that this webinar is of so much VALUE! And it is! As a matter of fact, I guarantee you, that you will definitely learn at least a thing or two from this 2022 Market Outlook!

But Investing is Just a Plan

As I have read in Retire Young Retire Rich by Robert Kiyosaki, investing is just a plan. As Rich Dad would say, "A plan is the bridge to your dreams. Your job is to make the plan or bridge real, so that your dreams become real. If all you do is stand on one side of the (river) bank and dream of the other side, your dreams will forever be just dreams. First make your plan real, and then your dreams will come true."

Investing is just a plan, a bridge towards our dreams.


What is your dream?


Your dream may be starting your own business and generate jobs for others.


Or be able to send your kids to college, and confidently finance until they become doctors, too.

Or have the money for your dream wedding, your first dream car, or your dream home.


Or maybe to get out of debt and not worry about your next bill coming.

Or be able to quit employment, have more time for your young kids, and have a career that provides an income which commensurates your effort. This was my dream. And I am happy that after almost a decade of investing later, I was able to fulfill this big dream. And now, I am investing for new dreams!

Final Word

I encourage you to dream big, start small (or big), and most importantly, ACT NOW!

As mentioned, we are having a rerun of the 2022 Market Outlook with WeLead Advisory this Friday, March 4 at 6pm onwards. If you are interested, send me a message on Facebook or you can email me at financialplanningforpinoys@gmail.com and I will send you the Zoom details. (No registration link, open for all, but slots are LIMITED!)

I hope you find this post helpful and would really appreciate if you can share it! Thank you very much in advance!

Be very blessed!

The Three Kinds of Income: Ordinary, Portfolio and Passive

I work as a salesperson. Since I became a full time Insular Life Financial Advisor, I earn from every issued policy application that I am able to close, both from initial and renewal premiums for up to a certain number of years. That is my ordinary income. Also called as active income, it is man working for money. 

A couple of weeks ago, I received an email from Insular Life notifying me of dividends from my small investment allocated on the Global Multi Asset Income Paying Fund. 

And just today, I was surprised to find out that the value of the residential lot we purchased three years ago at pre-selling rates, payable in three years at 0% interest (talk about great deals!) have gone up by 25%!

These are our portfolio income.

 
Recently, with Insular Health Care and InLife Store, I am an affiliate marketer. I promote simple issue products available online, shared on my social media, and when someone makes a purchase using my unique affiliate link, I earn a small commission.

And with Insular Life's Recruitment, every time I have a recruit who passes the licensure exam and gets coded, I earn a referral bonus. In addition, I get a percentage from my recruits' closed businesses for the first 12 months, which is another bonus from Insular Life.

With regard to my personal production, aside from my commissions, as long as I meet the required number of submitted policies and persistency rate, I earn a Persistency Bonus every payday, also from Insular Life.

These are my passive income.

This made me realize what Robert Kiyosaki was referring to in his book Retire Young Retire Rich about the three kinds of income.

Three Kinds of Income

Ordinary Income

        Ordinary earned income is you working for money. The more you work, the more you earn. You exchange your precious time for this kind of income. This income earns in the form of a pay check. When you ask for a raise, bonus, overtime, commissions, or tips, you are asking for more of this type of income.

 

Unfortunately, this is the kind of income that many of us only know of. And very few people get rich through ordinary income. Remember that every time you get a raise, so does the government.

Portfolio Income 

        Portfolio income is generally income from paper assets such as stocks, bonds, and mutual funds. A vast majority of all retirement accounts are based on future portfolio income. In my case, I have started building my portfolio income through the ordinary income I earn.

Passive Income

        Passive income is income from a business, affiliate sales, real estate or it can also be a royalty income from patents or for use of your intellectual property such as songs, books, or other objects of intellectual value. This is money working for you so you can use your time in doing something else you love, or sometimes even enjoy the art of doing nothing.

While You Work For Money, Let Money Work For You, Too

I was exchanging messages with a client today and told her about the usual goal we hear which is "early retirement." Everyone wants to retire early. When I was employed, I wanted that, too -- so that I can spend more time with my kids.

In 2018, after 15 years of being employed, I quit my job before my 36th birthday. But I never retired from work. Instead, I chose a job that does not feel like work. How so? Providing content through this blog is part of my "job" of giving value. As I write this now, it is 10:54 pm. I can do this tomorrow, or next month, because I do not have a deadline for this. And yet, here I am, wanting to finish this tonight after spending the whole day engaging with clients. 

To add, the people I know who love what they do never retire either. Think of doctors for example. I remember one time while we were in Nueva Ecija on a weekend. My husband, who is a surgeon, received a call from a hospital in San Fernando, Pampanga. He left at 7pm, drove for two hours, did an operation, and was back in Ecija with us past midnight. No dragging of feet needed.

Long story short, work for as long and as much as you can. There is absolutely nothing wrong with that. But let your money work, too, even harder than you do. Remember that money does not sleep, get sick, or go on vacations. It works even while we sleep.

Use your ordinary income to grow your portfolio income. And look for ways you can earn passive income. 

Insular Life Provides Me With More Than Just One Income

Writing this post made me realize that my work as a Financial Advisor with Insular Life provides me with multiple income streams. Aside from the ones mentioned above, there are even regular sales drives for additional bonuses. 

True enough, love your business, and it will definitely love you back.

P.S. If you want to try being an InLifer, we are open for part time and full time Financial Advisors. If you are currently employed, you can start doing this as a side hustle. This used to be my side hustle back in 2013 and fell in love with it. You can email me at financialplanningforpinoys@gmail.com and I can walk you through the process, regardless of where you are in the Philippines.

P.S.2 Have extra funds sitting in the bank, and want to start receiving monthly dividends from InLife's Global Multi Asset Income Paying Fund? Email me at financialplanningforpinoys@gmail.com to know more. 

To financial freedom,

Joan

Stop Loading On Cheap Junk

Let me share with you a paragraph that struck me while reading Retire Young, Retire Rich by Robert Kiyosaki.

"Rich dad said people try to become rich by being cheap, being frugal, not spending money, living below their means, and scrimping. Most people do not become financially strong with that kind of behavior. A person needs to spend more if they want to become rich, but they must know how to spend and what to spend on in order to become rich. As my rich dad said, "There are good expenses and bad expenses." And most of us know that there is good food and bad food. Just as a person tries to lose weight by starving, a person who tries to get rich by being cheap only gets financially weaker, and then suddenly they too go on a binge. And as a binge eater will load up on junk food, the binge spender loads up on cheap junk."

It Is Smart to be Thrifty, But You Don't Want to be Cheap

Two weeks ago, I was having a conversation with a friend who wants to start investing in the stock market. He was asking me a lot of questions via Messenger so I thought that maybe he would prefer that we talk personally. Initially, he agreed. But when I jokingly asked where he will treat me for coffee, he changed his mind. LOL. (Though he knows that we can always do Dutch!) 

During one conference I attended, on the other hand, our stock market mentor Mr. Edward Lee shared that there was a time when he saw an old client while having dinner at an expensive restaurant. Before leaving, Mr. Lee paid for the old client's bill without telling him. The client appreciated the gesture. Unexpectedly, Mr. Lee received a call from him for a transaction that brought millions to his business. Paying for that dinner, no matter how much it actually cost, was definitely worth it. 

I think the key to wise spending is simple. Know when to be frugal, and know when to splurge.

If You Bought an Item You Don't Really Need at 50% OFF, is that Savings or an Expense?

Stop being a binge spender and loading up on cheap junk. Instead of buying too many clothes, or shoes, or bags every time there is a SALE that will only fill up your closet (wherein you would eventually need a bigger closet), why not shop for investments that are on sale to fill up your portfolio instead?

You can start by investing in the stock market. I challenge you to start filling your stock market portfolio with BIG companies. 

Take advantage of the election season and invest in the local equities.

Or take your investments to the next level through global investing -- YES! Even without converting your peso to dollars. The fund will do that for you!

It would be nice to own even a tiny part of BLUE CHIP companies, especially those which pay dividends!

If you want to learn how to invest directly in the stock market, and have the time to do so, click here.

Otherwise, you may invest through your favorite financial institution, and let the experts do what they do best -- both for your local and global investments.

Insular Life, the first and largest Filipino-owned insurance company, recently launched its GLOBAL MULTI ASSET INCOME PAYING FUND which allows you to buy shares of dividend paying companies across the United States, Europe, United Kingdom, Asia Pacific and the Emerging Markets; and a diversified portfolio, too, including equities, REITs, Fixed Income Fund, among others.

With this fund, you grow your money through capital appreciation and dividends which are given as monthly payouts deposited directly to your enrolled bank account.


I believe that the key to financial freedom is knowing where to spend your money on. Stop buying liabilities (which you thought were assets) and start buying real assets. Simply put, although many are still confused, an asset puts money into your pocket. A liability takes money out of your pocket. And again, financial literacy is very important.

Happy investing!



P.S.

Finally decided to start investing? Interested with InLife's Global Multi Asset Income Paying Fund? Email me at financialplanningforpinoys@gmail.com.

How To Live Rich For Less (Part 2)

In the previous article, I have shared a few tips to save money so we can invest more for our future. I believe that through the years of our existence on earth, millions of pesos have already passed through our hands. And I'm sure millions will pass through your hands in the years to come. The problem is just that we spend it all.

Below are few more strategies for saving money on entertainment.

1. If you enjoy movies

My husband is a movie buff but he would never invite me to watch a movie at cinemas even during pre-pandemic. He says its expensive. 

If you are my age, more or less, and have experienced renting at Video City and buying DVDs, that is what we often do. We have saved so much by doing that!

And with the availability of streaming platforms today, a month of subscription only costs one movie ticket! 

2. If you enjoy restaurants

Instead of dining at a full-price restaurant, hunt for a discount through a social coupon services. Even FoodPanda and Grab offer discount vouchers. But these limit your restaurant choices. How can you save if you want to dine at a specific place?

Going for Happy Hour is one option. Many restaurants offer great deals on specific menu items at off-peak times of the day. Call the restaurant you want to go to, and ask if they have either a Happy Hour or a Monday night or Ladies Night Special.

Another option is to go out for “inner” – that’s dinner without the “d” (without drinks and dessert). If the drinks and dessert are the part you love the most, then JUST order drinks and dessert and skip the dinner itself.

3. If you enjoy shopping

If you are like most people who love shopping for the sake of shopping – for its entertainment value – why not go without your wallet? Sounds crazy, I know. Or bring a certain amount with you, within your budget, so you don't overspend. Window-shop, admire handbags and shoes, gaze at jewelry, exclaim over this season’s new line of clothing.

Lately, I window shop at Shopee, just for the fun of it. Keep them in my cart, but I only checkout things I really need. And for the past two months, 1.1 and 2.2 already passed, but I have not made any purchase.

Just be cautious with window shopping because you might have the tendency to desire things that are beyond your budget.

One Thing I Do Not Scrimp

There is one area where I spend a lot. And that is personality development.

I buy books and attend seminars. The birth of this blog is from a five-digit online marketing course I enrolled to. As Warren Buffett said, "The more you learn, the more you earn." And the money I have invested in learning has already came back a hundred folds. 

By investing in personal development, we increase our value. So, the more value we have, the more we attract "symbols of value" (money) in our lives.


And the more money we have, the more we can bless others with.

How have you increased your value? Share it in the comments below!

How to Live Rich for Less

We all dream of achieving our first million and retire as millionaires. And the way to do this is to keep working for money, and also let our money work for us through investments.

We can have additional income sources and we can also lower our expenses. Let me share some of my wallet-friendly habits that you may consider trying.

Lower your Electric Bill

1. We sleep in one air-conditioned bedroom. 
2. We changed our lightbulbs to CFL. You'll use 75 percent less energy, and you will notice the decrease in your electric bill. CFL also lasts 10 times longer than regular bulbs, so that is additional savings.
3. We changed our really old appliances. Do you have ancient refrigerators and 15-year old airconditioners? You may think you're saving money by not buying new appliances. New refrigerators and airconditioners have energy-saver modes that save you 25 percent off your electric consumption. 

Lower your Phone Bill

     I have a postpaid plan which I renewed las June 2020 with a 10GB data allowance. Pre pandemic, I have never used up all of this data since most places I go to have wifi. And since I have been working from home and I rarely go out since the pandemic began, I only consume less than 1GB every month. I plan on getting a lower plan when I renew. 

Lower your Dining Expenses

1. When dining out with friends or relatives, suggest to order large meals to share instead of ordering ala carte. This way, you not only get to save a bit, but you also get to maximize money.
2. Save on drinks for yourself. I believe that water is the best beverage in the world, no sugar and no calorie. If I eat out five times a week, save P40 per meal, that's P200 savings per week or P800 savings per month. Invested for 20 years at 12% interest growth, that would make me P750,000 richer. 

Pay in Cash

     This is my rule whenever I shop. I do not like things I cannot afford. But if I really like it and I can't afford it yet, I will wait until my next income arrives so I can pay it in cash. Appliance and gadget dealers usually offer additional discount when items are paid in full. 

On another article, I will give you more ways on how to live rich for less.

Share your #tipidtips on the comment below!