Category Archives: Finance Tips

10 vital health insurance guidelines for entrepreneurs

The growing population of small-medium enterprise in the country needs to be covered by Health Insurace.  One of the most common issues and concerns of SME’s today is when they get sick for days, their business usually gets affected. Worst thing that may happen is if they are not covered by any Health maintenance organization or health insurance benefits when you get sick. The possible results are either you may spend a hefty amount of money for your sickness or experience bankruptcy if you don’t have any savings account during the rainy days.

There are plenty of ways on how to identify a really good health insurance that provides quality health care. Aside from the basic health care needs such as hospitalization and preventive healthcare services one must look for these 10 things.


  1. Legitimacy of the Company – The insurance commission is the primary organization that is responsible of taking care of the insurance industry. The commission is accountable of revoking the licenses of those companies who are not following the guidelines or misleading the public. It is for public safety and protection. They also share meaningful information regarding the details of each possible company you are dealing with. But remember to do your homework, have a keen check about the details of the company thru different websites, reviews from forums and final reminders. It doesn’t mean that if they got the lowest amount of premium payment means they are already best for you. Look for giant healthcare conglomerates who are partnering with them to check the quality of the service as well.


  1. Individual and Family Plan – It is somewhat alarming that there are family members who have no insurance to secure them and yet they are jobless or in the elderly stage of life.  Finding a package like that will not only  help you or your primary beneficiaries but will solve the issue of what will happen to your ageing parents if some emergency conditions occur. It will  also prevents you from taking a lot of burdens on the amount of money you will use .The benefits must have Hospital confinement, Outpatient care, preventive healthcare, emergency care, member’s financial assistance and sometimes dental care.


  1. Specified Benefits include – The inclusion of detailed benefits is really important to make sure that you will experience the total value of your money. The possible specific benefits are the following according to industry standards, for examples are regular annual physical examination, Urinalysis, Chest X-ray, Complete blood count, Fecalysis (Stool exam), once or twice a year Oral prophylaxis, and consultation with the primary care physician.


  1. Provisions regarding pre existing conditions – Most of the health maintenance organization are having “NO” PEC coverage such as illness or adverse medical condition prior to the sickness and within the twelve months from the time they enrolled to the program. Some HMO’s are requiring every members who have PEC such as disorders of skin, lymph glands, cysts, tumor or cancer, anemia, chest pain and diabetes to pay up to five thousand pesos and above per illness per year, provided that the pathogenesis or onset of such illness started prior to or during the first year of membership


  1. Locations of the hospitals – One of the major concerns of a person who would like to have health insurance are the locations of the accredited providers – it would be better if there’s close to 500- 1000 hospitals and clinics all over the country that’s affiliated with your health card in order for you to get an access to quality health care as well..

  1. Clinic Services – This is a must have since this is urgent to most of the Filipinos. These are the following Clinic services most popularly known and being offered in the market today. Dental services such as oral prophylaxis, tooth extractions, gum treatment & adjustment of dentures. X-ray imaging, ultrasound, hematology, clinical microscopy, blood chemistry, serology and histopathology. Issuance of outpatient consultation referrals is the biggest in demand today to avoid big payments in the hospitals.


  1. Outpatient Services – There should be clinics strategically located in key cities near you. This is an advantage just in case you experience family emergencies; it will save your energy, stress and money.


  1. Customer Service – We believe that customers deserve better treatment and love companies who exceed their expectations however, we cannot deny the fact that we love fast and smooth transactions. The customer service of every healthcare company should be above average and free from discrimination regardless of your plan. If you enroll to an HMO, have minimum requirements from them so you won’t be disappointed at a later time.


  1. VIP Plan – Nothing can ruin a perfectly-planned vacation or business trip if you are unprepared during medical emergency. It would be better if your card is enrolled in a VIP plan to secure your stay outside the country or going for a consultation and evaluation with their medical personnel, medical referrals and medical monitoring. Double check the plan especially if the premiums are way higher compare to a regular healthcare card. You can have executive check up and have more options compare to a regular one.
Company Benefit Limit Outpatient Benefit Pre-existing Condition Accidental Death Monthly Premiums
Medicard VIP Plan Suite 700,000 Yes Yes 20,000 5578.58
Medicard VIP Plan Large Private 450,000 Yes Yes 20,000 3811.08
Medicard VIP Plan 250,000 350,000 Yes Yes 20,000 2090
Maxicare Silver 60,000 Yes No 25,000 1199.17
Maxicare Platinum Plus 200,000 Yes No 25,000 3458.83
Maxicare Platinum 150,000 Yes No 25,000 1923.5
Insular Life iCARE C 150,000 Yes Yes No 2028.33
Insular Life iCARE B 120,000 Yes Yes No 1386.67
Insular Life iCARE A 100,000 Yes Yes No 1155
Fortune Care Plan 900 180,000 Yes No No 1123.83
Fortune Care Plan 800 160,000 Yes No No 1089.17
Fortune Care Plan 700 140,000 Yes No No 1054.5
Blue Cross Select Standard Plan – Ward 500,000 Yes No 25,000 504.25
Blue Cross Select Standard Plan – Suite 3,000,000 Yes No 100,000 2076
Blue Cross Select Standard Plan – Semi private 750,000 Yes No 50,000 828.08



  1. Perks – There are exclusive perks and discounts whenever you use your card, such as travel, dining, fashion and more. You may also have free services in Spas which includes diamond peel at different clinics, yoga classes, weight management and nutrition program. Try to ask or look for these things while shopping for your health insurance, this may not be one of your priorities but you cannot deny the benefits of a good perks.



David Isaiah Angway is a Registered Financial Planner,  Chartered Wealth Advisor and a financial consultant for IT-BPO-Banking, HealthCare Industry and Manpower Agencies. He is a conference speaker and was featured multiple times in ABS-CBN News Channel show called On the money, Bloomberg TV Philippines First Up, Morning show of NET 25 called Pambansang Almusal, Eagle Broadcasting Company EagleNewsPh Facebook Live and different radio stations in Metro Manila.


He also writes for BusinessMirror,, and MoneySense magazine.  He is the CEO and founder of WinLongTerm Financial Consultancy, You can contact him thru his website and his Facebook Page @WinLongTerm for more informative ways how to grow your money and secure your family.


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Filed under Finance Talk, Finance Tips

13 guiltless ways how to spend your 13th month pay

Every year many employees and workers are expecting to receive their 13th month pay. It is also a very tempting time to increase their spending power at the last quarter of the year. Now, the dilemma is many of the regular employees are clueless on how to properly spend it in such a way that they won’t be guilty after. Here are 13 ways you can maximize your bonuses wherein you won’t be disappointed and guilt-free.


  1. Pay all your debts – There are lots of corporate employees who can afford to own a credit card especially in urban places but there’s also a tendency of getting lured not only to have one credit card but owning 4 cards in a row. A huge bait in having a massive debts may occur. So once you receive your bonus, make that amount a means to pay your debts, if not enough still it could lessen your burdens.   
  2. Create a rainy days fund– Murphy’s Law says that whenever you don’t have rainy day funds the rain always keep on coming. In order for you to prepare for those untimely problems a simple rainy days account must be established. It must be three to six months worth of your monthly needs expenses. Without it, you may experience big debts since you don’t have any safety net once you got hit by an unexpected catastrophe. 
  3. Open a savings account – Some of the Filipino employees sad to say, only owns a payroll account and aside from that nothing .Open a savings account but you need to maintain it. The main purpose of it is not for your money to sleep but to have proper allocations to important priorities so that you can save for the things that really matters to you. 
  4. Buy books and attend financial seminars –Either you are earning big or small, you should still increase your financial IQ in order to remove your fear. Those things that you don’t know, you will hate and when you are not open to learn new things, you are pushing all your dreams backward. Building your Financial IQ brick by brick can change your life. 
  5. Get a life insurance– An old joke says, “The only reason why you don’t need life insurance is when no one is going to cry when you die”. Indeed, you need one since you have a family that needs to be protected in case of your unexpected demise, sickness or accident. You are highly valuable; your ability to earn funds is irreplaceable. 
  6. Invest for your future – Whether it is a stock, mutual funds or real estate, it is a must that you need to prepare and strategize. You won’t be a millennial traveler forever if you keep on draining your savings. If you cannot sustain the cost of having that lifestyle ‘till 60 years old start changing your habits. Check your priorities and look at your financial goals according to your resources. 
  7. Buy a business or franchise – Franchises nowadays have a ready made system. You can easily go thru with it but you still need to be on the business to look at the possible projections. I just want to emphasize that there’s always a risk in every business and is not an automatic success. You need to take care of it like your handling your own child. 
  8. Enroll in short courses – Short courses is getting popular nowadays, either it can be online or in a real classroom, you will surely learn something new. The money you invest in this course can give you another edge especially if you will earn a title in your name. It will not only increase your competence but will give you a really good brand.
  9. Have a health insurance – 90% of the millennial that I interviewed would like to retire in between 45 to 55 years old. They didn’t see life working ‘till their sixty and many would love to have a second career as an entrepreneur. If you have that kind of perspective, it would be better to enroll yourself with another health cards  while the premium is still very low, compare to getting it when you finally retire. 
  10. Hire a financial advisor– When you hire a coach, you will not only get his expertise but also his experiences. You must capitalize other people’s talent in order for you to manage the risks and to minimize the mistakes you may encounter. Let someone create a plan for you and encourages you to save a lot of money in a long run. 
  11. Give a gifts to your love ones – This quarter is also known a season of giving and you can exercise being compassionate by finding a charity, a local church or sponsor a non-profit organization to make their projects a reality. 
  12. Invest it to social enterprise– I’m a big follower of social entrepreneurs today. They are customer driven and also uplift a certain community in the country at the same time. A company called “Cropital” whose technology is serving farmers who needs to get funds to have a capital to grow their crops, and after a couple of months, the investors will receive a dividend from the earnings the farmers got.  
  13. Use it for a vacation fund– There’s a study in the United States that as a human being, travelling helps us to grow and opens up our mind to different perspectives. But do not invest all your bonus to a vacation fund since this will also be an excuse fund for you if you haven’t prepare for the rainy days.


David Isaiah Angway is a Registered Financial Planner, Chartered Wealth Advisor and financial consultant for IT-BPO-Banking, Health Care Industry and Manpower Agencies. He is the CEO and founder of WinLongTerm Financial Consultancy, that helps organizations retain their top key employees such young urban and educated millennial (Gen Y) by teaching practical money management in the workplace. For more information and concerns subscribe to, Facebook page or contact him at, mobile number 0932-445-0145


This was also published in BusinessMirror


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Filed under Behavioral Finance, Finance Tips, Financial Advice, Financial Coach, Financial Coaching

7 Things You Should Focus On Between You, God and Your Finances

Guest post by Jennifer Yang

As a fresh graduate in 2010, I’ve always had difficulty keeping my finances in good shape. It took me 4 years to finally focus in finding a solution and even ask for help to solve my financial hurdles.

Last 2014, a good friend of mine gave me a book about finances and it’s role with God, entitled Rich For Life, more so this is the year that I surrendered my life to Jesus. That year, was when I finally made a decision to focus on improving my finances and my relationship with God. God certainly heard and answered my prayers. He placed me in a church that helped me grow my faith in Christ and He also lead me to my mentor in personal finance. Little did I know that my mentor would also turn out to be my best friend and husband-to-be. 🙂 ‘What you focus on will grow’ is the exact phrase to my experience.

Two years has passed since then and I’ve overcome financial and spiritual challenges by the grace of God and the people He has placed in my life. But what I want to emphasize to you are not the technicals nor strategies on personal finance. Instead, I want you to focus on what is truly important between you, God and your finances.

You, God and Your Finances

You can learn all the books, articles and even strategies in this world with the best mentors available, but without the proper perspective and focus you’ll lose sight of the most important things. I’ve listed down 7 points you should refocus on and also to see if your perspective in order.



1. Focus on God as the Blesser, instead of the blessing He gives

During the time when I was spending more than what I am earning, I would always pray to God for provision. It was as if I’m looking to God as my genie who will grant my every wish. The blessing came, the provision covered what I needed but I was content. It was a cycle of asking God for provision, misuse of finance and then still feel lack. Have you ever felt the same way? I’ve learned that what I was yearning then was the blessing, the provision which will never satisfy my needs nor make me feel content.

Luke 4:14 ESV
“..but whoever drinks of the water that I will give him will never be thirsty again. The water that I will give him will become in him a spring of water welling up to eternal life.”

Money and well managed finances are necessities in this world, but they will never give is true happiness and contentment no matter how big the amount is. Only Jesus can give you a full life from which you will never feel lack and thirsty. Find Jesus and invite Him into your life and provision will always come even at the most unreasonable and impossible situations.


2. Focus on being God’s steward, instead of having entitlement to your finances
Since God is the blesser and all of the blessings come from Him, therefore God owns everything. God is the creator and everything belongs to Him.

Psalm 24:1 ESV
The earth is the Lord’s and the fullness thereof,[a]
the world and those who dwell therein

Yes, even the hard-earned money you have belongs to God. Then, what are our roles with the provision and wealth He has given us? We are God’s stewards. Once you understand that we do not own anything in this life, the feeling of entitlement will be gone and it is much easier to give and share to others. God knows our needs and once he knows that we are focused on honoring Him and glorifying Jesus, He will entrust us with His treasures and have us managed them. When we focus on God, wealth and multiplication of finances is much easier.

Malachi 3:10 ESV
10 Bring the full tithe into the storehouse, that there may be food in my house. And thereby put me to the test, says the Lord of hosts, if I will not open the windows of heaven for you and pour down for you a blessing until there is no more need.



3. Focus on real wealth rather than richness and money
Have you ever heard of the story of King Solomon? Yes, King Solomon who had wealth beyond anyone has ever accumulated in the history of man, including fame, wisdom and women. And you would think anyone who has immense possession and stature will be content, happy and worry-free. Think again. Read the whole chapter 5 of Ecclesiastes, it is even entitled ‘The Vanity of Wealth and Honor’.

Ecclesiastes 5:10
10 He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity.

What then is real wealth? Real wealth can never be found here in this world. Earthly treasures and those what men deemed to be of importance to be pursued is worthless. Heavenly treasures are the ones our hearts must yearn for. We should long for Jesus, to honor Him and glorify Him. To be the women and men that is after God’s heart.



4. Focus on your Purpose instead of financial problems
Never was there a season that we will not face difficulties and problems even in our finances. Truth is, nothing will be solved if you focus on your problems. To feel sad, disappointed and frustrated is not a bad thing, but mulling over these negative emotions are not productive nor will it do you any good.

Every winner and successful person has faced trials, but the difference is their focus. They focused on their purpose, the purpose that God has entrusted them to fulfill. Remember these words: When God has a purpose, provision will always come. 🙂 And this is only be possible through Jesus Christ! No matter what others will tell you, not whatever deceit or lies the enemy will whisper to your ears and heart, read and never forget these words:

Philippians 4:19 ESV
19 And my God will supply every need of yours according to his riches in glory in Christ Jesus.




5. Focus on financial education rather than quick gains
I’ve once been a impatient youth and has searched for quick profits and gains in the wrong places with the wrong focus. In short, I lost Php20,000 with and investment turned into a scam which what I thought was the ticket for me and my family to wealth. There is no such thing as a get rich quick scheme. That is too good to be true. Learn it from me and the rest of the financial advocates and victims from scams. Solid finances can only be gained through proper financial education and slow but steady discipline in growing your investments and legal businesses. Even King Solomon knows about it all too well in the book of Proverbs.

Proverbs 13:11 ESV
11 Wealth gained hastily[a] will dwindle,
but whoever gathers little by little will increase it.

Learn and be mentored by financial advocates and educators on the basic foundations of finances and investments. Before putting down your money on any investment, do your research, ask, learn the risks that are involved and managed your hard earned money well. Financial education is your first line of defense against scammers. Make financial literacy your priority over ROI and gains.

Proverbs 15:22 ESV
22 Without counsel plans fail,
but with many advisers they succeed.




6. Focus on savings and investments, instead of spending
Saving and investing are habits, so is spending. Whichever you practice and focus most can determine your future financial status. Save up for emergencies, invest in your dreams and goals, and do not spend beyond your means. Prioritized your responsibilities such as utilities, paying your debts, provision for your family’s needs and for your future needs instead of splurging and spending it on unnecessary things. Go back to point one and keep in mind that you are a manager of God’s blessings, thus you must develop the discipline to save and grow the money that God has entrusted you with. If not, you will surely end up in poverty.

Proverbs 21:5 ESV
The plans of the diligent lead to profit as surely as haste leads to poverty.




7. Focus on winning long term rather than short term gains
This life is a marathon, a long marathon and everyone has different paths and stories. But only those who stay focused with long term goals and purpose in their life are able to sustain and win the race. There are far more precious goals than gaining wealth and finances. Life is too short to waste it on something as common as money. Earthly treasure will soon fade but only heavenly treasures will last for eternity. When you understand and accept the purpose that God has given you, only then will you find your long term goals. You only have one life to live, live it well, make the most out of it and win long term rather short lived gains. Lay down your life and passions to goals that truly matters and will never fade.

1 John 2:16-17
16 For all that is in the world—the desires of the flesh and the desires of the eyes and pride of life[a]—is not from the Father but is from the world. 17 And the world is passing away along with its desires, but whoever does the will of God abides forever.




Jennifer is a freelance writer and blogger at who has the passion to share personal finance and entrepreneurship. She’s also a financial advocate and associate trainer in IMG.

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Filed under Determination, Finance Talk, Finance Tips, Financial Coach

Long-Term Investing

Guest Post by Rex Pascual

This article will talk about building wealth through long term investing in stocks.
Some years ago, I started working in the financial industry as an account representative for a small brokerage firm. My uncle was one of my clients, and he was anxious to invest with me. Through research, I picked a small company that made the tools so that scientists and researchers can do their job well. My uncle bought shares of this company. Within 3 weeks I made my uncle 50% on his initial investment. From there, I never looked back.


Although this 3 week time frame may seem very short to long term investors, I just wanted to illustrate the power of investing as a whole. My uncle was so happy that I made 50% for him. He proceeded to use the gains on the stock position to do major repairs on his car. The money really came in handy.
Now it may seem that long term investing does pose risks, and to be honest, any investment poses risks. Many people throughout my career have told me that stocks are risky and that investing is gambling. To that I say, yes, stock market investing is a form of gambling. You put your money on a position hoping to sell that position in the future at a higher price. Buy low and sell high, right?


As an example, I cite the Google IPO (initial public offering). Google went public on August 19, 2004, at $85US per share. That may seem a bit high to many of us, but think of how Google has performed since then? Google now is approximately $772US per share, a staggering 808% performance! $10,000 invested in Google at the IPO would be worth $8,080,000 now! Sure it was a gamble, but who would have thought that Google would be such a technology powerhouse?

Now I’m not saying that finding the next Google is easy, and there are professional money managers whose job it is to find the next Google. For the rest of us, we do our research on companies that are well known, whose products and services we already use and love. These are the companies that have seen the test of time, have weathered the storm and are still with us. These are the types of companies that deserve our investment dollars. Who hasn’t heard of Coca Cola or General Electric, or General Motors, or even WalMart?
These are the companies who sell products to you and me year after year. They are in it for the long term, and many of them pay dividends to their shareholders. These are the companies that, on occasion split their stock to make it more affordable for you and me. These are the stocks to build wealth.


Thank you investors for your time. I truly believe that you can and should build wealth through long term stock investing.


Rex Pascual is the owner of Trading US Stocks, a soon to be FINRA member ( ) in the US. Mr. Pascual is currently building the business so that Filipino investors can gain access to the US stock market. For further information, kindly email him at or Viber him at +15624450126


Filed under Finance Tips, Growth

How can we avoid irrational behavior towards finances?

Hacking your brain to make the best financial decision is not easy as it sounds. Every day we make thousands of decisions from what to buy, eat, dress or watch. Using behavioral economics to shape financial planning in the country is necessary in avoiding biases and intuition that lead to irrational decisions.  Here are the following recommendations in identifying and avoiding such costly mistakes.



Mindfulness – Knowing yourself is the best way to start and observing how you make decisions will bring you to a higher level. If you are considering investing a large sum of money, or you would like to buy or sell your current stocks, it is highly recommended for you to step back, list the cost and benefit of having that decision. Evaluate and see for yourself the good and bad side of jumping into that decision in the long run.


Be a visionary – Most people are currently suffering from myopia (near sightedness) but by thinking and seeing your life 10, 20, and 30 years from now, will give you an advantage. Seeing the lifestyle that you want and able to afford with a disciplined financial plan will help you to avoid expensive mistake and able to manage the risk involve. Compare that with the potential savings over time in your financial plan to help you stay aligned with it. The importance of it was also mentioned by Helen Keller when she told us “The only thing worse than being blind is having sight but no vision”.


Discipline – Willingness to continue over time will put you to momentum. When you create and maintain an overall financial plan and stick to it no matter what happen, the result is a stronger muscle of willingness that’s helpful when a tougher situation arises such as resisting the temptation of buying that expensive bag that you love or to bail out during unpredictable times, knowing that a buy-and-hold strategy performs better over the long term than trying to time the market. At the same time, discipline also can mean knowing when to sell. Gains and losses may happen over time.



schedule prohockeynetwork

Schedule it first –Doing nothing at all is often the easiest choice so having automatic savings and investing plan each month for important long term goals will save you so you can retire with dignity. For many, Myopians (near sighted people) they spend their money in different ways as fast as they can on short-term wants with nothing left or worse buried in debt.  Even investors who want to save for retirement or know they should rebalance their portfolios often fail to take action because they never put their plan in a calendar.



Put it in writing – When emotion is up the logic goes down that’s the strategy of some investors work with advisors to set up a written investment strategy that includes scenarios and how they would act under those circumstances. This allows for flexibility within the parameters of a financial plan and helps avoid making decisions based on emotion. For example, the plan is like a playbook, it consist detail action to be taken if the market increased by 50% or went down by 25%. These game plans are not binding agreements but can provide meaningful ways if an investor begins to have uncertainty with his or her long-term strategy.



images (1) life coaching

Get an accountability partner – According to Charles Duhigg “human beings behave well if someone sees what they do, while we behave our worse when no one else seems around”. Our human tendencies tend to go back to our old habit of comfort zone. Doing mental accounting like disregarding savings for an out of country trip while having so much debt with credit card and high interest loans proves to be insane. Find a coach, a buddy or even a community that will help you watch out for your irrationality.



Your finances will be in a bad situationif you don't stop chilling with the wrong people (17)


David Isaiah Angway is a RFP and a financial consultant for IT-BPO-Banking, HealthCare Industry and Manpower Agencies. He is a conference speaker and was featured in ANC On the money, Bloomberg TV Philippines. He is also columnist at BusinessMirror, Rappler, and MoneySense magazine. He is a licensed nurse and a former Senior Fraud Specialist of the largest bank in the world, JP Morgan Chase & Co.

He is the CEO and founder of WinLongTerm Financial Consultancy, helping young urban and educated millennial (Gen Y). It sets and achieves their long-term financial goals by empowering them through behavioral finance.

For more information and concerns subscribe to Facebook page or contact me at, here’s also my mobile number 0925-787-7796

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Filed under Business, Community, Conventional Wisdom, Finance Talk, Finance Tips, Financial Advice, Uncategorized

Retirement Planning: Simple, deep and fundamental guide towards peace of mind

This is a guest post by Grace

Do you know that 8 out of 10 retirees will be dependent on their children for financial support? This statement was released from the Philippine National Statistics Office in 2003.
We are already in 2015, and yet I still see a lot of families who have their parents living with their children. It is happening and I am not even surprised because it has been in the culture of many Filipinos. I have been a Financial Advisor for almost 5 years now and witnessed many single young professionals stayed single for a long time without saving a penny because they spend quickly on gadgets; travel a lot, big purchases or constantly providing for their family (Mom, Dad and nephews). I have nothing against the latter but I still believe that making them financially secure through total dependency on you makes you a greedy person rather than a generous person. Why? Because you are holding them of their talents to earn a living by providing for themselves, In short, passing the legacy to them, so that even when you are not around they know what to do.
There are only 3 easy steps that I want to share to young people who do not yet know how to save for their future:
Step 1:
 The moment that we start working, we can already set aside 10% of our salary. What is the 10% for?  The 10% goes directly to God’s hand. How do we give to God? The head of the church is Jesus Christ and we are the parts of the body, the church should allow you to practice this willingly. We are in God-believing country and yes, it is a command in the book of Deuteronomy 14:22. The Bible talks about tithe which means a tenth of your first crop. 2 Corinthians 9:7 gives us an insight of the attitude of our hearts when we give to God. And how do we do this? We start a relationship with him through believing in Him. What is 10%, when what we all have is His. The gospel truly changes our values inside out which are truly critical in managing our finances.
Step 2:
This may vary on your needs and salary: at least 20% goes to savings and investments. Let’s say you have a P15,000 salary. What you can do is send 10% of 15,000 to your retirement fund and another 10% in your savings account. In this way you will have the discipline of making your money work for you and another for emergency funds.
Step 3:
What about the 70%? Our favorite part of our work is when we finally enjoy the fruits of our labor. This is the part where we spend for our basic needs and take a vacation. This is when we work around with the 10,500 or 70% of the 15,000. We budget around with this because we still need to be disciplined when it comes to our expenses.

In summary, this is the classic example of putting your money in order:
Salary = Tithe + Savings & Investments & Protection + Expenses
How we see our future is how we save for it.  Are we among those 8% of the retirees who will be asking their children for money because of sickness and old age that we cannot work anymore? I know some parents who felt ashamed already because they knew that their children wanted to provide for their own family. Or are we among those 2% who are financially secured?
A grandmother who planned her retirement 40 years ago, have been living an abundant retirement now. Because the time she spent with her family is when they visited her in her house while having a sumptuous meals together or even travelling abroad. She’s now 80 years old and never did I see her ask for financial support except when playing with her grandchildren.

We too can experience this kind of retirement in the future if we start now while we are still healthy and earning a living. Let us increase the 2% of the retired population and make more people aware of their discipline. The way we can do this is to start with ourselves and pass it on.
The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully. – 2 Corinthians 9:6
Grace Panugayan is a Registered Financial Planner and working with one of the leading Insurance Company in the Philippines, Pru Life UK for 5 years.

Photo Credits to the following

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Filed under Finance Is Not A Rocket Science, Finance Tips, Guest Post, Peace of Mind, Retirement

Red flags of Investment scam

Image by EuroGamer
I am suspicious of all the things that the average people believes.”
H.L. Mencken
History shows that a lot of people are not learning   at other people’s mistakes. We may either blind, financially innocent or not really aware of it. Modern financial engineering is not new anymore. Some of us may be one of the victims of fraud or you know someone who was victimized by a large organization which is insolvent (Not having enough money). Identifying it is just one of the ways how you can prevent yourself from being financially distress. Self- awareness can help you bring   the red flags into the light.
1.   The products are too good to be true  
When someone tells you that the investment product has no risk involve, think again and run away from it. Someone is hiding the fact or keeping the truth from you. Everything has a risk. In every aspect you either gain or lose some of it. When you think about low risk and high gain, does it sounds good?  Yes of course, but no one is offering it aside from those scammers.  There were many people who took that bite and changed the course of their financial life. Lack of investigations will not resolve the issues.
2.   They promise guaranteed returns
Many scammers are selling the end goals but they seldom explain the process and the journey of it. They intentionally hid it from you and presented what you wanted to hear to lure you with the products and services. They always highlight the   return   with minimal financial sacrifices.       Maslow’s     hierarchy of needs tells us that we need security in our lives. If we apply it in investments, having a secured return of   it   will be a more financially sound decision for a lot of people. When a scammer addresses that need it will be a monster disaster when you get in.
3.   Be mindful of “The Credible guy”  
All fraudsters were credible guys before their skills were exposed publicly. Before Ponzi scheme became a worldwide term he became a financial advisor of Prime Minister Benito Mussiolini. I just want to remind that financial freedom is in your hands so do your own due diligence. You know someone who has credibility but check also their qualifications like their values system. Never stop asking questions until you get the right fit. The fact that they are credible, it should also be verifiable.  Most of the time we just trust and give all the money that we have blindly, not knowing the background of that con-artist.
4.   Everyone is buying that
Without checking your goals, visions and emotions you will be trapped immediately. The problem about the herd mentality is everyone doing it, so it must be good. Big no! The quick rich scheme mentality will easily gobble you up. The power of social pressure will pull you underneath the surface. Behavioral Finance Expert Daniel Kahneman states,” that driven by emotional reactions such as greed to gain money and fear in losing funds, you normally conform to the desire to be accepted by a group”. As a result, investors were seen joining frantic purchasing of that products resulting in economic crises. Example, the CAP (College Assurance Plan).
5.   They pressure you to get the products.
Biggest scam tactic is to let you feel that this is the last ride , limited editions, phase out and the availability of the product will not be visible for the next couple of years. Creating a false sense of urgency by claiming limited supply gives you this impression. Joining the bandwagon is good but be careful. The Budol Budol gang, the Aman futures group used these strategies to lure investors. The famous Ponzi scheme even tried to do this. We use emotion when we buy, but we use logic to defend why we buy things.
6.      The Reciprocity Tactic.
Many fraudsters asked investors to attend free seminars while other legal entities are also doing the same thing. Now, how will you know who is telling the truth? This is a tricky part. Offering to do a small favor for you in return for a big favor is a classic example. They give  materials, free lunch or dinner. Without you doing some intense research about the company, products, business model and the one selling the services you are at the brink of financial disaster.
These are just red flags but not totally immediate indicators that the company is a scam. Before you invest, be cautious, be aware and investigate.

But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.  1 Timothy 6:9

David Isaiah Angway is a Financial Evangelist

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