Category Archives: Financial Change

6 amazing things I learned financially from SUPERBOWL LI (51)

Today, we witnessed another sports event that reminded us that everything is possible. New England Patriots and Atlanta Falcons had a really excellent duel in this Super Bowl LI. This sports event is such a big thing in the United States but in the country we are just wondering how this kind of sport really works. I’d like to share my observation within the game and how you can use it to change your finances this year.

Never give up – The score was totally not good at all for the New England Patriots, they need to make a stop, so they can score. For the last 2 quarters, everything is working against them. With the score of 3 (NEP) in favor of  28 (AF) and a limited time,  Tom Brady must create a really good play. Knowing that everything is not working, they decided that every possession counts, no turnover. Same thing goes with your finances; you’re running out of gas already, your money is getting thinner. Your emergency funds are no longer good. Never give up and be more creative. Be an entrepreneur and you’ll see money will flow again.

 

 

Make History– We have seen a historic comeback and they won the Vince Lombardi trophy, but remember it was such a bad start for the New England Patriots, but they compete and started embodying their roles. Soon, they were able to make another score until they tied the game. That moment, it already gave them advantage. The teams never waste it and their championship game will be put to the NFL history books. Your finances may look like ugly, but it’s not your destiny to settle for less. You should settle for more.

Beat your old record – Tom Brady was able to make some great comebacks in his career, that’s when he overcame a 24 point lead deficit from the previous Super Bowl.  Right now, he made every fans and sports analyst so proud of what he achieved. It’s overwhelming but your old assets must go up and not go down. Your liabilities must go down. You also need to bank on your Financial I.Q so you can grow your existing assets that you have.

FOXBORO, MA – SEPTEMBER 21: Tom Brady #12 of the New England Patriots and teammates run onto the field before a game against the Oakland Raiders at Gillette Stadium on September 21, 2014 in Foxboro, Massachusetts. (Photo by Jim Rogash/Getty Images)

Be in sync with the team – The greatest quarterback stated that “he’s so proud with what the team achieved”, that’s a powerful reminder that he’s with them for the last 60 minutes of the game and beyond. If you have financial counselors, talk to them, if none, you won’t achieve a lot. You may experience the brink of disaster. Speak to those who are self made and you’ll be inspire to emulate their good traits and avoid possible traps.

Do your Job – Coach Bellichik who won the 5 Vince Lombardi Trophy said to his team to do their job. You know what that signifies, that’s trusting your teammates, the system, your gut feeling. Your job is to change the course of your family tree and help them uplift their situation. It’s not enough that you earned a lot but your ability to pass it on to the next generation.

 

Feb 5, 2017; Houston, TX, USA; Lady Gaga performs during the halftime show during Super Bowl LI at NRG Stadium. Mandatory Credit: Kevin Jairaj-USA TODAY Sport

Set the bar – Have you seen Lady Gaga’s performance at the Super Bowl Halftime show, astounding! In your finances, change is inevitable, but your mentality should be quite different from the last 4-5 years ago. Start changing your habits and be the leader in your family in terms of finances.

 

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, Rappler.com, and MoneySense magazine. He’s also part of the most respected agency in the Philippines. Sun Life Philippines. 

He is the CEO and founder of WinLongTerm Financial Consultancy, that help organizations retain their top key employees such young urban and educated millennial (Gen Y) by teaching practical money management in the workplace. You can contact him thru his website winlongterm.com and his Facebook Page @WinLongTerm for more informative ways how to grow your money and secure your family.

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11 reasons why you need to have Variable Universal Link while you are 20’s

When you reach your 20th year in this world, you might be wondering what to do with your first paycheck or how to grow your money while you are earning from your monthly salary and your side gigs. Good news is you have a lot of great options and the best option is you can enjoy the 3 in 1 financial vehicle. This is the VUL also known as Variable Universal Life. If you are not really familiar with this financial tool let me take you to the benefits of having this newest technology in personal finance.

  1. Take advantage of the time – If Piolo Pascual is already a pensioner at the age of 40, you can also retire during that time as long as you start this year. The importance behind it is you need to have a commitment to grow your money while you are still young. Planning is very important as early as now and execution must be in sync with your dream goals.

  1. Combo of an insurance with investments – Many people would like to get into investments but it will be a disaster to put all your money into stocks, real estate or even forex if you never set up your safety net which is emergency funds and insurance. But having a VUL can give you that liberty. The higher your fund value, the greater guaranteed death benefit as well. You can also add an additional rider such as Critical illness benefits or Health insurance benefits.

  1. Professional Management – Are you afraid that you will lose every money that you put into these investments; you should not worry at all. The person who is in charge in driving your fund is a well research, data driven and been a fund manager for many years. If you put money into stocks, you can loss as much as negative 70% in a day, if you can take that, it’s fine but if you have a conservative type of investor get into manage funds.

 

  1. Diversification– In order for your money to gain is quite simple, never put all your eggs in one basket like what the old saying goes. That will enable your funds to grow faster especially there are tons of risk and political noise. When investors hear all those noises the usual reaction is flee from those investments who are at so much risks and you may experience losses that are detrimental to your money that’s why understand the value of spreading your money.

 

  1. Flexibility – You can choose the purpose of your funds whether it’s for your retirement or for your child’s education. This can give you an ideal way to secure your future.

 

  1. Access – You will have the opportunity to see things while your money is growing thru online. It will give you an intangible reassurance that your money is growing over the years.

  1. Administration – Sun Life is the one that takes care of your money, as a very prestigious company who’s been existing more than 120 years we can make your dreams and goals come true thru making sure that there will be good Return in investments and easier claims.

 

  1. Transparent Charges – In every investment you need to pay a certain price and In order for you to get to your destination you need to understand that there’s no freebie in life. You need to use existing money to earn money.

  1. Investment Trade off – There are plenty of funds that you can choose as an option. From your risk profile I can help you choose the best for your situation. Before you invest, understand your goals and risk profile and I’ll show you the strategy.

 

  1. Client is involve – As a client, you are the decision maker, we are just your tour guide. I don’t recommend anything that I haven’t tried yet. Financial advisor must give you insights and the pros and cons of your decision if and when you choose to make some alterations in your investments.

  1. Within your budget – You may say that you don’t have money yet but we can create a plan that’s according to your budget since we would like you to win long-term for your family.

 

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, Rappler.com, and MoneySense magazine.

He is the CEO and founder of WinLongTerm Financial Consultancy, that help organizations retain their top key employees such young urban and educated millennial (Gen Y) by teaching practical money management in the workplace. You can contact him thru his website winlongterm.com and his Facebook Page @WinLongTerm for more informative ways how to grow your money and secure your family.

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7 efficient ways how to make an ideal retirement budget

Guest Post by  Phil Bradford

Businessman working on tablet computer - producing charts and reports

 

Planning a budget after retirement is not at all an easy task. You need to reshuffle the whole budget that you have been following for all these years. You’ve to make changes in your grocery expenses, debt payments, utility bill payments, medical bill payments, auto and home insurance payments, and other expenses. Phew! What a tedious job. Isn’t it? If this is what makes you depressed, then cheer up. I’m here to guide you all the way to make a perfect budget after your retirement.

 

How to make an ideal retirement budget

You are struggling hard to create a proper budget for this year after your retirement. Is that so? You’ve come a long way all these years, and I’m sure that you’ll use your past experiences while drafting a retirement budget. But before you start drafting your retirement budget for 2016, just recall all the past financial mistakes you’ve made. It’ll definitely help you make a perfect retirement budget.

Use your mind wisely when you’re composing your retirement budget. Remember, the cash flow is not the same that used to be before you got retired. So, you need to plan your budget according to that. If you’re still confused about how to prepare your retirement budget, then just have a look at the below-given points:

write-it-down

 

Jot down your essential and non-essential expenses

An effective retirement budget is the one that has no room for extra expenses. To create such a budget, you need to eliminate all the unnecessary spendings. And, how will you do it? Well! For that, you need to divide your expenses list into three equal parts:

  • Essential monthly expenses – This list includes expenses such as food, clothing, housing, transportation and health care.
  • Non-essential monthly expenses – This part covers the cost of cable, cell phone, gym membership, entertainment, and so on.
  • Required non-monthly expenses – These include costs that may come up once a year such as property taxes, insurance premiums, auto registration, and home warranties. Calculate these costs on a monthly basis and don’t forget to add them to your monthly budget plan.

 

Medical costs concept

Check out health care expenses before and after retirement

Health complications will only increase with age. So, you should prepare yourself beforehand for any medical crisis. If your employer has been paying your health insurance premiums all these years, then it’s time that you should think about it. Now, it’s your turn to pick up the tab. Ask your insurance agent about all the necessary details regarding your health insurance and include them in your monthly budget.

 

Pair of beach loungers on the deserted coast sea

Think of how you want to spend the retired days

The thought process can change a lot of things in your life. Take out time and sit down with your spouse to decide how you both wish to use your money after retirement. Think of the financial house where both of you want to make some renovations and use your nest egg accordingly. This would help you to make a more effective budget. Hence, both of you get to know your financial desires better.

child-financial-literacy

Go on with your financial education

Now that you have retired, don’t stop yourself from getting the financial education. You should continue doing your research regarding fiscal matters because it would help you to come out as a more financially responsible person. Staying up-to-date would benefit you in creating a budget that’ll suit your pocket. You can also change your budget as per the market requirement. So, financial education is a must.

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Make wise use of the grey matter

Make good use of the grey matter of your brain so that you can come out victorious as an intelligent money manager after your retirement. Try to be a smart consumer by switching to a pre-paid phone plan, buying things in bulk, closing your cable TV connection and using the Internet connection to its fullest, doing comparison shopping, and so on.

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Make savings the key mantra

One of the key points in budgeting is ‘savings’. The more you can save, the healthier will be your budget and the merrier will be your golden days. Apart from cutting down useless expenses, try to search for places where you can save more dollars. Consider sharing as a part of your financial regime to minimize your monthly expenses. Start sharing your home or car with your friends or family. Borrow a gardening tool or extra chairs for a family barbecue and so on. Be as much creative as you can.

I hope now you can create your retirement budget confidently.

 

Phil is a freelance writer. He deals with personal finance 90% of the time, and he loves preparing stories on travel, small business, entrepreneurship, pets, and lifestyle.

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SAVING BY BEING HEALTHY

Save

 

We all have thought of so many ways to have more money by reducing electricity, recycling garbage, going to supermarkets where goods are cheaper, etc.  But have you ever realized that just by being healthy, you can save?

 

The World Health Organization (WHO) defines health as “the state of complete physical, mental, social well being and not merely the absence of disease.”   I am no health guru nor a gym enthusiast to talk about how you can be healthy.  But I know that by choosing to be healthy we can all be WHEALTHY!

 

TIP # 1  – CHOOSE WHAT YOU EAT

 

When we list down our top favorite food and drinks, we can find an array of good and bad foods and drinks.   They are our comfort food and these make us happy.

 

Take for example a guy named Johnny.  Below is his list of favorite food and drinks he takes in a month.  On top of these, he smokes 5 cigarettes a day.  He goes out with friends once a week  taking at least 5 bottles of beer.  Total cost of this lifestyle is P7,200 per month.   We also know the repercussions of  the deadly lifestyle  Johnny is living.

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Johnny becomes sickly and absents himself  from his job more often than he usually does.  He then asks for an advice how to lose weight and improve his health condition from his friend, Timothy, a performance coach.  Timothy asks John to review his list and take an action plan about his “favorite things”.   Johnny resolves to:

  1. Totally stop smoking and buying soda
  2. Replace fastfood with homemade baon
  3. Replace frappucino with tea
  4. Still enjoy some beer, dessert and coffee at a reduced amount and less frequency.

And this is how his new list looks like:

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By  choosing wisely what he should take and eat,  Johnny starts his way towards a healthier lifestyle and  saves P5,480 per month or an annual savings of P65,760!

 

TIP # 2  CHOOSE A WISER TRAVEL LIFESTYLE

 

According to a CNN on-line poll with over 200 respondents, 15% cited the traffic as their 2nd major source of stress , next to their jobs and studies.   Another survey from the Numbeo.com,  revealed that the Philippines is the 5th  in the list of countries with the worst traffic in the world.   Long hours of traffic  results to stress, longer exposure to air pollution(for those taking the bus or jeepney) and lack of sleep (to beat the traffic the following working day, you even have to wake way too early).

 

The good news is that there is an alternative to travelling to office.  We now have the Point to Point Buses  which the Department of Transportation  has made available earlier this year to make travelling by bus ,easier, more economical and faster (non-stop).  Price ranges from P30 to P70 per passenger, one way.   What is wonderful about the P2P bus is that there is a schedule of departure (you can plan your trip) starting in the morning thru evening at regular intervals and  buses are new and air-conditioned (more relaxing).

 

Definitely, P2P is one way to relieve one’s stress,  free up one’s cashflow and beat the horrific Metro Manila traffic . Johnny, who lives in Alabang, spends P16T a month using his car to travel to Makati (this covers gas, toll and parking fee).  But  If Johnny shifts to P2P, he gets to spend only P5,600 to travel to work with his wife, or a savings of almost P11T per month!

Combining  the savings Johnny can have from choosing what he eats and  a wiser travel plan for lesser stress, he gets to have an annual savings of P197T!

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This annual savings can now be channeled towards building  his health fund and pursuing his other dreams (education for his child, down payment for house, travel and medical needs).  By simply choosing to live a healthy lifestyle, Johnny can  start creating the future he wants for his family!

 

 

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TIP # 3  CHOOSE THE RIGHT ASSOCIATES

 

In your journey to a life that is healthier, less stressful and ultimately  happier , choose  the right people.   Be with people who can inspire and  encourage you in your new lifestyle.   Be with people who are likeminded and are proud of what you do!

SAVE BY BEING HEALTHY TODAY!

 

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About The Author

Lourdes Ravelo is a seasoned banker, a Registered Financial Planner, and a senior advisor of one of the top insurance companies.

She used to specialize in promoting loans as financial solutions to customers. In contrast to that, today, she is an advocate for helping families to become wealthy by teaching them how to save and invest.

For Lourdes, financial education is a MUST if we want to be wealthy.

 

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Watch out for her upcoming FREE E-book, “30 Wealth Thoughts That Guide My Way”. Launching soon!

References

  1. Definition of Health: http://www.who.int/about/definition/en/print.html
  2. CNN: http://cnnphilippines.com/lifestyle/2015/09/23/Filipinos-top-causes-of-stress-job-traffic-money.html
  3. Survey: http://www.gmanetwork.com/news/story/536203/lifestyle/healthandwellness/stress-pollution-fatigue-how-traffic-jams-affect-your-health
  4. P2P Buses:http://www.spot.ph/newsfeatures/the-latest-news-features/66962/guide-p2p-buses-a00171-20160707-lfrm

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WHY do I need financial planning

 

As a young professional today, you would like to change the status of your finances but you don’t know how. You have million thoughts on how to let your finances be revived again this year but you think it will be better to start next year. If you don’t have any idea where to start, I challenge you to do the something today or else you won’t improve. I am guaranteeing you that once you follow this program, give yourself an average of  10-15 years and am sure you will be able to reach the wealth that you need. It is not a quick rich scheme so you won’t be a scam. 
Knowing is half of the battle. Do this routinely and you will understand more of your behavior towards your finances. You should plan and don’t think average. Get a piece of paper or download a worksheet that has the following then compile and evaluate it weekly.

Start with why you are doing this?

If you can’t tell me your compelling reason then you can’t sustain everything below. Imagine yourself that you are going to have a diet plan for the next 30 days but during the 2nd day you don’t have the energy and willingness to follow the most powerful plan, like why you need to deprive yourself with your favorite food. Everything will fall apart, you are wasting your time, effort and energy with the planning stage if that won’t be put into action. Your compelling reason why you need to do that should not be yourself. Remember when you think about yourself as the end goal, you are thinking too small. You don’t want to think average like anybody. Poor people think about themselves all the time. Authentic Rich individuals think about opportunities how to help other people and that’s who you are and how you should be wired. 

When you start with Why, the How and what will follow.

Example of BIG WHY
·         To make sure I can be financially free and pass this legacy to my family.
·         To be an excellent steward when it comes to finances.
·         To support nonprofit organization and help campus missionaries.

1.       Budget   

This is the starting point of financial planning. You will fail with investing when you don’t know where your money goes. That means you will be running out of gas in the middle of a freeway if you don’t check your gas tank first. But I got good news for you. There is hope. Knowing how much you got so you can maximize what you have is the goal of continuous budgeting. Doing your budget for the first time might overwhelm you because there are so many things you need to include in a minimum amount. Remember that taking actions to your plan will solve the current and future financial issues that you will have. When you’re lazy to do your budget you won’t be able to finish the construction of your dream house. Managing your funds is a skill needs to polish.

2.     Emergency fund

Whenever I got my salary I put that directly into my emergency funds. The rule is simple if your needs expense per month is 10,000 then multiple it by 6. This is a very simple principle. Save for the storms of life (illness, accident, change tires or when you lose your job). Learn to prioritize this.  Do this early as possible so you can move to the next level which saving for your wants. Caution: don’t ever use credit card as emergency funds and you will dig your own graveyard (bankruptcy). 

3.       Saving goals

You need to at least give yourself  3 compelling reasons why you are saving funds or else you won’t stand a chance when laziness  struck you every time you got your salary.  Your goal is to learn during the journey, this is not about the end destination. When you focus in excellence, sacrifice and faith things will start change. Behavior will follow. Chances are you will hit your goal in a repetitive manner. Savings are for your extra needs and wants. Put 20% in the bank when you immediately get your income make sure that you already got emergency funds first. 

4.       Debt plan
Please don’t ever go to investment without paying your debt first which earns a higher interest rate. Your debt plan should include how much you need to pay for every single cent and when you will be debt free. The plan is you need to stick to it no matter what happened.  When you put it in paper you can see the big picture.  The reason why you don’t want to be debt free is very simple; you think everyone is in debt so you think you are in the zone.  Live like no one else so you can live like no one elsesays Dave Ramsey. Debt snowball is a really good strategy, you pay the debts that you can eradicate first and as you get the momentum it will be very hard for you to break it.

5.       Estate plan
You are accumulating a lot of assets now and your investment is off the chart. Estate planning is not only for the rich kids, it is for everyone that you love. Your legacy to your family is important even when you depart; no one will plan for your family so take responsibility for yourself. Be selfless and take time to check your current assets over liabilities. Remember that you don’t want to add up to the inconvenience of your family members once you evaporate from this world.   

6.       Insurance coverage

You are priceless but you need to identify how much you bring on a table. If you were able to identify that you are worth  7 million then get that coverage as long as the computation is correct. There is computation from the insurance industry like multiply your yearly gross income to 10. The computation might not be as accurate as the standard computation of today’s industry but it gave you a ballpark figure. What’s important is to get an insurance that is equivalent to you. You badly need this or else when something unexpectedly happen to you insurance company will help you and won’t let your family suffers.  If you got kids and wife but you are refusing to have insurance, you are putting too much risk financially and emotional aspects in their lives.  No one would like to see those things to happen. Be responsible.

7.       Investment

Everyone wants to get into this but many are being scammed because of poor diligence. Be careful all the time. First, list those things why you are investing,  second, you need to identify whether you got time, money and knowledge to identify the investments that you want then your risk tolerance should be define. Investing is a word that’s not just about higher ROI.  Are you an aggressive type or a conservative one? Regardless of your answer there’s no right or wrong. The purpose will give you the drive, without it you won’t last. Third, List the things that you are investing you want to achieve like education for your kids, retirement or build your dream house. Know the amount that you will be satisfied and consider to be happy.

8. Read Books, Attend seminars, join a Face book group and find a coach.

Never underestimate the value of networking and community. You should declare war against poverty, procrastination and poor mentality. Reading books will give you thought provoking ideas. Attending financial seminars like IMG conventions in Makati, Truly Rich Club, and Money summit every year can increase your network and expand your horizons. Joining Face book group will give you an all access pass with like minded people; you are welcome in contributing your thoughts. You can easily follow mentors who are expert in the financial industry that will make you more accountable with the results you are getting. All in all fresh and updated insights will give you new perspective to make you successful with no boundaries. You should revolutionize your thinking so acting upon it won’t be a struggle.

Your unique plan is totally not identical with anyone so don’t copy someone’s financial plan or strategy. How you manage your finances while you are working is a glimpse of your future financial plan during retirement. You can change your tomorrow today. With the help of our God who holds the future and your willingness to make sacrifice you are surely going to win long term.

Pictures courtesy of hubspot, the dollar business, learnvest, shutter stock, carmen marquez, imoney, img, go banking rates


David Isaiah Angway is a Financial Evangelist

 

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