Category Archives: Financial Coaching

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 winlongterm.com, Facebook page or contact him at david@winlongterm.com, 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

SAVING BY BEING HEALTHY

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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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Filed under Financial Change, Financial Coach, Financial Coaching

15 Questions you need to ask yourself about your personal goals


Life is all about possibilities that’s why asking questions are relevant as we grow and nurture ourselves. 
When it comes to handling your finances you need to ask great questions so you can have liberty to dream 
again. The impact of questions will surely be changing and challenging your existing perspective now.

Goals should be outcome oriented; Stephen Covey said “let us begin with the end in mind”. When it comes
to your growing knowledge in finances you need to understand and focus on what is really relevant.
Here are the questions you need to ask yourself.


      Focusing on the End Goal:
1.      What is it that you really, really, really want? Dig deeper…
2.      What is the SPECIFIC goal or outcome you’re looking for?
3.    What is the REGRET for you of NOT achieving your goal?



Aligning with your Core Values:
4.    Is this goal in line with your life vision, mission, overall life-plan?  (Don’t know – what does your gut tell you?)
5.    Is this goal in line with your values? (if you are not sure about it, Ask yourself what’s REALLY important to you in life – will this or that goal help you achieve more of it?)
6.    Are these goals something YOU truly want, or are they something you think you SHOULD have or SHOULD be doing?  (Tip: If it is a SHOULD, it may be someone else’s dream…)
7.    When you think about your goal does it give you a sense of deep contentment or ‘rightness’, happiness and/or excitement? (If so, these are good signs that it’s a healthy goal.)
8.    If you could have the goal RIGHT NOW – would you take it? (If not, why not? What are the problems out there?)
9.    How does this goal fit into your life/lifestyle?  (Time/effort/commitments/who else might be impacted?)

Identifying Obstacles:
10. Can YOU start & maintain this goal/outcome?  (ie. Do you have grit to complete control over achieving the project?)
11. How will making this change affect other aspects of your life?  (ie. What else might you need to deal with?)
12. What’s good about your CURRENT SITUATION? (ie. What’s the benefit of staying right where you are?) Then ask, how can I keep those good aspects while STILL making this change?
13. WHAT might you have to give up/stop doing to achieve this goal?  (Essentially, what’s the price of making this change – and are you willing to pay it?)
14. If there was something important around achieving this goal (to help you succeed, or that could get in the way) that you haven’t mentioned yet, what would it be?

15. WHO will you have to BE to achieve this goal? (ie. Friends or families that will be with you ups and down)

David Isaiah Angway currently helps young, urban and educated millennial (Gen Y) set and achieve their
long-term financial goals by educating them about investments, asset allocation, risk management, 
retirement planning, and estate planning. His role as a financial planner is to find ways to increase the 
client’s net worth and help the client accomplish all of his/her financial objectives. 

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Filed under Behavioral Finance, Financial Coaching