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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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Top 8 facts about Islamic Finance


There has always been a demand among Muslims for financial products and services that conform to Shariah (Islamic Law). The development of viable alternatives to conventional finance increasingly enables Muslims with the estimated 1.6 billion Muslims worldwide, it’s ripe for growth potential to participate in the financial world without violating their Islamic principles and without bearing the economic penalty that comes from non-participation, especially with the recent growth of oil prices. Here are the following facts about Islamic Finance.


Islamic banking can be considered banking with a conscience. Islamic banks each have a Shariah board made up of Shariah scholars as well as financial experts who are responsible for determining what activities are and are not Shariah-compliant. 1

islamic banking sharia islam economy finance money management transaction concept


Islamic banking is based on two main financial principles. Firstly, investment is to be made in the private sector through interest-free financing. Secondly, the development of financial instruments is to be done on the basis of profit and loss sharing as well as sharing risks. 2


Islamic laws strictly prohibit investments connected with gambling, liquor or tobacco.

Islamic banks must conform to Sharia law and, as a result, to the following six principles:

  • They must not allow predetermined loan repayments to become interest (riba) – the receipt and payment of interest is strictly prohibited.
  • The sharing of profits and losses must be at the heart of the Islamic banking system.
  • All financial transactions must be asset-backed. In other words, making money out of money isn’t acceptable in Islamic finance.


Speculative behaviour is forbidden (and so options and futures are prohibited in Islamic finance). 4


The word riba in Islamic law means an addition over and above principal. So riba is the addition in the amount of the principal amount of a loan according to the time for which it’s loaned and the amount of the loan. In other words, it’s the equivalent of interest, but financial systems based on Sharia law strive to eliminate the payment and receipt of interest in all forms. 5

A range of modern interpretations apply as to why riba is forbidden, although they’re strictly secondary to the religious underpinnings.



hawala can be a bill of exchange, cheque, draft or promissory note. Hawala is a mechanism that can be used in order to set up international accounts by book transfer. To a large extent, this approach removes the need to transfer physical cash. Technically, debtors pass on the responsibility of payment of their debt to a third party who owes the former a debt; hence, the responsibility of payment is shifted to a third party. This arrangement is unique because no form of financial instrument is exchanged; the transaction takes place entirely on the honour system (a system based on trust, honour and honesty). Trust and the extensive use of connections such as family relations are the components that make it completely different from other remittance systems.6


Islamic banks are strictly forbidden to charge interest. Instead, the concept of profit and loss sharing comes into play. Islamic banks don’t charge interest but instead participate in the yield that results in the use of funds. Depositors also share in the bank’s profits, which are determined in accordance with an agreed ratio. Hence, a partnership exists between the Islamic bank and its depositors and also between the bank and its investment clients. 7

Islamic banks can’t make money with money, because under Sharia law money is only a medium of exchange – a way of defining the value of something – and it has no value in itself. Therefore, money isn’t allowed to generate more money by being put in a bank or lent to someone else.




When a Western bank or finance house invests in a project, the investor (the bank or finance house) is assured of a predetermined rate of interest and the investee bears all risk. The investor receives a predetermined return regardless of whether the project succeeds or fails.

This situation doesn’t apply in Islamic banking, which promotes risk-sharing between an investor and an investee: the unjust distribution of risk that occurs in Western banking is prohibited. In Islamic banking, the investor and the investee share the results of the project in an equitable way. Where a project makes a profit, both parties share in this profit in predetermined proportions. On the flip side, if a project makes a loss, the investor bears the loss by way of no repayments, with the investee bearing the loss by receiving no wage or salary. 8




As the Islamic finance market begins to experience full-grown, investors and banks are demanding new products and new structures that are complaint with Shariah principles. But while the products must be often syndicated with Shariah scholars, English and American financial lawyers are finding ways of making Islamic products work. This syndication allows the Muslims who recognize Shariah law to use and benefit from the Shariah-compliant financial tools at Western banks or companies.  Although there have been innovative initiations by Islamic financial institutions in several fields, like information technology, industrial projects, and even providing insurance against political risk, the industry still needs more innovative and sophisticated financial instruments taking advantage of western financial experience to streamline and standardize Shariah-compliant products.


Source: ArabInsightOrg



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

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. He also writes for BusinessMirror, Rappler.com, 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, that helps organizations retain their top key employees such young urban and educated millennial (Gen Y). It sets and achieves their long-term financial goals by empowering them through behavioral finance.


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