Quotes on Why You Need A Life Insurance

Some of you may not believe in what life insurance can do for you and your family.  A lot maybe doesn't even bother and think they don't need it.  But these are quotes I got from the internet and made me believe how life insurance will take care of the ones I love.

** These are not my quotes, and I just feel inspired by what these people said about it.

If this made you realize about getting your life insurance, act on it now.  Sometimes later becomes never.  

If you want to know more about Financial Planning, please like the page http://www.facebook.com/FinancialFreedomBlueprintPH.

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3 Things That You Thought Are Good Retirement Plans

I have come across people who think retirement is age 65, some 60, and others as early as 50. After talking to maybe a thousand people (on rough estimate), one on one, they seem to think it is their right. A right to stop working at the age they prefer or like.  But retirement is more than an age or a number. It is a GOAL.  A goal to stop working and relax and enjoy your last years at a certain age YOU HAVE PREPARED FOR.

If I ask people if they have set aside for this goal, the answer is a blank face with no certain answer to my question. And then, they enumerate things they call retirement plan.  But I disagree.  Here is why:

Image courtesy of http://reachmymoneygoals.com/wpblog
/category/retirement-plan/

YOUR HOUSE & LOT IS NOT A RETIREMENT PLAN.  It is an asset you can keep where you can stay comfortably in your twilight years.  If you sell your house and lot, you will be forced to rent or pay for a home you already had before.  You will just be going to liquidate an asset to get the lump sum money but will diminish and be used up in time.  And some retirement CAN BE LONG. 

But if you’re going to sell it, and buy a smaller house to maintain then I say that is a good move.  Maintaining a big house means big expense.  Maintenance and utility bills can be a big chunk in your monthly expenses so moving to a smaller place can be a good move for you.

YOUR CHILD/CHILDREN IS NOT A RETIREMENT PLAN.  I’ve heard this on and on from ageing parents that they have their children to take them in when they are old, but sorry your child/children is not a retirement plan.  You will put them in a position where they have to financially support you while supporting a family.  The stress they will have to put through just to get everything together and paid is really hard for start-up couples with children.  If you want your child/children to be financially stable, help yourself.  And maybe then, they can start their lives with responsibility and a lot of savings.

YOUR SSS AND RETIREMENT PAY MAY NOT BE ENOUGH.  Your SSS can be your monthly pension and your retirement pay from your employer can be your lump sum pocket money.  But believe me, these two may not be enough for you.  If you want to know how to compute for your monthly SSS pension, please go to http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html. And if you want to know how much retirement pay you are getting from your employer, please go to http://mamaravesph.blogspot.com/2014/10/abc.html.  Medicine costs at your fragile years can eat up your whole SSS monthly pension, and one hospitalization can eat up your whole retirement pay.

The key here is saving more than what is expected and deducted to you by the government.  You should have shaved a percentage of your earnings from your monthly income and invest in an investment tool you can feel secured.

If you want to know more about Financial Planning tips and ideas, please visit http://www.facebook.com/FinancialFreedomBlueprintPH.

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Why Do I Need A "LEISURE FUND"?

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http://www.splitcoaststampers.com/gallery/photo/1398183

Do you love travelling a lot?  Do you have a lot of money until the next promo flight comes along?

Are you so techie that every new iPad, iPhone or Samsung phone is a thrill?  Are your hobbies eating up your savings account?

Then you need to put up a LEISURE FUND.  

But what is leisure fund anyway?  That crossed your mind?  Well, let me introduce to you the fund I came up with for me and my family.  This keeps me and my husband sane from all the stress and hardwork we do.

First, I assume you have already started or built your Emergency Fund.  You cannot in any way start your leisure fund without having prioritized your Emergency fund.  If you would like to know more about Emergency fund, please go to http://mamaravesph.blogspot.com/2014/10/why-do-i-need-emergency-fund.html

Leisure Fund is a stash of money you keep for fun and your own mental health.  This is the money you pull out for expenses outside your monthly needs, savings for retirement fund, education fund and your emergency needs.  You build this fund in your bank account as savings account, passbook account or time-deposits to access in case you need to replace an old gadget, an old PC or laptop, to buy or replace hobby equipment/tools, shopping for new clothes and shoes or simply to take a vacation.  This fund I believe should be a separated fund from all the rest to keep you from overspending when you are way too much having fun.

So HOW MUCH do you need as Leisure Fund? 

There are no exact figures.  I, myself just keeps a modest amount to it.  I keep an amount we usually spend on one vacation (airfare + hotel + food + recreational fees).  But I don’t indulge on very frequent vacations.  Once a year, maybe.  With so many promo flights, I also have a hard time saying no to click and tap that iPad and book.  But I have a strong will not to do it frequently.

My leisure fund has RULES also.  And these I keep in mind.  You may also do your own house rules, it's your fund anyway. So far,  these are my rules for my leisure fund:

1.       You cannot buy a new gadget if your gadget can still keep up with your tasks.  If I get a gadget for free for keeping my mobile plan, that’s okay;

2.       You cannot take a trip just because there is a promo fare;

3.       You cannot take a trip more than once a year;

4.       On shopping: If it’s not on sale, don’t panic buy and take time to think if it’s worth it;

5.       Bend some rules every now and then and enjoy life (take note, I said every now and then);

6.       You save back whatever you spent from that fund.

Do I deserve to have a LEISURE FUND?

I believe anyone who works hard deserves this fund.  Anyone who doesn’t will have a hard time keeping his sanity intact.  With all the toxic and stress you get from working to keep up with your expenses and savings, you deserve a break or some good things in life.  So, just plan ahead, YOLO!

If you want more Financial Planning tips, ideas and seminar, please like http://www.facebook.com/FinancialFreedomBlueprintPH.

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Free FP Seminar at Your Own Office!

Excited for your 13th month pay or Bonus? 

Excited to shop? 

Then in January see yourself back in the rat race again? Why not TRY something new this year and learn to SAVE and INVEST? 

FFBPH is offering FREE Financial Planning Seminar/Awareness at your own office for your team mates, company and group of friends. It will just take one (1) hour of learning, and maybe you can start anew this year! 

HURRY! They ONLY have 8 SLOTS AVAILABLE! First come, first served! 

Just contact them at 0905-2382277 or go to their FB page http://www.facebook.com/FinancialFreedomBlueprintPH.

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How Much Retirement Pay Should I Get From My Employer?

Image courtesy of
http://www.business-standard.com/article/
economy-policy/bajpai-committee
-report-likely-next-month-pfrda-
110101800184_1.html

Retirement is one of those goals any employee dream of.  It is the time when you see yourself, not working but still earning or still has money to spend on your needs and / or wants.  But rarely, employees know how much money they should anticipate to get when they get their retirement pay from their employers or when they can avail of such benefit. 

But who and when can someone avail of a retirement benefit?

An excerpt from the Philippine Labor Law Article 287 says, “Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.. In the absence of a retirement plant or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.. one-half (1/2) month shall mean (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.  Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.”

In short, employees with more than 5 years of service to his/her employer WITH a retirement age of 60 years old or more, but not more than 65 years old may claim for a retirement pay. 

How do you compute this?

For example: Mr. Juan dela Cruz,

60 years old, worked for the same company for 20 years, salary at retirement age is 30,000, Service Incentive Leave Pay = 1,250 per day

RETIREMENT PAY =  ((1/2 month salary) + (1/12 of 13^th month pay) + 5(Service Incentive Leaves Pay))Years of Service

RETIREMENT PAY  =  ((30,000/2) + (30,000/12) + 5 (1,250)) 20

RETIREMENT PAY  =  (15,000 + 2,500 + 6,250)20

RETIREMENT PAY = 475,000

Which means, Mr. Dela Cruz will get Php475,000 in retirement pay from his employer.  Then add your SSS retirement benefit, the total of those two can be a decent amount of money to start your retirement.  (if you want to know how to compute for your SSS retirement benefit, please visit http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html)  But I warn you that this soon can deplete or diminish as you go through years of retirement expenses, medical and hospital expenses, trips and vacations.  So, plan your retirement and don’t rely on your retirement pay alone.

For more retirement planning tips and ideas, please like the Facebook page: http://www.facebook.com/FinancialFreedomBlueprintPH

** I am not a law student or professor, but this is how I understand Philippine’s labor code.

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Why Do I Need an "Emergency Fund"?

Image courtesy of
http://blog.fcfinancial.com.au/bid/
384252/Emergency-Funds

Do I need it?  A simple answer to that question is YES.

Though you make lots of money, or your salary is always dependable and enough for you alone or your whole family – YOU need an EMERGENCY FUND.

First let me define what is emergency fund.  Emergency Fund is saved up money you keep for unforeseen, sudden and emergency purposes.  It is the type of money you only keep for that purpose alone, and not to be used for recreational reasons like buying your new smartphone, tablet, television or vacations.  It is for that emergency purpose that I advise you to keep it somewhere accessible, but not where you can be tempted to withdraw from.  My advice is to keep it in a saving account or a passbook account or a time-deposit.  I even discourage putting it into an investment tool like stocks, UITF or Mutual Funds because it has to be readily accessible anytime.  If you lose money because the market dipped, your emergency fund is at risk.

So why do you need it?

There is no way that you can foresee all events in your life.  All good things and bad things happen.  Life can screw you up the least you expect it to.  These life events may happen that may need that kind of fund:

1.       Abrupt cease of employment (ranging from quitting it to being laid off.  Remember management doesn’t tell anybody the company situation going bad and you being laid off months before.  It just hits you like a lightning);

2.       Family member gets to an accident or gets hospitalized (your child, your spouse, your parents);

3.       Family car breaking down (this can be a major expense if your car gets into an accident or major repair);

4.       Your house needs repair.

So, how much do you need to build this fund?  It is advisable to save 3x to 6x of you monthly expenses.  This big amount of money will hopefully help you bounce back after a setback.  This is enough money to look for another job, help a family member, some minor repairs for your car or your house.

But please don’t dip your hand on that fund for anything else.  Your shopping, replacing or buying a new car, new gadgets are not emergencies. 

Hopefully, when you build that fund a payday at a time and finish it building it up, you may learn to save more after it.  After all, it will become a habit.  And a habit of saving will make you more financially secured and stable.  

For Financial Planning tips, ideas and seminars, please visit http://www.facebook.com/FinancialFreedomBlueprintPH

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Financial Wellness / Awareness Seminar

Want to learn about Financial Planning and investment?  Unprepared for retirement and college education fees of your kids?  Well, you're in for a treat!  

Financial Freedom Blueprint PH will conduct a free seminar on October 22!  See the details below.

Reservations are needed, please call or text 0905-2382277 or email financialfreedomblueprintph@gmail.com.  

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And if you share this link in your facebook or twitter, you might get a chance to win a PERSONAL ACCIDENT INSURANCE!

Just don't forget to like their page so they can see you shared the link!

See you there!

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