Money Talk

Why blog about money?

1. A lot of young people are ignorant about finances.
2. Many broken marriages point to finances as a major contributor in household strife.

In the Philippines, the name of the game is SAVINGS. Older folks teach you to save and save and save. If you are someone who want to retire in style, your lifetime savings might disappoint you. If you are convinced that your SSS pension and Senior’s discount is good enough for your life ahead come to think that you will still live a good 20 or so years after retiring.

When I graduated from college, I started a small business called Busogsilog. The money that was used to start the business was the small savings I pooled together with two partners. The business faired well but later on died down also.

Any way, since I am NO EXPERT on finance, I will not intend to speak as one on this blog. Instead I will just share the ways at which my wife and I are directing and handling our finance.
Because money is a real deal, we have invested quite an amount of time and money to learn how to manage it well.

Random thoughts about money:

I. Mentors

You have a gym instructor, a grammar teacher, a theology buff, a marriage guru, a K-pop god. If you have subscribe to mentors for every passion that you have, how come you don’t have anyone to teach you about money (savings, banking, investing, making money, business, tithing, charities)?

For me and my wife when it comes to faith and finance, I love listening to Ptr Juray Mora (You can catch him on podcasts) Dave Ramsey is a good pick on financial management and getting out of debt. When it comes to business, I always catch lengthy talks with my brother who has become well versed in the world of business. I’m not a person who’s into stocks, but we Iisten to people who’s good at it. A good friend, Migs Quirante is on it and I keep asking questions.

Surround yourself with achievers and not day dreamers. Day dreamers take you to the clouds to marvel at it while achievers take you to the same clouds to teach you how to make much of it.

Have someone coach you in the area of faith and finances. Trust me, you’re gonna love me for giving this advise.

II. Emergency Fund & Savings

That’s our ATM card on a picture frame and that is our emergency fund. My wife and I are still funding it until we reach the goal that we have set. I don’t bring the card with me to reduce the impulse to use it, but at the same time we don’t make it hard for us to withdraw from it in case we really need it. Thus the picture frame.

An emergency fund as its name suggests, is for emergencies. Meaning to say you use it only for emergencies and emergencies only. Promo fare is not an emergency neither is 50 % mall sale.

Emergency fund should be liquid. It will be used and replenished upon using. Ideally an emergency fund should have funds enough to sustain you for at least three months in case you lose your job or something bad happens.

Qualifying what an emergency is is also a good thing. We haven’t sat down and talked about that yet. Next time the tires burst or someone is hospitalized, you have stored enough for these rainy days.

Credit Card is a good companion during emergencies but it can turn against you when billing comes.

Regarding savings, BPI offers a Save Up account wherein your account is automatically debited to fund your save up account.

III. Debit Card over Credit Card

It’s simple. With a debit card, you do not get yourself in debt whereas a credit card gets you in one. I’ve gotten into debts with my credit card back in college and post college years. It stings hard. My wife and I both own our individual debit cards. That way, it helps us discipline ourselves to plan our spending well.

People say that they need credit cards for plane fare purchases. Your debit crad can do just about anything your credit card does. Another thing regarding plane fares, we have made it a practice to buy tickets online and choose payment centers in the payment options. I buy tickets at night and pay at Robinson’s the next day.

I own a credit card with a very minimum credit limit. It’s safer that way, at least for me.

IV. Investments

Savings is not really an old wineskin. But if you are keen on making your money grow at least bigger than how much your savings generate annually, then investments is a good option.

What do you do with your 13th month and bonuses? It’s great to reward ourselves with new gadgets and stuffs, but I would want to suggest something. Try setting aside an amount that you can INVEST.

My wife and I are just starting but we do not have to wait to be rich before we start investing. Investing is for everyone whether you are a student or single mom. We have invested a small amount in UITF (Unit Investment Trust Fund). UITF is simple. It’s pooling altogether people’s money and an investment expert does his thing. BDO offers low minimum amount for UITF. Mutual Fund is also a good option. My wife and I have tried Variable Linked Insurance wherein you pay for insurance that is coupled with investments. All these you reap years and decades from now.

When is the best time to invest? Now.

Magazines like Money Sense will help you get it right with your finances.

But nothing beats the Word of God in its timeless principles and promises.

OF COURSE if you are a tither and if you live a lifestyle of generosity, the blessings of God will surely overflow your cup and fill your barns. No practical tips from any sage will work unless you align your heart in the will and purposes of God for you. Jesus himself talked about money more than any other topic in the Bible. It clearly shows us that money can be such a god in our lives. The things that I shared above are mere practices that we do. Those pratices can help us become better stewards of God’s blessings in our lives. At the end of the day if we are good stewards of what God has given us, He always prove Himself faithful. If you are in a tight situation right now, I say unto you, Shalom. Peace is not found in your wallet, peace is found is
n the person of Jesus. Believe that He will cause you break through and prosper. Be in faith to believe, really believe God for greater things! My wife and I do not have our own car yet. Our faith is not hinged on the money we make, but on the goodness of our Father. Our faith is that we will get our car without us spending a peso for it.

This new year, I pray that God will bless you abundantly in the area of finances and provision!

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