In financial liberation, what is the only thing that matters?

My title is a spin-off of Neale Donald Walsh book "The Only Thing That Matters" which I've been reading in parts and yet to get my hands on the book itself. Neale is a spiritual and  inspirational speaker and writer.  It is my hope and prayer that one day I'll be able to manifest even an ounce of his wisdom and faith. Check out and be inspired - https://www.facebook.com/NealeDonaldWalsch 

In financial liberation, what is the only thing that matters?

It is not uncommon to hear people suddenly getting sick and being terminally ill. That’s it, fatal, now running against time.  Pondering upon it, the sickness has been manifesting for so long.  Only the symptoms are being ignored, dismissed or just pretty too busy to care - until you just drop dead.

Financial breakdown is similarly the same. It started with a few verbal IOUs to relatives and friends, then clean unsecured loans, then collateral loans; each made to cover the previous ones. Then one day you just wake up financially broke and broken, spirit wise.

You choose to ignore the signs. You’ve been maxing out on your credit card, resorting to cash advance to support your daily expenses. You’ve been receiving collection letters of varying degrees of threat of shame and exposure.  Ringing phones freeze you, even teaching kids and friends to deny your presence.  Worse, you fail to attend family gatherings and events where you might encounter relatives whom you owe money.   

Yet you still continue, hoping and praying, …and hoping and praying that something will come up, that a windfall of money will be coming to bail you out, and more superfluous, is that you’ll win the lotto jackpot.

All these are just denials. It’s like chasing your tail. Everything is a cycle but each cycle drives you deeper in debt and depression.  It’s an unseen cage, covering you in shame, self-doubt, limiting you.  You’re in a downward spin.

Being deep in debt can have ill effects on your physical health, triggering stress –related sickness that when prolonged can prove fatal.  It can also work adversely on your mental health.  Worry over debts can cause depression and inability to make wise decisions. How many times have we seen well educated and known personalities lose material investments, results of lifetime hard work, due to wrong business decisions?  Being in debt compromises decision making and independence. Relationships can also suffer. Families break-up because of family matters. Relatives and friends may shy away from you, not wanting a share on your burden.  Or worse, if you owe them and still unpaid, can hold a grudge against you for a long time.

So what matters first in financial liberation? SIMPLY ACKNOWLEDGE IT. Accept your situation as a problem that has to be resolved. Simply recognizing that you have a problem will trigger your mind into creativity. You will be able think solutions in your current situation. This will also put you into the sphere of people that can help you out.

Don’t let pride get in the way. Your step, you decide.  Free yourself.

Jbd 04112013

Financial Literacy for Kids and Teens

Financial Literacy for Kids and Teens

Young and carefree.  Will they be like that forever?   Young souls or teeners, and there’s tweenies,  more often than not are excluded on topics of financial planning.  Financial planning is not an activity for the forties only.  Starting them young not only creates a financially  aware and literate mindset but a potential investor as well.

1. Orient the kids on the concept of money- its availability and value. When to start? – As soon as they know how to ask for money, or even before.
2.  Work out a spending plan with your kid.  The allowance should be enough to cover his expenses and at the same time provide leeway for unexpected purchases or events. I know of parents who give a certain amount of money that is untouchable unless emergency parameters are touched. Example:  Flood in school area stranded them and they need food and supplies or a transport strike disrupted his usual route causing additional fare expense.
3. Have a lifestyle spending plan for kids. Kids often are susceptible on enticing promotional activities be it online, print or TV.  They know the latest trends and gadgets. They also take for granted that malling comes with purchases and food binges.  Before going out of the house, discuss with your teener what they can buy and can’t. Latest fad magazines and comics or CD games and movies could eat up a lot on your budget. Schedule purchases or encourage them to save up from their allowance. Primary school age kids might need more emphasis on this since they are likely to cause tantrums and public display of frustration (pdf ) on parents. How many times have we seen a kid wailing his head off over a new toy?  Be specific on what and when can they purchase and how much is the limit. Authority and control are the key factors here.
4. Manage windfall money.  Cash gifts should go to savings. If something is needed, discuss with your child and guide him into determining if the item is a want or need. Sudden windfall of money can make whims into “needs”. Also in depositing these money into the bank, take your child with you and show him how much he has saved.  This will inspire him to save more.
5. Introduce the concept of investing as you go along his saving plan.  Find ways on how you can show your kids that money really do grow. Of course, it can only come if the parents themselves have been oriented or educated in investment options available for them.
6. It is always interesting to see how well our kids will turn out in the future.  As parents it is our responsibility to raise kids that are not only self sufficient but also productive and participating citizens of the country.  Money concepts and money management should have its roots at home.  That way we can leave a legacy of good stewardship for our family and society as well. And the cycle continues....  

JBD – 03182013

QUICK MONEY! ANYONE?

Is there really such huge returns for your peso?

 

Recent news of Aman Futures and Coco Rasuman scams have been hugging the headlines lately. Amounts totalling billions and thousand of Filipinos duped into this recent get rich-quick scheme. While much has been said, I'd like to still start with the basic money mantra I always advise my clients,"If it's too good to be true, it is not true!". 

I was able to caution few of my friends and clients on this 2 scams (yes I was actually "touched" by these scams). While some heed the advice, most did not. As with other investors, they cite the need to change their lives as the primary factor in aspiring for higher returns for their peso. (They sure changed - from poor to poorer!.) Once they've started earning, they re-invest the principal and earnings, all in,  for bigger profits. And the cycle goes until the scheme reaches its break off point. What is the driving force here? From "wanting to change life" goal into " want to have it all" goal.  Greed blinds reason. It would have been a different story if one is able to bolt out in time, which comes to mind only when you understand how investing is or how money works.

The level of financial literacy we Filipinos have is reflected on the volume achieved by the scam operators. And why pick on provinces as their site of operation? Because these schemes are usually uncovered only  when the payors fail their obligations (checks started to bounce boink!), and the farther they are from the financial mainstream operators the less risk of exposure. Filipinos are naturally forgiving and patient specie which can be a plus and a minus at times. (thanks to 100 yrs of Spanish rule that polished our malleability to perfection). Getting scammed can have you scarred for life but it does not end here.  You can start building again and make sure you lay good foundation to your road to financial wellness. Ask. Study. Learn. Practice. It's the only way to go. Scammed as you are, you can make it a stepping stone into achieving the life you want to have. It's a slow process but you'll surely get there.

We learn our lessons now, until the next ten years or so when all is forgotten, the Ponzi minds strike again. Remember Baladjay? 

My fellow Pinoys, don't let your guard down EVER!

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Pera Eskwela (Money School) is my personal advocacy on financial awareness and literacy for Filipinos. Watch out for talk schedules' announcements.

Next one is Dec 11, 2012

PERA ESKWELA

One more date for December before the year ends - a financial literacy talk on financial planning and money management.

PERA ESKWELA at Bantay OCW Operations Center
631 Shaw Blvd. , Mandaluyong City.
Register at 09276499870. Limited slots only!

RETIREMENT PLANNING. ARE YOU READY?

Retirement just like memorials is one of the topics that we tend to shy away from. For some in the younger age bracket, it’s not a cause of concern since they still have plenty of time. For the middle age group, they are still busy raising the kids and providing for the family. For the nearing retirement age, it’s too late to start now.

So how and when do we start preparing for retirement?  What does retirement really entail?

Retirement is when you stop working actively because of age or preference.  It means you will still be having the same lifestyle you picked for yourself and be able to support yourself through it. You should be able to provide for your medical and wellness needs, travel and vacation plus all other expenses related to the inevitable or your demise.

These are all the ideal scenarios of what a good retirement plan is. But what is the real scenario?

When I asked my participants at  Pera Eskwela of  Bantay OCW if they’re planning for retirement , most answered yes. But hey check this out; their retirement plan is relying mostly on SSS and GSIS pensions.  Do you think your government pension plan can really give you the lifestyle you envisioned for your retirement years?  How about OFWs whose companies abroad do not really have a retirement plan for them?  A single illness or worst, death can easily wipe out everything you have worked for.  Other retirement plans include relying on kids as their investments in the hope they’ll take care of them come old age; and relying on the windfall of retirement money which by the time of receipt has lost most of the investing power it possess.

  

When do you start?

 Retirement planning should start the moment we are actively earning an income (meaning early on!) A portion should be set aside for every income received, and invested.   Investment risks should be carefully factored in depending on age when you’ll start investing.  If you start early, you can still afford to take high risk equity/ stocks investing since you still have lots of time to recover if you fail.  The upside is when you hit it big; your retirement may come in early.  The middle age group can still do high risk investing but more on a mix with traditional or medium risk investments (go for balanced funds). For those retiring within 5 to 10 years, it is not advisable to go heavily into equity fund investing as time is not really on your favor by now.  It is still recommended to do medium to low risk investing like RTBs. You can however start a business now (in your area of expertise of course!), giving time to gain foothold when you can do it full time upon retirement.

Learn more about money and retirement planning.  There are ways to bring this investment awareness and practice to your knowledge level and comprehension. It’s not much of a hard work learning about your money rather than finding yourself with nothing to work on at all.

Pera Eskwela is a public service seminar (FREE!) given by Bantay OCW is the hope of pushing up awareness on personal finance.  Check out this blog regularly for schedules. Email the author at josaonair@gmail.com.

Long Distance Relationships

Aired at RADIO INQUIRER 990AM  last August 31, 2012 , Josa on Air @ Bantay OCW

My husband left for Middle East assignment last Dec. 31, 2011.  Yes, you can read back, on the eve of New Year!  It was our first separation in all  of our 16 years of marriage. Whoa!   You can imagine how the separation hit me so hard.  It was so tough for me that for 2 whole weeks I was like a headless chicken going everywhere and nowhere.   Writing about this now still produces that same longing and pain I had since the day he left but am much saner. more focused  and productive.   Read on how I did it!
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LDRs or Long Distance Relationships seems easier these days with the availability of various social networking sites and face to face online communications that are cheaper and faster. Sure, It is easier to communicate but how does one manage long distance relationships?

1. Pick your medium.

At the onset, each should discuss the time and manner of communication that is convenient for both.  While  video calling maybe comfortable for others, it may create pressure on the other.  Other forms such as text messaging or email may be explored. Familiarize yourself with the technical aspects of an online conversation. It is frustrating having to fix something in the middle of a chat. Try to limit talk time. Consider time differences and convenience of each party.  Establish agreed rules but resist control. Remind yourself by jotting down issues that need to be discussed as partners/ family.  Keep the partner or spouse updated and informed but not burdened.

2. Maintain excitement.
 

 Be spontaneous. Create surprises. You may want to send a card via courier or snail mail.  Record a good morning greeting video, a song or poem.  Do things that you enjoy doing together as if your partner is physically with you. You may eat meals "together" or visit websites, share your bucket list etc.  You can include other family members specially the kids. Being spontaneous brings out more laughter and excitement and breaks the monotony of just you and partner chatting online.

3. RE-INVENT YOURSELF

photo by Louise Delovieres

Welcome the separation and use the time to improve and empower yourself. Other couples request for cool off.  Go into a physical fitness regimen. Learn another language, a new skill or hobby or start again on the diet you keep on breaking.  Your new skills may also augment the family’s income. Continuously improving yourself holds your self esteem up. You can also try learning relaxation and meditation, both  known to improve self control and patience which can really be put to test by LDRs.

4. ESTABLISH YOUR END TIME

Agree on a time goal until when the separation will be. Set a certain number of months or years that you’re willing to endure for LDRs.  Without an endpoint in view, love will just start to wane.

5. NO COMPROMISE.

Do not compromise trust and faithfulness,  specially for married partners.  Never put yourself in a position that will cause your partner to doubt your integrity. If you must go into an activity or event, state so your intention to your partner. Removing gray areas in your relationship will strengthen it and will lead to other areas of interests and interaction.

LDRs can be a challenge to handle. It requires focus and commitment plus a good measure of time and money.  Quite a lot for a relationship huh? Keeping up only says you want that relationship to last.

Space and time are just relative realities. Love can make them vanish.

                   Mantra : I am loved and I have faith!