Being Poor is a Challenge - Part 1

         I was browsing the internet today when I saw & read this abs-cbnnews article posted last year. Would you imagine 18 million Filipinos are actually living by P50/day? It made me recall some of my experiences and compare it today.

          I was born poor. I grew up with a not exactly an irresponsible father but an immature one & a strong mother who was able to survive us (me & my 3 siblings) inspite of all the hardships & difficulties before. I am not writing this just to get sympathy as I myself don’t like the feeling of “kinaawaan” or just to sell a story as I don’t have any financial gain on this blog right now. Though I may not belong to the poorest of the poor as seen on the documentary series on television, I know what it feels like to be a poor - to have nothing, to have an empty stomach, to have an empty pocket, to almost lost a shelter to live & to almost lost a chance to go to school as I would always cry to my mother before “ma, pasukan na bukas hindi pa kami naka-enroll” but eventually my mother got us enrolled on the first day of school.

          But do you know what it really feels like to have nothing? Here are some examples of real life scenario - a comparison of having nothing & actually having something.

1st Scenario
What's the difference between a person who took a bath & a person who don't?
"You know the feeling & the smell of course", "o di ba ang baho, at ang sama sa pakiramdam?"

1. But then you need to take a bath, let's say a person took a bath but with no soap just water, "a little refreshing but the smell is still in there, right?"
2. Let's say a person took a bath but use a laundry soap because there's no bath soap." a little refreshing & you will feel clean afterwards but there's no fragrant smell and a dry skin afterwards, right."
I know the feeling because I once experienced it. "tumira kami sa tabing riles at pinapaliguan kami araw araw gamit ang sabong panlaba,kaya balat kalabaw po ako, hahah."
3. Then let's say a person took a bath with bath soap & shampoo. "the feeling so great you will feel refresh, clean & fragrant afterwards".
4. Let's say a person took a bath with bath soap, shampoo, conditioner, body wash & facial scrub. "that's a luxury for me already but for middle rich ones they are just necessities right?"
5. And finally, taking a bath on a Jacuzzi with moisturizers, rose petals & fragrant oils in it. "well that's for the super rich ones."

2nd Scenario
Do you know what it feels like to have an empty stomach,to actually have nothing to eat ?
I can only speak for myself & the good thing during my younger years is that my mother does not let us out in the streets but there were times when we wake up in the morning without nothing to eat & my mother will find a way for it.

          Given this scenario - "We woke up & feel hungry but we have nothing to eat & for hours we wait for our mother to come & when she finally arrived she only got rice."

1. So we need to eat that rice, just the rice (nothing else) because we need to ease our hunger.
2. Then another day, our mother brought a rice again still "no ulam."
We need to eat that rice again but there's bonus- "a little sugar or salt /little toyo or mantika added so it may taste like adobo, o di ba mas may lasa."
3.Then another day we need to eat that rice again but my mother gave me 1 peso. So I bought mangga & bagoong plus talbos ng kamote from the backyard placed above the sinaing, ang sarap di ba, Oh, I love mangga & bagoong plus talbos ng kamote with kamatis.
4. Then another day my mother has some earnings when she arrived -so she cooked ginataang laing, sinigang na buto buto ng baboy, pritong galunggong with mangga at bagoong with ginataang halo halo for meryenda... " it feels like fiesta for me already but for the middle rich it's just ordinary, right?"
5. And today  there's a lot of food chains & restaurants, on the mall where the middle rich people eat & those fancy & high end restaurants in hotels for the super rich ones.

           But what's my point here? Poverty is not a good topic in this world of financial blogs as I do not encourage it. But I have been an observant as to what's been happening in our society & I have observed one thing the rich ones are getting richer because they keep on earning, saving & investing while poor ones keeps on spending all their earnings.

As I once read in Daily Bread ,
" I asked for riches that I might be happy,
but I was given poverty that I might be wise."
The poor ones didn't recognize what God had given us.
The lessons those experiences taught us because we know how it feels to have nothing.
Yes, we we're born poor but if we were born rich, would we know the difference?
Would I actually know the advantage of having a laundry soap than nothing while taking a bath.
Would I appreciate the importance of rice even with just a little taste on it than to have nothing on my stomach, right?

          So if you were born poor then be wise because that's what God is actually teaching us.
Yes we need to spend to help our economy but then let the rich people spend their money while the poor people spend wisely.

          If you're a minimum wage earner like me, challenge yourselves. Spend wisely, spend on things that are needed & not on things that you just wanted. Save because we know how it feels to have nothing. Invest because we need to prepare ourselves for a better future.
Just imagine how great our country will be, if those 18 million poor Filipinos  change their mindsets & becomes rich in the future :)        

Philippines maybe a third world country & I believe our country will rise up.
There's a reason why God chooses us to be born here in the Philippines because even if at times we have nothing we still believe that there's God who loves us & will never leave us no matter what.

Just sharing some thoughts today.    
Have a blessed weekend!!!                        
Ps. The above scenario are my actual experience from 1st to 4th .

Another Financial Challenge Accepted

Getting a life insurance is not on my goal lists as I think the need for it is not necessary for an individual like me who does'nt have kids yet.
But almost 6 years ago our company took a BPI Philam life insurance with a 200k coverage payable for 8 years. Half of its premium is automatically deducted from our salary (only P 172.81 / payday) while the remaining half was paid by them.
Last month, our company informed us that they can no longer pay half of its premium since they are having hard time with their collectibles as most of the clients are not paying their dues in time. I hope they consult a lawyer now so they will know what appropriate legal moves needs to be done with those delinquent clients who aren't bothered with their credit dues.
Would you imagine "Ilang milyon ang pautang & kung ilang taon na hindi sila nagbabayad"? Oh well it's their problem, I'll just pray that those who are in position will seriously work for a solution -- but my problem now is they gave us the billing last month & handed us the full responsibility of paying it & we have until December 2 to settle it. Should we decide to continue the policy or not, it's up to us.
Yes, I need to pay that P 2,073.68 in full and though my focus is to save for my mutual as a I have a target goal for this year but then I need to take some considerations in deciding what needs to be prioritize.
Some of my colleagues here we're saying "pag nakautang na ko dyan di ko na itutuloy" while some says " aanhin pa ang damo kapag patay na ang kabayo, di ko na babayaran yan." As I have told them, "hindi naman para sa inyo yan para sa anak nyo yan, mabuti ako wala pa akong anak." but still I plan to continue it even if it's not on my budget list. As I have told them, "sayang naman naka 6 yrs na tayo, just 2 years only fully paid na ang policy & we're already insured for life with an accident insurance as an added feature".
Good thing I have set aside my two months earning (P 1,350.00) from lending though it was intended for my equity fund, & the company profit sharing (P 430.00) I received last month, plus a little sacrifice from my daily allowance ( P293.00) and finally I was able to pay my life insurance in full yesterday.
It's easy for me to ignore that life insurance plan but then it is "sayang" if I just give it up considering the pros & cons it gives.
And though mam jill says that plan is a bit expensive still that remaining two years of payment (total of P 16,584.44) compared to a P200k coverage for life insurance has a big difference right?


Have a great day guys!!!


Financial Diskarte 3


Scenario 1

I was looking @ my credit card bill & checking all my transactions last September when I suddenly remember, "Naku, mag - October na pala next month, naku baka di ko abot ang points ko annual fee reversal kailangan ko mag-cash loan para ma-waive ang annual fee ko" then one of my office mate overheard me & she volunteered.
Scenario 2
I was about to confirm the loan to my contact agent on that credit card company when one of my officemate heard me & said "di ba nagsabi na rin ko sau?", okay then.

Final decision - I made a P 15,000.00 cash loan again @ Eastwest last September @ 1.5% add on payable for three months.
I was suppose to post this blog on December since I'll finish its full payment/collection this December too & I plan to use my earnings here to add for my mutual fund but something came up.
Our company took Life Insurance plan from BPI Philam almost 6yrs ago & as per agreement half of its premium will be paid by the company while the other half will automatically deducted from our salary. Last month, our company handed over us the responsibility of paying its full quarterly premiums since the financial status of our company is not doing well today because most of our clients are not paying well too. 
I still dont want to touch my emergency fund, I decided to use my two months earning here just a little amount to be added by next week I'll be paying my life insurance quarterly premium in full.

Life is really full of complexities no matter how much we plan for it but then we have to be flexible in dealing with it.

Have a great weekend guys =)

Finally 'got an equity fund in PEMI!

I have previously written a post here about all the four specific financial goals that I must achieve before year 2014 ends. On my third goal is to open an equity fund in Philequity.......and finally I did it, I received a confirmation from Philequity last week.
It was my plan to open an equity fund in PEMI first last July but thrice I called their main branch & they specifically informed that I need to apply personally in their office to open an account but the problem is I can't sacrifice my one day work since we've got a lot of workloads these days & their main branch office is a bit far from us. With the help of Ms. Millete (mileti) who commented on my blog, she referred me to Ms. Tina of Rampver Strategic Advisors. I personally went to their office in Ayala to open a Philequity Fund before heading back to work. Though I was not able to meet her personally I was assisted by her colleague and after just one day I already received a confirmation letter from Philequity.
Financially speaking, last july I withdraw P 4,400.00 on my capital con. account and it was really intended to my initial equity fund just an additional P 600.00 is needed to have a total P5,000.00.But then something came up and P2,400.00 was used up while I lend the remaining P 2,000.00 to my officemate so it can earn an interest. It was only this September I was able to received full monthly rent from my brother though some of it were used in repairs of the house again. By October I received another house rent payment & finally set aside the P 5,000.00 for Philequity.
My financial life is a bit complicated these days as I was trying to rollover some amounts through lending, I was also trying to help my brother with his small business and some amount were used to payout some of my credit card loans. Although "masakit sa ulong magpa-ikot ng pera", I need to do this to have an additional means of income that I will use to invest esp in my mutual fund.
This November, I feel happy & fulfilled again that I was able to accomplish another goal for this year. Thanks again Ms. Millette :) for helping me achieve my third goal.




Have a great day everyone :)



The Story of our House, The Story of my Life - Part 3

....our second house in Taguig, where my brother is living.
After the two telenovela posts that I've written, here comes another story:
After I finished paying the first lot, the lot beside our house was then again offered to us.
April 2004 when I bought the second lot (42 sqm), the right was sold to us @ P 156,000.00 by the same tenant again. I took the risk again - handed him a down payment of P 100,000.00 cash while the remaining balance will again be paid in installment as per agreement.

How did I come up with that P 100,000 pesos in just one year?

Year 2002 I finished paying for the first lot. By year 2003 I started saving again and all the SSS loan, Pagibig loan, & the 13th month pay I received that year were all tunelled to my capital contribution account in Villamor Air Base which earns 23% per annum.
And by April 2004 I have approx P 40,000.00 & my brother also had P 50,000.00 in that account which I borrowed & promise to pay him in full with its corresponding interest from that account. But the problem is it can only be withdrawn every six months otherwise it will not earn an interest. So I borrowed P 92,000.00 from my officemate & promise to pay him in full after two months as soon as I received my savings from that cap. contribution account. And with some amount from my savings & paluwagan I was able to accumulate P 100,000.00 as initial payment for the lot.

So why did I took the risk again?

I know nothing about investing before but I do save as much as I can. But as much as I wanted to see my money grows in my bank account, I am also looking for alternative income or investment so I can be prepared if I happen to get unemployed in the future. So when the lot was offered to me with a little house in it, I took it again. My plan is to improve it & have it rented, at least I can have a little monthly income from it.
For a year I've been paying for the remaining balance of the lot & saving for the P 50,000.00 that I borrowed from my brother. And by year 2005 our company's operation shuts down but we're given a separation pay. And through that separation pay (P 56,000.00). I was able to pay the full payment of the lot & my brother as well.

Did I regret buying it?

Half of my mind is saying "Yes, I regret buying it". Have I known about investing before I would have thought of different strategy to secure my future. I would have just let my money grows in that capital contribution account & look for other lot in a location where I can do business with. And with the current situation that we are having now, I do feel some regrets buying that lot 10 yrs ago.

Half of my mind is also saying "No, I didnt". As others would say "mura na yan at tataas pa ang value nyan", but then again I have no plans of selling it now, as what my mother says "dumadami ang tao sa Pilipinas pero ang lupa hindi", talking about demography issue in the Philippines, hahah.

Did I make a wrong decision?

Yes, I did. Have I known that I would be spending approx P 100,000.00 on renovating it, I would have demolished that little house right away & build a new one with a stronger foundation. Plus a lot of years have been unproductive, with the money that I invested there.

Am I earning from it?

Yes, but.......sadly as I make the chart today the result is not good, I deducted the total expenses from the total rent & the result is negative - "After 10 yrs , hindi pa sulit o bawi, ika nga"
My brother who just got married last February is currently living/renting that house @ P 3,000/month. He approached me last year & requested "Ate, puede ba akong umupa muna dyan tatapusin ko muna ang pagbabayad ng kotse at cash loans sa credit card ". I've been telling my brothers "Pag nag-asawa kayo kailangan bumukod kayo". For now "exception to the rule" muna ang kapatid ko since he's the one giving money for the maintenance medicines of my mother. I know that he also plans of owning a house for his family in the future.

Why am I writing these stories?
It helps me analyze the financial decisions I made before, by tracking down the ins & out of the money that we're spent. Clearly, I can see that I have made a wrong decision but I guess I have to deal with it & look for other productive alternatives.

Decision making really plays an important factor in our financial lives & for me it's the hardest one. In every decision we make will chart the course of life we take. But wherever that decision will lead us, we have to accept it as challenge, and whatever the result is - we just have to learn from it.




Just sharing some thoughts today!
Have a great weekend guys!!!!


Note: I've been trying to live within my salary income so I can invest part of that rent to my Philequity fund. Most of my plans next year will be more on personal improvements, hopefully my financial life will go smoothly as planned.