Usapang Personal Finance

If you could give an advice to your fresh grad self in terms of personal finance, what would it be?

Para sa akin: Kumuha ka na ng insurance, mas mura habang mas bata. (Disclaimer: I am not trying to sell insurance policies, hindi po ako agent :lol: )

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BTID. Buy Term insurance, invest the difference. Insurance = protection. So only buy it if you’re protecting something, say your income. So if nobody depends on your income, then Term Life Insurance is almost useless. Invest = Wealth Building. Stick to long term mutual funds with low cost expense ratios. basic 6-month emergency fund. after that put it in mutual funds. Retire at 50-60 y.o.

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Don’t put your eggs in one basket. Pay yourself first by investing but don’t forget to have a “fun fund” too!

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Time value of money. Save when you’re young. Not just because it builds discipline, but time will work out better for you.

When you get an increase, don’t spend it. Live within your current budget still, and use your increase to save.

Big payouts (13th month etc) should be used for savings din. If not all, make it a habit to save some.

Basta ipon, ipon, ipon.

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Live within your means.

And tama sila: ipon lang ng ipon.

Don’t buy that new iphone! :sweat_smile:

Get insurance while you’re still young. Mas mura ang premium!

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Insurance! At huwag pa-pressure sa palibre ng mga tao sa paligid! Lol mag-ipon at mag-invest.

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If you don’t have the time to learn about stocks, choose a good fund manager na lang. I go with Philequity (am not connected with them), I heard Metrobank funds are quite OK din. Also go with ATR Kim Eng for the simple reason that they manage the funds for big pension funds.

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Have a target amount of passive income during retirement and work on achieving that – can be from real estate, stock dividends, crowdfunding, etc.

Seryosohin ang pag ipon ng emergency fund, and don’t use it to buy big-ticket items or to buy stocks. You’ll never know when would be the next emergency like the current pandemic and global recession.

Spend money on travel instead of buying the latest gadgets. Invest in building memories with family and friends.

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  1. Set aside 3-6 months emergency fund.
  2. Start cost averaging on blue chips. Time is money! Sayang inflation.
  3. Get insurance (VUL).
  4. Get MF / UITF.
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Save then Invest some and travel some.

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Basically don’t make the same mistakes I did:

  1. shopping galore pag sweldo
  2. madaling magpa kantyaw ng libre, esp sa birthdays
  3. thought that because I was just a mere employee I wasn’t gonna get rich anyway so why not just spend on instant gratification stuff
  4. magpautang sa mga kabigan at kamag-anak na walang clear terms
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  1. Have insurance
  2. Maintain liquidity good for at least 3 months in case of emergency
  3. We have an Employee’s Fund where you can set aside a % of your monthly salary. It’s a great way to save. Dividends are also well above bank rates. Do that if you have the option.
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  1. Save up for your resignation fund. (2 mos worth)
  2. Upon saving your resignation fund, save for your emergency fund. (3 mos worth, this should be aside from your resignation fund)
  3. Get a sideline job/another source of income.
  4. Minimize your fixed expenses. (postpaid plan, gym subscription, Netflix, rent, etc)
  5. Spend for trainings or personal development with expected returns.
  6. Build your credit standing.
  7. Learn to play with stocks/forex
  8. Get yourself an insurance policy after having your resignation and emergency funds set up or if you can truly afford it already.
  9. Start a business.
  10. Take care of yourself and live your life to the fullest.

I’d like to expound on this but I can go on and on and make it too hard to read. haha. message me na lang if you want some clarification or you want me to share in detail.

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Make sure your partner has the same discipline (or better) as you on managing finances.

Ipon ka nga ng ipon pero gastos din ng gastos partner mo. Ano na.

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This!

The best decision I ever made was to marry someone with better financial IQ than me.

Dami ko natutunan pero mas mayaman parin sya sakin. :lol:

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Kumuha ng VUL habang mas bata
Huwag hahayaang umutang under your name ang jowa, yes, miski fiance mo pa. :sweat_smile::rofl:
Mag ipon ng bongga!!!

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Natawa naman ako dito nini :smash:

  1. tama na kumuha ka agad ng insurance, pero sana nilakihan mo na, oo maliit sweldo mo nun pero kahit longer payment nalang. Natakot ka pa kase nagsisimula ka lang pero now super na appreciate mo yun di ba?
  2. house first pa rin priority mo, tama yan. Your older self never regretted it kahit dumaan ka sa panahon na araw araw kang kumakain ng skyflakes makabayad lang sa amortization mo. :rotfl: akala nila diet ka lang no?
  3. tumigil ka kakabili ng bag and shoes. Yan sana inipon mo at maaga kang nagka vul, uitf or baka dalawa na sana bahay mo :twak:
  4. susuportahan ko pa rin ang need mo na mag starbucks, it gave you more than a cup of coffee, it grounded you during your anxiety attacks. Enjoy it.
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Lesson learned yun ate. Hay ilang taon ko binuno ang pagbayad nun. Walangya, wala na ngang child support, nagiwan pa ng utang :sweat_smile::rofl:

Ay addtl, same ng shoes and bags mo:
Younger self,tigil tihilan mo kakabili ng sapatos at bags,di mo naman magagamit lahat yan ng sabay sabay! :embarasslaff:

Insurance talaga! Tsaka matuto ka mag-ipon!

So this is not so uncommon pala, personally know 2 people na may same experience

  1. Yung officemate ko yung car loan nakapangalan sa kanilang 2, nung nag divorce, hala kawawa si officemate, di nagbayad si ex, wasak tuloy ang credit rating

  2. Yung wife ng pinsan ko - ganun din sa credit card naman (shared account sila nung ex niya), tinakbuhan ni ex yung utang, so si bagong wife ni cousin my outstanding credit card debt + poor credit rating

Getting back on topic:

Pay credit card bill in full, if you can’t pay don’t spend. Also a line of credit is helpful - lower interest rate. Get a MasterCard and Visa, in the rare case na yung merchant only accepts just the one.

Wag bumili ng brand new na sasakyan - cars are really just to get you from point A to B. May 2nd hand cars diyan na reliable.

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