Financial peace

July 31, 2015

where my money would go...

My future self will thank me today. I happily got to tick off one financial goal from my 2015 to do list. Actually, it's been part of my 2012, 2013, and 2014 list. But I didn't have the courage yet to do so. 

Saving up isn't new to me. I managed to allocate our family's little budget for five years now with discipline since my early retirement. I might not have an income from teaching anymore but it seemed I get to save now efficiently more than before. My income then was for self-consumption most of the time- twice a month salon trips, occasional shopping for clothes, shoes, make-up, etc.  Of course, I spent also for our son's needs and other household expenses but the basic utility bills are all shouldered by the husband. He is a good provider and never obliged me to share in this particular matter. That time, spending for myself was a must. I worked hard for it, so I deserve all the things money can buy. Why scrimp on myself, right? Nothing's wrong with that. But my fault was, I didn't sit down and listed my expenses. Maybe I was afraid that in doing so, I would be frightened how I lost much money from all those unnecessary purchases. I don't have a 'limited' budget then. Ngayon, kahit p10 expense, I jot it down.

Forced savings is now on top of my list. I work around whatever is left basta ang priority nakatabi na ang savings. Dati, baligtad yun. Savings yung natitira from whatever is left. Ang malungkot, kadalasan wala. Mas malaki siguro ang na-isave ko if I exerted a little bit effort when it comes to my finances. Kaya when I told my husband gusto ko na mag-early retirement he didn't contest anymore. Kasi di naman niya nararamdaman sweldo ko. Haha. He was more than worried pa na baka ma-bore ako with domesticity after eighteen years of teaching. 

Back to investing. After numerous times of computing our daily/weekly/annual expenses, I felt it was time for me to give it a go. Thankful, our son's thru with school. Though we invested also for his college education, his school expenses/daily allowances were a big chunk cut off from our budget now. I'm investing now for our retirement. I chose the long term VUL(Variable Life insurance) Critical Care Plus at Bank of the Philippine Islands(a new offering) with the aid of my sister whose employed there. I want peace of mind when it comes to my savings so it's both an insurance, a health fund and an investment. Three in one. Para lang ako nag-sasave(forced) sa bank, pero it is insured and has the capacity to grow much after ten years which you couldn't achieve just by simply depositing your money on a savings or current account. Sabi nga, 'savers are losers' because inflation plays a big role in the economy. Your money's purchasing power today will be different in over a period of time. In investing, it will make your money grow. It might not be a get-rich-quick scheme, but at least my family and I are secured. One more reminder though, make sure you have allocated a budget for savings and emergency, too. It should be different from your investment money. It is advisable that you're also liquid- meaning, you have enough cash on hand in times of crisis.

Always remember that each person or family have different lifestyles or needs when it comes to investing. My financial situation(or goals) is different from yours or vice-versa. What's good for me might not be good for yours. If you're interested or have decided to get one, always consult a professional when it comes to money matters. For a start, this article may help you...> Where to invest? Mutual funds, VUL, UITF or stocks?