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Why many chose Variable Insurance rather than saving in a bank?

A couple of years back, we are being familiar with traditional life insurance but since a lot of people now is looking for investment, ...

The Financial Advisor

Credits to http://motivation2you.com
Every financial advisor has her struggle and that includes being the "Invisible man" and "Seen mode friend". Almost all financial advisor I think could relate to this, specially those who do their communication on facebook or maybe in other social media. Most of the time, we would message someone and yet as if typing "no" or "not interested" would take an hour of their time. We know that these people are busy, and yet we feel that if we talk to someone and we don't get direct answers, as if there's no closure at all. But yeah that's life, and that's reality and reality bites!

And oh, should I also mention that includes text messages as well (wink*). This is not new, sometimes you may loose majority of your so called online friends because of this. Funny but true, might frustrate us a bit, but we have to move on from client to client. 

Client might not realize their needs for insurance or investment at their current state in life, and mind you, selling insurance is difficult. Harder to sell than real estate.. why? Cause it's intangible, how would you sell something that's can't been seen? And yet we know for sure that the reason why we are in this business is not just for commission itself, but the genuine intention to help other people realized their financial goals and secure their family. Especially the breadwinners. As much as possible we would want to emphasize that, a few years from now, his or her family will get something out of it. That whatever happened to them in the future this will be a big help to them.

That we would cross the islands and the sea just to get there, and extend our service. There are times that we would sacrifice our family time just to be of service to our dear client, but hey, they would still think that it's all about commission. Sad but true.

To be a financial advisor is to be an advocate of financial literacy and be of service to our client to help them build financial security in the future not just for them but for their loved ones.

So if you have the guts and passion to be an advocate and help our client. Please join us in our journey as Sun Life Financial advisor. Please add me on facebook and send your resume.

Watch Out For These 5 Budget Killers

Most Filipinos have days when they just exclaim, “Hindi ko alam kung san na napunta ang pera ko.” (I don’t know where my money went.)

Most of Filipinos are used to saving and budgeting for the big purchases so that they can afford it. Some do not track their budgets and wonder where these “mystery spending” are coming from, as stated by 21% of the survey respondents of “Enhancing Financial Capability and Inclusion in the Philippines - A Demand-side Assessment” by the World Bank in partnership with the Central Bank of the Philippines. They wonder where their money went because of unnecessary expenses which are untracked.

Here’s a look at five of those seemingly small expenses that can ruin your budget.

Additional Charges Dues to Late Payments

Interest rates of credit cards may seem low at 1.99% - 2.99% but if you compute it, here are some computations of amounts of interest:

Credit card charges sample computation

Interest rates on credit cards

Php3,588.00 and Php7,176.00 are both significant amounts that one can add to his savings or investment fund instead of wasting it to pay  unnecessary fees. This does not only go for credit cards but for any financial product with an interest. It’s easy to tell ourselves that we’ll just delay the payment for one month but before we know it, we have accumulated unnecessary expenses due to complacency.

Landline and Cable Subscriptions

Stand-alone landline subscriptions costs from Php499.00 – Php600.00 per month depending on the network provider, which can cost you Php5,988.00 – Php7,200.00 per year. Some cable companies now offer prepaid and postpaid plans that have Php1,599 – Php4,280 one-time installation and cable box payments required before the recurring monthly fees. This could lead to Php7,868.00 (Php4,280 one-time fee with Php299 per month charge) - Php8,187.00 (Php1,599.00 one-time fee with Php549.00  per month charge).

Some things to ponder on if these expenses are worth it are:
  •     How many people use my landline number to contact me and cannot do so at my cellphone?
  •     How many people do I call using my landline whom I cannot reach via cellphone?
  •     Can I just watch episodes of the TV shows online instead?
  •     You can keep these expenses if you assess that they are important to your personal life. Otherwise, it would be wiser to  take them out of your monthly expenses.

Inter-branch and Inter-bank Fees

There are many instances when going to a branch of your bank where your ATM card is not registered or checking the balance of your account using another bank’s ATM.

Here are some bank transactions and their corresponding costs, which can vary depending where you have your account.

  •     Encashing a cheque at another branch which is not where your account is registered – Php100.00
  •     Depositing money to an account registered in another province – Php50.00
  •     Checking your balance at another bank’s ATM – Php1.00 - Php 2.00
  •     Withdrawing cash at another bank’s ATM – Php10.00 – Php15.00

Coffee shop visits

There are many of us who think of coffee shops as a place for meet-ups such as corporate meetings, get-together of friends, and a place for studying.

In this infographic by MoneyMax.ph, it’s indicated that you can save as much as Php34,800.00 if you skip the weekly Starbucks coffee. This is also applicable to other coffee shops because most artisan coffee are priced at Php120.00 – Php150.00. Are you up for this challenge?

Unnecessary food splurges

It’s understandable when we go out for good food such as birthdays, graduations, and weddings, but there are instances when you can avoid spending extra cash on money. This could be bringing your lunch to work or buying food from the nearby stall so you can eat at the office instead of going to the mall.

You will have spent Php600.00 on lunches alone if you spend Php120.00 on a lunch out for 5 days. This can already be your lunch and dinner budget for 1 person if you buy 1 kg. chicken for Php140.00 and 1 kg. pork for Php220 and buy ingredients with the remaining Php240.00.

The definition of expensive is relative to everyone so determine what is your maximum amount for food expenses on ordinary days.

Final Thoughts

There’s nothing bad about spending extra money on different expenses just as long as it is within your budget. What is dangerous is not knowing where your money goes and ignoring tracking small expenses because you do not feel that they are significant enough. It’s not the amount that make the small expenses dangerous, but the frequency of spending.  

Author Bio:
Kyle Kam is a Digital Marketing Specialist of MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.