Top 5 Positive Money Beliefs to Help You Sleep Better at Night

Saturday, July 06, 2013

Top 5 Positive Money Beliefs to Help You Sleep Better at Night

by Lianne Martha Laroya 

thewiseliving.com

Adapt these five stress-busting money beliefs in your mindset and watch your financial stress go down. 

Money isn't supposed to be related to stress at all! You don't need to have high amounts of money to lower your stress and you certainly don't need to spend lots of money to have a better stress level. 

You only need to train your mindset to work with you.  

Although "having enough bank savings" isn't really an indication of financial freedom, I believe that the real freedom lies in our beliefs about money, you know? 

Once we start to think of money as something valuable and priceless, everything suddenly seems stressful and out of our control. But once we start thinking of money as simply a tool, everything shifts and we start appreciating simplicity and minimalism. 

So come on, go on a relaxing ride with me. Let's start thinking of positive money beliefs. After all, it's the thought that counts! 

Top 5 Positive Money Beliefs: 

1. "I have the ability to earn money."

All of us are born with talents. I sincerely believe that. (Mike in Monsters University isn't a good Scarer but hey, he's a wonderful Coach!) There is no such thing as an untalented person, or monster. 

Therefore, when it comes to earning money, we really do have the ability to earn it. What differs is our desire and belief to earn it. Yes, you may say that you want to earn money, but if you're not putting the effort to do so, it's still your responsibility. You have to desire, believe and actually work. 

2. "I am worthy of being abundant." 

God loves to bless you. Never let anyone tell you otherwise. It really sounds like a cliche, but I'm sure that whenever a door closes, another one opens for you. 

However, if a door closes and you don't see any other door opening, build a door yourself and open it for you. You have the ability, remember? 

3. "The sum of all my money does not define me as a person."

Money is worthless if it doesn't fulfill a meaning. In my book, someone earning P20,000 a month and giving back to charity is worth more than someone earning P200,000 a month and keeping everything to himself.

Just saying. 

4. "I decide to focus my energy on things that really matter to me. This means letting go of negative things in my life, even if they can bring more money." 

Oh, man. Life is too short to focus your energy and resources into something that physically and mentally drains you. Learn to let go of toxic things in your life - yes, even if these things can give you a lot of money. The stress, the frustration, the anxiety and the pain aren't worth it. 

Let go and focus your energy on things that really matter to you. You are here to make a positive difference in someone else's life; not to die a miserable and pathetic death. 

At the end of the day, money is money. It can be earned, it can be spent, it can be saved, it can be invested and it can be given away. You can earn money by doing something you love and you can also earn money by doing something you hate: which would you rather do?

5. "There is no limit as to how much I can earn." 

You are a talented, responsible and capable person. You have the power to dictate what you earn, provided that you back it up with expertise and knowledge. 

And no, don't also be fooled into thinking that just because you're young, you should earn low. No. Way. 

If you're good enough, you're old enough. 

Sunlife's SOLAR FLARe (Study on Lifestyle, Attitude and Relationships)

Wednesday, July 03, 2013 by Lianne Martha Laroya

http://www.thewiseliving.com/2013/07/sun-life-financial-philippines-solar.html

Sun Life Financial Philippines: SOLAR FLARe

Ready to know about Sun Life Financial Philippines' results on their Study on Lifestyle, Attitude, and Relationships (SOLAR)? I've made an effort to present the pertinent data for you guys. 

One of my (virtual) friends, Tara Cabullo, graciously presented me with the digital copy of the results since I was unable to attend the main event. Thank you for the thought, Tara! 

Sun Life Financial Philippines: SOLAR Financial Literacy Advocacy Report 

The theme is so catchy!

Reading through the report, I was interested to find out that the research has been done in a span of five years. The sample size is also 1,100 respondents from all over the Philippines, if you're interested. I'm not going to drone you with all the technicalities of the research, but if you're interested, you can always contact me for a more comprehensive analysis of the report.

Let's proceed to the meat of the sandwich then? These are my side-comments, by the way.

This study by Sun Life Philippines has 4 sections, mainly: 

1. Of Optimism and Of Filipinos 

• 87% of Filipinos asked are actually looking forward to a more prosperous future. Very good, guys! We always look at the bright side of things. 
• Filipinos worry about personal safety and security of incomethe most (82%). I attribute this figure because the words "safety" and "security" were utilized, don't you think? 
• The biggest financial concern of Filipinos when it comes to their family is their children's education. Really, respondents? Food's only 2nd? 

2. The Financial Literacy Paradox

• 20% of the respondents claim that they are experts - but, only 8% scored above 80% in the financial literacy quiz. An objective measurement is really better than a subjective one. Maybe we can also ask for a copy of the financial literacy quiz? 
• Filipino respondents define financial security as "having enough bank savings". Say what, now? No mention of investments as part of financial security?
• Bank savings only account for 6% of the respondents' monthlybudget. This is a real research study. And it's a bit disheartening. 

37% of the usual Filipino budget is food. 

3. Of Priorities and Preparation

• Only 8% invest to prepare for anticipated life events in the next five years.  Don't be like them - you can invest online now!
• Out of 100 retirees, only 2 are financially independent. 45 depend on their relatives...
• 79% will use their bank savings while 34% will put up a business to prepare for anticipated life events. Aren't businesses highly risky, though? 

4. Towards the Brighter Side 

• 88% of respondents want to be more knowledgeable about the insurance product that they're buying. Good points! 
• In fact, 74% of the respondents agree that everyone should have life insurance. The type of life insurance should depend on your current situation, though. 

Are you guys looking at a brighter future too? 

Sun Life Prosperity Funds

Simplicity, Accessibility, Affordability and Returns. These are only a few of the benefits that a Sun Life Prosperity Fund investor receives.

• Affordability: For a minimum of Php 5,000, one can jump start an investment account and be on his/her way to prosperity.
• Higher potential returns*:  The Sun Life Prosperity Funds is  a family of funds that caters to various risk appetites and investment horizons. Whether you’re a conservative or aggressive, short term or long term investor, at least one fund is suitable for you to achieve your investment goals.
• Diversification: For as low as Php 5,000, your investment is instantly diversified among different financial vehicles in order to minimize risk.
• Flexibility:  Risk appetite tends to change over time and should you feel like changing where your funds are placed, you can do so accordingly up to four times in a year at no charge!
• Liquidity: Sun Life offers the option to redeem fund shares any time on a business day at the current fund value.
• Professional Portfolio Management: The Sun Life Prosperity Funds are managed by  top notch investment professionals who are dedicated to ensuring that the funds generate the best returns over the long term.
• Global Expertise: Sun Life Asset Management Company, the fund manager and distributor of the Sun Life Prosperity Funds is a member of the Sun Life Financial Group of Companies operating in Canada, the United States, United Kingdom, Hong Kong, China, India, the Philippines and Indonesia.

*Share values, yields and investment returns may fluctuate

Type of Prosperity Fund	What’s My Objective?	Where will my money go?	What’s my risk appetite?	How much is the minimum investment?	What’s the minimum amount if I want to add?
Money Market Fund	I just want to leave my cash for a short period of time and earn from it, too.	This Fund invests in special savings accounts	I’m very conservative	Php 5,000	Php 1,000
GS (Government Securities) Fund	I want my money to earn but my investment should be kept intact.	This Fund invests mainly in government debt	I’m conservative	Php 5,000	Php 1,000
Bond Fund	I want my money to earn but my investment should be kept relatively stable.	This Fund invests in government and high-quality corporate debt	I’m moderately conservative	Php 5,000	Php 1,000
Balanced Fund	I want my money to earn more and I can afford to lose some of my investment for higher return	This Fund invests in a mix of  high-quality debt and equity securities	I’m somewhat between conservative and risky	Php 5,000	Php 1,000
Philippine Equity Fund	I want to maximize the potential of my money for  higher return over the long term	This Fund invests mainly in  high-quality equity securities	I believe in the saying, “high risk, high return”	Php 5,000	Php 1,000
Dollar Abundance Fund	I want to invest my US dollars to preserve it.	This Fund invests in foreign-denominated government and high-quality corporate debt	I’m conservative	USD 1,000	USD 200
Dollar Advantage Fund	I want to invest my US dollars and I can afford to lose some of my investment for higher return	This Fund invests in a mix of  high-quality debt and equity securities	I’m somewhat between conservative and risky	USD 1,000	USD 200

Sun Life Asset Management Company, Inc. highly encourages you to get in touch with a Sun Life Mutual Fund Advisor (mariegrace.o.ramos@sunlife.com.ph or graceoramos@yahoo.com.ph) to assess your investment characteristics and recommend the Sun Life Prosperity Fund that would best suit your needs.

How to Use Time to Make Millions

SEPTEMBER 26, 2012 BY PESOS AND SENSE TEAM 

Start early!

When it comes to saving money and investing for your future, it’s never too early to start. Every payday, most of us are faced with the dilemma whether to start saving today or put it off until next month.

Here’s a story of a young man who knew that he could earn more for his future by starting to save earlier.

At age 22, Ping took the first steps in making his money grow. Every month, he saved P2,000 of his monthly income. Then he placed it in a good and stable investment that gave 10% compounded interest yearly. He did it for 10 years until he was unable to add more to his investment and forgot about it.

On the other hand, his friend Pong took his sweet time before investing. He waited until the age of 40 when he had money to spare. He followed the same steps but he doubled the amount to P4,000 so he could catch up with Ping.

Reap the rewards!

Twenty years later, at the age of 60, Ping and Pong crossed paths again. Can you guess who had more money?

Remember, Pong invested late but his P480,000 was TWICE as much as Ping’s initial contribution. With 10% annual compounded interest, Pong’s investment became 2 million pesos.

But Ping, who invested EARLIER, gave his money more time to grow. Even though he stopped putting in money after a while, his money continued to earn interest. Although his total investment was only P240,000, at 10% annual compounded interest, his earnings reached
6 MILLION pesos. THREE TIMES the amount of Pong’s earnings!

Start early. Earn more. That’s smart investing!

What should we start doing early so we can earn more?

Save regularly. Set aside a portion of your monthly income regularly for the specific purpose of investing. No matter how small, the key is doing it regularly.

Spend time to learn. Knowing the different kinds of investments available to you is beneficial to making your money grow. Find out what your options are and choose the one that best fits your needs.

Focus on your goal in life. Whether it’s getting married, living in your dream house, driving your own car, travelling abroad, or retiring comfortably, you need to establish SPECIFIC financial goals. Write them down to constantly remind you to make saving and investing a priority. Discipline and focus are the keys to achieving your dreams.

Start early and use time to your advantage to achieve your financial goals. Time is money and if you start investing early, your money will start growing too!

“Time is the only resource you can never get back.”

When it comes to investing, time is one of the most important assets.

Take advantage of the time you have to learn how to make good investing decisions.

The Social Cost of Investing

MARCH 7, 2013 BY PESOS AND SENSE TEAM 

One of the most common excuses we hear from people who never get started to invest is “Next time na lang, when I have extra money.”

This was also Pong’s excuse when Ping encouraged him to invest as well. 

Let us take a look at why Pong never got to invest early.

Pong is such a social person. He never missed lunch-outs with his officemates where they bond at different restaurants. He spent around P200 a day for this.

It may seem small, but that P200 when multiplied by 5 working days is P1000 a week. P1000 multiplied by 4 weeks is P4000 a month which he can already use to save and invest. 

Because Pong never made a deliberate decision to invest and adjust his lifestyle, he started investing really late. What happened was whenever his income increased, his spending followed too!

What is the social cost investing?

Even though Pong wanted to start investing like Ping, he cannot say no to the bonding time with his officemates. He also cannot afford not to have the latest Apple gadget in its first week of release.

The feeling of being left out and not having the latest gadgets are some of the examples of what we call the social cost of investing.

When you already know what to do, have all the time and money to invest, this will prevent you from investing regularly.

We Filipinos are very social people like Pong. We love doing things together! Our social calendar never runs out of things to do – Valentine’s, vacations, birthdays, family reunions, and weekly get-togethers. Because of this, we also never run out of things to spend money on.

Can you not join the summer vacation in order to save and invest? Ping did!

If Ping can do it, so can you!

Ever since Ping started investing, he has lived a totally different lifestyle from Pong.

To adjust to investing lifestyle, Ping brought packed lunch to the office instead of eating out.

While Pong was having fun at the beach during summer, Ping stayed at home and continued his financial education by reading books and articles regarding personal finance and investments.

Whenever the latest Apple gadget came out, Ping did not replace his old phone just to be “in” and buy something that depreciates in value.

We all know how this story ended – all of Ping’s sacrifices paid off. Take a look at Ping’s retirement fund.

Ping’s retirement fund is thrice the amount of Pong’s!

We are not saying that spending on “fun” things is bad and we should deprive ourselves just to save and invest. We just like to remind everyone to keep things in moderation, because unless we make a deliberate decision to invest, we will never get started.

Getting past bad money habits

By Mark B. Aragona for Yahoo! Southeast Asia | BDO Money Matters – Mon, Jun 17, 2013 4:02 PM PHT

Last year, a Filipino named Dionie Reyes made big news when he won P14M from the PCSO jackpot draw back in April 2008—and lost it all in just three months. He apparently spent all his money on an expensive house, an SUV, vices, and lavish cash gifts to friends and family. In the end, he was in debt for P500,000.

This story is not common—many people all over the world who experience a windfall of cash wind up losing all their money. Could it just be bad luck? Or does it have something to do with their habits around money?

Lifestyle inflation

Take time to ask yourself these questions. One: when you make a lot of money, do you immediately come up with ways to spend it all? Two: are you trying to keep up with someone else’s lifestyle, or the lifestyle that media portrays “you should be living right NOW?” Three: is what you buy never enough and must you continually catch up with the latest model/fashion/trend?  Four: Are you living from one paycheck to the other, with little to no savings in between?

If you answered yes to most of these questions, it’s likely you’ve fallen under the habit of lifestyle inflation. And you’re not alone. So many people subscribe to this bad habit because it’s celebrated everywhere in media and our consumerist society.

This pervasive attitude makes us burn through our income very quickly, because no matter how much money we make, we spend exactly as much as we earn.

It’s not wrong to spend on necessary things. But the excessive spending caused by lifestyle inflation effectively kills wealth. It robs you of future income and keeps you hunting for jobs that can support your lifestyle. And when the day comes when you are either unable or unwilling to work, you’ll find there’s no more income to be had and you’ll still have the nagging urge to spend money.

Get past it: Cultivate the habit of paying yourself first: Whenever you make money, set aside a regular amount for savings. You may be tired of hearing that, but there’s a reason why people keep repeating it.

Why is saving paying yourself first? Imagine this: every time we get paid a wage, we don’t so much as make money as earmark it for other people. The government gets a cut from taxes. Then the electric, water, and cable companies get paid, followed swiftly by the telecoms, internet, transportation, supermarkets, even the tobacco and liquor companies. By the end you end up with nothing, or close to it.

So invert the equation. Pay yourself first by saving before you spend on anything else. This money you save will buy your future. Even if you are capable of setting aside only a few pesos a day, what you’re aiming for is to build the habit of saving and doing away with any unnecessary spending. Understand that when you do make a windfall of cash later on, you are NOT going to magically grow the habit of paying yourself first. Both good and bad habits are created over a period of time. So while your income is small, cultivate this practice. If you can be responsible for the small things, you can handle the big things as well. 

Negative view of money

There’s a saying that people are funny about money, and it’s true. For example, there’s this belief we have in our culture that it’s bad to have a lot of money. We may not say it out loud but we often think it. We pick up this concept from our schools, from church, probably even from our parents: “Money is the root of all evil.” “It’s easier for a camel to enter through the eye of a needle than a rich man to enter the Kingdom of Heaven.” “Having too much money will inevitably you make suffer.”

It’s no wonder that people who subscribe to this belief wind up poor for the rest of their lives. They either consciously or subconsciously rid themselves of their own wealth, either by spending it or denying themselves opportunities to make money. The term “galit sa pera” really does mean something.

Get past it: Instead of subscribing to the belief that money will somehow corrupt you, think of all the good you can do if you just had the resources. Not only can you can look out for yourself and your loved ones, you can give back to society as well. Think of charities you can support, the orphans you can send to school, the people you can employ.

Money is simply a tool you can use to make things happen. Think only of the good things you can do, and do it.

Mañana habit

“Why save now? I can always do it later.” “Why prepare for retirement? I’m still young and it’s years away.” “Why worry about investing? I’ll let my future take care of itself.” 

The mañana habit, or procrastination, takes away an important element of building wealth: time. Money can’t grow overnight. Every kind of investment, whether it’s a bank account or a stock portfolio, needs time in order to grow. Often it takes years to build a fortune and more years to preserve it.  

Get past it: Simply put, the earlier you start investing, the greater the money you make. Putting it off carries the price of lost possible income. 

Here’s the proof: Say there’s a bond fund that earns an average 8% annual return. If at age 20 you save P1,000 a month for just 10 years, you will end up P1,749,272 by the time you reach age 60. Meanwhile, if your 30-year old friend decides to use the same fund and saves 1,000 a month all the way until age 60, he will only have P1,359,398 even after 30 years of saving! 

So start now. Begin with educating yourself about personal finance and get your house in order. As you grow your savings, learn about investing and start using it as leverage. And treat your time as a precious commodity. 

Successful Savings: techniques that help you keep your money

By Mark B. Aragona for Yahoo! Southeast Asia | BDO Money Matters – Thu, Jul 18, 2013 4:51 PM PHT

Do you find it difficult to save?

If yes, you’re not alone. The latest survey of the BSP indicate that less than 25% of the Philippine population has any savings at all, even for emergency purposes. Limited income and poor spending habits both factor in, but the rest of the survey reveals something more: a staggering 40% of those who save just keep their savings at home, instead of putting it anywhere that nets interest. Which leaves the financial future of many in serious doubt.

Given that it isn’t easy to save, how do you make it work? Aren’t there ways to help you keep what you earn and make it stay longer with you?

1. Define your goal

All financial experts agree that for savings to get anywhere, you must set a target. This goal provides direction and milestones that will show you that you’re making progress.

I recommend the following financial milestones, in this order:

•    6 months worth of emergency savings. In the event you’re unable to work, this may help you keep a comfortable lifestyle long enough to get back on your feet.

•    Health and Life Insurance. Famous journalist Roger Ebert once said, before he died of cancer, that “nothing cures wealth like illness.” You are your own greatest asset, so it stands to reason you should protect yourself first, ahead of your own car or house.

•    Medium-to-long term savings. This is for retirement and pension. Your later days may mean less work on your part and thus less income. Your savings now determine your quality of life later on.

2. Understand compound interest

This is best illustrated by an example: a can of soft drink may cost an average of P25. If you didn’t buy that can and instead placed P25 in a UITF or mutual fund with 10% interest, after 20 years you would have P168.

That’s a tiny amount of money, you might think—BUT consider that a regular person will actually buy soft drinks or similar products several times a week. If you bought a can every other day, you may end up buying 4 times a week, or 16 times a month. Now take that amount (P400 a month) and imagine paying that monthly to the same fund for the next 20 years. If you do, you would end up with P274,920!

That’s the power of compound interest: your money builds interest on the interest of the years that came before it. Every peso you set aside will work very hard, even while you sleep, to grow and give you a good return.

Of course, it works both ways. If you DON’T save the P400 a month and spend it on frivolous things, you actually take away its future value to you. This is called opportunity cost, and the cost of not saving your P400 a month at 10% interest is P274,920, in 20 years’ time.

3. Set aside savings ASAP

Get your monthly income from all sources. Then tabulate all your regular monthly expenses and subtract them from your income. Then the crucial part: make savings a priority expense on your budget. That means you put away cash for savings ahead of everything else. This means that once you get your salary you immediately set aside the money as soon as you get it. Make this your rule: at least 10-20% of your income goes into savings. You can do more if you like.

If your cashflow cannot accommodate savings and you can't pare down your expenses to help it, then you will need to find ways to increase your income. Thankfully, modern times has made it easier to find means of augmenting your cashflow. One may takes sales as a sideline, or market their skills on freelance sites, or open up an SME (Small-to-medium enterprise). It depends on what your skills are.

However, just because you have more money, doesn’t mean you’ll save more. Usually the opposite is true: you’ll spend more. The mind wants what it wants when it wants it, and usually it wants immediate gratification. Again, you must train yourself to make savings a priority if you don't want your new income to go up in smoke.

4. Let savings grow as income grows

Don't keep it a steady amount but a percentage of your income—10 to 20% of what you earn. This is doable even if your income is irregular, as is the case with commissions. Whatever income stream you use, abide by this rule. Set aside the right amount according to what you earn.

5. Keep your savings out of easy reach

The closer your money is to your wallet, the sooner you will spend it. If the bulk of your savings is in the ATM, you don't have to wonder why your account reaches zero whenever you're hungry or feeling the need for new clothes. Out of sight, out of mind; keep your emergency savings in a time deposit or a fund that isn’t easy to withdraw from. 

6. Automate your savings

One of the best ways to ensure savings is to take willpower out of the equation—by using a system where money is automatically debited from your account and placed in savings. If your company offers retirement plans, then they’re doing this for you, pre-taxed. But even if you’re not among the lucky few with this system, don’t despair. You can set up your own where money is automatically debited from your account and stashed away for you. Banks and some financial institutions offer such a service.

Savings are a wonderful thing to have. There’s nothing like the feeling of being in control of your finances. Having new computers, cellphones, cars, and clothes may make you happy to you have them at first, your satisfaction diminishes over time. But as your savings grow over the years, your satisfaction with it will keep growing as well. Just stick to your rules and you’ll do well.