Monday, December 20, 2010

SILENT NIGHT

Merry Christmas from The Ranch!  I’ve written a special Christmas message for you today, and we’ll return to our series on “The Top 20 Passages From The Bible” after the holidays...
 
Did you know that one of the most famous Christmas songs was written because of a broken organ?  It happened in a small church in Oberndorfer, Austria, back in 1818.  Their pump organ had given out, and they were going to be without music for their Christmas Eve service.  It was a calamity in the making.
 
But their pastor, Joseph Mohr, remembered a poem he had written two years earlier about that first “silent night” when baby Jesus was born.  He asked his friend, Franz Gruber, if the poem could be set to music, and as Gruber read the poem, a tune came to his mind.   That night, the church sang the song “Silent Night” for the very first time.
 
The story is told that several weeks later, a repairman came to their church from another village to work on the organ.  When it was fixed, Gruber tested it out by playing the tune he had written for their Christmas Eve service.  The repairman heard the tune and passed it on to others in his travels.
 
The song that was written because of a broken organ has now been sung worldwide.  Out of calamity, a song was born.

Saturday, December 4, 2010

SAVE AND BE SECURED

A lot of Filipinos are still uninformed and remain passive about how to manage their finances.  Statistics will show that only about 14% of the total population is covered with insurance.  People are still left to believe that life insurance protection is only for the rich.  Unfortunately, many still leave their future to the mercy of their luck or the “bahala na” attitude.

There are quite a few reasons why Filipinos are still clueless about wealth management.  One could be lack of education about financial planning.  It could also be that they don’t really understand the concept of wealth management.  

The Philippines have been the lame duck economy of Asia for a little while and it has not yet full escaped from the clutches of its misfortune, but it is slowly growing for the better.  We have overtaken India us the call center hub of Asia if that is an accomplishment to reckon with.  It still doesn’t guarantee though that Filipinos will start to act like their Asian counterparts when it comes to handling money.

In some countries, especially those who belong to the more affluent ones, people spend less than what they earn.  It might be because they earn more than their counterparts here do and their basic need purchases are a lot cheaper compared to what we have here.  This may sound sensible, but it is not a good excuse for us to spend more than what we earn.  This does not authorize you to splurge your invisible money using your credit card and drown you in debt come your payday.

It is a fact that it is estimated that 3 out of 4 adults in developing and middle income countries like the Philippines don’t have bank accounts.  Poor people also actively save in cash and through informal mechanisms, but these tools do not always meet their needs.  Not until we do something about the plight of these people, we will remain to be what we are in the next few decades to come.

So let me share with you some advice on how you can have a secure today and a better future by proper use of your money.

First, if you really care for your spouse and children, or your love ones, secure your income by purchasing a life insurance that is equivalent to 5 years of your annual income.  This means to say that even you if are gone, or you die or become disabled, your family will still enjoy your income for the next five years.  This will give ample time for your spouse to recover and start anew.

Then you set aside at least 10% of your income/salary to savings.  Don’t attempt to withdraw!  A participating life insurance policy is a good force savings program that you can take advantage with.  This will provide you protection and good returns in time for your retirement. If you are a bit savvy about investment, you can consider investing in a mutual fund which your insurance company might also be able to provide you with.  You can just leave investing in stocks to the experts.

Your savings goals should include an emergency fund in case an emergency happens.  Emergency usually comes in forms like sudden hospitalization, fire or accident.  It is really best that you also get yourself covered with a healthcare program too so that personal illness is the last thing you should be worrying about.

You should also set an aside an amount equivalent to 6 months of your salary just incase you need to shift career, change jobs, or worse lose your job.  This money will be the amount you will use for mobility in finding a new career if this happens.

Then lastly, throw away you’re second down to the nth credit card.  You really don’t need one!  If you have to use your credit card, pay it in full when the bill comes.  Your credit should only be there for convenience and not for your deliverance from nothingness.