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savingmoneyisforlosers

We all know that saving money is important but I think saving money alone are for losers. It is not correct that you save money just for the sake of saving money. We hear this often from old people that we study hard,graduate from the best school, work hard and save money and everything will be okay.  Saving money is only part of achieving Financial Independence but it is not the only way to achieve your financial goals in the future. You should not focus only at saving money but it should be your foundation for you to start your journey to Financial Independence.

Your focus should be from Saving Money to Growing your Money. Have you heard about Save-Spend-Save-Spend Cycle? This cycle is deadly because this kind of mindset is only to save and then spend for the short term. After 40 years of working upon retirement,for sure this kind of mindset will have no assets to rely for his daily expenses because of not preparing for the future.

Saving money should not be the only goal, you have to learn how to grow it. It is not enough that you just set aside money because your money will be eaten up by inflation. Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase.It is important that you have to create a Financial Plan where you can benefit to grow your money and beat inflation.

inflation

Invest, Grow and Preserve is what I advocate to every individuals and groups that I talk to. After saving enough money to cover your 3 months salary, the next step should be know where to invest your money that there’s a potential to grow to beat inflation in the long run like Equities, after growing your money you have to know a Financial plan that can help you preserve your money that if death comes in the future,your money will be intact and it can provide for your family’s financial needs even without you.

Let’s say you can invest Ph100 per day and you are 29 years old for only 10 years, this is where your P100 per day can take you:

100perday

This Financial Plan is called Variable Unit Linked(VUL) where your money is invested in Phil.Stock Market which can grow overtime and it has a life insurance coverage if death comes. So let’s say the money earns 10% per year at age 60, you will have Ph4,175,831.37 which you can use for your retirement. It has a life insurance coverage of Ph500,000 so if death comes at age 60, the beneficiaries will receive the guaranteed death benefit of Ph500,000 plus the fund value of Ph4,175,831.37 if it earns 10% per year, the total Death Benefit will be Ph4,675,831.37 which cannot be taxed by the government if the beneficiaries are designated as irrevocable. The money that you have in VUL can be withdrawn after 10 years either partial or full withdrawal. You can also add other benefits which the policyholder can use like accident insurance,Dread Disease Rider, and Hospitalization fund.

Now, will you just focus on saving money only? Saving money will make you lose the value of your money overtime. So,don’t just focus on saving money but rather from saving money, learn to grow it by investing and protect yourself as well with life insurance.

Thanks for reading my blog, if you want to know how to grow your Ph100 per day, you may reach me and have a consultation from me.

Be free!

Reference: http://www.investopedia.com/university/inflation/inflation1.asp

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

 

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Financial Literacy, life insurance, Personal Finance

You do not need Life Insurance

notolifeinsurance

YOU DO NOT NEED LIFE INSURANCE

Yes! You are right, you do not need life insurance. Life insurance should not be part of your financial portfolio. You do not have to worry about the billing statement of the life insurance companies send you. You do not have to set aside a small amount of your income for the premiums of your life insurance because those are only expenses. You do not need to check if you are properly insured or not to a Financial Planner. I would like to share with you the three reasons that you do not need life insurance, I hope that I can convince you that you do not need it.

These are the 3 reasons why you do not need life insurance:

1. If you are immortal,you don’t need life insurance. You don’t have to worry about dying because even if you will have a tragic accident, it is okay because you will not get hurt and can still get out alive.

2. If you do not have dependents who rely to you financially, it is okay not to have a life insurance. At least,you have to be ready to secure a budget that you can give in advance to someone for your funeral services or land to buy where you can be buried.

3. If you will not get sick for the rest of your life, you do not need life insurance.  I want to talk to you to know how not to get sick ever.

With these three reasons, you don’t need life insurance ever.  But if you don’t have these all three reasons,you surely need to get a life insurance. Life insurance should be part of your financial portfolio for you to be protected while working hard to achieve your goals for yourself and for your love ones. If you can set aside a budget for your daily expenses,you also have to set aside a budget for your life insurance.  Life insurance gives you a peace of mind if risks of life happen like Death, Illness and Disability that prevent you from earning money.

Do you know that as low as Ph67 per day you can start already to insure yourself? Yes, you can start with that amount.

Here are the sample details:

Age: 29

Premium: Ph67 per day or Ph2,000 per month

Life Insurance Coverage: Ph500,000

Dread Disease Rider: Ph500,000

Here is the illustration:

age2924kperyear

Getting your own life insurance is not that expensive, you can start as low as Ph67 per day and you can be insured already. From this illustration, you will just have to save for 10 years for your life insurance and the money that you put in for 10 years will give you a life insurance coverage of Ph500,000 until age 99. Now, the exciting part here is the money that you put in for your life insurance will grow overtime. You can withdraw this money partially at least after 10 years so that your  life insurance can still be active. If you will not withdraw, if the money earns 10% per year, at age 60, you would have Ph1,928,450.95 already which you can use for your retirement years. If death comes in the future, your beneficiary will get the the death benefit of Ph500,000 plus the amount of the fund value.

Let us say, the policy holder passes away at age 40 and if the fund value earns 10% which is Ph346,616.49, the death benefit that the beneficiaries will receive the Ph500,000 Death benefit plus the fund value which in total of Ph846,616.49 which will be tax-free if the beneficiary is irrevocable designation.

Now, this just never ends here. It has a Dread Disease Fund of Ph500,000 that can cover dread disease if it happens. After 30 days of diagnosis of any of the dread disease that is covered, the policyholder can get the Ph500,000 to use for medical treatment and his life insurance and his fund value are still intact.

Here is the detail of the Dread Disease Rider:

ddr-list

Knowing the benefits of Life Insurance, it is wiser to insure yourself so that you can protect yourself and your family. I believe that Life Insurance should be called Love Insurance because it is not about dying or getting sick but is about your love ones who will be taken care of if the time comes that you can no longer provide for them. Now, the question is do you need life insurance or not? I believe that it is important that you protect yourself before anything else because you are the money making machine that provides to your family, without you, your  family will be greatly affected.

Thanks for reading my blog.

Let’s all aspire to become Financial Independent Filipinos. Be Free!

Archie M. Yuki
Financial Planner,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
Uncategorized

Personal Finance Planner

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I was invited by Budget Squad Manila to speak at their launching of their Personal Finance Planner last December 17, 2016 at 47 East, 47 Esteban Abada St, Loyola Heights, Quezon City. I shared the ideas about Money Behaviors where even we know how important to save, we still don’t do it. It’s really 80% Behavior and only 20% skills. It is not easy to really save without the right attitude that is why to create the right attitude you have to really inspect and monitor  your daily finances.

Budget Squad Manila advocates the importance of Financial Literacy that is why they came up an idea of creating a tool how to save with the right attitude. They created a Personal Finance Planner that can help you to monitor your daily expenses. The planner is really helpful for you to monitor your daily expenses thus you will know where your money goes by writing it down to a Personal Finance Planner.

Here are the pictures that I took of the Planner.

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As a Financial Literacy Advocate, I believe this planner can help the user to be aware on the his/her daily expenses and the user can prioritize savings first than spending. It is important that you list down all your daily expenses for you to know where your money goes and at the end of the month you can compute how much did you save and how much did you spend. The planner is also an adult coloring book, it’s really awesome!

I also get a chance to meet the 2 founders of Budget Squad Manila. Namely, Michelle Pecsaden and Tefi Vicente. They have a passion to spread the importance of Financial Literacy to fellow Filipinos. They shared about the importance of saving money while you are young and earning.

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The founders of Budget Squad Manila sharing ideas about saving.
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Michelle on my right and Tefi on my left.

The Personal Finance Planner can help you to value your hard-earned money because it will teach you a mindset that saving should be at the top priority upon receiving your income.  In this regard, I am partnering with Budget Squad Manila on the distribution of their Planners and because I am Financial Adviser, I believe that this planner can help you to save properly.  I can personally guide you how to use the planner and you can get a free consultation from me about saving and how to grow your savings.

Follow the page of Budget Squad Manila at https://www.facebook.com/budgetsquadmnl/?fref=ts to learn also from their about personal finance.

I enjoyed attending the launching of the Personal Finance Planner and met new friends from this event.

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Order your Personal Finance Planner from me for only Ph499!

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You may reach me:

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

 

 

 

avoidscams, financialliteracy, investment, Personal Finance

How to tell if it is a Scam?

scam-alert-1024x7881

There are so many investment scams that you can see these days that offer their products and services. These can be in forms of selling memberships, shoes, soaps, deodorants,food supplements, juice,golds, investments and a lot more that are only to disguise in order to show that they are legitimate companies. I am pretty sure that one of your friends invited you also to join them, maybe you are currently doing that kind of business already or you are deciding to join soon. You should be seriously consider first to check if the company is a scam or legitimate.

A lot of the Filipinos fall into investment scams because of low financial literacy. We never learn about how money works thus we prefer to invest in quick rich schemes rather than investing in a legal way that needs patience,discipline and consistency.

Here are the red flags that you can notice if a company is offering investment scams:

1. They offer low risk investment and promises guaranteed high returns. If it’s too good to be true,it probably is.
2.  You will earn through recruiting and signing up members,products are just fronts.
3. Their products are garbage and expensive.
4. Company is relatively new like less than 5 years and they will hype how many members they already have. You will hear the catchphrase “Everyone is doing it so it must be legit”.
5. They give vague information and confusing explanations about where money is invested.
6. Members will hype how much they earn like showing their money or showing off fancy cars.
7. You will see pyramid payment schemes.
8.  There is no physical office of their company, they will just say that it is online business that is why there’s no need for a physical office. But be careful also, there are illegitimate companies who even have physical offices.
9. They promise quick rich schemes. Let’s say you just invested Ph3,000 and after 2 months, your money will be Ph300,000. The guaranteed returns are too high.
10. They will teach you to overload products for you to earn points while you can’t even sell it anymore.

These are only guidelines that you can look at if someone offers you opportunities that look like a scam because you don’t want your integrity be destroyed. Your family and your friends will no longer trust you when it comes to transacting business with you if you join these scam companies. Yes, you can earn money at first from those scams but you don’t want that money to feed your family because of swindling your family and friends.You don’t want to be called a scammer and the company that you represent will be featured in the news as a scam because a lot of people are now complaining about that company and eventually closes down.The system of scam companies is designed to fall down sooner or later. They come and go but your integrity is more important, don’t let it be destroyed because of greediness to earn fast. You can be also involved in syndicated estafa case if you are caught by the authorities which is not bailable.

I hope that you learn something from my blog about red flags of scam companies. Always remember this: Low Risk=Low Returns, Mid Risk=Mid Returns and High Risk=High Returns. If you really want to learn to invest in a legal way, it is advisable to talk to someone who is a licensed and authorized to sell investments. Be diligent when it comes to investing your money because there are so many people who really don’t care about you but they want is your hard-earned money.

To know more about investing in a legal way, you may reach me.

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
Uncategorized

7 Personal Finance Tips for 2017

2017

It is now 2017 and we are all thankful for all the blessing we received from  2016. I’m sure that you will now see a lot of articles about tips to be better for this year. Some tips will be used again  and these can help us to achieve our goals this year. As a Financial Literacy Advocate, of course my advise will be about Personal Finance Tips. Here are some tips that we can use for this year.

  1. Create a habit of prioritizing saving first before spending. Every time you receive your salary or income, make sure you save at least 10%-20% of your income. Use the formula Income Minus Savings=Expenses. Be consistent.
  2. Get out of debt as soon as possible if you have loans. Pay the loans first that have high interest so that you will not lease your lifestyle by paying the interest.
  3. Live within your means. It’s okay to buy things that you want as long as it is within your budget. Balance is important.
  4. Create a buffer fund. You have to have a savings in a bank amounting at least 3 months of your salary so that you can have money to get if ever there will be emergency expenses rather than you will resort to  debts.
  5. Insure yourself properly. Secure yourself with Health Card, Critical Illness Benefits, Proper Insurance Coverage so that if risks of life happen, you are properly covered. Thus, your savings will be still intact and your family will not go into debts if something not good happens.
  6. Start to invest! Our economy is really growing and you can be part of our country’s growth by investing.Learn how to invest either in Stock Market or Real Estate by making your money work for you.
  7. Set an amount to give coming from your income. As the bible says in 2 Corinthians 9:7  7Each one should give what he has decided in his heart to give, not our of regret or compulsion. For God loves a cheerful giver.  By doing this faithfully, I am pretty sure that God will bless us more.

I pray that all of us will have a fruitful year and we can achieve all our financial goals by learning Personal Finance. It is not enough that we all know of these 7 tips but it is a good idea to practice all of these tips. Let’s spread Financial Literacy to fellow Filipinos.

Let’s do this!

Thanks for reading my blog.

 

Archie M. Yuki

Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com