13. Swabeng Dilemma: What Insurace Suits you Best?

In my last post, I shared to you my perception of having an insurance back then when I was young.

On this post, while I'm sure you had a better understanding on the importance of having an Insurance, you might get overwhelmed with the options available today. Even when I was about to pick what type of insurance I'll be getting, seeing new types got me more and more confused.

Anyway, here are the most common types of Insurance that are available in the Philippine Market.

Just remember that I won't be specifying any provider here and I will not go technical here so as not to overload you with information (those stuff would be reserved for later as I need to do a lot of readings too)


1. Traditional Life Insurance

Also known as ordinary life or straight life, this is a type of insurance that provides coverage for your entire life. This kind of policy is sometimes described as plain vanilla insurance.

These includes Term Life Insurance, Whole Life Insurance, Endowment Life Insurance among the most common in the Philippines.


2. Non-Traditional Life Insurance

This is usually linked with investments. For instance, unit linked insurance plans allows the insured to choose between equity, debt and mixed market investment vehicles.

Depending on the risks involved, the insurance plans will differ for every customer. The premiums for these plans also differ. You should be aware of this information before investing in these plans.


I told you, I'll just share the most common types of Insurance here in the Philippines. While there are a lot more to choose from, that would be all for now.

See you soon. And please do comment if you wish to add something or share something.

6. Swabeng Dilemma: Till Debt do us part

Opps! That was from the book I've been reading recently (Till Debt do us part by Chinkee Tan and its a good book to read too ^_^).

Does anyone of you never experienced having debt in his entire life (don't count the ones from your parents for now)?


Personally, I thought I won't experience having debt until I did a test loan on SSS via their Salary Loan just to have a feel on what its like to have debt and the need to pay them. If you have a budget for your monthly expenses and you had unexpected debt, you would have a hard time adjusting your budget.


Why do people go into debt and got stuck into it? Its not because of the lack of money to make-up for the payment. But rather because of the weak mindset most people have when it comes to handling debt.

I tried to read as much posts as possible (both local and foreign) just to gather some of their thought on debt and how that would attack it from their perspective.

Anyway, I'll share with you some of the simplest ways to reduce and eliminate debt so stay tuned on my next post.

3. Swabeng Strategy: Your Steps to Achieve Financial Freedom

In the last article, we discussed what really prevents you from achieving financial freedom and before you know it, you realize I'm right correct?

Anyway, let us not dwell further on what prevents us from achieving our goal and now we learn the steps on how to achieve financial freedom. The steps I'll show you here is more of a goal setting (for the rest, I'll try to discuss them chronologically). 

It took me a few weeks of reading to determine what should be the steps on how we should achieve financial freedom. Believe me or not, I've read close to a hundred articles (locally and abroad) just for this topic and believe me, everyone of them have a different take on it. But here's mine:

1. Acknowledge the Need for Financial Literacy

If you were born to parents whose advocacy is to educate people on financial literacy, then consider yourself very fortunate. But in reality, not all of us are born having them as parents. Your objective now is to get yourself to learn and you should take action NOW! You have to admit that you need this for you (and your family) to have a better future ahead. You should also know why the need and how to make sure to accomplish them. Don't worry, I'll do my best to guide you in every step.


2. Get your family involved

You should also inform your family members about your decision to achieve financial freedom by having yourself literate first. Some may accept your decision while other may be hesitant. You just let them know that you're not just preparing for your future, but also for their future as well. Whether they would help you achieve it or not, the fact that you have already told them of your plans would mean that you are serious in securing your family's future.


3. Set your Goals

Once you were able to do the first two steps, this would be the right time to set your goals. Generally, there are three types of goals in Financial Literacy: the Short-Term, the Medium Term and the Long-Term. Depending on the time horizon, it is important for you to set your goals depending on the need. I may discuss this in further details sometime soon.

4. Start reading books/e-books. Watch video clips 

For you to learn the basics (to advanced) of financial literacy, you need to start somewhere. You have already acknowledge the need for financial literacy. Now you have to start. How? Most beginners read books, e-books on financial literacy. You can buy (or borrow) them and give yourself a few minutes to an hour (or two) to browse though pages of them. You can also read blogs of well known financial advocates here and abroad and I'm sure you'll learn a thing or two from them. There are also several video clips (from youtube and vimeo) that you can search and watch. 

5. Attend seminars and look for a mentor and like-minded individuals

Given that you have read several books and attended a few seminars (free or with a fee), you should be able to determine who would be your mentor in your quest for financial freedom. You may also join forums found on social media that has the same goals as you are. That way, you get inspired/motivated by other people who could also get some motivation from you. 

6. Track your progress

This would be your diary in determining whether you are still on track to your financial freedom or you need to do some fine-tuning. Don't worry if you get side-tracked while on your way. What matters is you keep record of your progress and learn from it.


I think were probably done with goal-setting at this point. Now its time to execute the plan that we made and let's aim for financial freedom for our family. 

2. Swabeng Dilemma: The things that prevents you from achieving financial freedom

I'm sure a couple of years back or even a decade ago, whenever we think about financial freedom, it means that when one has a bank account or if we have an OFW relative (be it an immediate family member or a distant relative), we are assured of our future.

I can enumerate what prevents you from being financially free. However, I'll just tell you some of the things (in general) that hinders you to your financial success. Here they are:


1. Financial Ignorance

With today's technology, it is impossible for you not to even google what financial literacy is all about. If you decide not to act on it, then my friend you are considered financially ignorant. Its a matter of choice whether you take action and get it on or just get stuck (in poverty or worse).

It took me more than 30 years to realize that being financially literate is a very important factor to ensure not just my future but for my child's future as well. Right now, I can't afford to be financially ignorant and so do you.


2. Society's Influence

Every time you receive your salary during payday, are you influenced by your peers to go out on lunches, gimmicks, out-of-towns, or get the latest stuff money has to buy? Is it hard for you to say no to them because if you do, you're out of their inner circle?

If saying no to your friends gives you a hard time, then my friend you are easily influenced by your peers on your spending habits. You might even have the wrong set of friends for preventing you to achieve financial freedom. Think about it.


3. Too much dependency on your relatives

When you're starting to earn money on your own and say you ran out of cash, what do you do? I'm guessing that you'll ask for help from your parents. While some parents (and some relatives) won't mind providing assistance to their children, we should never be dependent on our parents (especially if we are working already) nor on our OFW relatives whom we think they're doing well in life.

If you are nearing your retirement (or if you are retired already) you should never rely on your children for your retirement expenses as well since they have their own family to take care of now.

These are the things that I know (for now) that could hinder you from achieving your dream to financial independence. I could add more in the near future but anyway, on the next post, I will show you the steps to achieve financial freedom.

1. Starting your Journey to Financial Freedom

So, you have decided to become financially independent just like me?

If you say yes to the question above, then very good. Just to let you know that I am with you in your journey towards financial freedom. We will go together each step and learn all of them together.

How old are you by the way? I hope you're still in your twenties (or even younger). That means you still have lots of time to learn and earn. Time is on your side which means you still have lots to work on to choose your path to financial freedom.

If you're in your thirties (just like me and I'm only a few years before forty) and beyond, don't worry. As long as you still have that burning desire to learn and earn (just like me), you're still fine though we don't have the time like those in their twenties (or younger).

Right now, there are a lot if ways to achieve financial freedom. If you ask me, there are at least two.

First, the wrong way. When I say the wrong way, it is by doing illegal means (like Scams and I'll discuss this someday) and stealing other people's money for your own gain.

And Second would be the right way. I think you know by now that there are a lot of right ways to achieve financial freedom this way.

If you chose the right way, I am with you all the way until you achieve it.

See you soon and I'll start to share some more Swabeng Ways to achieve Financial Freedom. =)

If there is anything you want to learn about financial literacy or any financial topics that you want me to share, just hit me a comment and I'll do my best to share with you what I know. =)