12. Swabeng Dilemma: To be or NOT To be Insured

When I was young (around 20's), I have a different perception when it comes to Insurance. To me (back then), insurance is a bit complicated that my thinking was you need to have a lawyer to get insured (sounds weird right).

Also, my belief before that insurance was for the rich and wealthy people. Why pay premiums when you can use your money on the things that you may need right? Am I also alone on this?

I'm not alone!

There are also thousands (if not millions) who are also working yet uninsured. If my hunch is correct, most of the working class think that their SSS (or GSIS for Government Employees) would be enough for them. They would also think that Insurance issued by their respective companies (via tie-ups). This in fact would be one of the reasons why Filipinos don't have an insurance to protect themselves.

Here are some interesting reasons why most still doesn't have any insurance. Technical aspects not yet included.


1. The Habit of Ignorance.

Majority of the working class would rather not discuss about it as they would thing it is always been related to dying. They would just shrug it off and probably say they don't need it yet since they are still young and healthy.

Let's face it, they will most likely be contented on SSS (or GSIS for Government Employees) as far as they're thinking. Another factor is the list of definitions insurance term that seem to complicate them leading to simply ignoring it altogether.


2. Impressions of the Past.

Probably for some reason, they may have been misinformed by past insurance agents, and probably misleading them at some point. These are people who may have been scammed in the past with their former insurance agent.

Trauma from past experiences prevent some people from accepting the fact that they need insurance to protect their future as well as their loved ones.


3. The lack of funds.

Now this would be the most common reason (This was also my reason back in the past) why most people is not into having themselves insured. They would probably use the money on something they can be of use today than tomorrow. While there is nothing wrong with saving and investing, have you ever thought what happens when you are unable to save and invest?


As time passes by and I was getting a bit older (and more wiser), it is very important for us to get insured. I feel that this would be the best time (actually 2nd best time) to have ourselves insured.

But the next question would be, What kind of Insurance will work for me.

That would be on my next post.

9. Swabeng Thoughts: How young you should really start investing

There is a saying saying that "The Best Time to Invest was Yesterday. The Second Best Time to Invest is Now. And the Worst Time to Invest is Tomorrow"

These were the words I live by when I started my journey towards Financial Success.

I remember when I started working, the only way I knew back how to make my money grow back then is by depositing it in banks. That was during the turn of the century, or should I say the turn of the millennium.

I remember being invited in talks on business only to realize that its more on MLM or what we call Multi-Level Marketing rather than promoting the business itself. It was kinda disappointing after hearing every talk which made me lose more interest during that time. I was in my late teens back then.

I didn't realize time flies so fast and I'll be 40 years old after a few more years. That was close to 15-20 wasted years (well almost) that I should have even attempted to learn Financial Literacy at least once during the turn of the century.

Anyway, if you're still single and just started working, I suggest you start investing NOW. How much you invest shouldn't be an issue to you. While starting, you should also invest in yourself by having yourself insured, getting fit and healthy and try to learn as much as you can. Investing as early as NOW (plus if your in your 20's), it would give you a lot of years to go to maximize your gains.

And if you're already in your 30's and above, start NOW!

8. Swabeng Dilemma: Does age matters?

In Love and Romance, people say age does not matter as long as they love each other. Isn't that sweet?

However, that is not the case when it comes to Financial Planning.

I'm not saying that if you're old, don't plan. What I mean is, time may not be on our side anymore especially if we keep on contemplating and procrastinating when is the time to start.

Wise men say the best time to start your financial freedom was yesterday. The second best time would be today. And the worst time would be tomorrow.

Let me share you an example some of the popular excuses why most people hold of starting their way to Financial Freedom and their corresponding ages

20's: I'll do it next time since I'm still young and have a long way to go. 

Most millennials have the mantra of YOLO (You Only Live Once). Nothing bad with it. But if you neglect its greatest advantage (TIME), you may never be able to fully maximize your gains in the long run. 

30's: I need to save-up for my wedding and expenses for my future family. Maybe next time. 

Well most newly-wed couple would say building a home and having kids are their top most priorities. Again, there is nothing wrong with it as long as you know how to prioritize and be able to save and invest whenever possible.


40's: My kids are already studying. I'd probably start saving when my kids are finished schooling. 

This is where it starts to really get difficult. Your kids are growing which means they would need more of your financial assiatance.

50's: It's really expensive to send my kids to college. I may not have enough for investment. 

You may be probably in your 60's by the time your kids are done with college. I'm sure this is the age group where financial responsibility is at its heaviest. You may also begin to feel weak and tired more often than when you were in your 20's or 30's. 

60's: I guess this is the right time to invest but I'm retired already. 

Come on! You had 40+ years to start but you didn't even make that first step. While I know its not yet over till its over, but realistically speaking, it is. Even as early as your mid-50's you may encounter some health problems ranging from the not so serious to the critical ones (you know what I mean)

You have to remember (and make sure to remember) that TIME is MONEY You can get more money but you cannot get more Time. 

The Best time to start SAVING and INVESTING is NOW and NOT TOMORROW!

So you know now that age matters when it comes to saving and investing because of the power of compound interest.

Till my next post.

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.