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6 must things to have by 40

Sourced Rappler | | June 12th 2014

Nearing 40 and have nothing yet to speak of? Put your finances in order—now

Twenty-somethings have the time and strength but not enough money to buy and do things they want. Retirees can have enough money, but have the least time and strength.

Thus they say “life begins at 40.” It is true in a sense that most people should be stable, ideally, in all aspects of their life when they turn 40—the “prime” stage in a person’s life.

It is when you are 40 when you can do and be in your greatest potential—and at least, have already achieved the following:

1. Property

When you reach 40, society expects you to be living on your own and having a family. If you get married at around 25, the first thing that you should consider before or right after your wedding is acquiring your own home. If you availed a home loan, you should be fully paid or nearing it by today.


2. Good credit score

Your life will be stressful when you are still paying debt at 40. Considering that as you age, more responsibilities are coming your way—wedding bills, birth, education, emergency fund, and so on. If you do not pay your debts early on, it will be harder for you to pay for it as you go along with your life.


3. Stable cash flow

By the time you’re 40, you should not be in a situation wherein you are clueless on where to get money for what. You should have the budget for everything and it is clear to you where will you get it. Proper financial management takes time and discipline to master, and by this time, you should have mastered it after years.


4. Investment

Following stable cash flow is your financial ability to invest. Investing is great because you let your money work for you instead of putting it in your bank, which only earns little in interest. Stocks, mutual fund, and bonds are some investment options available.



5. Insurance

Life is unpredictable. You get sick, you get hospitalized, and you die.  You do not want to stress yourself further on collecting money for such unfortunate incidents. If you are insured, you can save time and money while saving you from unnecessary stress.



6. Retirement fund

The misconception about retirement fund is that you should have it when you are old. But there is a difference when you want it that way or you really need to work as long as you have the strength to do so. If you build your retirement fund early, you will have that freedom to stop when you want to.


Do not wait until you are 40 before considering to prepare for these things. While you still have the time, strength, and opportunity to work on building the life you want for you and your loved ones, maximize what you have today so you will have a comfortable life after 40 and beyond. –

5 Bad Habits That Will Ruin A Relationship

By Mel Sim for Yahoo! Southeast Asia | Mon, 6 January 2014
5 Bad Habits That Will Ruin A Relationship

Bad habits are fine if you’re living by yourself. But if it involves a significant other, it can become a hindrance to your relationship progressing into anything serious. Nothing kills a relationship faster than bad habits that either irk your partner or create unnecessary tension between the two of you. And like it or not, most of us ladies have some really annoying habits that can drive him up the wall (and away from you).

Read on to see if these habits are familiar and find out how to get rid of them.

1. Nagging
One minute it’s about his laundry. Next, it is about his good-for-nothing friends. Tomorrow, there will be something else that you will be nagging about. And there’s no stopping you! Nobody wants to feel like they are dating their mothers or that whatever they do is not good enough. And with nagging also comes the bad habit of wanting to change your man, whether it is with his appearance or the way he handles his career or personal life.

You don’t have to nitpick every little thing in his life. Just focus on the big things (for example, if he should be a little more proactive with his job and don’t nag, but encourage instead). You don’t want him to look at you when you are nagging, wondering why he’s putting up with being chided all the time.

2. Spending way too much
Research shows that one of the most common thing couples fight about is money. And when there’s lack of it, the fighting becomes even more consistent. So if you and your guy are trying to save up for a house or a holiday, going on a shopping splurge is not going to please him, especially when he’s the only one saving while you are spending. If you are married or working towards that, your impulsive spending will send his cue that he’s building a life with someone who has little regards for financial stability in the future!

Sit down together and work out a budget that you are comfortable with. And stick with it! There’s no point to this if you find yourself having to hide your purchases. You’ll soon realize how much money you’ve wasted when all that can be used towards building financial security together.

3. Just a little snoop
Sure, it’s one little peek into his text messages at first but as curiosity gets to you, you’ll find yourself complete engrossed into his every private life, from his emails to his Facebook messages! Spying on your guy is never a good thing, especially when a healthy relationship is based on trust. Besides, you wouldn’t want him to be looking through your stuff with a fine-tooth comb either. And imagine if he finds out what you’ve been doing, especially when he has nothing to hide in the first place? If you’re sure he’s hiding something, then either confront him and if you really can’t trust his word, what are you still doing with him in the first place?

4. One small lie

What’s one white lie, right? Well, it is one lie that can lead to another and another and another. Whether you’re lying over what you really think of his new hair cut or how you were actually with your friendly ex instead of your BFF last night, it’s never good to hide things from your partner, big or small. This shows that you either don’t trust him or that you are hiding something you know for sure will make him really upset should he ever find out (which he is most likely to!)

The key to a lasting relationship is openness and honesty. You’d want him to treat you with the same respect so why not offer him the truth? Nobody likes to feel like they’ve been taken for a ride.

5. Green-eyed monster
We get it—you don’t like how chummy your guy is with that sassy hot colleague. But showing your dissatisfaction is one, embarrassing for you, your guy and his friend, and two, a sign of your insecurity in the relationship. Also, if your guy is just being friendly and there’s really nothing going on between him and that colleague (or anyone else for that matter), chances are he’ll be really annoyed with your jealousy, especially if you’ve been accusing him of things!

Find it within yourself to be confident and not to doubt anyone. Besides, he really could have eyes just for you, until you drive him away with your crazy jealous ways.

How to help OFWs make hard-earned money grow?

By Ellen | VERA Files – Sun, 19 January 2014


IT is a question that has perplexed government policymakers and academics for years: where has the money been going?

Since 2006, Alvin Ang, an economics professor at the University of Santo Tomas, has been conducting research into the Filipino migrant worker diaspora for aid agencies, the World Bank, the International Labor Organization and other institutions.

“All these years we’ve been receiving a lot of money, but how come nothing is happening. In general, lots are happening in the economy. It has pushed everything up. It has encouraged a lot of investors to come in,” says Ang. “But for the ordinary person who has a family — who is working abroad — not much has changed in his life.”

It is an all-too-familiar story line for generations of overseas Filipino workers (OFWs): a member of the family leaves for better pay abroad, hoping to build a better life for those left behind — only to come home years later with little or no savings.

An estimated 10 percent of the Philippines’ nearly 100 million population work abroad and they are often hailed by the country as heroes. Nearly every one has a family member or relative abroad. Over 3,000 leave daily for jobs overseas.

In 2012, OFW remittances totaled over $21 billion — forming 8.5 percent of the Philippines’ economic output — according to the Bangko Sentral ng Pilipinas. That was expected to rise by at least six percent last year.

To get a perspective of how much money Filipinos abroad have been sending home, imagine this: the 102,000-ton, 1,092-foot long Nimitz-class aircraft carrier USS George H.W. Bush cost $6.2 billion when it was completed in 2006. The Philippine government’s defense budget for 2014 is $1.9 billion.

Ang partly blames the failed attempts of Filipino migrant workers to escape poverty on their lack of financial literacy.

“OFWs are entrepreneurs, in a way, because they are willing to take a risk much larger than a businessman would take. They are risking their families,” says Ang, who uses his spare time as president of the Philippine Economics Society to give lectures and enlighten OFWs and their families on the need to make intelligent decisions on money matters.

“A businessman will take a risk if he knows the full valuation around him. But an OFW is willing to take a risk without any information at all,” says Ang.

He tells of a trip that he made last year to Jordan, where he met with Filipinas working as maids for a mere $200 in salaries. “That is just 8,000 pesos and you are leaving your family for that,” relates Ang, shocked.

He added that it may have been better for them to find work as maids here, where they are guaranteed rights and benefits by the Kasambahay Law, which was enacted last year to improve the lot of domestic helpers.

“What do you lose by working abroad? The social cost is so huge. You may no longer have a spouse when you get back, or your child may no longer recognize you,” Ang says.

The government relies on the money they send home to prop up the fragile economy. Countries that host Filipino migrant workers know that. Last year, Taiwan froze the hiring of Filipinos to force Manila to apologize over the May 9 shooting of a Taiwanese fisherman caught poaching by the Philippine Coast Guard. The sanction was lifted after three months.

In early 2010, the Arroyo administration offered so-called “OFW bonds” worth $500 million in an attempt to directly tap into the remittances. Much of the money Filipino migrant workers send home go to education, household expenses and consumer goods.

Commission on Filipinos Overseas Chairperson Imelda Nicolas argues, however, that the economy can get a further boost if Filipino migrant workers plow some of their hard-earned money into investments instead of just buying stuff. The agency has several programs teaching financial literacy, but very few take them up because of various reasons.

“Our culture is that we tend to get frightened when it comes to money matters. That is why very few people put money in banks,” explains CFO program manager Nico Herrera. He emphasizes that there are people who do have money and they want to go into business, but they do not have the business acumen.

“They don’t have anyone to advise them,” says Herrera. “Many think of what they are most familiar with, such as computer repair shops or sari-sari stores. But these can only earn so much. They also don’t look around, so they don’t realize that there is plenty of competition.”

Since the start of the Filipino exodus in the 1970s, the government has focused on protecting the rights and safeguarding the welfare of Filipino migrant workers following horror stories of abuse by employers and crimes by human traffickers. But clearly the numbers show that that is no longer enough.

For Ang, he feels that it is his civic duty to teach financial literacy. He says,“Someone has to go there and talk to them and explain to them these things.”

The Key Differences Between a Commercial Bank, SSS, and Pag-IBIG Housing Loans

Sourced  | March 3rd 2017

The Key Differences Between a Commercial Bank, SSS, and Pag-IBIG Housing Loans

For many of us, our ultimate dream is to stop renting and purchase our own home. Unfortunately, the majority of us do not have enough money to pay for our entire house in cash. That’s where a home loan comes in. Buying your first home is a major investment, and applying for a housing loan is something that you should approach with care and thought.

The first step in your home buying journey is to use a mortgage calculator. It’s usually a free, online tool that will help you determine how much financing you could qualify for. After you have an idea of how much financing you will need, it’s time to pick a lender.

When we think of a housing loan three products come to mind: a Pag-IBIG housing loan, a SSS housing loan, and a commercial bank housing loan. Since your home is one of the largest purchases you will make during your lifetime, it’s important to pick a financing option that best suits your current lifestyle. Deciding which financing option to choose from may seem like a daunting task, but we’re here to help. Below is an in-depth description of each housing loan option, as well as a comparison chart to help you pick the home loan option that is best for you.

Pag-IBIG Housing Loan

The Home Development Mutual Fund (HDMF), or the Pag-IBIG Fund is a national savings program that was created to provide affordable home loans for Filipinos. A Pag-IBIG house loan can be used to purchase a brand-new property, fully developed or adjoining lots that do not exceed 1,000 square meters, a residential house and lot, condominium, or townhouse. You can also use a Pag-IBIG house loan to complete construction, or refinance your current home.

With a Pag-IBIG housing loan you can obtain financing up to ₱6,000,000.00, and get a maximum repayment term of 30 years. The amount you are approved for will depend on your need, capacity to pay, and loan-to-appraisal value ratio.

The Pag-IBIG loan-to-appraisal value ratio is as follows:

Loan Amount Appraised Value
Up to ₱400,000.00 100% of the home amount can be financed through Pag-IBIG
From ₱400,000.00 – ₱1,250,000.00 90% of the home amount can be financed through Pag-IBIG
From ₱1,250,000.00 – ₱6,000,000.00 80% of the home amount can be financed through Pag-IBIG

Perhaps one of the most attractive aspects of a Pag-IBIG loan is the affordability of the program when compared to other products on the market. You can use this Pag-IBIG Fund Housing Loan Affordability Calculator to get an idea of how much you will be able to borrow based on your income, repayment term, fixed pricing period, and the estimated value of the property you are interested in.

To qualify for a Pag-IBIG house loan you must be a Pag-IBIG member, and must have 24 monthly contributions under the “Pag-IBIG Membership Program.” If you have not made 24 contributions, you have an option to pay 24 months as a lump sum to qualify for the program. In addition, you must not be over the age of 65, cannot have any existing Pag-IBIG housing loan, and cannot have any outstanding multi-purpose loans. You also must not have any previous Pag-IBIG loans that were foreclosed on, cancelled, or bought back due to default. You can get approved for your Pag-IBIG housing loan in as little as 16 working days, if you submit all of the necessary paperwork.

Related Article:How to process a PAG-IBIG loan the step-by-step guide?

SSS Housing Loan

The Social Security System (SSS) Housing Loan, was built to provide working Filipinos with low-cost housing, home loan assumption, and home improvements. An SSS Housing Loan is issued by the Social Security System, a state-run social insurance program. SSS Housing Loans are not as common as Pag-IBIG Housing loans, but still carry many benefits.

You can use a SSS Housing Loan to purchase a lot and construct a new house; purchase an existing residential unit such as a house and lot, condominium, or townhouse; or to construct a new house on a lot that you own which is free from encumbrances and liens.

With an SSS Housing Loan you can borrow up to ₱2,000,000.00, but the actual amount you are granted is based on the lowest of the following:

  • Appraised value of collateral totaling at least 70% but not over 90%.
  • Your capacity to pay.
  • Your need based on the type of work you wish to complete and materials evaluated by the SSS.

Your loan repayment term can be repaid in multiples of five years, with a maximum repayment term of 30 years. Interest rates vary with an SSS Housing loan between 8.0% per annum and 11% per annum as outlined below.

Loan Amount Interest Rate
Up to ₱450,000.000 8.0% per annum
From ₱450,000.00 – ₱1,000,000.00 9.0% per annum
From ₱1,000,000.00 – ₱1,500,000.00 10.0% per annum
From ₱1,500,000.00 – ₱2,000,000.00 11.0% per annum

To qualify for a SSS Housing Loan you must be a member of the SSS, be a member of a registered workers’ organization, have at least 36 months’ premium contribution and 24 continuous contributions before the time of your application, cannot be more than 60 years old at the time of your application, cannot have previously been granted an SSS housing loan, and cannot have previously been granted final SSS benefits.

Related Article:When does buying a home make more sense than renting?

house model and documents

Bank Housing Loans

There are many banks to choose from when it comes to home loan financing. One of the best ways to get started with deciding where to get a bank loan is to do research on various financial institutions that interest you or with the ones you’re currently using. Utilize a tool such as a home loan calculator to get an estimate of how much you could finance with a bank.

Banks differ in terms of rates of interest and loan terms. Overall, here is what you can expect from a bank. First, you can use a bank loan to: purchase a townhouse, condominium, vacant lot or house and lot. You can also use a bank home loan to complete construction and home renovations, or to refinance your current home loan. The amount of money you can borrow from a bank for your home loan will vary, and will be dependent upon your capacity to pay. Repayment terms are also variable depending on which bank you decide to get your home loan from. Since banks can provide you with so much flexibility in terms of financing options, doing thorough research before signing any loan document is of utmost importance. Like any loan amount, banks vary in the amount they are willing to finance. Some banks offer 80% to 90% financing, while some offer as low as 70% total financing. Interest rates also vary depending on the bank, the total loan amount, and the loan tenure you decide on.

The qualifications for a bank loan are a little less strict. In most instances, a bank membership is not needed, there are no contribution requirements, and you do not have to have a savings account. You must be a Filipino citizen, or have a Visa if you are a foreigner. Banks traditionally have quicker approval times than other home loan options. If you decide to go with a bank for your home loan financing needs, the best way to ensure fast approval is to fully complete your online home loan application.

In order to be approved for a home loan from a bank, you must have a steady monthly family income. The amount you qualify for, and the rate you receive will be largely dependent on your capacity to pay. Online tools such as a BDO Home Loan Calculator can provide you with an idea of the type of financing you could receive from a bank as compared to a Pag-IBIG Housing loan or SSS Housing Loan.

Related Article: Figuring out how much of a house / condo you can afford?

Which Home Loan Option Is Best For Me?

Buying a home is a major milestone, and you want this time to be memorable, not stressful. That’s why it’s important to pick a home loan that suits your individual needs.

  • Pag-IBIG Housing Loan: If you are looking for a straight forward home loan with a low interest rate and flexible payment terms, a Pag-IBIG house loan would be a great financing option for you.
  • SSS Housing Loan: If you are a Filipino worker who is part of a registered worker’s organization you could greatly benefit from the low-cost housing options offered by an SSS Housing Loan.
  • Bank Loan: If you want a bit more flexibility with your home loan in regards to rate of interest, payment term, and financing amount, a bank home loan may be the way to go.

Above all, remember to utilize a mortgage calculator while doing your research to help you determine how much financing you could quality for, before you start looking for a house. Doing this will help set up expectations, and help you determine what type of financing would be best for you.

Related Article: Are you mature enough to buy a home?

6 habits that will keep you poor for the rest of your life

Sourced Kuza Blog  | April 1st 2015

Poverty ball

You were born poor, but if you die poor you have yourself to blame. Before you finish reading this article, at least 8 out of 10 people will have done something that contributes to their future poverty. Only 2 out of 10 will have done what is required to remain prosperous in the future. The question you need to ask yourself today is, “I’m I among the lucky 2 or the not-so-lucky 8?”
Here are 6 habits that could easily draw your route-map to a life of perpetual poverty.

1.You focus on linear income instead of passive income

 Most people focus on linear income in the name of salary, allowances and one-off payments. Wise men on the other hand focus on passive income in the name of royalties, interest rates, value addition and profit.
Relying on linear income is similar to using buckets to fetch water from the river. With time, you’ll get too old and too tired to transport them to and fro and that means you’ll have to starve for as long as you don’t go to the river.
Relying on passive income on the other hand is similar to building a pipeline. It may require a lot of work at the beginning but with time, you’ll no longer have to go to the river to get water – the river will come to you and you’ll not starve.
This is the most fundamental principal of wealth creation that most (including you) are oblivious about.
2.You’re still waiting to start your journey of success
Everyone wants to succeed but very few people are willing to step into the cold waters. Do you see the problem here? In the history of the world, no marathon race has ever been won (or even finished) by someone who never left the starting line.
As you’re stuck saying that you have no enough capital to start, someone else is busy making good use of whatever little they have.
As you’re busy lamenting that there are no business ideas, someone else is busy sharpening his innovation claws.
When you’re busy complaining about a problem in your society, someone else is busy thinking how to start a business that solves that problem.
Continue waiting at the starting line and poverty will soon find you there to keep you company.
3.When you earn more you spend more
Consistently raising your expenditure is a good way to accumulate debt and to remain stuck in the echelons of poverty. To stay out of bad debt, you will either need to find a way to earn more or spend less. The first and best option is to find ways to earn more and keep your expenditure constant.
As you know this can only be done by creating multiple streams of income and lot’s of thinking is necessary in that case.
The second option is to simply cut on unnecessary expenses. The money that is saved from these budget cuts could be used for embarking on future investment programs.
4.You complain instead of committing
“Life is too expensive”; “It’s hopeless; I’ll never get out of debt”; “I don’t earn enough money.” Have you ever uttered any of these statements before, or perhaps all of them? Old habits die hard; however, as long as you do nothing to change; then you and your coming generation have a direct ticket to the land of poverty.
Stop complaining and making lame excuses. Instead, take responsibility for your non-productive habits and focus on changing them – then do it!
5.You live for today, hoping tomorrow will care about its worries
In the 1950s a scientist from Harvard University studied the reasons for upward socio-economic mobility. He wanted to know how comes some generations get wealthier while others get poorer. All his research brought him to a single factor that he concluded was more accurate than any other thing in predicting success – he called it “The Time Pespective”.
Time perspective is basically how far you project into the future when you make a decision today. An example of a long-term perspective is when a wise family man buys land or insurance for their child, even though he or she will not need it for the next eighteen years. This is a long-term approach that involves sacrificing in the short term to assure better outcomes in the long-term.
Most people remain poor because their “time perspective” is focused on short-term goals such as meeting basic lifestyle needs, buying luxury items, paying rent etc…are you one of them?
6.You just don’t get it!
The problem is that you keep learning but you don’t get it. You’re educated but you’ve never internalized what your teachers told you. You have knowledge but you don’t want to think too hard how to use it. You’re still stuck at the starting line all along because you don’t want to start small and grow bit by bit from there. You’re still stuck in the lottery mentality hoping that one day you’ll wake up and voila! discover “the newest, incredibly easiest way to get wealth.”
Final Word
Most people remain poor, not because they don’t have the knowledge. Not because they don’t read PNGS Blog and other business-related articles. But because they don’t LEARN BY DOING. They just don’t get it!
Being wealthy and prosperous requires more than just physical ownership. It is a state of happiness, well-being while wishing the same for others. So while you are working to escape from poverty, remember to be happy along the way!