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Showing posts with label Savings. Show all posts
Showing posts with label Savings. Show all posts
EXTRAS Guest Post PERSONAL FINANCE

6 Top Reasons Why Pinoys Find It Difficult to Save Money from John

Thursday, December 1, 2016
This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

 Hi everyone! Today we have an amazing article from our SavingsPinay Guest Blogger of the Month. 

Two weeks ago I received an excellent article from John Sulit that I know most of SavingsPinay readers will enjoy. Now that we are in the last month of the current year it is recommended to take time and reflect on our spending habits once and for all. This article sent by John from iMoney Philippines will help up understand why most, if not all, Pinoys find it difficult to save money. Comment below and share your thoughts if you agree in any of the item John mentioned.

Hope you enjoy the post that John wrote for us!


A lot of Filipinos think that saving is difficult because it requires huge budget cuts. When you say savings, you automatically think of economizing, and not being able to fully enjoy your hard-earned money. However, it’s just a matter of having nerves of steel to save money automatically, and then reaping the rewards in the future. Admittedly, it’s not as easy as it sounds. Especially when you have all these things to factor in.

1. No money to save

As reported by the Philippine Statistics Authority last year, there are approximately 12 million Filipinos living below the poverty line. When you have no money to spend, naturally, you have no money to save. A large percentage of Filipinos are unemployed or living in poverty. Those who are employed and earning money are not earning enough to even have money left to save. 

2. Delaying saving

How many of you tell yourselves to start saving money, but then that day comes and you just shrug it off and postpone it to the next payday? You do this every time there’s an emergency that you need to pay for, or there’s a new product that you absolutely must have. Before you know it, a whole year has already passed by and still zero savings!

3. Bad spending habits

When you have money, you usually spend it extravagantly on yourself and your family. After all, that’s the reward of all your hard work. In just a matter of days, all the money that you have left just goes to pay your bills, with no extra to go to your savings account.
You use whatever cash you have left to pay off existing loans and your growing credit card debt. And then when that’s settled, you feel comfortable enough to start using your EastWest credit card again. You even apply for a new personal loan so that you can purchase those things you were not able to purchase before because you were paying off your debts. 

4. The need to help family and friends

The Filipino is all about the family. You work hard to provide a good home for your loved ones, send your kids to good schools, and make sure they have a pretty comfortable existence. 

But this amount of love and care also extends to your parents, siblings, cousins, nephews, and nieces, and even your goddaughters and godsons. When a family member is struggling financially, you will still take them in your care, even if you can no longer afford it. Because that’s just how Filipinos are; family always comes first.

5. Limited knowledge

When it comes to savings and investments, a lot of Filipinos lack education. Not everyone understands the different methods of money management, or ways you can invest your money, or how the banking sector works. Most Filipinos who don’t speak or understand English also have a hard time understanding bank terms and conditions and other complicated banking services and concepts.

Consequently, you end up just receiving your paychecks without exploring how else you can make your money grow. Oftentimes, you are intimidated by or scared of investments because of your impression that it’s only for wealthy people, or for people who are experienced in finance and money management. You get intimidated by figures too complex to learn and financial jargon too confusing to remember. 

6. Having no financial plan

When there’s no financial plan in place, there is no urgency to save money. You will not be forced to take a portion of your income to build an emergency fund because you don’t have an emergency fund to begin with. Most likely, the only financial plan that you have is to receive your salary every payday, settle your bills, and pay off some of your debts.

Stop scratching your head trying to figure out how your bill accumulated so much, instead start doing something about it with these strategies on how to pay off your credit card debt and get out of that financial slump as soon as you can.

Related Links:

How Do You Picture Your Retirement Age?
13 Things I Do To Improve My Finances
The One Thing You Can Do Today To Start Saving Money
The Different Saving Funds You Should Own
5 Financial Advice for Single Pinays

About the Blogger

John is from iMoney Philippines, a financial comparison website that caters primarily to the Philippine market. It lets consumers find and compare various financial and consumer products like credit cards, mortgages, fixed deposit, broadband, and insurance policies. You can also go to their Learning Center for similar helpful finance articles

Final Words from SavingsPinay

Thank you so much John for making this wonderful post. I know you've shared some valuable information to all SavingsPinay readers too. To anyone who'd like to submit a guestpost you just like John you can send me an email at izzaglinofull@gmail.com or message me via SavingsPinay Facebook Group.


This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.
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PERSONAL FINANCE Savings

Why I Closed my BPI Save-Up Automatic Savings + Insurance Account and How To Do It

Wednesday, November 23, 2016
This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.

 Two years ago I opened my BPI Direct Save-Up plus Insurance account to kick-start my emergency fund. I have featured it in a first impression review as soon as I received my Info Card in February 2014 and a blog update in October 2014. Just like the others I got really excited with the word "insurance" alongside this particular savings account from BPI. I believe everyone would love to save and to get insured at the same time. But last November 4 I decided to deactivate or cancel my BPI Save-Up plus Insurance account.


Quick Review

The BPI Save-Up Automatic Savings + Insurance is a product of BPI. With this account you can:
  • Save without any initial deposit.
  • Easy enrollment via BPI Express Online. No need to go to nearest BPI branch and present your IDs.
  • Enable automatic deposit to your Save-Up account. Decide how much you want to save per payday or every month and it will be transferred from your savings account to your Save-Up account automatically.
  • Secure your savings without the ability to withdraw on your account. Instead of a Debit or ATM you will be given an Info Card which serves as your proof identification in case you'll be needing the insurance.
  • Earn interest rate of .500% per annum.
  • Monitor your BPI Save-Up Automatic Savings + Insurance online at www.bpiexpressonline.com. You will see your account real-time together with the rest of you BPI accounts.
  • Get FREE Life Insurance. As I mentioned in my BPI-Direct Save-Up + Insurance First Impression Review this is the main reason why I enrolled for the account. The insurance makes your savings more than just the usual savings account. The amount of your coverage is equal to as much as 10x your account balance. 
  • Basic Life : 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 regardless of the number of accounts opened by the insured individual.
Meaning if your account balance is 100,000 for the past three calendar months you will get 500,000 basic life insurance.
Accidental Death: Additional 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months up to P2,000,000 regardless of the number of accounts opened by the insured individual.
Meaning if your basic life insurance costs 500,000pesos then it will gain additional 5x the accounts MTD-ADB making you have almost 1million worth of insurance for accidental death.
Accidental Dismemberment: 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 independent of the number of accounts opened by the insured individual.
Meaning if your account balance is 100,000 for the past three calendar months you will get 500,000 basic life insurance.
Now with the above benefits and information you may wonder why I chose to close my BPI Save-Up Automatic Savings + Insurance account. Let me tell you that it wasn't an easy decision to be honest. I consider this account as one of the best ever because your savings comes with an insurance already. No other bank can give such advantage. But with sudden change in my situation, priorities and goals I decided it is time to bid goodbye to the account. 

Bye BPI Save-Up!!! :(
Why I Closed my BPI Save-Up Automatic Savings
Reason #1. Switch of payroll account

When I opened my BPI Save-Up Automatic Savings + Insurance account I was still working as a SEO Content Writer (January 2014). My ex-company use BPI for payroll account so opening the account is very easy as well as managing how much and how frequent I want to save. Now in my current job (got hired February 2014) we use Metrobank for payroll account so if I need to deposit monthly to my BPI in order to fund my BPI Save-Up Automatic Savings + Insurance account. It was too much of a hassle for me to be honest.

Reason #2. Lack of fund to sustain the account

Now because I switched bank account I have no means to sustain my BPI Save-Up account. Also the process it takes to fund the account is very stressful. First I need to withdraw from Metrobank  then deposit to my BPI account.  And let me tell you how the "automation" became a negative on my situation. I chose to be deducted 500pesos every 6th and 21st of the month automatically. This will not change unless you informed BPI. Now my current payroll is every 15th and 30th which is very different from my previous company. The situation became really chaotic because I don't know how to maintain my Save-Up account anymore. READ: All About Metrobank Direct Online Banking
Reason #3. Too much bank accounts

Another reason why I decided to cancel my account is to once and for all get my finances in order. Too much bank accounts is not helping me at all. I have two Metrobank Savings Account, one BPI Savings Account and the Save-Up Automatic + Insurance Account. I realized that I'm fine with just the Metrobank and the BPI Express savings.

Metrobank Debit #1 is my payroll account. I also use this to pay for my FAMI-SALEF account. 

Metrobank Debit #2 is my new emergency fund account. I automatically transfer a portion of my income monthly to this account from my payroll. The amount I have in this account even exceeded what I have in my BPI Save-Up Automatic + Insurance. 

BPI Savings Account is my dedicated bank account for extra income. Any money from event hosting or freelance writing I do is deposited to this account. You can read more information about this in my recent Monthly Quick Recap + Extra Income Report.

I thing these three bank accounts work hand-in-hand to give me a much secured financial situation. Now I don't have to be guilty that I am not saving enough. 


Reason #4. Investing my money is my current priority

Now that I'm done paying first year of my St. Peter Life Plan I am already entitled to a term life insurance as well as accidental death and dismemberment benefit from the company. READ HERE to know more. With this plus my Metrobank Debit #2 for new Emergency Fund and BPI Savings Account for Extra Income I am more than willing to invest on direct stock market next. I am still young and able so growing my money through proper investing is what I am prepared to do.

Pic I took when I received my BPI Save-Up Info Card

How to Close Your BPI Save-Up plus Insurance account?

I was surprised on how fast and easy closing a BPI Save-Up Automatic Savings + Insurance can be. It took me less than five minutes of explanation to a phone banker. Below is the step-by-step process I took plus additional information you need to know.
  1. Call the BPI Hotline 89-100. After the voice message press "0" so you'll be directed to a phone banker.
Note: I called around 5pm on a Friday and I still got to talk to someone on the phone. You can call anytime, any day to get your account closed.
  1. The phone banker will ask your personal information as well as your BPI Save-Up Automatic Savings + Insurance  account number. He/She will also ask you how much your current money on the account is for further verification.
Note: You don't need your Info Card to close your account. You can easily see your BPI Save-Up Automatic Savings + Insurance account number when you access your BPI Express Online account.
  1. Now tell the phone banker that you wish to close your BPI Save-Up Automatic Savings + Insurance account. He/She will then explain to you how the process goes.
    • It will take five working days for your Save-Up account to be closed. In my experience I called on a Friday and my account is already closed the following Monday. Your Save-Up account will disappear in your BPI Express Online dashboard.
    • Before they cancel your account you need to transfer whatever amount you have in your BPI Save-Up Automatic Savings + Insurance to your regular BPI Savings Account. This means you have to zero out your Save-Up account. Note: Whatever money you have in your BPI Save-Up Automatic Savings + Insurance will be automatically transferred to the BPI Savings Account you used in opening your Save-Up account upon cancellation. 
Things That I Learned

On my last update I mentioned how I learned the importance of automatic saving. I still do the automation on my new emergency fund. This is the main learning and habit that opening BPI Direct Save-Up brought in my financial life. I realized that automation is the real king.

Saving for an emergency fund does not rely on the bank account you use. Your commitment is the one that plays a big factor for you to build an emergency fund successfully.

The word "insurance" can be very enticing but in case the account doesn't work for you don't be afraid to close it and move on. The most important thing is that you have financial peace in your life.

Additional Information
  1. Every month your BPI Save-Up Automatic Savings + Insurance is not within the minimum balance you will be deducted an amount of 200pesos. Minimum maintaining balance is 1,000pesos.
  2. You can still apply for a BPI Save-Up Automatic Savings + Insurance even if you closed your first account. I'm not closing my doors to the account at all. Maybe in the future I will open a new one.
  3. You can also do the same step-by-step process in case you wish to change only the amount of automatic savings you input or the frequency of automation. For example upon opening the account you decided to automatically transfer 1,000pesos every 25th of the month. Now you want to you want to increase or to decrease the amount of money you save or the date when your savings is automatically deducted. All you have to do is call the BPI Hotline and talk to the phone banker.
  4. You don't have to go to BPI branch for closing your account and no need to prepare any other document.
Final Words from SavingsPinay

My decision to close my BPI Direct Save-Up may come as a surprise to some of you. I do still consider opening the BPI Direct Save-Up plus Insurance as one of my big financial decision and I'm glad I did it. The account may work wonder for some but at the moment I don't see any reason to continue it. Assess your financial situation right now and if something is not working don't be afraid to resolve it. Let me know your experience with BPI Direct Save-Up plus Insurance account and whether you successfully built an emergency fund with it. :)

Related Articles:




What can you say about my decision to close my BPI Save-Up Automatic Savings + Insurance account? 
Do you think I made the right decision? 
How's your savings so far??

This blog already moved to www.savingspinay.ph If you want the latest tips and stories on budget, savings, investments, productivity and making extra income go HERE instead.
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PERSONAL FINANCE Savings

The One Thing You Can Do Today To Start Saving Money

Wednesday, September 14, 2016

We all want to save money but not all of us is ready to commit to what it takes to succeed in create a money cushion. I've been building my emergency fund since forever and up until today I am still miles away from my target. But I am not giving up and you too should not. Today I'll share to you the one thing you can do today to start saving money. Its easy, fast and effective and I bet not everyone has considered this matter yet. Just last week I had a workmate who asked me about budget and such then I learned one of the biggest mistake we all make when trying to save money. That huge mistake is not having a dedicated bank account for savings.


Why Have a Second Bank Account

The common situation is that we own a payroll account from a certain bank. People think that this savings account is good enough to get by  in terms of our financial but applying for a second one will surely change your money game.

Reason #1. Automate Your Savings

Banking nowadays is much better compared to before because it offers automatic money transfer ideal for those who are serious in saving their hard-earned money. Automating your savings is the best and the easiest way you assure that you make it to your  money goals either yearly or monthly. 

How To Do It?

First, apply for a second savings account under your payroll account. 

Once your application is approve you will need to apply both on a online banking program where you'll need a username and password to log in. For Metrobank Users I have a post on How to Enroll in Metrobank Direct Online Banking you can CLICK HERE. 

Application to online banking may differ from bank to bank but below are the common steps taken from my post The Basics of Online Banking:

1. Visit your bank's website.
2. Check out their Online Banking button. This should be available on the top most part of the website.
3. Follow through the online enrollment procedure.
4. An email will be sent to your inbox for confirmation.

On your online banking dashboard you will see your two applied accounts and transferring is a click of a button away. You can now see your dedicated second savings account growing with your savings. 

Reason #2. Back Up Account

I misplaced my payroll account one Saturday of June and had no idea where I put it. I immediately called the Metrobank Hotline to ask what I should do. I needed to withdraw my salary since I am going on a medical check up that very day. To my surprise the agent told me that it is either I freeze my bank account which will not allow me to do any withdrawal at all even if via counter. Also if I freeze my payroll account I will need to undergo a whole lot of procedure and wait until Monday.

Then I remember my second savings account which holds my emergency fund. I immediately checked whether my salary is still intact on the payroll account and transfer everything on my second count without a doubt. I was able to withdraw and have my check up. What I learned from this experience is how a second bank account can save you from cases of missing cards, identity theft and other unwanted situation. This will give you an access to your money without worry.

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Reason #3. Designate Your Money Better

Another obvious reason why a second savings account works best in saving money is because you can easily designate where your money go. If you only have your payroll account to rely then you will easily lose track of your savings. 

Here's how a second savings account helped me designate my money better:

  1. I automatically transfer an "X" amount of money to my emergency fund right away. This second savings account only has my savings. 
  2. I set my budget and withdraw only the amount I have to use. Receive my 50-20-30 Budget Template via email. Send me a message at izzaglinofull@gmail.com
  3. As much as possible I keep at least 500pesos on my payroll account every payday for additional savings.

Without a second savings account I'll probably mix my savings to my spending money. A second bank account allows me to save first then spend later. This helped me a lot to save money no matter what. Also one great reason is the fact that both bank accounts will earn interest for you. This maybe little but better than nothing, right?

Your Action Plan

Now here's what I want you to do. Create a dedicated bank account for your savings. Better if you apply with the bank you already have (e.i. your payroll account) so you can do online bank transfer at ease. 

If you already have a second savings account then start saving money now. Every pay day or every month fund your savings without fail. This will ensure you have enough savings in case emergency happen or to buy the things you want. You can revisit my posts All About Banking Part 1 and Part 2 for information on how to choose in a bank. 

Final Notes from SavingsPinay

To sum it up I highly suggest for you to have a second savings account solely for your saving fund. This is the one thing you can do today to start saving money. Applying for a savings account in the Philippines is very easy.

You just need visit your chosen bank and talk to a bank officer. You will be given Account Opening Form to fill-in. Next present two valid IDs and 2x2 photo and Your signature specimen. After about 15-20 minutes your savings account (physical card) is ready. Your next requirement is to change the PIN to your own personal choice. Easy, right?!

I also did a good post on Investment Options You Can Try With Your Bank. This post i dedicated for people who can't take the risk of direct stock investing or mutual fund. You'll learn other investment options that your local bank actually offers. Choosing to start saving money now is important. Again and again I say that the you owe it to yourself to save.

Next On SavingsPinay

  • 6 Financial Milestones To Achieve in Your 20's

  • How To Make Your Current Budget Work For You?

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PERSONAL FINANCE Savings

The Different Saving Funds You Should Own

Wednesday, August 17, 2016
I have been working for the past three years and to be honest I feel like nothing is happening to me --- financially. Yes, my investment is there and yes, I have means to get extra money but savings-wise I am doomed. Its so hard to save money.

I think about money all the time. Whether about post ideas on SavingsPinay or my personal financial goals and next actions. I just want to Get My Finances In Order Before 2016 Ends. Good thing the post I created will always remind me of that. 

I also realized that I spend too much time thinking about saving money but I honestly have no idea what am I saving for. Do you have the same struggle? And so I thought I'll create a list of The Different Saving Funds You Should Own. Let me know in the comment section below which fund you want to start saving, which fund you are currently saving for and which fund you've already accomplished. 




1. EMERGENCY FUND


This is just a non-negotiable fund to be honest. Without a cash cushion for emergency situation you'll be left behind. People who have prioritized their emergency fund first and foremost will suffer less money-related stress. They will feel much secured of what tomorrow will come. 

How Much Do You Need?

Prepare at least 3-6 months worth of your income. You can also start with a Baby Emergency Fund taken from Dave Ramsey's Total Money Makeover. The Baby Emergency is equal to $1000 or for Pinoys it could be just a month worth of your salary. 

How Can You Save For an Emergency Fund?

Try saving a good 10% of your salary every month. Automatically transfer this to a separate savings account which you bound not to touch unless a financial shock happens. 

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2. DEBT-PAYMENT FUND


This applies directly if you suffer from personal debt, credit-card debt and/or loans. You need to allot a portion of your salary as a a debt-payment fund. Make sure that you pay your debts so you can use the money to better your finances in the future. I am fortunate to have not incurred any debt at the moment so my net worth is quite positive. However, I should still take precaution financially.

How Much Do You Need?

This depends of the method you choose to pay your debts. The Debt-Snowball Method is one of the most recommended ways for you to pay successfully. This method suggests paying the least of your debt with the least amount you can pay. It focus on slowly but surely debt-management. 

How Can You Save For a Debt-Payment Fund?

This should be the number 1 priority in all of your saving funds. Maximize the amount you pay for your debts than the amount you save. As soon as you are debt free then focus all your money in building your cash reserve. If possible try to come up ways to earn extra money either online or through a small business.

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3. INVESTMENT FUND


As early as now aim to have your first ever investment. Investing will definitely change your life for the better. It is your first big step in creating a passive income or making money work for you and not the other way around. 

How Much Do You Need?

This will depend on the type of investment you want. Nowadays a good 5000pesos to 10,000pesos is enough for an initial investment on traditional investment vehicle like mutual fund or direct stock market. You can also save more money as soon as you start diversifying your investments.

How Can You Save for an Investment Fund?

Cut-back on your unnecessary expenses and slowly move the money you save on your Investment Fund. You can also use any cash bonus you receive or maybe your separation fee or 13th month fee for this.

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4. PERSONAL SAVINGS FUND


Personal savings fund will enable you to achieve all your short-term financial goals such as budget for travel, buying a new car and/or updating your wardrobe. This is for your personal wants that cost more than the regular "wants". The key is to make sure that your first three funds are funded enough so you won't feel sudden guilt financially. 

How Much Do You Need?

This depends of which short-term financial goal you want to achieve first. I for example is saving for an international trip on the first quarter of 2017. I am aiming for 25,000pesos as my travel budget. With this I have to save at least 3,500pesos a month. Adjust your budget accordingly so you won't be in any unwanted debt.  

How Can You Save for a Personal Savings Fund?

Again you have to make sure that you have funded your Emergency, Debt-Payment and Investment Funds first before transferring any amount to this fund. Priorities, remember?! Now having an extra income will help you tremendously to build your Personal Savings Fund without hurting your budget. There are many proven ways you can diversify your income. You just need to be really "madiskarte".

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5. RETIREMENT FUND


You will never be young forever so you better start thinking about your retirement too. A lot may ask what age a retirement fund should be started and the definitely answer would be as soon as possible. Saving for your retirement will enable you to enjoy your harvest season. The earlier you start more your money will grow. 

How Much Do You Need?

Nowadays you just can't entrust your retirement fund to government-issued policies like SSS, GSIS (for government workers), PhilHealth and PAG-Ibig. You won't survive with the inflation rate and the cost of living. If you want to retire happy you need to start saving accordingly. Start by saving money on a quarterly or yearly basis. Commit to a certain amount you can fund. Then add whenever you are financially equipped. 

How Can You Save for a Retirement Fund?

Saving for retirement should start as soon as you have your first income. If and then you can't afford then try to develop the habit of paying yourself first either from any of the above Different Saving Funds You Should Own.

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Overall


To end this article I just want to share to you this quote I saw from the internet. This is my current desktop wallpaper since whenever I read it I feel really motivated. I hope that this same quote will inspire you financially to make today count. Do not feel discouraged instead keep going. Don't ever dare to think about quitting.

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