>> Monday, August 03, 2015
What to do when you suddenly have a big amount of money in your hands?
First, PAUSE. List down your wish list or goals. Also list down your money concerns.
Then prioritize which among the items in your wish list are most important, and which among your money concerns need to be addressed the soonest.
Your wish list and money concerns are most probably covered by the following:
1. Pay off debts -
For your peace of mind, get rid of debts to help you live free from stress. Always remember, "the borrower is slave to the lender".
2. Setup your emergency fund if you don't have one yet -
Having an emergency fund will help you avoid getting into debt.
Compute or estimate how much you need to survive in a month.
Multiply this amount by 6. You should have this amount in your Emergency Fund.
Ex. You need Php10,000 every month for your needs. Multiply by 6 and you get Php60,000.
This means that you should always have Php60,000 in the bank and you can only use this amount for REAL emergencies.
3. Provide for your family and for yourself for the tough times -
Avail of a Critical Illness plan to provide for yourself if you get diagnosed with a life threatening illness. You don't want to use up all your money travelling only to find yourself having to borrow money when illness strikes.
Avail of a Life Insurance plan to provide for your family in case you're no longer around for them.
You don't want to use up all your money buying unnecessary things for your kids only to leave them penniless when you're gone.
For around Php1,000-Php1,500 a month, you can already avail of Php500,000 Life Insurance with Php250,000 Critical Illness coverage, plus a Retirement Fund pa
4. Work towards your goals -
Dreaming of that trip to Paris, London, and Rome? Start planning and investing today to live that dream soon.
By investing Php2,000 a month in an account that earns a projected 10% every year, you can be on your way to taking selfies with the Eiffel Tower, Big Ben, and the Colosseum in 7 years! (If Php1,000 a month, you will then have to wait for 14 years to go on that dream vacation, not bad pa rin)
5. Provide for yourself when you DON'T want to work anymore or when you CAN'T work anymore -
Your ability to earn an income is NOT forever (as we say, Walang Forever).
You don't want to spend all your money now and end up having to ask for support from your kids when you can't work anymore. Your kids would probably have their own families to take care of by
then. Wouldn't it be nice if you are the one treating your grandchildren to Jollibee?
It would be also be even better if you have already accumulated enough money to support yourself FOR LIFE so that working becomes an option. You choose to work because you want to, not because you have to.
And this is possible by building your Passive Income. This is money that you earn even if you are not working.
Investing is one form of building Passive Income. Your investments earn even if you are not working.
Need more information on how to pay off debts, setting up an emergency fund, investing and providing for your family and yourself?
Help is here. You might also get a book on Financial Planning by Ardy Roberto from me :)
Just get in touch with
Sun Life Financial Advisor
0917 423 8521