reading the fine print

I think i've mentioned something about insurance on this blog before.  recently though, i received an offer to invest in a life insurance policy that will also invest mutual funds on my behalf.  anyway, i knew enough about pre-need industries to refrain from signing the policy on the spot.  here's what i learned after i took home the papers and did a bit of reading, as well as questioning my dad:

1. the life insurance individuals usually get is for accidental death.  so guess what? if you die from some sort of cancer, from giving birth, etc--you're not protected!!!  depending on the details of your policy, you might not even be covered if you were murdered! i currently hold an accident and hospitalization insurance; at least they offer something like 2.5% of the premium if i do get murdered, provided that it is proven that i didn't provoke my being so. good to know, huh?

2. the hospitalization that your insurance policy covers doesn't include pregnancies or psych illnesses, among others.  so if i have risky pregnancies, i won't be covered.  well, at least they do cover cancers and other illnesses in this part.

3.  take a look at the asterisks! the first one notes that even if you agreed to pay a certain amount for, say, 10 years, there is a possibility you would be required to keep contributing for longer, should the funds not perform well at the time.  so right now, i'm computing in my head that i will contribute a little under Php 200,000 for this certain offer that i got. but in truth, i could end up paying more!  my dad has availed of many insurance policies--he got one which he supposedly had to pay over 20 years but because the funds didn't mature or something enough, it was extended to 30 years :S  of course, let's hope that this won't happen.  because if it doesn't then you would have availed of a bargain. see, my annual accident and hospitalization insurance costs me around P 2,400.  but if i pay, say, P110,000 for life insurance with pension and live up to the age of 88, i would've been paying P1,700 a year for the same coverage. that means you saved P700 a year for 65 years.  and they would give you a little bit monthly when you retire (although it won't amount to the contributions you made)

4.  regarding the mutual funds and other stock thingies (sorry, i'm not familiar with the technical jargon), there is ABSOLUTELY NO guarantee.  so even if the proposal illustrates the 4%, 8%, 10% interest, there is a chance that your investment could go up--but it can also go down, really really low.  however, if providence is on your side, things could also go really well for you.  when a certain insurance company became public here in the country, they offered the clients the chance to become stockholders.  they did really well at the time, and my dad ended up earning a lot!  but if you haven't been living a rock in the last 5 years, you will also have heard of the recession and how many insurance companies have gone broke, leaving their clients broke-r.

5. investing in an insurance policy is exactly like investing in the stock market--only put out what you're willing to lose. 'cause baby, it might not come back to you.  however, sometimes calculated risks really do pay off big time.  

6.  think about your financial goals.  that P 20,000 a year could be used for insurance and mutual fund investments, yes.  but giving up that portion of your salary could also prevent you from attaining your other goals which would have otherwise helped you move up.  also, when you avail of these packages, you're also paying for agents to manage your money.  but if you think you can do a better job of it and make it grow more, then why put it there?  i have an uncle who is an incredibly savvy businessman.  he doesn't have insurance--he channels the money towards his businesses instead, and that's why he gets richer every day.

7.  live within your means.  sure, you can pay for insurance.  but remember, they won't cover you if you die of starvation from trying to save up for that annual fee.

8.  assess your needs and responsibilities.  does your work put you at risk of accidents more than the average person?  are you responsible for supporting anyone?  if you answered yes, then i think investing in a good life insurance policy would be advantageous.  if no, well, maybe faith is enough of an insurance/assurance.

so, it's completely up to you whatever you decide.  i only hope this serves to enlighten you a little bit more, as it did me, and i hope that whatever you choose does work out great for you in the end :D toodles!

whatever it takes

this girl is living my life!!! well, almost (i think my daughter and i will do other artsy fartsy stuff and not cook this much).  when am i gonna have the luxury of time (not to mention my own house in a serene neighborhood, and a husband and kids to match)?!? 

Martha's Vineyard photo taken from La Tartine Gourmande

anyway, i recently moved out...of the room i shared with two of my sisters. hahahaha. kala niyo kung ano, no?! if i had moved out of my parents' house, i assure you, i would've made a spectacle of it.  i think family members above the age of 20 should never be forced to reside in the same space for too long--unless you're trying to pool enough energy to create a nuclear explosion. 

so, i've been staying three nights at the guest room thus far.  never mind that the door has no lock and doesn't even close properly.  i'm not really after physical privacy or isolation, after all, although that tends to help one achieve some peace and quiet in her brain. it has been such a long time since i've had that, actually.  when i still stayed at the dorm, i could get that.  i could easily turn to face the wall while lying on the top bunk, and my roommates will respect my need for solitude.  here at home, trespassing is the name of the game.  i recall that there were times when i was in my lighter stages of sleeping when my mom would burst into the room asking about yet another trivial issue and, although i wish it weren't so, it has already become my instinct to answer her while half asleep.  so i do appreciate that the leash has been lengthened, albeit by a short amount.  beggars would do wise not to be too choosy.

you might be asking, "why didn't i transfer to the separate room sooner?"  well, i had considered that option countless times but refused to do so, even if my sisters' light night TV-watching caused me irreversible damage in the form of dark undereye circles.  i did this because i also didn't want to further increase the carbon footprint of the Martin household.  however, i have come to a decision that the situation deserved drastic measures.  but don't fret, dear Gaea!  i'm still doing my best to minimize the effect of my moving out on the deterioration of the earth and consumption of its resources.

for instance, whatever i can do downstairs, where the lights are already turned on, i do so before even entering my room.  and, i also only turn on the AC when i'm about to sleep, and make sure it goes off at 5am, even though i usually wake up at 630.  i also unplug all appliances when not in use.  what's good about being alone, though, is having no distractions--hence, i am able to finish whatever it is i'm doing, whether it's writing in my journal or editing Jovy's book, at a much more efficient pace.

and what is the connection of all this rambling to the blog? well, moolah, of course. being the wannabe adult that i am, i'm bent on paying my parents for the extra electric consumption that will be caused by this step towards preserving my sanity, er...towards independence, i mean.  i'm praying to the heavens above that it doesn't set me back too much because i still have a lot of things to pay for too: future studies/projects/gadgets i'll be needing for said projects, sustenance, future independent living, and hwa rang do, among many others.  i realized that if i factor in the hwa rang do classes (a recent addition thanks to my choir-mate), the interior designer's fee that i offered to pay half of, and the additional lodging expenses, i will only have saved around 40% of my salary!  and i also realized that it's almost impossible for me to move out of the house on my current income alone.

but i'm not gonna let all these roadblocks stop me.  i think it is extremely important for myself to experience being fully self-supporting, no matter the heights i need to scale just to do so.  there are so many singles out there who don't contribute to the household and end up even burdening their old folks, and i don't want to be part of that group.  i remember asking some people why they hadn't moved out yet--almost all of whom answered that it was too magastos.  no offense you guys but, seriously? that is a lame-ass, selfish reason which i have no intention of using EVER.  my goal is to move out between the age of 25 and 28 and, unless, by some misfortune, my family needs me to stay at home (i.e. someone gets sick and i have to be the glorified katulong), i'm sticking to that goal no matter what. 

Photo Credit: Charlie Schuck/Getty Images

PS - what i do miss about sharing a room with my sisters are the spontaneous, giddy conversations.  admittedly, there have been less and less of those, but i still want that in my life.  maybe i'll have to visit the other room every now and then :D

PPS - i'm always on the hunt for future apartment options so if you have any suggestions, that would be super!  i don't mind flatmates either, as long as the space wasn't designed for hobbits.

yet another venture

rode the bus home with jacq and rex today.  it was pretty funny because rex was in between the two of us and he fell asleep halfway along the trip.  can you imagine him with his eyes closed and mouth half-open, involuntarily leaning towards jacq every time the bus would come to a halt?!?! hilarious!  i should've taken a video, or at least a picture. oh well, maybe next time.

anyway, i'm beginning to think i should try to take more bus rides with jacq--the ideas just come spewing out of our brains in the same manner that magma comes out from volcanoes.  there's TUWA, which i still want to continue one of these days, there's our postgraduate studies, writing, preschool teaching or teaching religion or just teaching...and now there's our coffee shop/art haven/boutique! we already have a prospect for the venue (jacq's current house in QC, which they'll be evacuating in 3 years).  we have all sorts of ideas already, like hosting film showings, open mic nights, exhibits for up-and-coming artists, painting workshops, etc.  

i figured it would be nice to put up our quaint little cafe in a residential area that's also accessible to those outside the neighborhood.  for the residents, it can be their local hangout place.  and for the rest, it can be a place that would be worth the trip--just for the food, the events, the ambience.  it also goes with my move-out-by-25 plan since i can just live in one of the rooms in the bungalow; wouldn't even have to commute to get to work! now that's the life. heeheehee. i'm so excited!  what do you think? any future patrons out there?  don't worry, we'll leave the cooking to an expert :)

jacq said that, out of all the things we were planning, we should really try to pursue at least one of them.  i agree--and i can't wait!

speaking of moving out, i was at Kultura a while ago, window shopping while our German guest at work did some real shopping.  i found some amazing pieces which i'd love to have in my own place (once i get one).  here's a few of them. btw, i bet you can find several of these items in divisoria or even in dapitan so you ought to try those places first before heading to Kultura in SM.

i would use this chair to stack some books probably, and put it next to the door so i can hang a cardigan on the back or something that i might need in a jiffy.

for my accessories! then i'l just put them on top of the dresser, assuming i had enough to buy one.  i'm actually imagining a spare unit with a daybed and a breakfast nook.  those are my essentials, see.  then everything else will just be lying around on the floor.

those are the pics! well, i thought i took more of them! sorry! hahahaha.  i was supposed to add a thick wooden bowl where you can put all sorts of found objects, instead of leaving them lying around the house.  there were some great picture frames too, and native rugs, and more capiz items.

now i really can't wait to move out :D 

random money matters

went to a HUGE wedding last weekend-- rumors abound that the decorations for the reception area alone amounted to half a mil already! ridunkulous, right?  but it was a really wonderful night and i truly wish the newlyweds a happy and equally amazing marriage. anyway, during the reception, my relatives in the same age group got talking about independence and marriage, specifically our age deadlines for both.  i want to be out of the house between 25 to 28 y/o--i've recently been feeling quite down, to be honest, and think that i really need to discover who I am and be the person I want to be, regardless of how other people around me are.  and i somehow feel that i can do this best by living on my own, acting the way i want to, instead of always reacting to the situations i encounter.  i also need to make something of myself and feel that living on my own will help me do that, if only so i won't have to tiredly keep explaining the choices i make.

anyway, back to topic.  i'm 22 and a half now, which means i've got about 2.5 - 5.5 years to save a ton of loot, if i am to ever live on my own (btw, normally, marriage is another option--sharing the bill with a husband would be nice haha--but i don't want to make any predictions and jinx my chances.  to be honest, the romantic future is looking a bit bleak right now.  okay, self-pity ends here). 

ideally, when i'm on my own, i should still manage to keep saving instead of having it all go to rent and survival expenses.  how, you ask? at this rate, i don't know either! haha. but i've read a few things in the past that did get me thinking.

one is to let your money work for you too.  apparently, this is one thing that the rich do.  instead of spending on something that won't contribute to your wealth (like a signature bag) or, worse, that will even subtract from it (like a fancy car), you need to put your money in a place where it will work hard to make you richer. haha. so you can use it to further a biz, invest in stocks, or even earn in a bank.  i told our maid this last night and she suddenly got the idea of buying a pig instead of a TV.  that's the spirit!

another one is a quote i just read from the King, Elvis, himself.  "Sharing money is what gives it its value."  'nuff said.

here's another beautiful quote from Henry David Thoreau (whose works i should start reading, btw): "Goodness is the only investment that never fails."

and with that, i bid y'all adieu, at least for now.  i hope these ramblings get you thinking and adjusting your lives the way they're starting to do mine :) feel free to share your favorite quotes about wealth on this post.

spending other people's money

i got into yet another semi-heated debate with my parents last week on our way to the movies (Clash of the Titans). the reason: when to spend and when to save.

i forgot how it started; all i remember was that, all of a sudden, my dad was further corrupting my brother's set of values by saying that he should spend/buy when others are paying, but save/scrimp when he's using his own money.

naturally, i had to give everyone within a kilometer radius my two cents worth.  see, the main difference with me and my brother is the person/s who raised us.  my mother almost single-handedly raised my three older sisters and myself, whereas my dad was more hands-on when he finally had the XY offspring.  now, my dad is a good man, truly one of the best in my life.  but good men have their flaws too, and my father is no exception.  i'm afraid, now that he is nearing retirement and no longer needs to pay for the matriculation of five children (just one left), he has become lax with his spending habits.  yes, he is entitled to the fruits of his labor, God knows he has been working his ass off ever since he was a little pauper in Isabela.  but i fear that his new paradigms on money matters are not something you would want to pass onto a 16-year old. 

see, i was raised by my stingy mother and, early on, i learned the value of money and hard work if i wanted any of the former.  even as a child, i felt ashamed to ask for anything, knowing that asking my mom for that new Barbie doll in Duty Free would earn me a painful pinch in the groin, and i would have to endure the humiliation of crying like a girl AND not getting a toy, while my cousins played with theirs.

i realized that i had to work hard if i wanted anything.  my aunt told me that when i was really really young, i once tried to pass around envelopes in my father's clinic.  the envelopes were marked "Abuloy para kay Kat".  i don't even recall doing that!! i only found that out sometime in October 2008, when I was in Chicago and visited that aunt of mine.  i guess i thought abuloy was another word for donations. haha.  my dad then predicted that i would grow up to be independent.  and i did.

during early elementary, i would spend summers hanging out at my dad's clinic in Isabela, selling snacks i made with my cousins to the waiting patients.  one year, i sold perfume for my aunt and ended up spraying some on my eye when i was supposed to spritz some on my dad's nurse--i ended up with an eyepatch for three days! everybody called me "sharp shooter".  in sixth grade, i was introduced to the art of beading and jewelry making and, from then until my mid-college years, i was making trinkets and selling them, or giving them as gifts instead of buying the more expensive but less pretty ones.  when i grew tired of the beadwork, i capitalized on my knack for English by teaching Koreans to speak it, and teaching them well, if i may brag.

it was hard work, yes, but i am proud to have learned to not depend on others for material things and, even better, to have the means to help out those who aren't as financially independent yet.

well, that was how my mom raised me.  but now my dad comes in and practically tells charlie "spend all our hard-earned money; just don't waste yours!"  it's only another way of saying he had best depend on my parents instead of learning to respect how difficult it is to earn such and thereby using it wisely.  i don't want my brother to become the annoying dude who keeps asking everyone "libre" and who engages in toxic, wasteful spending, just because it isn't his money he's wasting anyway.  we already have enough of them in the government!

my motto is to only spend what's necessary, and be extra careful when spending other people's cash too (what if they're in a financial crisis right now and are just too shy to back out on a promised treat,etc.?).  and as for your own, i wouldn't recommend wasting it all either, just because it's yours and you worked hard for it, but i would say spend on what you believe is right and well-deserved.

what do you think? what's your spending paradigm? i'd love to hear from you.