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!

an end and a beginning

so the year is about to end and i figured we had better give it a proper tribute on this site as well. hmm, i'm not sure if this will be a worthy end-of-the-year post but here goes!

i did my financial accounting voodoo yesterday. mind you, i never took an accounting subject so i kept it pretty simple and just added and subtracted a few digits.  the verdict?

i went overbudget!!! by around 3k. considering all my expenses and my income (sidelines included), i saved just a little little less than half of my salary.  oh well, i'm still learning, you know? and some people might say that i was unnecessarily generous at several occasions, which isn't entirely a terrible thing, right? i'll just need to compensate for that.

this coming year, my contract will end at my current place of employment.  i have 2 months of (somewhat) predictably stable income before i have to get a new job, a better one!  and having decided that the compensation does not solely determine what constitutes as a great job, i am facing the possibility of earning even less (read: minimum wage), especially should i choose to work for an NGO or the like.  and what does this mean, exactly? new New Year financial resolutions!

now, i'm not doing this to try to compensate for some guilt of overspending.  i admit that i did overspend a bit during the past year but, guess what, it was worth it in one way or another.  i either helped someone or learned a lesson as a result.  money well-spent, if you ask me.  but for this year, it's time to apply what i've learned and what i believe in.  i believe it is possible to live contentedly, even with very little.  and i also believe that you are never too poor to help someone out. 

this year, after having analyzed my every expense, i'm resolving to:

1. buy less clothes and shoes.  and if i do buy, they have to be practical needs.

2. reuse and recycle even more.  that means more DIYs too, and more garage sales.

3. lessen my dependency on material objects.  even more garage sales then! and i'll be giving away "presents" to friends who want them, i guess :)

4. make my money work for me.  i'll be spending (both time and money), albeit still wisely, on three things: fostering relationships and helping those in need, further learning, pursuing my dream/mission

i'm really excited for the new year!!!! the possibilities will be even more exiting than they were in 2010, i just know it :D

btw, i made my first New Year/Bday/Dream purchase (yes, this will be placed in the 2011 report :P ) i sure hope to make the most out of this one.

Merry Christmas and a Happy Happy New Year to you all!

DIY: inspired by Alexander McQueen

(yet another overdue DIY post)

i receive a ton of email every day, maybe half of which are all related to fashion.  anyway, i remember receiving one about nail polish trends sometime in June.  one of the girls featured there was Drew Barrymore.  anyway, the nail color article was interesting enough, but what really caught my attention was Drew's Alexander McQueen dress:

i don't really go anywhere so I'd never really get a chance to wear something like this.  and even if i did have an event to attend, chances are that the McQueen brand people wouldn't be willing to just lend me this dress.  but i loved it so much that i knew i had just one option: DIY!!!

i've had this lace dress lying around for months.  one of my last purchases before i started Project 365.  i bought it at an ukay-ukay near BIR Intramuros for Php 50.  Btw, the owner of the place was Ilocano and they played Ilocano music in the store.  the ukay was also very decent--spacious, clean, well-ventilated. aaanyway, i bought it because i saw some potential in it.  i especially loved the crochet detail on the neckline.

however i try to pretend not to care what everyone else thinks about me, i'm still an insecure girl.  and whenever i'd try the dress on (after washing in boiling water and detergent, mind you), my ate cla would always say "yuck" or something along that line of thought.  so i knew i needed to do something to try to elicit a more favorable or at least neutral response from the people who would be seen with me while wearing it.

i decided to try to make my version of the McQueen dress.  first I carefully cut out the lining (too lazy to rip the seams), making sure not to snip the stitches so the dress would remain intact.

then i prepared a dye bath--using 4 packets of black Venus dye this time.  i figured it wouldn't matter so much if it was in a small basin. in the event that there would be unevenness in the color, it would look like the intended result, much like the intricately designed lace of the original dress.

unfortunately, i learned through this experience that color fastness is something better achieved, not just with quality dye, but also with a proper process.  but since i had neither, i ended up with gray lace.  the only thing that did turn black enough was the crochet trim on the neckline and at the hem of the dress.

i tried to see what it would look like with yellow fabric underneath, but gray doesn't make the color pop out as much.  so i decided to just use the crochet trim instead.  i had 1 1/4 yards yellow cotton voile lying around at home (i often have fabric-buying urges)--also one of my last purchases before Project 365--so i didn't even need to buy that.  i cut out a simple pattern for the bodice using a hybrid of the lining (which was more loose) and my bias dress pattern from FIP (more fit).  since cotton voile is pretty sheer, i used up all my fabric to make two layers (i'd suggest at least 1 1/2 yards next time, especially since bias uses up more fabric).  

with the help of my trusty portable Brother sewing machine (which we got several years ago from credit card points), i was able to make this top:

it's definitely one of my favorites :) it's dressy but i can also wear it with jeans.  i can belt it, tuck it in, or leave it as is. DIY rules!!!

DIY: pseudo chambray shirt

back when i made this a few months ago, i had been reading about the resurgence in popularity of the Chambray (a kind of cotton aka Cambric) shirt among the fashion crowd in the West.  Denim shirts of various washes were also a big craze (and i guess still are depending on the styling).

this was my inspiration:

not having the cheese to afford yet another item, and also having an abundance (okay 4 is not exactly that much) of white collared shirts, i decided to DIY instead.  here's what went on:

one of my white shirts was less traditional than the others.  it had a different kind of yoke and huge sleeves!  i liked it for a while but then i realized that i would sometimes look like i was swathed in hospital bedsheets.  this was the shirt i decided to dye, using the Venus dye available at National Book Store (i know, sorry but that's the only one i know of.  i'm searching for dyes online but it's gonna be real costly what with the $ and the shipping, etc.)

i used two packets but you can go darker if you want.  if you're not really sure, i suggest you go light first; you can always intensify the color later.  now, having limited resources and a slightly overbearing mother, i couldn't follow the instructions to the letter.  but i think it went ok. 

it would be a lot better if you use a bigger basin though, to keep the fabric from clumping.  mine did, and at the underarm area too! it's not that noticeable but if someone looks very closely, you'd think i had sweat stains even if i had just put the shirt on.

and voila! don't mind how i look though. haha.  you can belt it, tuck it in, leave it untucked, or unbutton it too :D hope you like!  DIY is pretty easy.  the first thing you need to do is just determine what project you want to make and i'm sure you'll find SOMETHING in your closet or somebody else's wardrobe that you can reconstruct.  it's so rewarding and pretty cool too.

budget cut

on my way to work today, i noticed a tarpaulin hanging in front of the College of Pharmacy.  it read:

No to P1.3B UP Budget cut!

It got me to criticize once again the current administration and all the frustrating, almost laughably half-witted decisions they have been making, the most recent of which would be changing the Tourism slogan from WOW Philippines to Pilipinas Kay Ganda!  but then i decided it was unhealthy of me to do so.  after all, the more i think about how my own countrymen are trying to bring us down to the dumps, the more i might consider selling out my dreams and integrity just so i don't end up stuck in a country that's headed for the same state as Somalia.

So we focus on the idea of a budget cut itself.  now, i'm no economist.  in fact, the lesson i most remember back in Economy was that, in the Philippines, you could get something like a tax break for up to four of your children.  which means my dad gets tax deductions courtesy of me and my sisters, but not my younger brother (magastos talaga maging anak si Charlie).  But i digress.

Budget cuts are necessary, dear readers.  We're always advised to live within or even below our means; otherwise you'll end up in debt forever.  case in point: PH aka the Philippines.  i think, realistically speaking, the end of the world will come before we can pay off our debts and the interest it has incurred.  which is why it is important to stick to a budget.  just because our country can't do it, doesn't mean we have an excuse not to do so individually as well.  I'm no money guru and, admittedly, i still have trouble sticking to my budget every now and then (which is why my mom often calls me a hypocrite.  well, not to my face, but i know she thinks it).  But i do have some ideas nonetheless, which i try to live by. 

1) I try to estimate my annual income (make it a modest or low estimate, people!)

2) Then identify all the areas of my life that i spend on.  i try to think of my priorities and use that as a means to rationalize how big or small my budget for certain categories are.  of course, that's not always applicable.  like, i say looks don't matter that much but i still had some difficulty laying off the shoes.

3) I keep track of my expenses and revise my budget as necessary.  if I end up spending too much on clothes, i might compensate for that by cutting down on gifts (sorry friends!)

4) Evaluate if there is a need for a budget cut, or an increase in income, or both--then do something about it!!  ever since i was a kid, i've always tried to be creative so i can earn some spending money instead of merely complaining that i don't have enough.  it feels really good!  but at the same time, i'm slowly learning to live on less and just save the money i earn or use it for something that will help me or someone else (i.e. education, outreach)

So, my point is really that the Aquino Administration should not rely on budget cuts (imposed unfairly on sectors that need it most), but also do more to increase the GDP per capita of our country.  after all, you don't tell a poor family  who can only afford 1 fish a day to keep living on that for the rest of their lives!  everyone in the household can probably contribute to help increase that number, so why not do something? :D

parsimonious

A.Word.A.Day
with Anu Garg

PRONUNCIATION:
(par-si-MO-nee-uhs)

MEANING:
adjective: Excessively sparing or frugal.

ETYMOLOGY:
From Middle English parcimony, from Latin parsimonia, from parcere (to spare). First recorded use: 1598.

am i an idiot?!

"Wise people live in wealth and luxury, but stupid people spend their money as fast as they get it."  --Proverbs 21:20 (TEV)

nagpaparinig sa akin ang Panginoon! haha. but seriously.  this past week, i've been acting like an animal cut loose from the zoo--shopping (almost) like there's no tomorrow.  It's almost Christmas and, instead of getting us gifts, Dad usually just gives us some spending money, on the condition that we spend it on apparel so we have something to wear during the holidays.

so, i bought a lot, trying to maximize my break from retail therapy fasting.  but afterwards i kind of felt sick and realized that i had somehow returned to my old ways.  even though i did try to think of what i could really use, i did get side tracked at times, and also bought some things which i'm sure would not last that long. 

so, for the next year, i have set some new shopping, or non-shopping, rules (after my Project 365):

1. DIY to death! and using existing materials first, rather than buying new fabrics, etc.  I'm not allowed to buy any more tops or yardage of fabric until i've completely exhausted all my existing resources (pieces i bought or stole from my mom's closet, telling myself i'd alter them to make like new)

2. stick to the list!  i'm going to write a very specific list of things that i can buy, and that's it.

3.  wait, then think.  i was very tempted to buy this pair of wedges at CMG on sale for P999. so sexy and seems versatile enough.  heaven knows i need variety in my shoe rack (they're all neutral, mostly black *sigh*).  but even though i relly wanted to buy those shoes, i've decided to put off buying footwear until i have a clearer picture of what i'll be doing next year, after my contract at UPM ends.  will i be going to school? will i be working for a broadcasting company or publication and, if so, will i be on the field or at the office?  will i be starting my travel show project with my friends?  will i be starting my own business?  will i be acting more (and in need of options for wardrobe)?

4.  NEED versus want.

5.  prioritize! and make your money work for you.  so looking good would be nice and i might need it if i'm gonna act more.  but i might not need it as much as tuition for school.  i may not need it as much as children need schoolbooks.  i really need to remember what's most important in my life and how i can use my little wealth to accomplish my goals and to help others.