Debt-Free At 30

A lot of people make a big deal of the age 30. Most singles dread it, the younger generation longs for it while some make grand plans before they reach it.

I belong to the last group. Right after passing the CPA board exam, I told myself that I will retire at age 30. I will retire young and retire rich, the dream of the ideal person I used to be. I didn’t go for the usual career path of fresh passers. I became a Networker in Metro Manila instead. It was great at first, I earned a handsome amount of money and was able to go places as far as Singapore in the first year. Then it took a toll on me, my group was growing so fast I couldn’t take the pressure anymore. I decided to go back to the province and tried to build a new group in my hometown. It wasn’t as easy as it was in the metro. My group fell apart and I had debts to pay in the end because of some bad decisions along the process.

Ipon Challenge Fails

Wealth Series 2: Why most who try don’t succeed?

Many have tried different Ipon Challenges, but quit along the way. Back when the #52WeeksChallenge was a hype, I encountered a job applicant at our office lobby who was selling an alkansya, a piggy bank made of a tin can covered with a savings schedule. It was selling like hotcakes even with a substantially marked up price. The idea of a huge savings by the end of 52 weeks excites us. After a month or two, the excitement dies down and the alkansya we bought became another useless item in our rooms.

There were few who succeeded or so we thought. Social media is full of fakes, be it news, accounts, looks and the list goes on. These Ipon Challenges are no different. Success stories can also faked for fame, but there are still authentic ones. There are those who have genuine intentions in sharing and challenging people to do the same.

What sets them apart from those who fail and those who fake it?

Our financial goals or the lack of it makes the difference. Sometimes, we get so hyped by social media that we start without setting goals. In that case, failure is certain. Shallow goals can be reasons for quitting too. These goals are either set consciously or unconsciously. Our mind is wired to handle personal finances based on what we learn from friends, literature we read and posts we see on social media. Let me discuss three types of shallow financial goals:

1. To be “in” with the trend. This is the most common unconscious goal. It applies to all trends, be it travel, relationship or fitness goals. We see something on social media and we want to be part of it too. Mountain climbing trends and we suddenly feel the need to buy all the gears, only to stack them in the basement after using it once or twice. The same is true when healthier lifestyle becomes our New Year’s resolution. We download that fitness app, join a gym and start a diet, but we’re back to our old habits after a month or two. Ultimately, we are able to post a status or two about our progress, but fail to follow through.
2. To save a certain amount of money. Seeing all that money posted on social media is tempting. We’ve been alive for so long and yet we weren’t able to hold that much amount of money. We imagine what would it feel like and it makes us want to do the challenge. This sounds like a good goal, but the excitement it brings is short-lived. Remember that money is not the reason why we work hard. It is what money can buy. When we reach a certain amount of savings and we see something we like on sale, we tend to spend our savings prematurely. When we are able to buy what we want, we don’t see the point of the challenge anymore and the enthusiasm for the Ipon Challenge fades.
3. To prove other people wrong. There are certain people in our lives who undermine our abilities. They are often negative people who always say we can’t do certain things. Sometimes, even our family, partner and friends are the ones doing it. Some are baseless, some are not. Maybe, you weren’t really good at saving before that’s why they are negative when you shared that you’re planning to do an Ipon Challenge. This might drive us to succeed when our emotions are high and especially if we see that person every day. When the emotions fade, the drive to save fades with it. In the event that we succeed, it won’t be as fulfilling compared to a goal that’s not fueled by negative emotions.

Now that we know which goals would probably make us fail, let us learn which goals will keep us going. I will not be suggesting a specific goal because every individual is unique. Instead, I’ll discuss 3 tips on how to formulate a goal that has a higher probability of success:

1. Have a goal that can be bought by money. Savings is not about how much money you’ll save, but how you are going to use it. Let’s say your dream wedding. Start by knowing how much it would cost and when would you like it to be. Then simply divide the cost by the number of months left till the target date, then you have a monthly goal already.
2. Have a goal that motivates you. My greatest motivation when it comes to finances is financial freedom. What is something that could give financial freedom? For me, it started with being debt free. I listed all my debts and made it my goal to pay them off before I reach 30. I can say that it was a great motivation for me because I was able to do it. Now, my new goal is to invest in properties that will soon earn passive income so I can comfortably retire at a younger age than usual.
3. Have a goal that excites you. I have always wanted to live a nomadic life. I want to be a resident of the world and not just a certain country. The idea of such a life keeps me from spending on foreign trips now. Once my passive income is substantial enough, I will travel the world. It could be that dream of yours to become a chef or a pilot. Think of a goal that’s so exciting, you’ll be willing to live on a budget for it.

 PHOTO CREDIT: Facebook/Rosemarie Peñamora Tan[/caption]

“Di ko naman sinasabi na sa 7 days kelangan ganto din kalaki ipon nyo. Kahit ilan naman ang mahalaga may ipon at ready tayo sa mga expenses” -Tan wrote in her post

One more thing that contributes to failure inherent to most challenges is neglecting the income bracket of people. They set certain figures that are too high for low income earners and too little for the more fortunate earners. Some people deprive themselves of leisure and even needs just to follow the challenge schedule. This causes some to splurge when they can no longer put up with the deprivation. It is important that in the process of saving to still give yourself a little bit of every need and luxury in order to keep going. Ipon Challenges should be based on individual earnings to make it more flexible to everyone.

The Budgetarian Life may just be the perfect challenge you can adopt. More than teaching you how to save, it teaches you a money management method that considers your income bracket, needs and luxuries. I have been living it for 3 years. I was able to pay off all my debts and I now have money to invest in real estate property. I wish I applied it to my finances sooner. You can spare yourself from the mistake I did of waiting 8 years before I practiced it. You can start it right now. Click the link to learn more: https://wp.me/p8XO90-8.

MORE ON THIS SERIES:

Wealth Series Part 1: How long will your wealth last?

Time Tested Wealth

Wealth Series Part 1: How long will your wealth last?

We have all heard the phrase “Health is Wealth”, something we can’t deny because being sick cost a lot of money. Others contend that it is net worth that truly measures wealth, but this is also relative to lifestyle. If there is one thing that could cover all the variables to measure wealth, it is time. So how does time measure wealth?

The Debt Pool

UTANG SERYE PART 2: Why is it important to acknowledge your debts?

Acknowledging your debts is the first step to getting rid of them. Much like any other problem, awareness is the beginning of every solution. Have you ever had a friend who needed help with a problem, but wouldn’t admit that he has one? You are very willing to help, but he doesn’t accept it because, in his mind, he is totally ok.

We don’t do anything about our debts because we don’t view them as a problem. It slowly and unknowingly piles up and its existence is only acknowledged when it’s a little too late. Once piled up, it is already difficult to catch up with payments. That’s when we realize that it has already become a Debt Pool.

The Worst Debt

UTANG SERYE Part 1: Is it the Filipino concept of “utang na loob”?

Right off the bat, it’s not. I will be discussing only the type of debt that could be paid by money. Since the Filipino concept of “utang na loob” isn’t and sometimes can’t be paid off for eternity, it’s out of the gate.

In basic terms, a debt is an amount of money a debtor owes a creditor. Over time, credit schemes have evolved into various types: credit cards and interest bearing loans to name a few. Lending money has proved to be a profitable venture that it has become a lucrative industry today. Like anything, it has pros and cons.

The Unemployed Employee

Before my employment with DSWD, I was a Job Order Instructor at a state university in our province. I am a CPA by profession and was a teacher by decision. I waited patiently for a regular position to open, but was unlucky during my stay at the university. My passion for educating young minds fuelled me in the first few years, but it slowly turned into frustration as the years passed.

It’s not actually just about money, but more about equality. The opportunities for career growth and development through trainings are mostly, if not all the time, exclusive for permanent employees. The insensitivity of colleagues during bonus season is particularly irritating.  To top it all, the difference in the way we were treated by the organization in general. There is clearly a hierarchy amongst the different status of employment.

Carefree In Dalupiri

CALAYAN SERIES Part 3: Seasickness is a small price to pay

Waking up on the second day, I had five options:

Calayan’s Center Island

CALAYAN SERIES Part 2: Mistakes and Discoveries of a Newbie

Calayan is a 3rd class municipality of the province of Cagayan. It is composed of 4 major islands: Calayan, Camiguin, Babuyan Claro and Dalupiri. The island of Calayan is in the middle of the other 3 making it the ideal location for Municipal Offices. These islands were able to maintain their natural beauty because of distance and difficulty of access. It is slowly gaining popularity because of social media and TV features. As of writing, an airport is being constructed to meet the higher demand for public transportation.

First thing I noticed as we approached the island of Calayan was a big water vessel docked on the harbor. I thought it was the ferry that serves as primary transportation for locals and tourists, but it looked military. As we were passing by, I saw a smaller vessel that was the real ferry. I later learned that the bigger one is a Navy ship used to transport heavy equipment that will be used to repair the old port. The beach is a mixtures of sand and broken corals. The water is surprisingly clear for a harbor.

Lola’s Unfortunate Fall

It was early in the morning when a thud from our dining room woke me up. I usually hear such noises because of our cats. Normally, I only get up to check what happened when I hear the sound of a glass breaking. There wasn’t, so I slept on. The next sound I heard was my mom saying that our Lola fell from the stairs. Adrenaline kicked in and I immediately went down to where Lola was, not minding the fact that I was only wearing underwear. I felt guilt as I could have come to her rescue earlier had I checked what happened when I heard the thud.

Seeing her lying on the cold floor, I didn’t know what to do. They wanted to move her and bring her to the hospital, but I advised otherwise because there might be a fracture and it might get worse. She was conscious when we found her. She was lying on her back and her body was straight. Her left forehead, eye and upper arm were swelling badly. She might have straightened her body while waiting for us because her posture doesn’t look like one who fell. The swelling also suggests that she might have been lying there for quite some time.

Braving The Seas

CALAYAN SERIES Part 1: 5 reasons why you should travel to Calayan by sea

My first attempt to visit Calayan Island was 5 years ago with 2 of my former students. One of them was going home after graduation. They invited me to come because I’ve been very vocal about my desire to visit the place. Unfortunately, the coast guards didn’t allow sea travel that time. I was persistent so we waited in Aparri for 5 days hoping for a better weather. When I finally quit and went home, they allowed passenger boats to travel the next day. Maybe, it just wasn’t my time.

Since then, I have been actively befriending locals of Calayan in the hopes that when I get to visit, I would know a handful of people who could show me around. In my search, I found a local of Calayan Island who teaches in the mainland, a local of Camiguin Island who sells honey in our office and a former student who got assigned to work in the Municipality.

The Best Moms

It’s that time of the year again when the sale of flowers, chocolates and the like is at an all-time high. While others spend on grand surprises for their moms, I’ll keep my expenses at a minimum by dedicating a blog instead. Although many will claim to have the best moms, only a handful will present proof. My objective is to let the world know how awesome these moms are and for you to agree that my claim is valid after reading this.

We have 3 moms in the family, my mom and my 2 sisters. Each has individual traits and stories that make them unique and worthy of applause. They are not perfect and might not even be ideal mothers for some, but their good qualities outweigh their shortcomings.

Prize Of Spontaneity

Being a huge fan of Survivor, I have always been amazed by the ingenuity of indigenous people. They live in isolation and yet they are able to provide for themselves and cope with different weather conditions. They usually are pitied by more civilized people thinking that they are underprivileged. What they fail to see is how independent and resilient this people are.

People often feel the need to help them. Some even go to the extent of raising funds to conduct outreach programs and give them basic supplies. I’m not for this kind of activities as it makes them aware of the things they lack. They learn to pity themselves in the process. The kids learn to want more than what their parents could provide. Don’t get me wrong, I’m not against helping them, but I have learned that helping shouldn’t be a one-time event. It should holistic and all year round. If we want to contribute, we should course it through organizations that specialize in community development.

Buying New Shoes

Nowadays, the shoe industry spends a lot of money in research and development because almost every human activity requires a different pair. Fashion was the only reason for shoe variety then, but now we also have different categories for function. Innovations focus on movement, comfort and style that justify the price you pay. Much like any other change, there are advantages and disadvantages.

If my memory serves, I have never had more than four pairs of footwear at any given time in my life. From when I was a kid until I reached college, I had three: slippers, formal shoes and casual shoes. Our parents raised us with the practice of buying new ones only when the old ones are no longer usable. My mother always bought us good brands in bigger sizes to give room for our feet to grow. Some of my shoes last up to 5 years. This practice has never been a problem for me even at a young age. I learned to take care of my belongings because I know that it would take time before we buy new ones.