Yellow Salad

Ingredients:

Lettuce

Papaya

Pineapple chunks

Crouton

Instruction:

Mix all ingredients in a bowl or a plate and serve.

~till then

Insurance as seen by Filipinos

Many Filipinos are philosophers when they talk about income replacement.

A driver may say, "Insurance? Meron na ako nun sa TODA namin. Ok na yun. Gastusin pa yan e."

A new college graduate may say. "Kailangan ba nun?"

An employee may say, "Ahente ka? Takot ako sa mga ahente e. Tsaka meron na kami niyan sa kumpanya bakit ko kailangan ng isa pa? Gastos lang yan."

It really makes me sad every time I hear those comments. Common Filipinos are really illiterate on wealth building. Sorry to say but it's true.

Insurance is a thing that you buy when you don't need it. It is not a right but rather a privilege.

I'll tell you one story. Sir Joen dela Penas, my mentor, once courted a friend to buy insurance. Almost everyday he called his friend reminding him that insurance is a great investment facility. The friend refused every time. Then suddenly the friend was hospitalized because of stroke. Luckily he survived. Upon release from the hospital he called sir Joen begging him for insurance coverage. Did sir Joen give him? Actually, NO! Because his friend is no longer insurable.

If you have one study your policy again. Do you understand it fully? Do you know how much you are covered?

Sometimes people are arrogant. (Sorry for emotional outbursts.) If you talk to them about insurance they will shrug you off and say "I have already." But when you ask them how much coverage they have, they will tell you that they don't know because it is a company benefit. They don't fully understand the terms and conditions of the policy. Others will tell, "I have 100,000 insurance coverage. I'm fine with that."

Let us analyze your income replacement. When you die you will be replaced by 100,000pesos. Teach your family to invest and put the money on an investment facility earning 10 percent each year. 10 percent of 100,000 is 10,000pesos every year income replacement. Divide it by 12 (we have 12 months in a year) then your family will receive 833.33pesos every month. This illustration is true provided that your family knows how to invest and where to invest. What if they don't? 100,000 pesos will be soon a history.

The right way

Here is how we compute income replacement or insurance coverage.

Annual income times 10.

Example, you are earning 10,000pesos per month. Your annual income is 120,000pesos. Multiply it by 10 to get the insurance coverage you need. What is the logic? The answer in the example is 1.2M. Your family should learn how to invest it in a 10 percent facility that will allow the principal to earn 120,000pesos per year. divide it by 12 and get 10,000pesos income replacement.

NOTE: 1Million coverage is leInsurance as seen by Filipinos tha 10,000 pesos per year. Just to give you an idea on the price. :)

~till then

Cream Dory in Butter and Lemon Juice

This recipe was just an experiment but it was perfect. Paul requested another round after eating the first.

Ingredients:

Cream Dory

Butter

Lemon

Salt

Pepper

Instructions:

Sprinkle cream dory with salt, pepper and lemon juice.

In a pan, melt a chunk of butter.

Put cream dory in the pan.

Cook the dory 1 minute on both sides.

Serve with lemon slices.

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Caught in a Rat Race

What is a rat race?

According to wikipedia rat race used for an endless, self-defeating or pointless pursuit. In programming, it is like an infinite loop. To illustrate it further it is waking up in the morning going to work then pay the bills.

Here are 5 simple ways on how to get out of this rat race.

Decide

Your success in getting out of the rat race depends on how strong you have decided to get out of it. Everything begins with a decision. Even the simplest thing like waking up in the morning is a decision. As early as this stage you have to decide. Don’t procrastinate. Decide now!

Make a financial plan

If you don’t know how to make a financial plan then sit with a financial planner to guide you through your way.

Set-up a budget and live within that budget

Save at least 20% of your income.

Invest money in higher earning facilities.

Forsee unpredictable events

Implement the plan

Planning is easy but implementing the plan is not. It always entails extra effort and extra patience to implement the plan. Implementing a plan is like planting a tree. You cannot see the result right there and then. It takes time to grow and bear fruit. Patience is always a virtue.

Review the plan regularly

Your plan today may not suit your future goals. Be pro-active in evaluating your plan. Then do the necessary measures to align the plan to achieve what you want. Prevention is always better than cure.

Be open to changes

The only permanent thing here on earth is change. See changes as opportunities. Always have a positive outlook on changes.

Link on Images:

http://www.clipartguide.com/_named_clipart_images/0511-0809-2414-2252_Cartoon_Man_Drinking_Coffee_Trying_to_Wake_Up_clipart_image.jpg

http://www.clipartguide.com/_named_clipart_images/0511-0907-1220-3960_Cartoon_of_a_Guy_Sleeping_at_Work_clipart_image.jpg

http://images.clipartof.com/small/5722-Man-With-Bills-And-Past-Due-Notices-Clipart-Illustration.jpg

http://www.clipartguide.com/_named_clipart_images/0511-0907-1220-3971_Cartoon_of_a_Man_Sleep_Walking_clipart_image.jpg

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Time and Money Relationship

Many are asking me, Millette how can I become a millionaire? At my rate of saving right now, when can I become a millionaire?

I always say, let’s put it in Math. Hey, everybody can do math. If you can’t then you will not become a millionaire.

I prepared a simple presentation on how we can relate money with time.

I can’t do X-Y analysis here cause readers will flood me with those “what-is-she-talking-about” comments.

Here it is:

In the presentation above, I assumed that you want to retire by the age of 60 (But you can retire earlier if you wish to.) and that you are saving in a facility which earns 12% per annum.

If you are 25 years old right now and wants to have 10Million by the age of 60, you should be saving 24000 pesos per year or 2000 pesos per month or 67 pesos per day.

If you are 55 years old right now and doesn’t have savings at all then FREAK OUT! Cause you nees to save and invest 4500 pesos every day or 134000 pesos every month or 1.6 Million every year.

You see. If you are going to procrastinate saving and investing then you’ll end up saving more per month. So why procrastinate? Save now!

~till then