Tuesday, October 22, 2013

Benefits of SSS Member

According to Wikipedia, Social Security System or SSS is a social insurance program for workers in the Philippines. Every month a portion of employee's salary is taken up for SSS (it's a mandatory). I admit I know that there's a deduction but I didn't pay attention to what SSS is for.

Because I'm working overseas, I cannot pay continuous payment. I found it not convenient because I need to pay extra remittance fee every month, though there are some remittance center here in Singapore that offers a promo bundles like Metrobank Remittance Center you still need to bring your past remittance receipts in order to have discountable remittance fee. But keep on neglecting SSS and finding ways why I shouldn't pay my monthly contribution is not healthy, actually there's many options that OFW's can do. We can pay SSS contributions quarterly (3 months payment), semi-annual (6 months payment), or annual (1 year) to prevent monthly service charges.

If you're wondering how much should be your monthly cContribution, please take a look at the table below.

1 4,750 - 5,249.99 5,000 520
2 5,250 - 5,749.99 5,500 572
3 5,750 - 6,249.99 6,000 624
4 6,750 - 7,249.99 6,500 676
5 7,250 - 7,749.99 7,000 728
6 7,750 - 8,249.99 7,500 780
7 8,250 - 8,749.99 8,000 832
8 8,750 - 8,749.99 8,500 884
9 9,250 - 9,249.99 9,000 936
10 9,750 - 9,749.99 9,500 988
11 10,250 - 10,249.99 10,000 1,040
12 10,750 - 10,749.99 10,500 1,092
13 11,250 - 11,249.99 11,000 1,144
14 11,750 - 11,749.99 11,500 1,196
15 11,750 - 12,249.99 12,000 1,248
16 12,250 - 12,749.99 12,500 1,300
17 12,750 - 13,749.99 13,000 1,352
18 13,250 - 13,749.99 13,500 1,404
19 13,750 - 14,249.99 14,000 1,456
20 14,250 -14,749.99 14,500 1,508
21 14,750 - OVER 15,000 1,560

I thought I can only benefit for SSS when I get old but there's other aspect that we can benefit from. So here's a short summary of the SSS benefits that we should be aware of.

Social Security System Benefits

A member who is 60 years old or 65 years old (mandatory) and has paid atleast 120 months or 10 years can claim the benefit of the SSS retirement.

The retiree who has paid atleast 120 months will receive monthly pension or a lifetime cash benefit  while lump sum amount for a retiree that has not paid the required 120 monthly contributions.

A member who suffers partial or total disability with at least one monthly contribution paid to the SSS prior to the semester of contingency is qualified.

The monthly pension is a cash benefit paid to a disabled member who has paid at least 36 monthly contributions while the lump sum amount is given to those who have not paid the required 36 monthly contributions.

The sickness benefit is a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

A member can be granted sickness benefit for a maximum of 120 days in one calendar year. Any unused portion of the allowable 120 days sickness benefit cannot be carried forward and added to the total number of allowed compensable days for the following year.

The sickness benefit shall not be paid for more than 240 days on account of the same illness. If the sickness or injury still persists after 240 days, his claim will be considered a disability claim.

The maternity benefit is a daily cash allowance granted to a female member who was unable to work due to childbirth or miscarriage paid at least three monthly contributions within the 12-month period immediately preceding the semester of her childbirth or miscarriage.

Death and Funeral
Death benefit is cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member.

A funeral grant of P20,000 (effective September 1, 2000) is given to whoever pays the burial expenses of the deceased member or pensioner.

You can have complete information at SSS website.

The monthly contribution is achievable. Let us budget and give time to government program like SSS. We should take advantage of understanding what are the basic benefits whether we are self-employed, non-working spouse, overseas contract worker, etc. at the end of the day it's for our benefit.

Please note that the minimum contribution is only P104 per month while the maximum contribution is P1,560 per month. One good thing if you are employed in the Philippines, employers pay 70.7% and employees pay 33.3% of the monthly contribution.

Wednesday, October 16, 2013

Use Separate Bank Accounts For Savings

Previously, I only have one savings account (my salary, my savings and my expenses). I used to put all my money in one bank and would withdraw from it from time to time when I needed something to pay. I thought that it would be easy and convenient to have only one account. Whenever, I have some extra money in my savings account my mind keeps on thinking what else to do, what things to buy, etc.  I know savings is important but I'm not helping myself to save.

One year passed, having one savings account didn't benefit me. I can't save more money and it's hard for me to limit my spending habit.

As a solution, I decide to save money in a different savings account with purpose.

Months passed and I am so happy to see little by little my money piles up. By having a separate bank account I can clearly see how much I already have (thanks for Internet banking) and how much longer I need to wait to reached my goal.

When you receive your salary, pay yourself first add it to your savings account. Don't combine your expenses into one savings account because you’ll be tempted to spend the money instead of saving it. Plus, mixing in savings with expenses is confusing.

There's more options to save, you can set up automatic deposits or transfers into an account to accomplish your goals faster. By doing this, you are assured that part of you're income goes to you're savings. I'm using automatic deposits to pay my insurance monthly.

If you still have one savings account, I encourage you to open a separate bank account to reach your financial goals. It beats the worrying and constant calculations in mind. Don't estimate, do your budget and savings must be your priority. If it's too difficult for you to save more, take baby steps. The important thing is you are developing the habit of saving and there's many ways to do to help you achieve your goals.

Tuesday, October 15, 2013

11 Ways To Be Unremarkably Average

Here’s a little inspiration to change our mindset.
You can check out the better image of the comic at ZenPencils.

Sunday, October 13, 2013

Ano ba ang Asset and Liability?

Earlier today, me and EJ had a conversation about money. I asked him question, what is asset and liability. He answered me, "Ang asset ay mga bagay na pwede mong pagkakitaan at liabilities yung pwede mga bagay na pwede kang magka-utang".
Pretty simple, right?

According to Robert Kiyosaki, "An asset is anything that puts money into your pocket whether you work or not. A liability is anything that takes money out of your pocket".

You have job, that’s your asset. Anumang bagay na pinagkakakitaan mo ay iyong asset dahil nagbibigay ito ng income and profit. Anything you own that has value if you used it to generates additional income is your asset.

A house loan is a liability. Liabilities are debt, mortgage is a type of debt. If a house is not paid off still it's a liability. Pero kapag natapos mo ng bayaran ang utang mo sa bahay pwede mo na itong maging assets.

Naaalala ko tuloy yung Kurot Principle

Sa kwento pantay ang puhunan ni Pinoy at Chinoy na 100,000 pero si Pinoy napabayaan niyang palaguiin ito, kumuha siya ng mga bagay na walang maibabalik na additional income sa kanya samantalang si Chinoy ay nagpatuloy sa pagkuha ng mga assets.

Mahalagang marunong tayo sa decision making kapag kukuha na tayo ng mga bagay. Is it needs or wants? Isa ba itong asset o liability? Kung sakaling liability mo ito paano mo siya magiging assets?

Paano kung naging ganito ang story ni Pinoy.

Sa unang buwan, si Pinoy, kumita ng P10,000. Ano ang iniisip bilhin? Cellphone. 
Paano kung ginawa niyang puhunan ito for Cellphone loading business. Malakas pa rin naman ngayon ang mga loading business marami pa rin ang nag-loload sa mga tindahan.

After few months nung kumita si Pinoy ng 50,000 bumili siya ng home theater, DVD at LCD TV.
Paano kung ang binili niya ay mga Videoke machines na napaparentahan. Mahilig ang mga Pinoy sa kantahan, at hindi nawawala ang kantahan sa mga okasyon kaya pwede pa rin itong maging Videoke.

A few months later pa, si Pinoy kumita ng P150,000! Ang Pilipinong mayroong P150,000, ano ang balak bilhin? Second-hand na kotse o pang-downpayment sa bagong kotse. 
Paano kung nung bumili si Pinoy ng kotse ay ginawa niyang itong taxi? O pinarentahan din niya.

Hindi ba't mas magandang planuhin kung paanong ang mga liabilities ay pwede nating maging assets. Iwasan ang sobrang pagkuha ng mga bagay na walang maibabalik sa ating income or benefits. 

Hanggang sa muli, ciao!

Thursday, October 10, 2013

Believe In Yourself

My father was a taxi driver, he wasn't able to go to college hence he always advice us to study and finish our studies. He always used the word, "Igagapang ko kayo 'nak, makatapos lang kayo sa pag-aaral". 

Whenever we play Karaoke he will request his favorite song "Doon Lang" by Nonoy Zuniga. I can still remember how he sang the song with full of his emotions.

"Kung natapos ko ang aking pag-aaral", "If I finished my studies"...

As an eldest, I want to be an inspiration for my siblings. I want to finish college so I can be an example for them. I believe its possible despite of family financial problems. We motivate each other side. I'm confident, I have a complete and supporting family that gives me full inspiration. 

Year 2005, my father passed away. 

I don't know where will I begin. There's fear inside how to start. Should I continue my studies or should I stop and start working to help my family. At young age, I don't want to work the only thing in my mind is "to study and finish it". Like a good daughter, I want to fulfill my parents dream. I study well, I wish to get a good job and make an earning, enough to make a living and to support my family so that they may lead a good and comfortable life.

On my 16th birthday, I remember I wrote a wish letter. 
God, help me to keep strong. I heard that I should stop going to school so I can give way to my siblings but my desire is to continue. Give us wisdom, so we can overcome all these. I only have one wish on my birthday. I want to finish my studies.
Eight years have passed, me and my second sister are now working. We are both graduate from state university. Currently, we have two siblings still studying. My mom is going to marry her highschool sweetheart soon. I just love to see all them happy and growing. 

All the trials and errors we've been through one thing for sure we trust and we believe. They believe in me and I believe in myself. I believe in them and I trust them.

I have lots of dreams and hope for the future and I believe in God's right time I'll reap the fruits of my labor. I just want to share this personal experience of mine before I go to sleep to "believe in yourself". Whatever circumstances you are in right now. When you start believing you're mind will start to develop the "how-to-do-it" action. Always remember, if there's a will, there's a way. 

"Trust in the LORD with all your heart and lean not on your own understanding", Proverbs 3:5

"Very truly I tell you, whoever believes in me will do the works I have been doing, and they will do even greater things than these, because I am going to the Father. And I will do whatever you ask in my name, so that the Father may be glorified in the Son. You may ask me for anything in my name, and I will do it." John 14:12-14

Tuesday, October 8, 2013

Truly Rich

In 2011, I started working as an Overseas Filipino Worker. Working abroad is part of my childhood dream. I want to change our family tree and I thought being OFW will makes me rich.

Everyone has their own definition of being rich. According to most dictionaries, rich is defined as having abundantly supplied resources, means or funds.

After working for almost three years as an OFW, I don't feel rich at all.

I don't feel secured. I don't have enough savings. I was living paycheck to paycheck.

Until one afternoon while browsing my pictures on Facebook, I summarized what happens in the past years and I feel glad. I remember time full of blessings and happiness, that moment makes me feel that I'm rich. :)

I'm thankful that I started moving forward but what I left behind is the habit of saving for long term. Honestly, I save most of my income for short-term goals, material possessions and vacation expense only. I think that I'm too young to save and think about retirement.

I admit as an OFW I live like a one day millionaire everytime I went back home.

Expenses > Income = Bad
Expenses < Income = Good

The question "May ipon ka na ba?" is a regular start of conversation whenever we talked about work relating to money. Most of OFW I know don't have "enough savings" and the truth is some of them don't have "any savings" at all. So, I started asking myself, what's the problem being an OFW and how to become truly rich.

Rich are people with good money habits.
Rich are people doing what they love to do.
Rich are people that has a big heart to give.

Finally, I found out one of the answer by understanding how to become truly rich. Secure your future and protect you and your family from unexpected events. This leads me the dedication to save for the future.

I read blogs about finance and money. I watched videos of Pesos and Sense, Pisobilities. I joined some groups on Facebook that talks about investments. I meet new friends in Financial Peace Univeristy home-study. I started this blog to share and I learned many things that I'm not aware before.

"The rich rule over the poor, and the borrower is servant to the lender." Proverbs 22:7

Then, I become curious about mutual funds and UITF, stock investment, etc. I’m still learning about all of this, but the important thing is that I got started and soon enough I can change our family tree.

Maybe it’s not so important to become rich but truly rich. It’s more important to feel happy, content and secured. Live simply and don't give up achieving your goals.

Hopefully you've learned something useful.

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We're Glaiz and Jey
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Work Save Invest is our
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