http://www.lifehappens.org/women-need-to-start-planning-now/
Saturday, October 8, 2011
Retirement-Planning 101 for You (Women)
Hey, if you're enjoying your career, or just drudging along or are looking to switch, one thing is certain - someday, you would have to retire. Blessed are those who needn't feel like they're "working" a day in their lives because they may actually be able to continue doing what they're doing past the age of say 65. (That is if they're not corporate, employed by someone else and all the things that fall under "mandatory").
Retirement can be daunting but it also can represent the best years of your life.
http://www.lifehappens.org/women-need-to-start-planning-now/
http://www.lifehappens.org/women-need-to-start-planning-now/
Thursday, September 22, 2011
Saturday, September 17, 2011
25 Best Places to Retire
http://money.cnn.com/galleries/2011/real_estate/1109/gallery.best_places_retire.moneymag/index.html
Wednesday, August 31, 2011
Saturday, March 12, 2011
Monday, January 31, 2011
Sunday, January 23, 2011
7 Signs That Say - You Can Retire
The days of old, would have a man's (or a woman's) ultimate dream(s), (Read more on real estate acquisition at: http://rubybernardo.blogspot.com/2011/01/owning-your-house-towards-financial.html) as having a decent paying regular salary, or a easy-enough business to manage, owning a house and lot, taking occasional vacations on airmiles, racked up whilst being sent on job assignments, with enough money to send children off to college.
You will agree with me when I say - it's a totally different set-up now.
For millions of the so called baby boomers - people born between 1946 and 1964 - and though, I'm not even yet included in this "category" - (just a few more years to go) the dream has changed dramatically. And, all, if not most, point to one aspiration: retirement, and early - at that.
I myself have worked myself more psychologically, emotionally and mentally than physically to fulfilling exhaustion. And yet the big questions is: How do you know when it's time to leave the work force? And, more critically, are you really ready?
Here we look at seven signs that proposes it could be time to leave the "nine to five grind" for good:
1. You Have Built Up Enough In Your Nest Egg - In short - You Can Afford To.
Before anyone does anything that is life altering (even if it's not monetarily) one hugely vital question one asks, before applying for early retirement programs the company has, or to outright resign from the workforce, is, "Can I afford it?". Say, your house and car mortgages have been paid off, you have none or little current debts, (the sneaky seemingly little but big culprit would be credit card debts. (Read more on: http://rubybernardo.blogspot.com/2011/01/how-to-get-out-of-debt.html ) these are good starts. However, would what you have, be enough to tide you over comfortably through your golden years?
This is where you need to take stock of your finances. Some banks, financial institutions and consultants can help with putting money matters in perspective. Consideration such as your age (and at what age you'd like to retire), current savings and income (including expected rate of return for investments (such as in real estate, stocks, bonds, securities if any) pensions and Social Security benefits), current and foreseeable expenses, insurances taken out should a medical emergency occur and estimated inflation numbers are all taken into account.
After all that number crunching, pragmatic wisdom borne out of other people's experiences approximate that - retirees will need well over 50% of their current annual income to continue to enjoy the same "standard of living", as if they were still working.
2. You're "All geared up" for it.
We all know choosing to retire early or late is not only about the finances. Because people who for instance had just been reassigned to distant locations, are working with a new boss or peers they can't get along with, or are lately feeling bored with what they are doing and suddenly decide to retire psyched up by some of the factors mentioned above and more, can end up regretting the choice. That is if they haven't spent time assessing everything, adjusting to it and accepting it.
When and if you embark on your options on whether to retire or not. Know that the act of ending your career has many implications that go beyond money. Make sure you're ready to take that leap.
3. You're Sure You Really Can, and Want To.
Nothing is more unsettling than finding out, you don't have enough saved up - or if you do, it'll only last you a decade at most. Because of bills you or your partner have kept hidden (it happens) or stocks you were counting on to double or triple have toppled, or a sudden emergency arise including medical crises, a total roof renovation or re-plumbing of the whole house is in order, that has not been figured in when you were doing the numbers.
Also, are you so definite and certain of your choice that it would take nothing to convince you otherwise.
4. You Have Concrete Plans - More often, when we picture retirement, it's alone or with our significant other, clad in flower printed shirts sipping a cool one by the beach. But that's just one fun part of it. What of the other days when doing just that, would not only be expensive, it would also quickly lose its appeal. Except of course if you own a beach house. Remember - retirement isn't about all of a sudden not doing anything. Before you're all set, to quit the rat-race, you'll need to make plans to satisfy the void that your job filled.
Have you been finding yourself doing the same amount of "work" for your current job and a volunteer organization, a charitable cause you strongly believe in and the latter - no matter you're not getting paid feels more fulfilling? If so, this may be a signal that you're ready to leave the daily grind and take up more philanthropic endeavors.
Do you find yourself wondering about other "passions" you passed up on because of a more stable career? Like pottery, oil painting, wood carving voice lessons, writing, restoration antiques bought on rummage sales and more. Would you rather do one, or any combination of these right brain ventures more than you would your job?
5. You Can Actually Make Money Off of These "Passions" - Part, or Full Time.
Family, friends, acquaintances and even total strangers on E-bay and Craig's list have offered to purchase or pay you for your work or your services. Much to your happy discovery you rather enjoy producing, writing, doing these things and what's more - being compensated actually proves fun, exciting and doesn't feel like a job, work, daily grind, nine to five or any other words and phrases used to describe a regular daily job.
You hear of many people who upon retirement embark on a self-exploration of sorts and end up becoming millionaires. But hey - that's a different article altogether.
6. You Find (Even the thought of) Travel Pleasurable.
That is why there are conquerors and world explorers dating back to thousands of years. Many or all of us are curious to see what's "out there". That's why travel agencies abound and their brochures with all its different packages are enough to send us on daydreaming trips. Travel however is often restrained by a busy work schedule, raising a family, paying a mortgage, etc.
Maybe the kids are all off or nearing university graduation. All major liabilities are settled and that Serengeti or Safari desert, or the Great Wall adventure has become definite possibilities. If the advantages outweigh the disadvantages, it's time to get busy with travel agencies and travel search engines. You earned it. So why not?
7. You're All Set and Excited to Take It Easy - You find yourself revisiting thoughts of winding down, loosening up, letting go, calming things down, more often than you used to. You also uncover that being told what to do is not as comfortable as it used to be, and you want more freedom with your schedule and sleeping in and not feeling guilty about it are pulling at you harder than ever. Check your to-do-list. If it reads like someone who want to stop working such as: taking naps mid afternoon, growing your own herb garden or going to movies with your grandkids, if any, this could be the moment you have been preparing for and is quite ready to begin.
In The End. This option of leaving the workforce is not for, and even easy for everyone. For some, it may never be an alternative open to them. And yet, if you can very well afford it - emotionally, psychologically, mentally and financially, and your concerns have changed such that your heart and soul has slowly but steadily been tugging you towards RETIREMENT then, you're almost certainly ready.
You will agree with me when I say - it's a totally different set-up now.
For millions of the so called baby boomers - people born between 1946 and 1964 - and though, I'm not even yet included in this "category" - (just a few more years to go) the dream has changed dramatically. And, all, if not most, point to one aspiration: retirement, and early - at that.
I myself have worked myself more psychologically, emotionally and mentally than physically to fulfilling exhaustion. And yet the big questions is: How do you know when it's time to leave the work force? And, more critically, are you really ready?
Here we look at seven signs that proposes it could be time to leave the "nine to five grind" for good:
1. You Have Built Up Enough In Your Nest Egg - In short - You Can Afford To.
Before anyone does anything that is life altering (even if it's not monetarily) one hugely vital question one asks, before applying for early retirement programs the company has, or to outright resign from the workforce, is, "Can I afford it?". Say, your house and car mortgages have been paid off, you have none or little current debts, (the sneaky seemingly little but big culprit would be credit card debts. (Read more on: http://rubybernardo.blogspot.com/2011/01/how-to-get-out-of-debt.html ) these are good starts. However, would what you have, be enough to tide you over comfortably through your golden years?
This is where you need to take stock of your finances. Some banks, financial institutions and consultants can help with putting money matters in perspective. Consideration such as your age (and at what age you'd like to retire), current savings and income (including expected rate of return for investments (such as in real estate, stocks, bonds, securities if any) pensions and Social Security benefits), current and foreseeable expenses, insurances taken out should a medical emergency occur and estimated inflation numbers are all taken into account.
After all that number crunching, pragmatic wisdom borne out of other people's experiences approximate that - retirees will need well over 50% of their current annual income to continue to enjoy the same "standard of living", as if they were still working.
2. You're "All geared up" for it.
We all know choosing to retire early or late is not only about the finances. Because people who for instance had just been reassigned to distant locations, are working with a new boss or peers they can't get along with, or are lately feeling bored with what they are doing and suddenly decide to retire psyched up by some of the factors mentioned above and more, can end up regretting the choice. That is if they haven't spent time assessing everything, adjusting to it and accepting it.
When and if you embark on your options on whether to retire or not. Know that the act of ending your career has many implications that go beyond money. Make sure you're ready to take that leap.
3. You're Sure You Really Can, and Want To.
Nothing is more unsettling than finding out, you don't have enough saved up - or if you do, it'll only last you a decade at most. Because of bills you or your partner have kept hidden (it happens) or stocks you were counting on to double or triple have toppled, or a sudden emergency arise including medical crises, a total roof renovation or re-plumbing of the whole house is in order, that has not been figured in when you were doing the numbers.
Also, are you so definite and certain of your choice that it would take nothing to convince you otherwise.
4. You Have Concrete Plans - More often, when we picture retirement, it's alone or with our significant other, clad in flower printed shirts sipping a cool one by the beach. But that's just one fun part of it. What of the other days when doing just that, would not only be expensive, it would also quickly lose its appeal. Except of course if you own a beach house. Remember - retirement isn't about all of a sudden not doing anything. Before you're all set, to quit the rat-race, you'll need to make plans to satisfy the void that your job filled.
Have you been finding yourself doing the same amount of "work" for your current job and a volunteer organization, a charitable cause you strongly believe in and the latter - no matter you're not getting paid feels more fulfilling? If so, this may be a signal that you're ready to leave the daily grind and take up more philanthropic endeavors.
Do you find yourself wondering about other "passions" you passed up on because of a more stable career? Like pottery, oil painting, wood carving voice lessons, writing, restoration antiques bought on rummage sales and more. Would you rather do one, or any combination of these right brain ventures more than you would your job?
5. You Can Actually Make Money Off of These "Passions" - Part, or Full Time.
Family, friends, acquaintances and even total strangers on E-bay and Craig's list have offered to purchase or pay you for your work or your services. Much to your happy discovery you rather enjoy producing, writing, doing these things and what's more - being compensated actually proves fun, exciting and doesn't feel like a job, work, daily grind, nine to five or any other words and phrases used to describe a regular daily job.
You hear of many people who upon retirement embark on a self-exploration of sorts and end up becoming millionaires. But hey - that's a different article altogether.
6. You Find (Even the thought of) Travel Pleasurable.
That is why there are conquerors and world explorers dating back to thousands of years. Many or all of us are curious to see what's "out there". That's why travel agencies abound and their brochures with all its different packages are enough to send us on daydreaming trips. Travel however is often restrained by a busy work schedule, raising a family, paying a mortgage, etc.
Maybe the kids are all off or nearing university graduation. All major liabilities are settled and that Serengeti or Safari desert, or the Great Wall adventure has become definite possibilities. If the advantages outweigh the disadvantages, it's time to get busy with travel agencies and travel search engines. You earned it. So why not?
7. You're All Set and Excited to Take It Easy - You find yourself revisiting thoughts of winding down, loosening up, letting go, calming things down, more often than you used to. You also uncover that being told what to do is not as comfortable as it used to be, and you want more freedom with your schedule and sleeping in and not feeling guilty about it are pulling at you harder than ever. Check your to-do-list. If it reads like someone who want to stop working such as: taking naps mid afternoon, growing your own herb garden or going to movies with your grandkids, if any, this could be the moment you have been preparing for and is quite ready to begin.
In The End. This option of leaving the workforce is not for, and even easy for everyone. For some, it may never be an alternative open to them. And yet, if you can very well afford it - emotionally, psychologically, mentally and financially, and your concerns have changed such that your heart and soul has slowly but steadily been tugging you towards RETIREMENT then, you're almost certainly ready.
Friday, January 21, 2011
How You Can Get Out of Debt
If you're planning on retiring young, the first "order of the day" would be to see if you can. One of the indicators to know when and if you can, is if you don't owe so much - as to require that you work until past retirement age of 65. If you do, then you have to start trimming, if not eradicating these liabilities.
The feeling is so familiar: bills are piling up, you're so far behind. You do everything else to distract yourself by watching television, eating junk, because you can't bear to open them. And when you do - you realize what you felt in your gut all along - you only have enough money to make the minimum payments, and only for some.
In this day and age where recession has become a buzzword, you have plenty of company. The average family is now carrying between $8,000 and $9,000 in credit card debt alone. Or if you're a Filipino, you've maxed out your credit and is not making a dent on your principal. This generation owe more on our homes, cars, and educations than any previous generation has. There however is hope.
Here's a plan, to help you get rid of debt, or at the very least, make it manageable so when your postman comes knocking, it won't feel like a horror movie scene.
Ready, get set?
Let's get started.
1. Take stock.
Alone or with your mate. Sit down and make a list of whom you owe money to, how much you owe, and what rate of interest you're paying on each of those debts. You will know as your gut's already telling you it's the credit cards that are the main culprits. Specially those with the highest interest rates.
2. Get rid of all but one or get a better credit card deal.
It's not a crime to ask. Pick up the phone, call the toll-free number on the back of each card, and ask if there's anything they can do to lower your current rate. According to experience and a lot of studies this simple act of requesting, achieves success more than half the time. Then, try to consolidate your debt onto a single card with the lowest interest than what your current cards are charging you. There are a lot of credit cards offering to facilitate transfer of debts to their cards with no fees and at a fixed interest rate of your whole debt. This will lower your monthly payments.
3. The first two steps is a prelude to ordering you to: Track and slash your spending.For the next 30 days, keep a detailed record of where your money goes. This can be done with the help of computer programs like Excel or Quicken (a program specific for tallying expenses) or by simply keeping a tally in a journal. Every time you shop, save receipts for all the items you buy — even the "petty ones". Then, at the end of each day, record and sort your expenses — medicines, coffee, snacks, etc. It may come as a shock to you, when you total the columns at the end of the month, how the little things add up pretty quickly.
Categorizing, shows you - your weakest spending habits. Would you have guessed you spent $ 300 on snacks and coffee a month? Now that you're aware of it, you can make the decision to either cut back or pack snacks to-go from now on. The money you will save should you decide to, can be put into a savings account specifically earmarked for paying debts.
4. Know what utilities you can and can do without.
These are for the larger bills you pay monthly. Your land and cell phones, internet service, and utilities, as examples. Again, call the provider of each service and ask if there's any way to lower fees. For instance, some people don't use their land lines anymore and some providers have mobile landlines with free minutes both for calls to cell and land phones. Also you may want to consider bundling internet, cable, cell and land lines. Or you can ask your cable operator for a lower fee with specific channels you and members of your family actually watch.
5. Check and ask if you can get lower rates on your HOME and CAR loans. Explore whether you can lower your interest rate on your house and car mortgages. Check with other banks, ask around and your local newspaper for a listing of current mortgage rates. I've done this before with resounding success. If other banks are offering a percentage point less than the rate you're currently paying, consider refinancing. Likewise, compare the rate you're paying on your car loan with the rates available on used-car loans. If you can save a point or two, refinance that loan as well.
6. Pay Cash.Yes. You read it right. If you're off to go grocery shopping. Leave your credit cards at home, with a list on hand, get enough from the ATM machine for the purchase. Or go DEBIT. Where payments are taken out of your savings account automatically. Stay within that budget and fight the urge to go window shopping. Believe me, you will feel better after you've done this for a month. Also pay your bills as they come in rather than once a month. Why? Because paying bills as they arrive gives you a chance to see — in real time — what you're spending. Almost like paying cash. For instance your telephone bill is higher than usual because of you got carried away with calling long distance. Practically everyone will spend a little less on other things throughout the month to compensate.
It may not be easy, at first. You may start and stop, but, IF you have your eye on retiring, at least, even from your mountain of bills. It's never too late or too early to begin - as it is said about life altering changes for the better. Freedom, from debt. Liberation. It can be done.
Ruby S. Bernardo
The feeling is so familiar: bills are piling up, you're so far behind. You do everything else to distract yourself by watching television, eating junk, because you can't bear to open them. And when you do - you realize what you felt in your gut all along - you only have enough money to make the minimum payments, and only for some.
In this day and age where recession has become a buzzword, you have plenty of company. The average family is now carrying between $8,000 and $9,000 in credit card debt alone. Or if you're a Filipino, you've maxed out your credit and is not making a dent on your principal. This generation owe more on our homes, cars, and educations than any previous generation has. There however is hope.
Here's a plan, to help you get rid of debt, or at the very least, make it manageable so when your postman comes knocking, it won't feel like a horror movie scene.
Ready, get set?
Let's get started.
1. Take stock.
Alone or with your mate. Sit down and make a list of whom you owe money to, how much you owe, and what rate of interest you're paying on each of those debts. You will know as your gut's already telling you it's the credit cards that are the main culprits. Specially those with the highest interest rates.
2. Get rid of all but one or get a better credit card deal.
It's not a crime to ask. Pick up the phone, call the toll-free number on the back of each card, and ask if there's anything they can do to lower your current rate. According to experience and a lot of studies this simple act of requesting, achieves success more than half the time. Then, try to consolidate your debt onto a single card with the lowest interest than what your current cards are charging you. There are a lot of credit cards offering to facilitate transfer of debts to their cards with no fees and at a fixed interest rate of your whole debt. This will lower your monthly payments.
3. The first two steps is a prelude to ordering you to: Track and slash your spending.For the next 30 days, keep a detailed record of where your money goes. This can be done with the help of computer programs like Excel or Quicken (a program specific for tallying expenses) or by simply keeping a tally in a journal. Every time you shop, save receipts for all the items you buy — even the "petty ones". Then, at the end of each day, record and sort your expenses — medicines, coffee, snacks, etc. It may come as a shock to you, when you total the columns at the end of the month, how the little things add up pretty quickly.
Categorizing, shows you - your weakest spending habits. Would you have guessed you spent $ 300 on snacks and coffee a month? Now that you're aware of it, you can make the decision to either cut back or pack snacks to-go from now on. The money you will save should you decide to, can be put into a savings account specifically earmarked for paying debts.
4. Know what utilities you can and can do without.
These are for the larger bills you pay monthly. Your land and cell phones, internet service, and utilities, as examples. Again, call the provider of each service and ask if there's any way to lower fees. For instance, some people don't use their land lines anymore and some providers have mobile landlines with free minutes both for calls to cell and land phones. Also you may want to consider bundling internet, cable, cell and land lines. Or you can ask your cable operator for a lower fee with specific channels you and members of your family actually watch.
5. Check and ask if you can get lower rates on your HOME and CAR loans. Explore whether you can lower your interest rate on your house and car mortgages. Check with other banks, ask around and your local newspaper for a listing of current mortgage rates. I've done this before with resounding success. If other banks are offering a percentage point less than the rate you're currently paying, consider refinancing. Likewise, compare the rate you're paying on your car loan with the rates available on used-car loans. If you can save a point or two, refinance that loan as well.
6. Pay Cash.Yes. You read it right. If you're off to go grocery shopping. Leave your credit cards at home, with a list on hand, get enough from the ATM machine for the purchase. Or go DEBIT. Where payments are taken out of your savings account automatically. Stay within that budget and fight the urge to go window shopping. Believe me, you will feel better after you've done this for a month. Also pay your bills as they come in rather than once a month. Why? Because paying bills as they arrive gives you a chance to see — in real time — what you're spending. Almost like paying cash. For instance your telephone bill is higher than usual because of you got carried away with calling long distance. Practically everyone will spend a little less on other things throughout the month to compensate.
It may not be easy, at first. You may start and stop, but, IF you have your eye on retiring, at least, even from your mountain of bills. It's never too late or too early to begin - as it is said about life altering changes for the better. Freedom, from debt. Liberation. It can be done.
Ruby S. Bernardo
 |
| I have added my photo here, to show how grinning from ear to ear looks like - when you've finally liberated yourselves from the shackles of debt |
Thursday, January 20, 2011
OWNING YOUR HOUSE TOWARDS FINANCIAL FREEDOM
If you have ever been scared of being homeless, and even more scared of inquiring from who on earth to learn the ways in which to have your own piece of Paradise you can call your very own and worst of all – deathly afraid of going out there to begin the steps to purchasing it – then welcome to the club.
I am and was one of you. If you have conquered the fear – It’s incredible but tell me how you totally outgrew it – because that fear – to this day is real – even for me. But it’s what one does with the fear – that makes the dream – come true.
After you graduate from University – your plans consist of landing a good job to show your parents gratitude for sending you to school and to declare – that it was an investment worth taking.
The ones who got the further ahead in their careers were outwardly praised if not secretly adored. So everyone moves heaven and earth, so to speak to be at their very best. After the career, married life. And then what? Asians are known (this was mostly and predominantly the practices of old which of late – around 15 years back – has been changing at a rapid pace) to stay with their parents bringing in spouses and children into the “ancestral home” as they called it.
If there are more than 3 children, you can imagine how terribly crowded the house would become. No matter how we study psychology and pray that all the members of the extended family get along – there are bound to be disagreements.
Now, I do not advise that you go against tradition. We are only simply saying that – you have a choice. One that could propel your other siblings or the community around you to aspire for the same freedom.
The freedom to owning real estate, making it a home, doing business with it, leasing it out, developing it and so many myriad of combinations.
But, we shall speak here about home ownership, because if we delve deeper into all the others – it would take us as long as you want.
Picture this. Every time you feel sick, or threatened or beaten, or tired or lost – the first impulse is to say – I want to go home.
Well then, let’s make that home conceivable, accessible, and achievable. It is all put to motion with you wanting it first.
And no, this is not a seminar on selling or marketing to you any subdivision. I promise you that.
So we open the door to your dream house. We will in brief outline lay – out the steps towards accomplishment of this endeavor. But, note that in no way does this list need to be followed in exact order. One can do it in different ways – which in a short while will be understood better why.
1st step
Find out what your needs are at this point in your life. Do you need a small “bachelor’s pad” ? (For auditory recognition I will use familiar terms and not technical jargons – they are what the industry use – to this day), because you have yet to find your significant other and want or need to establish a career first? Or is it that you are to wed soon and expect to have a child in the year or so after the union? Or maybe you have children in primary school and feel it’s time they each learn to be independent, if only inside the homes, or you’ve decided to transfer permanently to a new city and want a ready to step in house and all you would like to bring with you is your toothbrush? Or perhaps - all your children have grown and are starting lives of their own and you desire to shift to a much friendlier house more suited to your age – no winding stairs, no dark alleys and corners to bump into? Whatever the season and the reason. Any time is a good time to – go home.
2nd Step
After you have assessed what your needs are -
And this takes courage and most of us – start with this step and find ourselves analyzed and paralyzed into doing nothing and decide to stay where we are. Give up the “giant” dream and buy the expensive watch, new car, new home theater entertainment system, travel perhaps instead, and forget about that elusive dream only made for those who have money flowing out of their ears.
But, nothing could be further untrue from that notion.
This is the one step that stops about 90 % of people in their tracks. I don’t blame you. Terror and dread will meet you head-on whenever you take the first step. But this one crucial stride - where you need to trust the one that gave it all. Check the Holy Bible and find endless stories about real estate. The promised land, Nazareth, Bethlehem, why even Noah’s ark was real estate.
And so? check your possible sources of financing. Yes my dear brothers and sisters – you don’t need to be maintaining a huge balance in the bank to pass this step.
If you are employed there are:
The Banks - so many banks are offering low equity (or downpayments and interest rates worldwide are at an all time low)
Your Parents - Arrange for an automatic debit payment from your salaries to their bank accounts for payments. Why, you may even get lower or no interest rates, should you be luck to go through this route.
Housing Plans through your employment. - If you've been with the company for longer than 5 years and is a regular employee and the company offers housing and car loan packages, I'd go for the brand spanking new house first before the car.
For Filipinos:
PAG – IBIG otherwise known as Home Devt. Mutual Fund. – You only need to have been employed and paying 2 years worth of contribution and you can borrow up to 3 million all depending on your age, your last contribution and your assessed capacity to pay. If you have not had 2 years – you can pay the equivalent of 2 years contribution one time and avail of the same home loan. Interest rates are as low as 6% per annum and the payment term as long as 30 years.
GSIS – for government employees. GSIS Subd. is an example of those homeowners.
SSS – Social Security System
Financial institutions – most specifically the banks. Bank interest rates are as low as 7% for a 3 year loan and up to 11 % for a 15 year loan, even longer depending on your age and that of your spouse or co-maker as they call it.
If you are self-employed – all of the above except GSIS can be your sources of financing. All the contact numbers of these institutions are listed. Call them up and ask. Like it’s said. Ask and it shall be given to you. Knock and it shall be opened.
All these will need proof of income from your end. Don’t let this requirement scare you. In lay men’s term – they are only desiring to establish your willingness and capacity to pay. In the end, you wouldn’t want to be getting a house that is much much more than you can actually work to pay for.
Other requirements include but are of course not limited to:
- Resume/ Bio-Data/ Curriculum Vitae
- Income tax returns
- Proof of billing for:
a. Electricity
b. Telephone – land, mobile, internet
c. Cable TV
d. Water
e. Other subscriptions
***To establish your residence, regularity in payment longevity
- Filled up application forms
- List of assets – chattel (vehicles), electrical appliances, jewelry, other real estate that may already have been bequeathed to you by your parents or you may have bought in the past – farmland, beachfront, commercial, industrial etc. If none, worry not – I started exactly like that – believe it – or not.
- Character references. This is quite crucial as the person you will list down there will be the person they will call to vouch for you. The background, reputation and track record of this person weighs heavily as well.
Parents, Siblings, Relatives who are willing to lend – backed by all the necessary documents to ensure security, peace of mind, safety, and trust between parties.
3rd STEP -
I don’t know about you – but when I travel to any place, my first impulse is to check out the supermarket. That’s where I will know if the place is health conscious or modern or hip or trendy. There are so much to be learned there – but that is a completely different topic altogether. Another thing I yearn to see are houses. Maybe it has everything to do with my being exposed to building and moving from one house to another. An empty piece of land turned into a beautiful haven of comfort and delight.
Go out and search for your piece of Paradise. And yes – no matter it changes as you grow older, wiser and further in your career – you can purchase repeatedly. There is no law against buying plenty. But there is a moral or business law as to how you will put it to use.
Do you want to be right smack downtown? Or near but slightly away from all the hustle and bustle. A condo unit (which is really not advisable yet in Davao City) or a townhouse, duplex, a single detached home, or just a vacant lot with which you build your dream home in? This is the time to be creative. To pray and ask the Lord for guidance. To allow your yearnings and desires and visions of coming home a reality.
4th step
Find a mentor.
5th step
Assess the advantages over disadvantages to having your own home. This is to illustrate how much you put in leasing a home and seeing nothing of it in value appreciation.
Let’s say you lease a home for P 4,000 a month – that’s P 48,000 a year and P 480,000 in 10 years. Add repairs and renovations you put in – perhaps new cabinetry, a better lavatory, a nicer sink, tiling on the kitchen floor and laundry area – say P 15,000 a year or P 150,000 in 10 years for a total of P 630,000.00 in 10 years. And in 10 years what have you got to show for all that money coming out of your pocket from sheer hard work. Nothing. Now I don’t mean to force anyone to stop renting and just recklessly purchase a house or a property – this is merely to illustrate how P 630,000 could have already bought you your very own.
Leasing has its advantages. Most property owners are good enough to do all sorts of repairs for you – in the end, it’s their property they are maintaining – not yours – so the benefit would ultimately be reaped by them, not you.
Another benefit would be – that you can walk away whenever you choose - to go where? It would be alright if you were a missionary but even missionaries have to settle down sometime soon in their lives.
Now let’s talk about advantages of ownership.
- Privacy
- Independence
- Security
- A venue to express your creativity
- A habitat to grow your family
- A place to begin memories in
- A source of pride, humility and integrity for all the hard work that you’ve bestowed throughout the years
- A legacy that your children will follow
- Sense of well-being
- Sense of community
- Financial leverage
- Financial track record
- Financial freedom
When all is said and done, you and your spouse or the Lord forbid you alone can sell the place and move to a smaller property and invest the rest of the proceeds in an interest yielding fixed rate investment to finance your golden years.
And then there are others.
Now before I start to wind down this talk, let me just mention SUB PRIME LENDING in the US. Why in 2007, families in America started losing their homes which last year totaled to 3 million homeless and growing. For the supposed greatest economy in the world – this was unprecedented, almost impossible and mind-boggling. For the purpose of illustration let us talk about the average American borrower. Mr. Smith earns $ 3k dollars a month has 1 daughter and a wife who stays home to care for the child. He goes to a bank and after years of perhaps just renting or leasing, he decides he wants to buy a house. A quick check of his credit history will show – he has an outstanding and still accruing credit card debt to the tune of $ 14k because America has been for decades and decades paid mostly and almost singularly – with plastic. Aside from that, his medical insurance doesn’t cover his wife and kids and only offers him limited protection. Now the bank before 2007 was awash with ready sources of financing, when the interest rates on borrowing to purchase houses where at an all-time low - dipping to negatives 1-2-3% even. Yes there are rates as such that, it came to the point when the appraised value of real property was enough for the banks to consider mortgages using purportedly high-value homes as collateral. Ignoring then red flag signals and just looking at Mr. Smith’s monthly pay and the market value at that time of the property the bank lends him at 1% per annum. Long story short – he defaults on payment and after a year is homeless. What just happened here? You might ask – why would we buy a house here in the Philippines and end up like Mr. Smith. A quick check of the Philippines banking system, specifically home mortgages will show – no matter the corruption that has become systemic in our governments – majority if not all of the banks - never succumb to sub-prime lending. Now you might say – why didn’t Mr. Smith just sell his property to avoid foreclosure collect on the proceeds of the sale, pay the bank and maybe have enough left to enjoy? Because the house he bought which was originally being sold at $ 200k dollars was the collateral he used in which the bank gave him twice that amount in double or even triple mortgages – he now owes the bank $600k dollars for a $200k dollar home. The bank who in turn sold the loan to AIG or other big financial institutions for a profit finds itself saddled with so many of the same stories that even if it tries to sell the property at half the cost of financing it – no one can afford it, or everyone who can afford it has 2,999,000 houses with which to choose from. Now you know what happened to one of the biggest financial institutions of the world AIG? It went bankrupt early this year.
Now this brothers and sisters has not happened, is not happening and yes will not happen to us. Our banks are fundamentally sound and those who started not to be so, were summarily closed by the BSP – you have heard of the many banks in the 90s and early 2000 that were closed due to accepting cash placements and promising interest rates so high it was only a matter of time that they fold up.
The point of that US illustration is to contrast it with the Philippines. Our properties here are undervalued, the banks lend you only and strictly up to 70% of its value. It checks your credit record like you have already defaulted and forecloses and sells at a profit. When you bought property 10-15 years back – I can tell you with certainty – it’s value or price has already doubles, tripled or even quadrupled. When and if you purchase property today (and the right kind of property might I add) I will also tell you with even more certainty that it’s value will double in the next 10-15 years speaking conservatively. Can you really declare the same results for money sunk and paid out to leasing or even money market, time deposit placements, vehicles, jewelries and others? You know the answer to this – I am sure. So prepare to invest in one if not still the only investment that will give you financial freedom – more than anything in the material world.
Everything about it can be completely exciting and fascinating.
What follows next can be as exhilarating, amazing, stimulating, totally consuming, as it is horrendously frightening, exhausting (mind, body, heart and soul) and almost depleting expedition – but totally fulfilling venture into what once was the great unknown.
Where one is stripped off all preconceptions – replaced by a life altering mindset – the state of mind that – one should be open to the incessant and relentless tides of change – for what’s good for one’s self. And just because it’s a huge shoe to walk into doesn’t mean it cannot be done.
One’s existence is a never-ending process of learning. Diligence can get you somewhere but only courage will get you the prize.
That knowledge acquired can equip you with the right tools to ignite the flames, but only the capacity to be steadfast and relentless can secure realization.
And that I came out of it humbled but wiser, overwhelmed but triumphant, battle scarred but ready to do what I love and love what I do - thinner but robust in enthusiasm and fervor – makes the journey constantly spent on edge worth it all.
Because at the heart of every individual is the burning passion to go home – to an eternal life someday – but whilst here on earth - to every single day reach their highest potential.
And how? Having your own house.
Go Easy On Yourself
Not forgetting doesn't necessarily mean holding a grudge. To me at least, it simply means we have memory banks of things that have happened to us. Mostly of incidents that have impacted our lives whether "bad" or "good" that are stored witting or unwittingly in our memories, which become parts of us.
We can either choose to learn from, and better ourselves with or embitter us (those that are disconcerting) and inflate our egos or make us more humble and open to more opportunities (with the ones that are "good").
I say (mostly to myself) forgive and let go of the pain, and if the memory of the "moment" or incident comes back, treat it as any other occurrence. Labeling it neither "good", nor "bad". Just a "teacher" disguised as an experience.
And yes, amen to empathy for anyone and everyone asking for forgiveness. In the end, we are the hardest on ourselves. Who better to be gentlest with our fragile hearts than us:-
We can either choose to learn from, and better ourselves with or embitter us (those that are disconcerting) and inflate our egos or make us more humble and open to more opportunities (with the ones that are "good").
I say (mostly to myself) forgive and let go of the pain, and if the memory of the "moment" or incident comes back, treat it as any other occurrence. Labeling it neither "good", nor "bad". Just a "teacher" disguised as an experience.
And yes, amen to empathy for anyone and everyone asking for forgiveness. In the end, we are the hardest on ourselves. Who better to be gentlest with our fragile hearts than us:-
There Really Is No Other Time But Now
If I Still Wrote
The footsteps have faded into the crowd and throngs
The voices faint, I don’t hear them anymore
But…
If I still wrote love, on the pangs of waiting…
You’d speak again..
Sleep, wakefulness, silence - no matter – will be deafeningly alive
Of a hand held, of songs raw to this heart.
That was then. I am here – not where the weak in all of us relent…
To substitutes and void filling.
To settling and tolerating.
Here, where alone and sad, have ceased to mean the same.
Where fields of bloom are ablazed - with now.
Holding my breath no more, for gains and dreams of tomorrow.
Here, where life is as it is and should be.
If I still write love songs –
It would be about comfort – of reveling in the majestic moment of Being
Who I need to be, and who - I’m born to be.
If I still wrote…
Ruby S. Bernardo
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