Saving Tips Pinoy Style

[mxherr5]

@nicola, what happens if you have a family counting
on you and something happens to you?

Your assets in the bank are technically untouchable
until your heirs cough up the estate tax. Do they
have liquid cash or would they have to sell off
some of their assets at a discount to raise enough
cash?

You need to understand what insurance is.
Insurance is protection against an UNEXPECTED
event that would be FINANCIALLY CATASTROPHIC
to you or your beneficiaries.

And the premium is usually a FRACTION of the
benefit otherwise it wouldn't make sense to insure
anything.

Example: for someone in his/her 20s, to get a 1M
life insurance, he/she just has to pay around 2k
a year.

Don't confuse insurance with insurance sold as an investment.

But even then, like what ikaela said those were pre-need
companies. Know what they share in common?

No matter what happens, each and everyone of their
plan holders will claim the benefit.

Insurance on the other hand is only claimed when you
die unexpectedly, get a serious illness basically only
a few policy holder will be claiming the insurance benefit.
(Or you reach the ripe old age of 99 or whatever, at which
point you would have paid so much that the insurance company
can afford to give you the benefit as maturity benefit).

@ikaela,
you are correct in principle, but I'd just like to point out that
there is one insurance company that's in trouble.

Check it out: http://www.philstar.com/business/2013/04/25/934498/natl-life-mulls-two-rehab-proposals

http://www.insurance.gov.ph/_@dmin/upload/reports/PAMDPR010.pdf

Its been in and out of life support throughout the past few years.

I know I read somewhere that the reason why it went down was
because it offered too high of an interest in the past and it couldn't keep
up.

Here they are in 2006, trying to come up with funds I guess

http://www.pinoymoneytalk.com/national-life-insurance-companys-term-plus-products-8-and-10-pa/

Notice that the insurance benefit also seems like an afterthought 

[nicola_juliano]

Yes, korek ka sis @ikaela. One is CAP. The other one, is Platinum plans, yung tatlo di ko na matandaan. I just remembered these two kasi naabutan ko ito at medyo naaalala ko when I was a child. Nakakalungkot makita na may dad was fooled by these insurances until now. I see it everyday lalo na at nagretire na sya two years ago. He keeps coming back sa CAP and also Platinum Plans pero ilang taon na ang nagdaan, NGA NGA pa din. Ayaw kong umabot sa puntong nga nga din ako in the future. That is why I should think very well if I will apply for my own insurance or not. Pero right now, wala akong balak.

Thanks @mxherr5. You somehow enlighten me pero takot pa din ako kumuha ng isa.   

[mxherr5]

^

Once you have people depending on you it
behooves you to insure yourself.

You can get a yearly renewable term insurance.

Again its like 2-3k for 1M per year.

In the unlikely event something happens, you
just loose out on how many remaining months
left in the year you paid for.

You don't have to spend your life savings to
get insured.

[empire_maker16]

Savings Tips:
- make a felixible budget plan and stick to it.
- mas mahal ang red meat so stick with more veggies na meal like chopsuey or pakbet (healthy pa!)
- cancel any membership card sa gym, mas relax pa mag exercise sa bahay at hindi pa need ng magagandang workout outfit.
- Salary (minus) Savings (equal) Expense ( in short unahin muna ang savings bago gumastos)
- drink a lot of water instead of coffee or tea nakakaganda pa skin
- if you're a coffee lover (bumili ka na lang kesa mag starbucks ka pa)
- avoid browsing instagram shops too much (mahirap humindi sa mga shops na yan madami kasi mura until one day compute mo sobrang laki na gastos)
- have a stick budget sa Prepaid Load mo (madami naman unlimited programs na good for 1 month)
- be healthy para iwas gastos sa gamot
- wag pupunta sa mall na my dalang credit card (sobrang nakaka hikayat to)
- magdala ng cash pag magshopping at magstick sa budget
- dont be quantity over quality... being frugal is not being cheap (you can buy things with higher price as long as very worth it)
- have fun pa din and dont deprive yourself kasi darating ang point na maiisip mo you dont deserve this kaya mapapa splurge ka sa sarili mo so atleast save something for fun and luxury atleast once  a month or every quarter. Life is wonderful!
- go to church and give something like maghulog ka atleast 100 pesos every sunday... always give back with what you have to everyone.

[caterpillar-girl]

Question, do married couples need insurance already even if they don't have a child yet? My husband and I both work, and it will not be financially catastrophic for either of us should anything happen to either of us. We have joint bank accounts, and I have 1 property to my name. We don't have a mortgage yet, but we do plan on having kids in the future. Does it make sense to get insurance now or wait til we have kids?

[ikaela]

^I would say no, take advantage of the life/health insurance you get from your jobs now, and save/invest the money you would've paid for insurance premiums instead. Get your own personal life/health insurance when you need it, i.e. right before you have kids and/or when you resign from work, whichever comes first. But of course, insurance agents will tell you otherwise. They like to say you should get it now while you're younger and when it's cheaper.

But apart from kids/dependents and their education, there are other reasons to get life/health insurance: if you have debts that your husband/family won't be able to pay off on their own, if you are sickly and/or are predisposed to critical illnesses like cancer (medical issues have a nasty way of leaving people in financial ruins), and just simply if you want to have something to cover funeral expenses and estate taxes.

^^100% agree with your last bullet point, empire_maker16. Always give back in any way you can!

[aquacharly]

For people just starting out,  avail of the group insurance offered by most companies to its employees. There are health care plans too that companies subsidize.

If not employed:  be come a self-employed SSS & PhilHealth member.

My children are in pre-school and lower grades. But I do not underestimate their capacity to absorb good values.
Monkey see, monkey do. 

Tipid examples that I talk with them about:

No Starbucks, unless the grandparents treat them out (eh biased mga gramps: Starbucks is only coffee, bad for kids. Ano'g movha mocha yan!?).   So I illustrate that I hardly buy Starbucks na --  drink the office brewed coffee like everyone.
For adults like us:  be mindful about seemingly small-amount purchases. If you keep track of these, they add up to a tidy sum.  Usually, unnecessary expenses for coke, Starbucks, cigarettes, etc

Unplug appliances (tv, electric fans, computers ) not in use.  Switch off lights when you leave a room.
(Use LED energy efficient bulbs). 

Gather all the coins and put in a big jar. You can't complete a peso if you lack 10centavos.   (Then, we count out the coins to pay for the newspapers.)
I tell them, Papa & I read the 3  diarios early, then bring it for the office reception area.
For us adults:  Mind your loose change & bills, baka kinukupit na ng cleaner or lavandera. 

Inventory your grocery items before  going off to do the grocery again -- so you do not buy what you won't use.  Inventory is a fund drainer most of the time.  Being patient to have the kids help with the inventory and taking them with you to the grocery will yield expense-alert children later on.

Minimize aircon use.  Xmas time, when we double or more our koryente bills  due to the Xmas borloloys -- we use aircon in 1 room lang -- everybody sleeps there.
We also now have only 2 TV sets.  Hindi katulad noon, pati sa jacuzzi meron. J.  The cable charges add up, the koryente adds up.  And the kids' tv time is easier controlled.

Adults we are, we must mind our entertainment expenses.  Good food nowadays can be had at reasonable prices. Avoid sosyal places as much as possible. 
And avoid ordering too many fresh juices, iced tea, etc when dining out:  these are the easy high margins of restos/hotels. 
Corollary to this:  be mindful of your gift giving.  Give if you gotta & assess the cost.  Oftentimes, we just grab what may be overpriced coz we don't think out what to give. A thoughtful recipient-appropriate gift is better appreciated than an expensive one inappropriate to the recipient. 
Avoid over-tipping, again.
Discuss with your friends -  round robin pot luck in your homes may really be more enjoyable and cost efficient than spending time out in hotels and bars.
I stock up on crayons/washable paints, coloring books & pop up books - so pag may birthday a classmate -- there is a fair-priced gift ready.

Recycle.  This will curb our acquisitiveness.  It is also good preparation for our kids:  Recycling will be a major part of the incoming generation. 

Investment dressing, not trendy dressing.  Pricey though certain classics are, these will serve you well for years.  An example set by the very rich New Yorkers.   

Kids grow fast. Hand-me-downs among siblings and cousins should be cultivated not as a sign of financial constraint/tight-fistedness, but as a loving sharing within a select group.  "Kami-kami, tayo-tayo" - kids are not prejudiced, adults may be, hahaha. 

When we travel, we bring only 1 cell with roaming.  The bills can get soooo expensive nga.
Plan your itinerary.  Some museums have free hours/days.  If you plan your routes -- you avoid crisis crossing and save time on commute time & transpo
Curb your shopping as an example to the children. Do not fall back on paying for excess luggage.
Do not over order food, only to not eat it all.   Train yourself & your kids --  whether here or abroad.
Bring snacks --  to minimize overpriced treats sold at tourist sites.   

Plan out your car's use --  gas expense can carelessly add up.
During idle hours -- I have my driver commute for certain errands. Cheaper than if he brings the car, may parking fee pa. 

[sachism]

- we all  love coupons, I used to have expired coupons bec I get to greedy buying too many but I ended up not using them. So I stopped buying for alooong time. Now, I have learned. Since we enjoy eating out, nagbalik loob nako sa groupon. I only buy those which I think we can really go to and eat. Which I think my husband would also agree to eat and those which are not expensive restos. and yes, we only drink house water.

- maximize your companies' benefits, be it in health card, free gym membership, discount cards ato your regular purchases and even shuttle. Yes! with the gas getting higher and expensive parking fees, I have asked my brother to drive me to the nearest office location and I take the shuttle from there to the main office. That's 80% savings on my transpo allowance. Plus, I can rest and cath up on my reading while on the road.

-carwash. I bring my car to the carwash shop 2x a month. I dont mind seeing him a little messy  hindi naman halata bec of its color. But my husband do mind so he brings his every week, minsan 2x pa. Mahal ng carwash ngayon.

-be firm on "no buying day". when we go to the mall/toy store, I am firm when I say to my toddler that it's only playing/reading day. we will not buy toys/books. pero best to stay away from malls kung wala naman kayong pakay, away from the temptation ika nga.

[hun_nie08]

kami as a newly wed couple - we cooked for our baon to make tipid. Yung ulam namin niluluto na sa gabi before matulog. Yun yung food ko bago pumasok at dinner ko (midshift) si hubby naman yun ang lunch at dinner nya pag uwi sa bahay..

[juni]

I try to plan my errands and other activities in such a way na namamaximize yung time and effort ko.  For example, ipagsabay na lang ang pagbabayad ng bills, pagpunta sa supermarket, pagpapa-repair ng bag, pagpunta sa bookstore, meet up with a friend and ang pagpunta sa church on a Sunday.  That way, tipid sa pamasahe, you can spend Saturday at home resting, and matratrain kang tapusin lahat sa to-do list mo.  Or pwede rin gawin yung errands during breaks or after office hours pag weekdays, tapos pag Sunday pwede din na sa internet na lang makinig ng church service kung kailangan magtipid ng pamasahe.

[thess]

Dami nang helpful tips.

Add ko lang use loyalty cards then pag short of cash pwede gamitin points pambayad like Mercury suki card, Happy plus na grabe ambilis ko maka earn ng points dahil sa pagpapagas ko sa caltex, saka pagjojollibee ng mga kids, 711 card, advantage card yun lang meron ako.

Budget like sa isang week chinachalenge ko na minimum 4k maixmum 5k budget ko. Basic needs lang ha. like food including baon ng mga kids at gas.  May nabasa ako sa internet about pennyless challenge yung di ka gagastos ng money in a day, unless kailangang kailangan at helpful sya tipid talaga minsan dami pa natitira sa budget ko.

Napanood nyo ba sa youtube yung sa Amerika about naliligo then yung pinagliguan makatipid lang ng sabon at tubig yun na din pinaglalaba sa damit haha kadiri naman na yun di ba over na pero pagnakakapanood ako ng ganito nakakachalenge talaga magtipid.

[chubbycheeks]

^ Speaking of pagligo, we can save by using tabo instead of the shower. Good for the environment pa!

How to recycle kaya yun pinaglabahan na water? Use to clean the bathroom or floor.

[juni]

Pag maglalaba, unahin muna yung whites, tapos sunod yung colored na clothes and then ihuli na yung dark clothes especially denims.  Unless na super dumi ng whites, pwede naman na yung same soapy water na yun yung gamitin to wash the colored clothes and the dark clothes.  Depende na yan sa level ng dumi and sa dami ng clothes na lalabhan.  You can check yung itsura ng soapy water after each batch, kung madumi na ba and kailangan na palitan or kung pwede pa gamitin for the next batch.

[tsina]

1. I stopped relax-rebonding my hair since mid last year. P3.5k x 4 =14k savings a year.
My hair is naturally wavy, i have discovered a really awesome way na di na sya buhaghag and maganda talaga ang bagsak nya. Funny thing is,  I used to rebond it and then perm (curl) it. And sikreto lang pala now, is wag suklayin. My hair looks really nice uncombed, and mega frizzy when i comb it. Tip for the kulots, embrace your hair, save a lot of money( invest in stocks, 14k goes a long way)

2. I cut my globe postpaid. I use to spend P800-1k a month, now with smart mega250, strictly P250 unli text to all networks,3hrs call to smart numbers and 100mbps surfing. P10-12k savings a year

3. Minimalist living. This year i have a personal project, to not buy anything new unless I really need it. It is august and so far, I have bought just more or less than 10 new things for myself, clothes included. Huge savings + lesser carbon footprint + simpler life.

4. DIY hair treatments and body scrubs. I go for homemade, natural and organic. Raid your kitchen, e.g apple cider and baking soda for the hair, coffee sugar vco scrub for the skin.. So many effective and inexpensive ways, minus all the harmful chemicals. My hair and skin is healthier and happier pa. Huge savings din. My only investment is googling the "how-to's and the benefits.

5. I only eat out once a month, sort of treat na rin to reward myself once in a while. Subsidized food namen sa office so it is inexpensive otherwise, i will pack lunch too.

6.  I started investing in stocks, UITF, VUL and a discretionary fund savings. When you do this, you will tend to alter your lifestyle lalo na when you realize the opportunity cost of saving that P170 starbucks frappe or commute instead of expensive taxi fares and instead set it aside for these investments. In Finance, time is money through compunded interest. In a year, my stocks earned 25% from the previous year.

7. When i eat out, i dont order juices or sodas. Super mahal na, sugary pa. Malaking savings din yan since if you notice, an ordinary juice can be P100 na. Lesser fat deposit pa sa katawan. Also" I have a water bottle.

8. When I travel, I DIY and I backpack. I save a lot and mas personal yung itinerary.

[tsina]

Pahabol pala, for those who have refrigerator, it helps to switch off the fridge after 10pm. Usually it locks in the tempretature till the morning since wala naman nag oopen pag gabi. This results in 50% off the electricity bill.

[polar_bear]

we don't iron clothes, only office attires lang, for shirts and other garmets.. maayos na tupi lang.. at once a week lang ang pagplantsa, during the day dapat para enough lighting na rin.. tapos nakadefrost na din ang ref while ironing para mas tipid sa kuryente

[lovely_chic]

Once a week lang kami nag iiron ng clothes at gumagamit ng washing machine and it helps a lot. Yung refrigerator di namin kaya to turn it off at night kasi baka masira yung mga meat.

[ikaela]

tsina, I was intrigued by your unplug the fridge tip and enticed by the 50% in savings you reported. I researched a bit on it and sadly, it's false economy. Aside from risking bacteria growing on dairy and meats, the fridge will also use up more electricity to cool down once you switch it on again. Basically, it's lesser load on the fridge's cooling unit to maintain a constant temperature than it is to cool down a warm fridge.

Maybe I should just downsize our fridge.

[quinone]

^ Speaking of pagligo, we can save by using tabo instead of the shower. Good for the environment pa!

sorry sis, but i actually doubt this. dati ko pa napapansin, mas maraming surface area ang nalilinis with shower kasi kalat ang buhos ng tubig kesa sa tabo. tapos pa, dati napansin ko na if iwan kong bukas yung shower at intayin mapuno ang balde, matagal siya mapuno, meaning with that mount of time na bukas ang shower, malamang nakaligo na ako, whereas kung gagamitin ko yung tubig sa balde using tabo, baka naka ilang buhos lang ako nun.

for tipid tips, you can hang your clothes properly after washing for easy ironing, less use of electricity. when i was working, i used to buy clothes that are wrinkle-free.

i pay exact amount when commuting, walang excuse kapag walang panukli si driver.

when i got married, since 2 lang kami, mas matipid bumili ng ulam kesa magluto for two, lagi pang iba at bago.

maybe enroll your bills sa bank for auto-debiting, save time, save pamasahe.

[pinklilac]

Wow! Dami ko tips nakuha..thanks for sharing guys..