Money Wisdom from my Mother

Kung maigsi ang kumot, matutong mamaluktot. As kids, this was our family's mantra. Yeah, we were not born rich and we had our share of "poverty" moments but i am amazed at how my mother worked her magic and stretched our family budget.  I used to hate how "kuripot" my mother was. But having a kuripot mom, well money wise, i'd say now, put me and my two others sibling through college, so i'm so thankful for that now.

I really to hope to be like my mom and be able to support my son until he graduates. In our country, it is in deed a feat to put through a child through college but the hubby and i are doing our very best to go on our way just to give our son the best.

"Thou shall not fear the Credit Card"

Yes! You read it right. This has been my mantra these past few months. Expenses have been piling up and I had to resort to swiping the dreaded card more than i planned to just last month. Honestly, i think my goal of having zero credit card debt seems unreachable this year. I originally planned to eliminate using "plastic", but we had a huge unexpected expense last November, and i needed to take an emergency loan from our cooperative. I had to pay the loan for 3 years, at Php 6000 monthly. This loan made a big dent in our family fund, sending my budget on haywire. I ended up relying on the credit card for daily needs like groceries, school requirements, even gasoline, along with some little indulgences like dining out here and there.

A bank account for your little one

Finally, after months of meaning to do so, i was able to open a deposit account for my son. The husband and i have long been planning to open a deposit account for him. We plan to park his aguinaldo (Christmas cash gifts) here. Well, until the amount is big enough, we'll store it here then transfer to a higher yielding investment. Para dito namin sya ituturo kapag hinanap nya ung mga kinita nyang aguinaldo. hehehe 
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A sure way to make your life easy

Even before the Kasambahay Bill was passed, hubby and i agreed to enroll our helper in SSS, Philhealth and Pag-ibig.  It's just our own little way of showing that we appreciate the hard work and care she is giving our child.

But as working mommies, we can't afford to waste time in long lines in banks or Bayad Centers to pay the monthly contribution. Did you know that you can remit monthly SSS contributions online? Thank God for online banking!

As of posting, i see only Metrobank Direct that accepts online payment of SSS premium. Here's how.

Log on to Metrobank Direct. On the homepage, click pay bills. On the special bills tab, scroll down and look for SSS. Check the type of membership - if voluntary,  self employed or OFW.

[caption id="attachment_2286" align="aligncenter" width="300"] Check out the special bills tab to see other offices or companies that accept online payment.[/caption]

On the Subscriber/Account No. tab, enter the the 10-digit SSS Number followed by the month and year you're paying for. So if you're paying for May 2013, the input should be XXXXXXXXX052013. If paying for June 2013, then type in XXXXXXXXX062013.

Leave the Reference No. blank. Type in your contact number for the Phone No. Enter the amount you're paying. Check the details before clicking continue.

Once you have entered this payment, you will be receive an email confirming your payment.

[caption id="attachment_2555" align="aligncenter" width="300"] Check again before clicking confirm.[/caption]

Refer to this table from SSS to see how much the required contribution per month, depending on the member's salary.  The employer must pay the SSS premium if the helper's month salary is less than P5,000.  Read this Frequently Asked Questions  for more information on the Kasambahay Law.

[caption id="attachment_2284" align="aligncenter" width="300"] The New SSS monthly contribution table.
Source: https://www.sss.gov.ph/sss/index2.jsp?secid=111&cat=2[/caption]

I'm still in the process of getting for her online SSS account, so she'll be able to confirm SSS payment premiums herself. Here's a guide on how to create your own SSS account. For starters, you'll need an email account (of course), your SSS Number and the SBR number which is indicated in your latest receipts from SSS counters, banks or payment stations. Any member can apply for an online account as long as he has posted at least one month's worth of contribution. If you do not have an online SSS account yet, you can get started  here. 

The monthly premium payment deadline for self-employed and voluntary members depends on the last digit of the SSS number.

• if ending with 1 or 2 - 10th of the month


• if ending with 3 or 4 - 15th of the month


• if ending with 5 or 6 - 20th of the month


• if ending with 7 or 8 - 25th of the month


• if ending with 9 or 0 - last day of the month

Read this for more details on SSS premium deadlines.

How i wish all dues and fees can be paid through the internet! That will not only save us time wasted on long queues, we'll also save on gas! Plus that's less time away from the child as well!

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Saving Up for Baby's College Fund

Providing the best possible future for one's child is every parent's dream.  This is high up there in my life list of to do's! So much of giving him the best future depends on whether he goes and finishes college.  Putting a child through college is such an achievement and i really admire parents who did just this for their children. I have such high respect for parents who prioritize the education of their child and i do hope that when our time to spend on education comes, we can and will be able to afford it!

[caption id="attachment_2080" align="aligncenter" width="214"] Putting a child through college is a life feat we're willing to face head on! Source of photo: alabama.gov[/caption]

So this early, i have started to stash part of my meager salary to start saving for baby's college fund! Starting to save for the future (for me, that's 15 years years from now), will give me more headroom to gather my nerves in facing the daunting task of investing in education.

I've also contacted Leah Angela Limon-Mendania, a financial advisor, to guide me in financing this life goal!  According to her saving for baby's education can never be too early. "With tuition fees increasing every year coupled with the rising cost of goods and services, nothing could be wiser but to keep up and start saving", Leah explains.   She also  shared are some  helpful points to guide us in drafting a  savings plan solely for your child's college:

Start as early as you can.

The earlier you start saving, the less will be the amount you need to save regularly. For example, you need 500,000 for your baby's college education when he/she is about 19 years old. If you start saving while your child is still a baby, you need to save about Php 930 monthly. As opposed to when you start saving when your child is about 7, then you will need to save about Php 2,030 monthly.

Save as much and as regular as you can.

The more you save now, the more interest you will earn and the more money will be compounded through the years. For example, saving Php 500 monthly for 19 years will yield Php 268,572 if your investment earns 8% interest. While saving Php 1,000 monthly for 19 years will yield 537,144 at 8% interest.

Choose the appropriate investment vehicle to save your money in.

In determining the appropriate financial product to invest in, think about your purpose. If your saving for something that you need within a year or two, then your only investing for the short-term so a financial product with guaranteed returns is more appropriate like a savings account. On the other hand, if you're saving for something you need in three or more years, then you may choose more aggressive financial products which will give higher but not guaranteed returns like unit investment trust funds, mutual funds and even variable universal life insurance.

Choose the right company where you will invest your money.

In choosing the right company, credit worthiness is a primary consideration. You may check a financial institution's credit rating online. The higher the rating a company has means they are more credit worthy and financially stable than those with lower ratings.

Choose a financial product which will give you higher returns.

The higher the interest rate that your money will earn, the less money you will need to save and the shorter the time frame will be towards achieving your goal. Each company's investment performance record is always available for the client's reference. However, please take note that this consideration is only secondary to choosing the right company.

Leah Angela Limon-Mendania is  a Certified Public Accountant by profession. She worked for an auditing firm for 4 years. She works as a financial advisor and shares her shares her knowledge and skills to educate Filipinos financially. Her passion for food and desserts in particular led her to put up her own  cakes and pastries business,  she's  now currently supplying to a concessionaire of a hotel in Manila. 

Here are Leah's contact details if you want to learn more about personal finance.

Email: lavlimon@yahoo.com

Mobile: 0917-8605059

Landline (duo): 975-4992