5 Money Lies
Earlier, I saw a post that a batch mate from high school posted on his FB wall. His status message mentioned something about teaching personal finance in our schools. Naturally, I clicked on the article that he linked as I'm often curious when it comes to matters on personal finance.
The article was entitled "5 'Money Lies' You Should Stop Telling Yourself by Age 30" and was written by Miss Lianne Martha M. Laroya.
The article listed these 5 lies that people often tell themselves about money. They are as follows:
Drat, it's quite a horror to think about that age especially if you don't have savings and you're not keen on putting up a business (so no additional income to look forward to).
Actually, in that scenario things will only be horrific if in the upcoming 31 years you find yourself without work or any source of income. The more horrific scenario is if God grants you to live a much longer life than the compulsory retirement age.
Okay, let's peg it at 75 or 80 years old (the life expectancy of women in the Philippines, and so that's another 10, 15, or so years without income.
How can an old woman support herself then? So yeah, if you do some number crunching, it's kinda scary.
Let's assume you did save up 500K when reach age 55, will that amount be enough to sustain you in the next 25 years(aged 56-80)?
500,000 divide by 25 years = 20,000 per year / that's only freaking 1,667 per month. holy smokes!
what about PAG-IBIG? It says in their flyer that if you save 500 pesos a month for 20 years, you'll get a total of 182,539.62 (assumed that dividend rate is at 4%).
Granting that amount divide by 25 years = 7,301.56 /12 months = 608 pesos. YAY!
SSS? Well, your pension will depend on the amount you contributed and the number of contributions. So it should vary. You can actually check through their website how much you'll monthly pension you'll get by the time you retire. In my case, the last time I check, I should be getting 11K a month. That's not bad if you won't have rent then or maintenance medicine.
Lie #5 will surely be handy now, hehe. Let's put another lie in this form. Say, you got yourself a life insurance of 1M. Don't worry, you'll get 1M from insurance. Yeah right, who gets to live a 100 years old?
If that doesn't jolt you to be more savvy about money management, I don't know what else will.
Anyhow, do continue reading Miss Laroya's article on the 5 Money Lies You Should Stop Telling Yourself by Age 30. who knows something might jolt you to consider managing your money for the future too.
The article was entitled "5 'Money Lies' You Should Stop Telling Yourself by Age 30" and was written by Miss Lianne Martha M. Laroya.
The article listed these 5 lies that people often tell themselves about money. They are as follows:
- I can't save money yet; my income isn't even enough for my needs.
- Retirement is years away so I'm too young to even think about it.
- Don't judge me. I need this item for work.
- No cash? No problem! I have my trusty credit card to help me save the day.
- I'm sure my money will work itself out in the end.
Drat, it's quite a horror to think about that age especially if you don't have savings and you're not keen on putting up a business (so no additional income to look forward to).
Actually, in that scenario things will only be horrific if in the upcoming 31 years you find yourself without work or any source of income. The more horrific scenario is if God grants you to live a much longer life than the compulsory retirement age.
Okay, let's peg it at 75 or 80 years old (the life expectancy of women in the Philippines, and so that's another 10, 15, or so years without income.
How can an old woman support herself then? So yeah, if you do some number crunching, it's kinda scary.
Let's assume you did save up 500K when reach age 55, will that amount be enough to sustain you in the next 25 years(aged 56-80)?
500,000 divide by 25 years = 20,000 per year / that's only freaking 1,667 per month. holy smokes!
what about PAG-IBIG? It says in their flyer that if you save 500 pesos a month for 20 years, you'll get a total of 182,539.62 (assumed that dividend rate is at 4%).
Granting that amount divide by 25 years = 7,301.56 /12 months = 608 pesos. YAY!
SSS? Well, your pension will depend on the amount you contributed and the number of contributions. So it should vary. You can actually check through their website how much you'll monthly pension you'll get by the time you retire. In my case, the last time I check, I should be getting 11K a month. That's not bad if you won't have rent then or maintenance medicine.
Lie #5 will surely be handy now, hehe. Let's put another lie in this form. Say, you got yourself a life insurance of 1M. Don't worry, you'll get 1M from insurance. Yeah right, who gets to live a 100 years old?
If that doesn't jolt you to be more savvy about money management, I don't know what else will.
Anyhow, do continue reading Miss Laroya's article on the 5 Money Lies You Should Stop Telling Yourself by Age 30. who knows something might jolt you to consider managing your money for the future too.
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