david, Author at PesoMatters

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Lessons About Managing Finances in 2020

May 31, 2023 No Comments

Hindsight is 20/20.

When we rang in the new year in January 2020, nobody expected that the entire world would soon be battling a pandemic. By March, however, it was clear that the situation wasn’t going to get better. It wasn’t just our health and safety that were compromised. Many of us lost our jobs, too. Suddenly, our next mortgage payment—for some, their next meal—was in danger. Everyone was caught off guard—those with no savings, life insurance, or any form of a health plan even more so. Having lived through the worst of 2020, we’re hopefully better equipped to face what 2021 has in store for us.

Holding people accountable is important.

In the middle of the year, the entire nation was rocked by a scandal involving PhilHealth. Employees and employers alike are required to contribute to PhilHealth monthly, and in turn, the government agency provided universal health care to Filipinos. However, the exposure of a barrage of alleged malpractices within the agency has broken that trust. While the issue is far from resolved, the people’s demands for justice helped a lot in keeping it at the forefront of the news, and a top priority for our lawmakers. This shows us that staying passive will get us nowhere—whether it’s demanding that a government agency take responsibility for their actions or telling your friend to pay up on that loan.

We live in a world of excess.

Admit it: When the lockdown first happened, when we were forced to work from home, some things became less important. We realized that we could live in a world of basics. In fact, many of us probably embraced it. We learned to make our own food, grow our own plants, and even cut our own hair! We became more involved in our respective communities, bartering with neighbors and friends for things that are as simple as cookies or bread. We learned to pare down our expenses. While some of us have returned to our old ways—our spending on food apps alone is proof of this—let’s not forget times when we learned to live simply and carry that with us into the new year.

Risk can—and should be—managed.

While life can be unpredictable, there are certain risks that we can anticipate and that we should prepare for. If you own a property or a vehicle, consider getting the appropriate non-life insurance products. If you have a family that depends on you, consider insuring yourself. Risk products were created specifically to help you mitigate the losses you could incur in the event of unfortunate circumstances. Not all products are created equal, of course, so it’s important that you read up on each one well before you decide whether it’ll be of help to you or not.

Consistency is key.

Did you promise to start saving up last January in hopes of having a large sum to show for it now? If you were able to meet your savings goal, then congratulations are in order. But if you’re like most people (ourselves included!), then you’re probably depending on your 13th-month pay to make up for a lost time, if you haven’t already spent it on something else! When it comes to saving, consistency is important. More than increasing the number of zeroes in your bank account, it gets you into the habit of saving. In less than a month, a new year will be upon us. The question is: Will you be consistently rich or consistently poor?

PHOTO: Pixabay.com

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LIST: Major Health Insurance in the Philippines

May 31, 2023 No Comments

Medical bills can stack up pretty quickly. A consultation with a doctor can cost you P500, while an overnight stay at a private room in a hospital can cost you P3,000. To prepare yourself for these expenses, consider getting an HMO plan or getting health insurance. An HMO plan is a kind of health program that gives you access to a specific set of healthcare practitioners and institutions. It’s also as good as cash. You can learn more about HMOs here.

Health insurance, on the other hand, offers a wider range of inclusions. The amount is either reimbursed to you or given to you upon diagnosis of a disease.

Here are some of the popular companies offering health insurance in the Philippines:

Interested in life insurance instead? Click here!

FWD Life Insurance Corporation

If you think you’re likely to contract a critical illness more than once, FWD’s Set for Health allows you to make a claim three times over the course of your contract duration. It also waives premiums when you’re diagnosed with your first major illness and gives you 100% of your premium back if you end up not contracting a major illness before age 75. FWD also has a specific health insurance plan for cancer called Fight Plan. It covers you up to P2 million and protects you against all types of cancers for 15 years. If the cancer is at the early stage, you’ll get 20% of the benefit amount. As the disease progresses, so will the amount increase. Full benefit is guaranteed if you are beyond the cancer’s early, non-threatening stage.

Sun Life

While known for its life insurance and investment products, Sun Life also has health plans that cater to a wide range of lifestyles. If you’re specifically worried about medical bills from surgery or hospital confinement, Sun Life First Aid offers hospitalization benefits for 10 years. In the event of death, the premiums paid also act as a death benefit. If you’re worried about critical illnesses like stroke, cancer, or kidney failure, Sun Life Assure offers protection against 36 major critical conditions, four of which include surgery. Upon diagnosis, you get a lump sum cash benefit equal to your plan’s face amount.

Check out Sun Life’s other health insurance products here.

Manulife

Like most life insurance companies, Manulife also has a critical illness health plan. Health Choice protects you against 60 illnesses, provides daily hospitalization allowance, and rewards you for staying healthy. The life insurance company has also a specific health plan for men called Adam and another for women called Eve.

Learn more about Manulife’s other health plans here.

AXA

If you’re looking for affordable health plans, AXA’s Health Start Lite might be an option. It doesn’t just protect you from cancer, stroke, and heart attack, the top three major illnesses, but also from nine minor conditions. It also acts as life insurance and can start for as low as P535 per month, depending on your age and health condition. There’s also Health Start, which provides greater coverage, not just for yourself, but your family. It has built-in coverage for your child (if you have any) and allows you to cover the health of a spouse, sibling, or parent. You can also customize your health plans with other health riders to get the exact plan that meets all your needs.

Learn more about AXA’s health plans here.

Philam Life

No stranger to health plans, Philam Life also has a portfolio of health insurance products that might appeal to you. One of them is Health Invest, a plan that doesn’t just protect you against major critical conditions and accidents, but also creates an investment fund for you, which you’ll be able to use for healthcare and other costs in the future. In case you’re worried about contracting a critical illness past 75 years old, which is when most health insurance providers cap their health plans, you might be interested in the AIA Critical Protect 100, which gives you coverage against 100 illnesses until age 100.

Learn more about Philam Life’s health plans here.

PRULife UK

Dealing with a major disease while struggling with mounting medical costs doubles the amount of stress on you and your family, so having a backup plan in the form of health insurance is important. With PRULife’s PRUWellness, you get a daily hospital income benefit, long-term hospitalization benefit, dread disease benefit, ICU benefit, surgical expense reimbursement, and even death benefit from term insurance. There’s also PRUHealth Prime, which doesn’t just cover you against cancer, but also has investment features that’ll help ease the burden of medical costs.

Pacific Cross

While more known for its travel insurance plans, Pacific Cross also has a wide range of medical plans that might interest frequent travelers. Younger clients might like LifeStyle, a medical plan designed especially for new clients aged 21 to 35 with limited coverage abroad. Blue Royale is a worldwide medical dollar plan that ensures you get the best possible care wherever you are.

Check out Pacific Cross’s other health insurance plans here.

PHOTO: Pixabay.com

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Best Investments People Say They Made This Year

May 31, 2023 No Comments

Here at PesoMatters, we’ve talked about getting into the Philippine stock market, investing in Bitcoin, and even investment gifts you should give yourself, but not all investments are monetary in nature. In fact, some people have found that other types of investments yielded better returns. Here are some of them:

An online course membership

In some ways, a work-from-home arrangement has benefited a lot of employees. Les, a 33-year-old marketing officer, found that it gave her more time to pursue other interests. “Before, I would be too exhausted by my daily commute,” she shares, “but since our company allowed us to work from home, I’ve been using the extra time to develop new skills.” In June, she signed up for SkillShare, an online program that gives members access to a multitude of courses, from creative writing to graphic design. “The skills I’m learning don’t just help me become a more capable person at work and my everyday life,” she says, “they’ve also made me feel less helpless the past few months, which, I think is pretty priceless.”

An ergonomic office chair

Ben, a 29-year-old, lead developer, put a great deal of money in something that was more tangible. “I spend most of the day sitting down, so I look at an office chair the same way I look at my computer,” he explains. “It’s part of my equipment.” Given its price tag, which Ben requested that we not share, the award-winning chair of European make is certainly a big investment. However, unlike other financial investments whose returns aren’t guaranteed, this one is already paying off. “I can spend longer hours in front of the screen without my back or my legs suffering for it.”

A weighted blanket

Not all investments have been about work or about personal growth. “The best investment I made this year was in my quality of sleep,” says Jade, 35, a freelancer who has been having trouble sleeping since the pandemic. “I invested in sheets with higher thread counts, an aromatherapy diffuser to help me sleep, and the biggest splurge of all, a weighted blanket!” According to Jade, the weighted blanket was the one that required the most consideration. It had seemed like another trend at first, but she did her due diligence and by the time she was ready to purchase, she felt more than confident with her decision.

A fitness device

Reggie, a 29-year-old developer, is very happy about his Apple Watch. “I’ve been trying to become more conscious about my health,” he says, “but it’s really been a challenge.” A regular gym goer, Reggie confesses that he’s been sliding towards the unhealthy side of the scale since he cut his gym membership early this year. “I bought a few weights and a bench press to create a home gym, but having the watch strapped to me almost every second of every day has been really instrumental in keeping me on track.”

Investments can take on different forms. One of the most important ones you can make is in your education. If you’re interested to learn more about how to manage your finances, we suggest starting with our quick introduction to the wealth generation cycle here!

PHOTO: Pexels.com

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I Deleted Foodpanda and GrabFood for a Week

May 31, 2023 No Comments

As told to PesoMatters

It’s no surprise that we’re huge fans of food delivery apps in our household. We were already huge advocates before the pandemic, ordering milk tea during weekends and fast food meals on cheat days, but ever since March, we’ve come to rely on them so much more. After reviewing last month’s credit card bill and after seeing this article online, I felt inspired to make a change. For a week, I removed both Foodpanda and GrabFood on my phone.

Here’s what happened when I abstained from my favorite food apps for a week:

Monday

The first day of the work week has always been an excuse to treat myself. I tell myself that my favorite Tim Hortons or Starbucks drink from Foodpanda or GrabFoodwill make me work harder, but today, I stick to the instant coffee in the kitchen. I save myself P110. Lunch is liempo and sitaw cooked at home, so I don’t shell anything out. It’s the same story for dinner, too.

Tuesday

I congratulate myself for resisting temptation yesterday, but already, I can feel myself wanting to check my options at Foodpanda and GrabFood. Since I uninstalled them before I began this week-long abstinence, however, I have no choice but to get my food fix elsewhere: YouTube. I watch several food videos and suddenly develop a craving for dim sum, which we sadly don’t know how to make at home. On a normal day, I would have ordered Tim Ho Wan’s Baked Buns with BBQ Pork (P213), Pan Fried Radish Cake (P194), Vermicelli Roll with BBQ Pork (P235), Vermicelli Roll with Shrimp (P263), and Beef Ball with Beancurd Skin (P169). Normally, I would have easily justified this because I’d be sharing it with my family, but I don’t. I save P725.

Wednesday

Hump day is traditionally another excuse to order food online. Starbucks and Tim Hortons is almost always on the agenda, and I resist as best as I can. It’s a lot harder though when someone in the family tells you that they’re ordering something from Foodpanda or GrabFood and asks you if you want anything. My immediate answer should have been no, but I stutter and stall for a good 30 seconds before ultimately deciding that I will have to pass. I save myself P110.

Thursday

Back when I was still going to a physical office to work, I’d often eat out. I never developed the habit of bringing baon—although that would have saved me a lot of money—and neither did most of the people in my family. It’s no wonder that we’re not used to having to come up with our own meals every single day. The rotation grows old fast. Liempo and sitaw, bangus and kalabasa, fried chicken and pechay. This is why food apps have been so integral to our lives—not just mine. Today, I sit in front of the usual ulam and feel a strong urge to just order food online. Pizza sounds really good. At Shakey’s, we always fall back on thin crust Manager’s Choice (P417) and Classic Cheese (P675). I really want to suggest ordering it, but I don’t. I save P1,092.

Friday

Finally, the work week is coming to a close. I eat lunch and dinner on autopilot, not wanting to even give myself a chance to think of what exciting food choices there are just a few taps away. However, I do have an e-numan session with friends later. Usually, this means going to Boozy.ph and ordering a Yellow Tail Pink Moscato (P549), and while I technically wouldn’t be ordering from Foodpanda or GrabFood, I make do with water. It’s the principle of the thing.

Saturday

Weekends are classified as cheat days and while the idea of ordering in sounds really appealing (honestly, when isn’t it?), I decide to make sinangag from yesterday’s leftover rice and cook SPAM and eggs for lunch instead, which, weirdly enough, makes me just as happy as if I ordered something from Army Navy, another weekend favorite. I would have ordered a Steak Burrito (P245) and a Liber Tea (P115). Dinner passes by without incident and I save P360.

Sunday

The last day of my week-long abstinence can’t have arrived sooner. I’ve been good all week, and so I almost feel “allowed” to slip just once, to order an Avocado Shake (P180) from Avocadoria.ph, which I realize I miss so much, but I hold on to my resolve. I avoid watching food-related content on YouTube and other social media apps and spend the rest of the day watching a drama series on Netflix. Dinner is the usual meat and vegetable combination and I breathe a sigh of relief as the week ends without further incident.

So, all in all, how was the experience? Did I learn anything?

By uninstalling the food apps on my phone for a week, I saved myself a total of P3,126. It’s a lot of money for just seven days, but I attribute this largely to the fact that I have a tendency to rebel against my own rules. The more I tell myself I’m not allowed to do something, the more I want to do it. That said, had I actually spent this much for an entire week, I’d have probably kept it simpler for the rest of the month.

To paint a more accurate picture of how much I actually spend every 30 days, I looked at my Foodpanda and GrabFood bill history for November and saw that combined, I spent a total of P6,870. The month before that, my total bill was more or less the same. It’s a lot of unnecessary spending for a week, a month, a year.

I’ve since installed the food apps back on my phone, but I think I’ll be more conscious of the fact that I’m spending nearly P7,000 on these food apps. Having a number makes it so much more real than just telling myself I spend “too much.”

To get into the habit of spending less, I’ve created an acceptable budget for myself for December, one that I’ll hopefully be able to lower even further in the next few months. I’ve also started involving myself in cooking at home, just so I wouldn’t feel justified in ordering food online all the time. It’s not a huge change, but my priority is sustainability. As they say: slowly but surely

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5 Legit Online Loan Apps in the Philippines

June 15, 2024 No Comments

Filipinos often seek loans to address various financial needs, from covering unexpected expenses to funding business ventures. Loan apps offer convenience, speed, and accessibility. With minimal requirements and swift approval processes, these apps provide a lifeline for individuals lacking access to bank loans or facing urgent financial constraints.

Moreover, Filipinos appreciate the transparency and flexibility offered by loan apps, allowing them to manage repayments efficiently. In a country where financial inclusion remains challenging, these digital platforms empower Filipinos to navigate financial hurdles easily.

This blog post will guide you to 5 legit online loan apps you can use in the Philippines.

Top 5 Legit Online Loan Apps in the Philippines

Tala

Tala started offering digital loans to Filipinos in 2017. They operate in three countries: the Philippines, Kenya, and Mexico.

Loan Amount: The first loan is limited to PHP 1,000 to PHP 15,000. The succeeding loan amount increases depending on your record.

Interest Rate: Starts at 0.5% daily

When borrowing from Tala, you’ll encounter these fees:

A one-time processing fee of 3.99% of the borrowed amount.
Daily service fees range from 0.43% to 0.5% on top of the borrowed amount, accumulating until either 61 days elapse or full repayment is made, whichever comes first.

Requirements

Android phones running OS 4 or higher.
Valid government-issued ID

Cashout Options

Bank account
Padala center
Coins.ph

Cashalo

Cashalo, a mobile-centric lending platform, collaborates with JG Summit’s subsidiary Express Holdings Inc. and Oriente. Extending loans to underserved population segments aims to enhance financial inclusion in the Philippines.

Loan Amount: PHP 1,000 to a maximum of PHP 7,000

Interest Rate: 0.10% daily interest rate

Loan Term: Payment terms can extend up to 90 days.

When borrowing from Cashalo, you’ll encounter these fees:

One-time processing fee of 10%
Additional interest charges if you fail to meet payment due dates, which are calculated separately based on the principal amount borrowed.

Requirements

Valid government-issued ID
Proof of billing
Valid work ID
Recent payslip
Bank account details

Cashout Options

Bank account
GCash
PayMaya

GLoan

GLoan is a personal loan service available through the GCash app, perfect for times when you’re short on cash. Once approved, the loan amount is added to your e-wallet within 24 hours.

Loan Amount: PHP 1,000 to a maximum of PHP 125,000

Interest Rate: 0.053% – 0.233% daily interest depending on your eligibility and chosen payment term

Loan Term: 5, 6, 9, 12, 15, 18, and 24 months

When borrowing from GLoan, you’ll encounter these fees:

A one-time deduction of 3% from your total loan amount.
Late Payment Fee: 1% of your loan amount for each missed due date, plus an additional 0.15% of the outstanding balance multiplied by the number of days past the due date.

Requirements

21-65 years old
Filipino citizen
Fully verified GCash user
Have a good credit record and have no history of fraudulent transactions

Cashout Options

GCash MasterCard
Official GCash partner locations

JuanHand

JuanHand is one of the leading fintech platforms in the Philippines. It provides quick, seamless, and affordable financial access to the creditworthy yet underserved. The platform is safe and secure to use, ensuring all client information is protected and encrypted in full compliance with NPC regulations.

Loan Amount: PHP 2,000 to a maximum of PHP 25,000

Interest Rate: Starts at 0.49% daily

Loan Term: The shortest duration for payment is 90 days, while the longest is 180 days.

When borrowing from JuanHand, you don’t have to pay any transaction fee.

Requirements

A Filipino citizen
20-60 years old
Have a stable source of income
Can present at least one government-issued ID

Cashout Options

E-wallet
Over-the-counter withdrawal

UNO Digital Bank

UNO Digital Bank is the first full-service digital bank in Southeast Asia. It’s licensed by the Bangko Sentral ng Pilipinas and offers a new, easy, improved, and accessible way of banking.

Loan Amount: PHP 10,000 to a maximum of PHP 500,000

Interest Rate: Starts at 0.6% daily

Loan Term: The shortest payment duration is 180 days, while the longest is 1095 days (3 months).

When borrowing from UNO Digital Bank, you’ll encounter these fees:

Processing Fee: 3% of the loan amount or PHP 500, whichever is greater, deducted from the loan proceeds.
Late Payment Fee: 5% of the unpaid installment or PHP 500, whichever is greater.

Loan Pre-termination Processing Fee: 3% of the unbilled amount or PHP 300, whichever is greater. This fee applies to loans exceeding 30 days; and none for under 30 days.

Requirements

21 and 65 years old upon loan maturity
A Filipino citizen
Work at or resident of Metro Manila, Cebu, Rizal, Cavite, Laguna, Pampanga, Bulacan, Batangas, Iloilo, or Davao Del Sur.
A minimum gross monthly income of PHP 20,000
For employed applicants: At least six months of tenure with their current employer
For self-employed applicants: Must have operated their business for at least two years.

Cashout Options

UNO Savings Account

Benefits of Online Loans

Convenience

Online loans allow you to apply from anywhere as long as you have internet access, which saves you time and effort compared to processing paperwork in a traditional bank.

Accessibility

Online loans provide access to funds for individuals who may not qualify for traditional loans due to bad credit history. Also, unlike brick-and-mortar banks, online lenders operate 24/7, allowing borrowers to apply for loans and access customer support anytime.

Speedy Approval

Online loan applications are processed quickly, often providing approval within hours or minutes.

Flexibility

Online loans come in various types, including personal loans, payday loans, and installment loans, offering flexibility to cater to different financial needs and situations.

Drawbacks of Borrowing Money Through Loan Apps

High Interest Rates

Many loan apps charge exorbitant interest rates, leading to significant long-term financial burdens for borrowers, especially those with limited repayment capacity.

Hidden Fees

Some loan apps may hide fees within the fine print, resulting in unexpected charges that increase the overall cost of borrowing and catch borrowers off guard. Additionally, many loan apps operate in regulatory gray areas, evading consumer protection laws and oversight, leaving borrowers with limited recourse in case of unfair practices or disputes.

Security Risks

Sharing personal and financial information with loan apps can expose borrowers to cybersecurity threats, including data breaches and identity theft, compromising their privacy and economic security.

Debt Traps

The accessibility and ease of borrowing through loan apps can lead to impulsive decisions and overborrowing, pushing borrowers into debt cycles from which it’s challenging to escape.

Negative Impact on Credit Score

Defaulting on loan apps can severely damage your credit score. Lenders report missed payments to credit bureaus, leading to a lower credit rating. This negatively impacts your ability to secure future loans if you often miss payments, as lenders view you as a high-risk borrower.

Additionally, poor credit scores can affect other aspects of your financial life, such as being denied rental housing, facing higher interest rates on future loans, or even difficulty securing certain jobs requiring credit checks.

Aggressive Collections

Some loan apps employ aggressive collection tactics, including harassment and threats, to recover outstanding debts, causing stress and anxiety for borrowers already struggling with repayment.

Tips on Choosing Legit Online Loans

Research thoroughly

Before committing to any online loan, research different lenders. Look for well-established companies with positive reviews and ratings from previous borrowers.

Verify credentials

Ensure that the lender is legitimate by checking whether it is licensed and regulated by relevant financial authorities in your region.

Transparent terms

Carefully read and understand all terms and conditions associated with the loan. Pay close attention to interest rates, fees, and repayment options.

Secure website

Protect your personal and financial information by choosing lenders with secure websites. Look for indicators like SSL encryption that protect your data from unauthorized access or cyber threats.

Avoid upfront fees

Be wary of lenders who request upfront payments or fees before processing your loan application. Legitimate lenders typically deduct costs from the loan amount or include them in the repayment structure.

Final Thoughts

These 5 legit online loan apps in the Philippines—Tala, Cashalo, GLoan, JuanHand, and UNO Digital Bank—offer Filipinos a convenient and accessible way to manage their financial needs.

Each app provides unique benefits, such as quick processing times, transparent terms, and minimal paperwork, making it a viable option for those who need immediate financial assistance.

However, it’s crucial to remain cautious and informed. Always verify the lender’s credentials, thoroughly understand the terms, ensure website security, and avoid any lender demanding upfront fees. Following these, you can make informed decisions and select the best online loan option to suit your financial situation.

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Investment Gifts You Should Give Yourself

May 31, 2023 No Comments

The holidays are often when you allow yourself to splurge as a reward for all your hard work the last year. You buy expensive gadgets, feast at high-end restaurants, and justify your purchase of designer goods. While there’s nothing wrong with treating yourself, it’s important to consider what gifts your future self might benefit from, too, especially if you don’t have much to your name yet.

Below are some investment gifts you should give yourself this 2020.

A life insurance policy
A lot of preparing for the future is preparing for the unknown, but while that seems like an impossible task, there are several ways to make sure that you and your loved ones will at least have options. Life insurance is one example. In the event of an accident or worse, life insurance (as long as it hasn’t lapsed) will give your beneficiaries a lump sum amount that you agreed on when you signed up, whether you’ve just started paying or you’ve been paying for 10 years.

A health plan
A doctor’s appointment at a private institution can cost you P500 or more—imagine how much more an overnight stay at a hospital would be. Of course, you might think that that’s a problem for the future—and maybe it is—but do you really want to be scrambling for cash in the middle of a medical crisis? We didn’t think so. Give yourself an investment gift of a health plan. Depending on the health plan you choose, you can get unlimited out-patient consultations, specific lab test inclusions, and even hospitalization benefits.

A retirement fund
The age of retirement in the Philippines is 65, and while that might be decades away from now, you might want to start building your way up to a sizable amount while you still can. If you’re very conservative, you can choose to open a time deposit account at a bank and build your retirement fund by putting money in consistently. However, you can also choose to invest your money in different investments with better returns. You don’t need to jump right into buying and selling stocks. You can choose to invest in mutual funds or government bonds first.

Real estate
Another investment gift you might want to consider is a house and lot or a condo unit, but don’t make this decision lightly. Buying a property requires a considerably more significant commitment than any of the items mentioned above. However, if you manage to complete your payment, you’ll have an asset to your name. You can rent it out as a way to get your investment back or as a source of income when you’re older, but you can just as well live in it and pass it on to your heirs in the future.

PHOTO: Pexels.com

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What Type of Gift Giver Are You?

May 31, 2023 No Comments

Holiday shopping can be stressful, but with a strategy in place, you’re less likely to feel overwhelmed. Not sure what your gift-giving style is or if you even have one in the first place? Read on to see if any of these sound familiar!

Made With Love

While it’s more convenient to buy your gifts, you prefer to create them from scratch. Whether it’s baking a batch of cookies or composing a song, you take pride in being able to offer your loved ones something of yourself in the process.

General Merchandise

Christmas shopping is a breeze for you because you tend to give all of your friends the same presents. While going to tiangges is not as easy this year, there’s no shortage of online shops that’ll probably carry what you’re looking for.

Christmas Espesyal

You believe in giving each of your loved ones gifts that are perfect for their personality. While this is more time-consuming, you take genuine pleasure in the hunt. In fact, it’s highly likely that you start searching for the perfect gifts as early as September.

Only the Essentials

You prefer function over form, choosing to give your loved ones gifts that you think will be of actual use to them. You have a sixth sense for sussing out what they need—sometimes, even before they know it!

Your Wish Is My Command

You don’t like to play guessing games. In fact, you often ask your loved ones straight up what they want for Christmas or sneak a peek at their Lazada or Shopee wish list. While you’ve lost the element of surprise, you figure it’s worth the perfect batting average.

Advocacy Campaign

You like to use every opportunity you have to push a cause or a charity that’s very close to your heart, and admittedly, there’s no better time to do so than the season of giving. Just don’t forget to consider the actual recipients of your gifts, too.

Reduce, Reuse, Recycle

There’s no shame in re-gifting a present that would otherwise waste away in the back of your closet. As they say, one man’s garbage is another man’s treasure. Of course, if said gift will eventually end up in the back of their closet, too, then perhaps a change in strategy is due.

PHOTO: Pexels.com

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5 Kinds of People Who Borrow Money

May 31, 2023 No Comments

When someone tries to borrow money from you, it can be difficult to say no, especially when you know you have the cash and they have a real need. However, this also puts you in a vulnerable position. After all, you’re never sure if they’ll be able to pay you back or how lending them money now will affect you in the future. That said, knowing what to expect may help you be wiser about whom to lend your money to. Here, we list down five kinds of borrowers and how to deal with them.

Who: One-Time-Big-Time
What: They’ll only borrow once, but the amount in question is so big that once is more than enough.
How to Deal: Regardless of their reason for borrowing money, make sure you have a signed formal written agreement for this. Draft a document that includes all pertinent information, such as the complete names and addresses of the lender and the borrower, date and place of signing, the amount loaned, and the payment terms, among others. Ask a lawyer to help you create this, and make sure both you and the borrower sign all copies. It might be prudent to have the borrower assign a guarantor, someone who’s willing to take on the debt in case the borrower fails to meet the payment terms, and to have witnesses be present and sign the copies as well. Make sure you have all documents notarized and double-check other precautionary measures you can take with your lawyer.

Who: Small But Terrible
What: These are the people who borrow only small amounts, but do so often.
How to Deal: Lending someone money once is admittedly already a terrible inconvenience. Imagine having to keep track of several IOUs from the same person all the time. If you want to put a stop to this habit—and it has become a habit—you’ll need to take yourself out of the equation. The next time they ask you for money, firmly tell them no. And if you find yourself struggling to come up with reasons why you’re refusing to lend them money, remember that you don’t need to explain yourself to them. If, however, you don’t mind them borrowing money from you, you can at least make the arrangement more convenient for you. Have them transfer the cash directly to your account or impose interest rates so that there’s something in it for you.

Who: Latecomers
What: These people never pay their debts on time. Most of them probably subscribe to the old adage “It’s better late than never.”
How to Deal: Affixing fees, interest rates, or some sort of consequence to the debt in case of late payment is one way you can encourage people to pay on time. Having a signed formal written agreement with set dates of payment can also go a long way into making sure you get paid on time (see details for drafting a legal document under “One-Time-Big-Time”). If the person is a friend or a family member, you can also consider setting up calendar notifications that will inform both you and the borrower, possibly even the witnesses, when their debt is due.

Who: Feeling Close
What: These can be friends or family members who think that they have a right to borrow money from you whenever they want.
How to Deal: It can be hard to say no to people, especially from those who feel that you will not refuse them, but the more you do it, the easier it gets. Again, you don’t need to provide an explanation for why you don’t want to lend them money. Your money is yours to use as you will. If you do lend them money, especially if the amount is significant, don’t let your relationship get in the way of drafting a legal document (see details for drafting a legal document under “One-Time-Big-Time”). Sometimes, it’s your friends and family members who actually betray your trust.

Who: The Vanishing
What: Perhaps the worst of the lot, these people will borrow a certain amount from you and then completely disappear from your life.
How to Deal: Consider whether the amount they borrowed is worth the effort of chasing after them. If it’s a negligible amount, you might be better off letting it go. If the amount is significant enough to hurt, draft a game plan. Note that this doesn’t necessarily mean you’ll get your money back. People who have no intention of paying their debts have a talent for making themselves scarce.

What should your game plan include? First, check if you have a signed formal written agreement that they owe you money. That will make your case stronger. If everything has been communicated verbally or if you no longer have evidence of the debt, try to create a paper trail when you reach out to them. Through email or SMS, get them to acknowledge their debt—if they respond to you at all. Although this might not hold up in court, it’s something at least.

As tempting as it might be, avoid insulting or threatening them with bodily harm. You can also go to the local barangay hall where the person resides to report them after which a hearing will be scheduled or hire a lawyer to help you manage the next steps.

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6 Reasons I Invested in Bitcoin

May 31, 2023 No Comments

Disclaimer: I’m not saying that Bitcoins are a good investment nor am I recommending it as a money-making venture—I’m not. If you’re interested in Bitcoin, I simply hope that my take on it can help you come to your own conclusions about it.

You’ve probably heard of Bitcoin, a form of cryptocurrency that first made waves back in 2008. Since then, big and small businesses, most of which are based in the US, have started accepting it as payment. Curious as to why it’s been gaining traction these past few years? Here are six popular advantages of using Bitcoin:

Limited supply

Unlike most bills and coins or fiat money, which can technically be produced as many times as issuing bodies want, Bitcoins are not supposed to exceed 21 million in circulation. While this might change at some point in the future, seeing as there are only close to 2.644 million bitcoins left unmined as of April 2020, the current situation makes them a limited commodity, which, in my opinion, gives them more value.

A digital substitute for gold

Like gold, the value of Bitcoin doesn’t depend on a central body, a nation’s economy, or government stability, but on supply and demand. Another similarity is that both gold and Bitcoins can be exchanged for fiat money. In case you’re wondering, one bitcoin is, as of press time, worth P782,809.10. Don’t be too alarmed. Most people don’t go out buying one bitcoin just as they don’t casually go to a bank to buy one whole gold bar. They buy just a percentage of a bitcoin, which, fingers crossed, will increase in value in the long run.

Potential for growth

Right now, most of us still use fiat money, especially in the Philippines, but the economic landscape is changing, and there may come a time when most, if not all of the world, will use Bitcoin as the primary currency. Once that happens, the value of Bitcoins will likely increase, and early adopters will be glad to have invested in it early.

Security

Military-grade cryptography protects every Bitcoin transaction, making it practically impossible for anyone to override transactions (provided you take proper precautionary measures on your end). But what makes Bitcoin most interesting to me is that it’s not governed by a single body like a bank or a credit card company. Rather, it’s regulated by a community, allowing for all transactions to be recorded at the same time and making anomalies immediately noticeable.

Affordability

The fact that no singular body is controlling the strings means that no one has monopoly on payment fees or flow of currency. This makes the use of Bitcoin cheaper, even if you use it in different countries.

Fast transfer

Without the middlemen, Bitcoin makes money transfers so much faster, too. No need to wait for several days or abide by cutoff periods before you can receive your cryptocurrency.

These advantages of using Bitcoin aside, the idea itself isn’t infallible. There are some areas where the cryptocurrency can still improve, and even if the concept itself is sound, not all institutions that make a living out of trading Bitcoin can be trusted. However, I believe the future of currency will continue to evolve, just as it always has, and I’m interested to see what happens next.

Interested in other forms of investment? Check out our investment stories here!

PHOTO: Pexels.com

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Everything You Need to Know About HMOs in the Philippines

May 31, 2023 No Comments

Big companies often offer their employees medical benefits as an additional perk of working for them. We’re not talking about PhilHealth contributions—those are actually required by the law—we’re talking about the benefits provided by a health maintenance organization or HMO like MediCard, Maxicare, and Intellicare. In fact, an HMO form is one of the first forms they’ll ask you to fill up upon regularization. But, first things first, what does HMO mean?

What is HMO?

HMO stands for health maintenance organization. It’s a type of health plan that gives its clients access to a specific network of hospitals, clinics, and health care practitioners. Some HMOs are paid annually while others come in prepaid packages.

HMOs aren’t just limited to members of the workforce. Whether you’re an entrepreneur, an investor, or a freelancer, you, too, can benefit from one.

How is it different from health insurance plans?

Like regular health insurance plans, HMO plans have a specific set of benefits depending on the coverage amount. They also have certain limitations when it comes to the kinds of health conditions they cover.

However, unlike regular health insurance plans where you can choose where to use the lump sum or allowance (within their set guidelines, of course), HMO plans actually tie you to specific health care practitioners and health institutions. This means that if your chosen doctor or hospital is not on the list, you won’t be able to use your HMO plan.

What’s good about HMOs is that your health card is as good as cash. With regular health insurance plans, you’ll still need to pay the hospital or doctor upfront and get reimbursed by your insurance provider later.

How do I know which HMO is right for me?

There are many factors to consider when choosing the right HMO and the right HMO plan for you. On top of your list should be dependability. Has the HMO done a good job of servicing its clients? Scour the Internet for reviews. You don’t want to end up with an HMO that doesn’t deliver when you need it to.

Another thing to look at is compatibility. Are both the HMO and the plan in question a perfect fit for your needs? Don’t just consider your present situation. Skip to years ahead in the future. If you have a preferred hospital or doctor, are they in the HMO’s list? If you want to get an HMO for your loved ones, you’ll have to consider their needs as well.

Affordability is another thing to consider. What can you realistically afford? Which plans are actually worth it and which ones are overpriced? However, don’t make this the primary basis of your decision.

What HMOs are available to me?

What HMOs are available to me?
These are the most popular ones:

Choosing the right HMO and HMO plan requires a lot of cross-referencing. However, you’ll breathe easier at the end of the day, knowing that you’ve chosen the best possible option for you.

While we’re on the subject, you might want to think about getting a life insurance plan or upgrading your current portfolio. Click here to see the Top 10 life insurance companies in the Philippines.

Wondering if you need life insurance to begin with? This article might shed more light on the matter.

PHOTO: Pexels.com