Top 10 Financial Goals

You have read my first post about Kuripot Challenge and your interest has been tickled.  However, you are not quite sure for what will you be saving for.  Well, no worries.  In a conference sponsored by Federacion Internacional de Abogadas and Integrated Bar of the Philippines-Camarines Sur, wherein our team was requested to help, this author chanced upon a noteworthy list of Top 10 Financial Goals any person must surely prepare for. 

The Top 10 Financials Goals are:

1.  Household Management

Let’s talk about basics first. Economics is derived from the Latin words “oikos” and “nomos”. Oikos means household, while nomos denotes management.  Hence, economics has its roots from “household management.”

Indeed, a primary concern of an individual, particularly Filipinos (who are known for close familial relationship), is how to make ends meet for the survival and prosperity of the family.  Groceries and bills are items that usually draw the first blood from our pay checks.

But beyond daily subsistence, we usually aspire for flat TVs, a comfortable mattress, a fine-looking sala set, or a lavish family gathering (e.g. birthday, baptismal, noche buena, reunion).  These expenditures require substantial amount of finances.    They may thus serve as your goal for saving and taking up the Kuripot Challenge.

2.  Emergency Fund

Saving to save for a rainy day is also important.   The Kuripot Challenge may be a vehicle for you to set aside substantial amount (about three to six times of monthly expenses) that you can use in case life surprises you – in a bad way.

In these tough times, job loss may knock anyone unexpectedly.  Even if business is going well, government’s rash pronouncements or ill-advised policies in the future may cripple the economy and cause unemployment.   At present, there are threats of pooling out business process outsourcing firms from the Philippines back to America.  Talks on banning the sale of products of certain industries may also lead to a layoff of many employees.

One may also be thinking of voluntarily giving up his/her job to explore other careers or set up a business.  Having an emergency fund will give a person that confidence to break away from the shackles of inhibition and fear.

3.  Health Protection

Health is wealth, cliché but undoubtedly true.   If one is ill, one cannot work and earn income. Further, costs of medicines and treatments may also prove to be a heavy burden to a person’s assets.

The reverse, meanwhile, is equally correct.  Wealth is health. Without money, one cannot avail of health services.   Absent proper and prompt medication, ailments can get worse, exposing the sick to higher risk of complications.

In order to ensure one’s well-being, it is best to save up money and invest in health insurance packages.  No one can ever be confident in one’s immune system.  Even those who regularly exercise also get sick.  And insurance firms will never knock on your door on times most needed. Thus, the only time you can prepare for times of bad health is when you are in good health – alive, alert, awake and enthusiastic.

4.  Income Conservation

Done with your family obligations and preparation for bad times, and still have extra cash? You may wish to take the Kuripot Challenge to pool in necessary amount for the minimum subscription rate in investment vehicles.  Investing protects your money      from losing its value as a result of the phenomenon called “inflation.”

Inflation is the rise in the general level of prices of goods and services.  A Php 5 cup of rice years back becomes Php 10 today because of inflation.  And, assuming a steady inflation rate of five percent, the price of same quantity of rice will double to Php 20 in 14 to 15 years from now.  Therefore, a Php 1,000 this 2017 can buy lesser cups of rice in 2032 (i.e. 50 cups) than this year (i.e. 100 cups).  As time goes by, inflation slowly eats away the purchasing power of your money.  

To overturn the said situation, your financial assets should grow even more than the rate of inflation. This is where investments come in.  They multiply your money at a given interest rate or at a potential internal rate of return, thereby conserving and even improving its purchasing power.  Thus, if you have extra cash, do not keep them idle.  Save, raise the necessary amount and subscribe to an investment tool.

5.  Large Future Expense

Another popular reason why people save is the fact that they wish to enjoy the glamour of life and buy something expensive. These luxuries may be a fulsome tour abroad, a brand new car, a designer’s bag or elegant jewellery.

Kuripot Challenge can be a technique for you to accumulate those thousands of Pesos needed to purchase said articles.  The desire to relish an exquisite item can serve as a powerful drive to muster the patience and determination needed to hurdle the challenge.

6.  Wealth Accumulation

Savings may also be used for starting up a business that can help accumulate wealth in a relatively faster rate.   Return on investments on real estate or business operations are significantly higher than paper assets.

Kuripot Challenge may be the platform you need to come up with that coveted amount to buy a franchise or put up your own store. For existing companies, particularly micro and small enterprises, the challenge can serve as a venue for raising the additional capital necessary for expansion.

7.  Education

Education is an effective medium for personal and professional advancement.  Either it be for your children or for yourself, a diploma is a valuable instrument to uplift one’s social and economic standing.

Obtaining that much-coveted folio is not a walk in the park though. It entails overcoming mental and physical stresses and, more than that, surmounting financial struggles.   Tuition fees, contributions for school projects, food, transportation and lodging expenses, as well as fees for extra-curricular activities will surely strain a person’s or even a family’s resources.  Thus, these are things one should save for.

8.  Retirement

Surely, no one will want to work for all of their lives.  Everyone dreams of becoming a child again – to devote one’s time to living rather than to earning a living. 

However, as we do not have the power to travel thru time or to unlearn the fact that there are bills to pay to live decently, stashing cash for retirement is essential.  There are variable funds offered by reputable insurance firms which require only one-time cash out.  Kuripot Challenge can be of great assistance in raising such amount.

9.  Estate Planning

Material possessions can never be brought with you in the second life.  But, you can leave them to your family.  They can be your legacy.

Estate planning is vital. If you know Batman, you will notice Bruce Wayne was orphaned in a very young age, but he is the Prince of Gotham because his parents know how to pass on to their only child their wealth. Perhaps, the butler Alfred is even part of the inheritance.

Kidding aside though, estate planning involves cost.  There will be fees to pay for the professionals and the lawyer who will take care of the paper works and will ensure your will is followed faithfully.  These expenditures must be taken care of while you are still in Earth.

10. Death Expense

Speaking of passing away, it is a certain phenomenon.  One hundred percent guaranteed, it will happen to everyone. Just always knock on the wood for it to not occur soon.

Being something inevitable, it is better to be prepared for it.  We have already been too heavy a burden to others while living, why continue to be on our death?  Expenses that our family will incur during wake and interment are payments for the casket, the last clothes to be worn, food to be offered to sympathizers, the flowers and other decorations, offerings for the priest and the Church, as well as the lot that will serve as the final destination.