July 23, 2008
Filed under: life lessons — juliana @ 4:50 pm
It is disheartening to see someone close to you drown in debt. More often than not, they succumb to it not because they are not aware of the repercussions but because they think they’ll be able to easily get out of it. This same situation happened to a family friend who five years ago bought a home with one of those no money down mortgage deals. Little did we know that before they even got a home, they were already up to their neck in credit card debts. Why they bought a home was a totally unnerving decision. But because they were able to swing around and get a home for zero down they went ahead anyway. Three months after the housewarming and they were finally settled, the whole mess started to unravel and before we knew it, they were going from one relative to the next borrowing money to cover for the monthly mortgage which was a whooping $4,300 a month. And the credit card debts? Debt consolidation through Bills.com was the solution. Declaring bankruptcy was never an option because they had a home and they didn’t want to lose it. Because of this move: debt consolidation, they were able to lower the monthly payments on their large credit card debts and cut their interest rates and concentrated on raising money for their monthly mortgage.
As any bad financial decision as you would expect, they eventually gave up the house two years later, as the monthly mortgage was just too much for them to handle. Besides the fact that it was a zero down deal, we later learned it was also one of those adjustable rate, interest only mortgage.
Lesson of their story? Don’t bite more than you can chew. Live within your means and weigh in every decision that you make especially when it comes to financial commitments. Taking out a mortgage that they cannot afford was the biggest blunder of all. Add to that the fact, that they already had a huge amount of credit card debt before they even got a mortgage. Living responsibly means living within ones means.
May 4, 2008
Filed under: life lessons — juliana @ 11:29 am
You Are A Realistic Romantic
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It’s easy for you to get swept away by romance…But you’ve done a pretty good job keeping perspective.You’re still taken in by love poems and sunsets
You just don’t fall for every dreamy pick up line!
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Are You Romantic or Realistic?
This quiz only strengthens what I thought I am in the first place. Most aspects of life, I’ve always been realistic. I don’t fall into the trap of believing otherwise and stay in denial. It’s crazy but, because of a lot of management trainings I have taken in my entire corporate life, my biggest ally is a pen and a trusty pad of paper. I jot down objectives, pros and cons whenever I’m on a dead end and weigh things carefully and this includes this married life that I so cherish right now. My life has been managed this way since I got out of college. It’s very theoretical and at times automatic; but trust me, it works. And I can honestly say, I’ve had success doing things this way.
April 3, 2008
Filed under: life lessons — juliana @ 6:09 pm
This is the last set. I thought, all of these deserved a space on this blog. I’m a firm believer of everything written. I wish every single forwarded email is of this kind. Then I won’t have to keep deleting them. They will definitely be passed along and or deserve to occupy a space right there.
Oh, and aren’t the baby pics so adorable? Now, I can’t help but get on to that ‘wishing for a baby mode’. *lol*
April 2, 2008
Filed under: life lessons — juliana @ 6:24 pm
These are all so true. It takes a forwarded email to realize what you really have been up to in your life. We think we have a lifetime to mold ourselves and get to where and how we want to become but life is too short. I’m not saying what I am now, is not what I want to be, but I realize there are a lot more things I need to do, to get there.
Can you blame me why I really believe?
Filed under: life lessons — juliana @ 12:43 pm
I got this as forwarded email. Many times, I just delete these emails but there are a few that really catches my attention and are worth the space here. Whoever came up with this, had a real brilliant idea, because it’s not only visually appealing with the cute baby pictures, but also makes one ponder about what’s written. I thought of sharing them, because as the title says: “I believe”.
December 27, 2007
Filed under: just me thinking, life lessons — juliana @ 7:17 pm
What a question! This is not about the famous TV commercial. It’s about being ready when the need arise. I am sharing this story about a friend who has been through an ordeal in the midst of having to take care of a very sick child. I thought of sharing it because it has made me think and somehow rearranged some priorities.
This friend of mine comes from a wealthy family, married to a guy whose family also has it (proof of which they have an 8 bedroom home in Forbes Park). Their wedding was a huge affair with 2,500 guests which created monstrous traffic within the area of the reception. Six months prior to the wedding was a grand engagement party held at one of the best hotels in Manila with 1,500 guests. They happily settled in their newly constructed home, in a well appointed neighborhood given by the parents after a month long honeymoon in the USA and Europe. The union is blessed with two sons and they have been living as one typical family where the couple work of course, for their family corporations. The look of one happy family living with all the extras and luxuries in life.
Then one day, tragedy struck. One of the sons got diagnosed with a life threatening disease. They (the family) have the money, and they want the best care for the child. Off they flew to the US and sought medical treatment. Treatment that lasted for 6 years. Yes, all those six years, my friend stayed with the son living in a rented apartment with a live-in househelp. She had to learn how to drive(her father bought in cash, a brand new van)as she never drove before because she’s always been driven around.
Lucky, right? WRONG!!! Yeah, she appears to be very lucky because they live with all the extras and the family afforded the cost of health care. But when this happened, they have to swallow their pride and take all the blows from their parents. Will it be okay with you if you have to account for all your expenses and put everything in writing including the cost of a measly pack of sanitary napkin? Will it be alright if you are asked to list down the food you bought from the supermarket so that at the end of the month, you will be able to balance and account where the money went? Will it be fine to skip haircuts for six months because you’re afraid the cost is not reasonable as far as the financier is concerned?
The ordeal is over and they’re back home. The kid is in remission, thank God. Can you even begin to imagine how much money they spent for all those years? My point here is, a lot of us are guilty in living in the moment. We are earning a lot, and we are spending a lot. Right now, we can afford all the luxury goods out for grabbing, take exotic vacations and totally forget about investing and saving up. How many of us has at least six months worth of living expenses stashed safely and ready to be used if the breadwinner suddenly losses their job? I can honestly say, we do. But how about when tragedy like this one knocks? Do we even think about it? That’s where savings/investments comes in handy. I’m not talking about the house, the roof over one’s head. I’m saying this because a lot of Americans even had already taken the path of regarding their homes as ‘cash cows’. I’m talking of solid investments that’s there when one needs it.
Seven years ago, this story changed me. Yes, I still love nice stuff. We still take nice vacations, we still enjoy the fruit of labor of my husband, but we continue to build up and set aside a good chunk of that earnings. Yeah, we can easily say, our parents are there, they will be there to help as they are capable of helping like what I have just shared. But NO… we’re not counting on that. At the end of the day, it’s nice to go to sleep and say, “we’re fine, and we’ll be okay.”
So, my question is: “will you be ready?”. Let’s all try to be ready.
December 12, 2007
Filed under: just me thinking, life lessons, money matters, musings — juliana @ 11:57 pm
In the society we live in, it’s unthinkable how many people are buried in debt. Some are in that situation because of sheer carelessness and irresponsibility, and some because of need and survival. As such, people in this situation won’t probably even care to think about saving or investing because they have to take care of the bills first and at the same time the cost of daily living.
If one is in a position to save or invest when is the right time to start? For me, it’s never too early to start. Based on my own experience, when I was starting my career, I must admit the first two years, I really didn’t save that much. There I was earning more than enough and I just wanted to enjoy the fruit of my labor. Being financially independent, yes, right when I had my first job, I took so much pride that I was no longer depending on anyone for my daily subsistence. I shopped whenever I want, whichever my heart desired and travelled wherever I wanted to visit. Modesty aside, I was making more than other people my age, and as luck would have it, before I knew it, with hard work and determination, I reached the corporate ladder on my own (sans knowing any connection), and earn more than I ever thought I would make in my lifetime right at home, in my birth place. And that was within a span of four years after graduating from college.
That was the turning point. I started to make sure money earned should not only be enjoyed. It should also be saved and invested. It’s never too early to save or invest. I then began to consider that I wanted to retire at the age of 40. And yes, I retired years and years before I turned 40.
When one is young, and they earn more than they think, the temptation to spend is there. I was one of them, as I travelled intensively, and shopped and shopped some more that only luxury brands were in my shopping lists. I would even travel then, with the sole intention of shopping. That destination then, is where I live now. Who would have thought I’d be living for good in my favorite shopping destination? In the middle of all these, the good thing was I wasn’t supporting any family and that made a big difference.
So, if one desires to retire early, save and save is not the best route. It should be save and invest and invest. Investing doesn’t mean risking, as there are investments out there that are not risky. If one just save and save with the hope that the savings accumulated would be enough to keep one afloat during retirement years, I don’t think it’s feasible. Not even with assistance from Social Security. A good combination of substantial savings, investments and a good chunk of retirement account is the only winning combination unless, one is counting on a fat amount of inheritance. Yeah, inheritance… that in itself is another issue that is worth writing about. Should you care to ask my husband though, he doesn’t believe on relying on inheritance to retire comfortably. And that I agree with him a 100%.
