Just writing this down to remind you, Wena, of how you should allocate your money if ever you get plenty already. God we’re getting old, aren’t we?
PROTECT YOURSELF
1. Emergency Fund. (worth 6 months). Okay before anything, before thinking about big investments and such, Emergency fund. That’s monthly expenses multiplied by six. That’s 30k X 6= 180K. We’re close to reaching that goal except that you just lost your online job.
2. Life Insurance. Before thinking about cars (not really interested) or your dream house or your Euro trip. You want Sput to have enough money when you die, don’t you? Give her at least 4 years of monthly allowance of P30k after your death. That’s enough time so she can at least ready herself to be independent. So that’s P30k x 12 x 4= P1,440,000. That’s just a small amount. Enough so you can still live a good life. Right now you have a Philam Life Vanguard 100 insurance with a 250k face amount (1 million for accident) and a Prulife Whole Life Insurance with a face amount of P500k. So you only need another 700k insurance. Let’s just wait that your income increases a little bit before we purchase another one. But not before 30 I hope so it won’t be so expensive.
3. Health Card. I dunno if you should get one because health cards cost 8k a year. It’s like throwing money.But you definitely need one. Will research on this.
4. Stay Healthy. Grab every chance you get to improve your health. Prioritize naps, breakfast, tea, exercise and meditation.
DELAY THE EXTERNAL
4. Don’t buy a car. Wena, be honest, you don’t really want a car unless you have a driver because it stresses you out and you’re just stupid when it comes to mechanics and directions and shit. So you don’t have to want it if you really don’t just because everyone else has one. So whew! But you do need a car for convenience (hate fx lines and riding a jeep doesn’t get sexier as we age), so the compromise is this: rent a car anytime you really need it. I know it’s not very popular but it’s actually cheaper and stress-free. Let’s say you bought a 500k car second hand. If you rent a car or hire a taxi, that’s 330 rides. I know that looks like a small number and the 500k car would probably last longer, but you’ll spend more with the car with the oils, maintenance, and have worse it could get carnapped. Besides, you don’t go to the metro everyday with your work. So unless you need to travel everyday and unless you become rich enough to not mind if you spend 500k or more plus driver, then go buy a car. Otherwise, don’t. Buy a car if you decide to relocate in a smaller city like Cebu coz it’s less stressful. So that’s like…in your 30s probably.
5. Think about your dream house but don’t start making it just yet.Again, you’re not rich. Buying a house is a luxury, not an investment. Once you start making your dream house, trust me you’re going to start buying your dream furniture and dream pool and dream garden. Which is nice if you already have an emergency fund, insurance for 10 years, health card, stocks,businesses. But if you still don’t have all of those and you start making your house, that’s not being wise. Just look for a cheap place to rent. If you think you really need your own place, a condo in the city is a good choice since you can sell/rent it out much easier once you are ready to transfer to your dream house.
SOFT INVESTMENTS THAT ARE ACTUALLY HARD
6. Invest in yourself. Learn how to put on make-up, practice eye contact,etc.Enroll in self-development classes, learn how to do your own make-up, learn the art of small talk, practice good communication skills, buy good clothes, buy a good pen, buy a good phone, have your teeth whitened, get a good journal, and many more. If everything else is gone, say something went wrong to your life insurance policies and you lost your home and investments and car and marriage, ito ang kakapitan mo. You are going to sell yourself and your skills to the world. As long as you know how to deal with people and you are skilled enough, you will rise above any situation.
7. Invest in relationships old and new. They say making friends is getting harder and harder as we get older. I don’t think that is very true if we really try to reach out. Sure, there are babies and wifely duties and work but there’s also facebook, smart phones,meet-up sites such as meetup.com. For face to face interaction, there are seminars, post-grad classes, hobbies, fun runs, and vacations we can easily afford. I know about this for years now but its only recently that I put it to practice. I contacted my Auntie in Cebu whom I haven’t seen in a decade. We met-up and so I met my cousins and their wives all grown-up. Their kids met my kid. Then I met with my high school friends. Then one high school friend wanted to start a small business (the nail salon) with me. And just last week, a friend of a friend called me to do their company video. One connection could lead to many connections so it’s very necessary to be relationship-driven before we turn 30, Wena. Of course you have to make sure you’re trying to establish genuine connections.
THE THINGS YOU ALREADY KNOW
8. Start a business without putting all your eggs in it.
9. Invest in bonds, stocks, etc.
10. Work on making your resume/portfolio/website look good.
