Thursday, January 19, 2017

Dig small, earn more


Bahram* lives in Limpopo, one of the poorest provinces in South Africa. Their house stands around 10 kilometers away from the Limpopo River, the only water source of their tribe. In order for him and other people in his tribe to get water, they have to walk one and half hours going to the river and another one and a half hours going back to their home.

They have to return to the river at least three times a day to sustain their water needs. This is what they have been doing for the past five generations.

Every man in the tribe does this back-breaking job every day, but Bahram had a different mindset from anyone else.

“I don’t want my son to do the same thing that my father and I have been doing for the longest time,” he said to himself. “I want to have my own supply of water here in my house,” he added.

So every time Bahram goes to the river to fetch water, he digs a short canal of about 5 meters in length and fills the flooring with stones, starting from the river going to his home.

Other men and women in the tribe made fun of him. “You are out of your mind...Fetching water is hard enough, digging a canal is too much,” they said. They would always laugh at him and think he’s crazy. Even his own family had doubts about his plan. “We have been living here for too long and we survived because of our way of living. You do not have to do this for it will only make you more tired.”

But Bahram didn’t mind whatever other people thought about him. He just continued on what he had been doing.

As the years passed, more and more people in his tribe looked at him as a crazy old man. “You are a fool! You cannot change the direction of the river,” they said. But Bahram didn’t listen at all. He kept on digging and digging the canal from the river going to his home.

Finally, after six years of extra effort, sacrifice, and perseverance, water from Limpopo River flowed to Bahram’s home. He finally had his own outlet of unlimited water right in front of his house. The people who once made fun of him, doubted him, and didn’t support him, were now asking for water from him.

Bahram felt so blessed because he no longer needed to fetch water for his family. The water is now flowing towards his home. He has more than enough, and he is also able so share water to others.

Lessons from Bahram

1. He sets a clear GOAL: “I want to have my own water supply in my house.”

2. He focused on his WHY: “I don’t want my son to do the same thing I’ve been doing.”

3. He knows his HOW: He digs a five-meter canal every time he goes by the river.

4. He never quits: Even though most of the people were against him, no one, even his family, was able to stop him.



Want to have a better financial status? Be like Bahram. Small sacrifices, when done effectively and consistently, come with bigger results. An income stream does not come to you on its own. You have to dig for it. You don’t have to dig big for one time. Dig small but dig consistently, and every time you feel tired, think of your WHY: Why do you want to be rich? Why do you want to have a passive income? Then it will give you more energy to continue digging.

Dig small, earn more!

*Bahram means “smiting of resistance” or “victorious”

Wednesday, January 18, 2017

PinoyShares: “My life insurance gave me peace of mind”

A young professional shares how she started planning her financial goals

I was 25 years old when I felt like I needed to plan out my financial goals. I was earning a bit more than enough to treat my family from time to time and give back a portion of my salary to my parents as well. Then my office mate told me to start getting a life insurance for protection and investment. I decided to learn more by talking to his financial advisor.

I was quite shy to talk about my finances because even if I was earning a bit more than enough (~PHP16,000), I had no savings. When he explained to me that if I keep about 20% of my income (PHP3,000) every month for 15 years, I'll have around PHP785,000 when I hit 40. At the same time, my future family will be secured with PHP1.4M if ever God says "time's up". It was like hitting two birds with one stone - if I die early, my love ones will still be provided or if I live up to 40 (which is very likely), I will have almost a million pesos



I can simply save PHP3,000 monthly and put it in the bank but I knew myself well. I will just end up spending it. So I have to make a commitment with someone/something to make me keep the money monthly. Also, if I put the money in the bank, the interest rate is just 0.5%. If ever I die anytime, that money in the bank will instantly be frozen and will be subject to tax. So better put it in a life insurance policy to be invested in stocks and be accessible to my family if ever I die. 

After much thought, I got myself insured.

Fast forward to three years after, I was married and was about to give birth. I was quite fearful of what might happen during labor. I’ve heard of stories (and watched it a couple of times in telenovelas) that mothers may die while giving birth. Then, I remembered my life insurance. I told my husband where my policy book was so if ever something happens to me, he would know where the documents were. I felt assured that my child will be provided no matter what. My life insurance gave me peace of mind. 

Well, I survived giving birth. And I just got another life insurance policy for my future and my family's protection. 

*Notes/definitions:
FUND VALUE - withdrawable amount of money invested in insurance
DEATH BENEFIT - the amount of money that my family/beneficiaries receive if I die
CRITICAL ILLNESS BENEFIT - the amount of money that I will get if I am diagnosed with a critical illness (listed in the policy)

If you also want to secure your future, request for a life insurance proposal now. Just send a personal message through our Facebook page: https://www.facebook.com/pinoywealthbites or e-mail: leonard.c.tome@sunlife.com.ph

Saturday, January 7, 2017

Welcome 2017, Welcome Wealth



Let's all start this year with a bang!

First of all, welcome to our blog, Pinoy Wealth Bites. We wish to share bite-sized pieces of financial wisdom daily with the hope that all of us will grow wealthy confidently with a heart. We made them daily, free, and in small portions, like a food supplement, so you can easily chew and digest each piece of wealth wisdom.

Let's add to our new year's resolution to strive for a wealthier mindset. We'll help you achieve this breakthrough using this blog and our Facebook page: www.fb.com/pinoywealthbites (LIKE IT NOW!).

Cheers to a wealthier 2017 and beyond! Be wealthy, Pinoy!