Financial Literacy Level

Let's be honest here. I am just like any other girl who is not susceptible to the instant gratification after shopping. It may be a small thing or a big ticket item. I do like being able to buy what I want or need. That is the reality of being human.

At my age, I should already have mastered the financial skills needed to survive in this "buy me" world. My pitfalls: I don't have a regular job. I can't keep an expenses list regularly. I am a bit easy to bend to some temptations. But what I can say is that I got some principles and ideas on finances, even though it's a bit scattered.

Here are things that I learned from my father, a retired skilled government employee, who kept his job for more than 30 years. He hardly took vacations at all, sent 3 people to university for that diploma that evaded him decades ago partly because his parents cannot afford to send him to school, took on parttime jobs and unending loans. People of their generation are made of sterner stuff than millennials of today. He might not have to school, read tons of financial books, and earned a big salary but he has some wisdom when it comes to basic finances.

First, live within your means. If you cannot afford something, try to do without it or make it yourselves like simple toys for kids and stuff like that. People existed without a lot of things before and so can you.

Second, if you're are going to borrow money, make sure that you pay it back on time and it will be used for something that will also create money in the long run and not just to satisfy a fleeting want.

And beware of banks. Getting your money is their business. Unless you are confident that you can outwit them or at least get even, never take out a loan that you might have trouble paying back. Better go with the loan sharks! Kidding!

Third, take advantage of government insurances and other programs backed by the government. These would usually provide a safety net for the employed and even tax breaks.

Fourth, if you're employed, find other legal ways to earn that will not necessarily interfere or cause a conflict of interest to your current job.

Fifth, work, work, work. BUT never forget the sixth ----

Have faith!

Feb Finance and Shopping...Week 2

BTC gone at 6k profit over the weekend.

Bluedio T2 Headset bought @ around 27k after the 10% discount. 

After almost a month since I looked into sending bitcoin by buying it @ around 1.126 then having it go down to 890k the next day made me think harder on how the BTC works. I couldn't touch that for a while until I have learned more about it. It's not something for the fainthearted. I left it there in BTC currency for a while. 

It started to hit the same levels late last week and I held on until it reached 1.2 until finally deciding to let everything go. Whether it goes up some more, I should be happy with the 6k profit for my trial purchase. I never really intended to trade but circumstances led me to it. I would have to think about it more and wait for it to go down again before trying to get a slice of the pie again if ever I decide to do so later. 

As for the other finance related thing, I finally decided to buy my second bluetooth headset to replace my faltering 2-year-old one. That one actually just lasted for about a year and the other months were spread over some "battery rest." It didn't work for a few months then suddenly comes alive after a tricky charging session. Totally unreliable. Totally no-brand phenomena so I thought about looking into a brand that has more google search results. Not a real fancy one as prices can go crazy when it comes to headsets and alike but just a decent one for my budget.
This one has been in the back burner since November last year weeks before the Black Friday. Why? Well, changing economics plus other priorities came up: my Woori installment savings ending, buying a Windows based computer, my son's uniform cost and stuff. 

With all these done, I can now get down to this headset. It certainly pushed me to do so since my husband has been complaining about my audios as I hang out and work around our small apartment unit. 

I've started researching for this last year and has found a brand that fits my budget. It was the first part. When I finally looked into it more specifically as I am about to buy, I was faced with the many models and confusing terms in buying such. It was a little overwhelming at first just reading the reviews and all. They are all flawed in this way or that. I couldn't really decide until I finally put them down on paper, disregarded the reviews, looked into what each model has and of course, the price.

There were about 4 in my budget range: HT, T2, T2S, T2 Plus, and T3. Since the reviews turned out to be mixed regardless of the prices, I had to use the prices in my elimination process. That still brought me down to two similar prices, T2 and T2S. I would have wanted the T3 since it's supposed to have a more sturdy built (non-less plastic) but I've also read some not-so-good reviews so maybe not the one to get for now as my first buy into this brand. I should just have to take good care of this plastic one (fingers crossed.) 

Comparing the T2, T2S and T2 plus was pretty tricky. The Bludio infographics on facebook helped. This one below plus a few more research on some terms like over ear, on ear, noise isolating, and noise cancelling gave me a clearer picture of these.

Infographics for comparison

T2 plus has both the SD slot and FM radio features which I would have liked but maybe next time. It might be a toss between T2 Plus and T3. For my first buy, I'm down to T2 and TS2.

T2S - on-ear, noise canceling, 223 g
T2 - over-ear, noise isolating, 224 g

So the questions that I have to figure out on this hunt are:

1. price range? -- Need I explain?
2. over or on-ear? --- Over-ear is bulkier than on-ear one. I would have preferred the on-ear but both having a foldable part evened it out a bit.
3. Noise canceling (NC) or Noise isolating (NI) - This last bit wasn't exactly on the top of my criteria before because I didn't really know better. I learned that isolating is more manual thing while cancelling is a bit more techy part. What worked for me was that NC works best with a continuous noise source and the other one is in a more varied/flexible environment. READ. Flexible. My kind of thing. Plus the info that low-end NI > high-end NC had me zero in on T2.

T2 is over-ear, has noise isolation feature and fits my budget. It is made of fragile plastic but can hopefully last for at least two years. Since I'm buying from gmarket, fixing and returns might be out of question. I just have to hope for the best and make the most of it. Just like my life's motto. ^^

The 15 day wait starts now. 

Trusts and Estate Planning

Looking into investments and stuff after my installment deposit matured last month brought me to consider VUL, and other investment vehicles. This led me to trusts and estate planning.

Based from what I've heard and read, investments in the banks, or any usual financial company is a bit of a problem when planning for an estate. Not to mention the taxes that can be slapped on any property or whatnots. I thought about looking for other ways to invest, be able to maximize whatever I have saved, be protected from big tax and make it easy to manage the things financially. It may sound a bit off-the-culture from where I come from but I really have to do something for the future even though I think I will live like an old-lady for a while. ^^ (Definition of an old lady: reads books, watches TV, does some gardening, yoga, swimming, and some volunteer work but still have a regular passive income without needing to be in a government's welfare.)

Why am I thinking about these? I'm trying to look fast forward to the old age and what lifestyle I'd want to live. Not like some people I know who seemed to have not thought about it. I may have opted not be regularly employed but that doesn't mean that I will not be preparing for my own retirement in a decent way.

So going back to what I've learned from my online research.

1. Try to or change my financial trading account to an ITF so it will be less complicated to change some later on if it was meant for my son anyway. If ever the age expires on it, I can change it to a joint account later on.

2.  Invest in MP2 or something like it in Pag-ibig or flexi-something in SS. Between the two, I think I'll opt for the Pag-ibig one. I have better trust with them than SSS.

On that note, no. 3.
Adjust my SSS amount but not maximum. I considered this one a bit for a while but after reading more, I've learned that it will be better if I do that later on. Although, I'll have to look into it more. It's just hard to deal with the government websites now but hopefully, things will be better in the near future.

I still haven't wrapped up my remittance route until now. Even if I have some dough, I don't know how to move it and to let it grow.

I have to figure it out soon before the exchange rates get worse.

For future notes:
Laws on Inheritance in PH
Comparison on Health Insurance 

Pensieve Sept

H had finally looked into welfare benefits today. He sent me to pick up the documents to apply but because of my meager-income generating gigs, he seems to say that we may not be qualified for such. Oh, yeah. It seems he's blaming me again. Saying that since I'm earning, I should be the one supporting the family. That it's my turn. That, since we're family, I should do that. I should help him. Help him what?? To be a bum?

If I would foot the bills, he totally won't be forced to find an income. Just like he did for more 7 years when we were living in my hometown, rent-free. He seemed to be satisfied to sell his stocks bit by bit for our living expenses. Yes, we managed to live like that for years when we were there. We scrimped and lived alright. But there what you call my own yearning for financial freedom. I want to be able to do and get some stuff which he won't/isn't willing to provide for so I have to get a couple of source of income. I am fine with that. But with a growing kid that I would like to be able to provide for better, and my own needs as well, I decided to convince them to be back here.

As expected, I am able to get a few jobs by God's grace and earning a bit. The sad thing is, my husband has none since we've been here for the last two years. A few months that he had a chance, he chose to quit. My BIL has been giving him chances a few times but he never really took the bait to work them out. I can totally hear his sigh of exasperation as I hear my own frustration. A few months ago, hubs had asked me to foot the bills. I had been covering the groceries since I started earning a bit so this is an additional one which I really feel I should refuse for the sake of my sanity. Why? If somebody covers the grocery, and foots the bills, I don't think he would get his butt off to find a source of income other that his depleting stocks-for-sale.

That was the straw. After a few emotional outbursts, and tortures, we sat down and I explained why I am not giving in to those bills. It got him a bit and even suggested a divorce. Oh right! You're playing right into my hands. But no..that's not my game. It's gonna be a lose-lose thing if we do now. There's another way if he'd only work on something. I pray.

He came up with selling his car in order to pay the bills. I said I cannot afford that. Then he decided to study for the civil service test that can get him a job if he pass. Thing is he needs money to buy the books to prepare for that. He offered to sell his car to me again in installment basis. I tried to weigh it out. He's got a job plan at least, and I'm using the car anyway, so I shelled out the 250. That's another tricky thing as the car ownership name will still be his since it has still some benefits if it remains so. I may lose out on this --- again. My son says I should just buy my own.
It's more complicated than that.

So he finally looks into government welfare. He has to submit all our bank accounts to do so and that would mean it will show that I am supposedly earning enough to support ourselves. Yeah, right. That can be possible but that's not what I want. I don't want to be the sole breadwinner. I am all for working women but I grew up seeing my father work his hands off to provide for us. My mom helps but it's still my dad who is the main provider. To see it otherwise now is totally frustrating. So I'm doing what I think I should so it will not stay this long.  And I get to be blamed for this now.

Emotional attack but I try to keep my head in check. I won't lose it. I just hope that he pass that test and get a job. Once he's in, my next is to prepare him when he is forced to retire from the government in just a couple of years. I just hope that he won't pass it on his son to be the breadwinner at that time coz P would still be underage by that time.

To let this all out, I just have to write it all.  And perhaps google for some info into this matter.
Wife breadwinner tips from huffington

3. If you’re angry or resentful, find a way to get to the bottom of it. You’ll want to figure out what’s behind your frustration. Is it that you think your husband should be doing more to find work or to get a higher-paying job? You’d like to work less feverishly but feel you have no choice because you and your spouse need the income? You believe your husband should do more to help out in other ways? You’re still harboring a grudge because you think he didn’t pull his weight on childcare duties when your kids were younger? Or might there be deeper marital issues at play?

One exercise Mellan suggests is writing out your feelings in a letter to your husband but not showing it to him. Then, imagine the note he’d write back with his point of view and write that one, too.

I'm ok about earning more. But not about earning alone.

“Convey a positive attitude and sense of teamwork showing that ‘we’re in this together,’”

Use a “mirroring” exercise to help couples have this discussion. Each plays back what the other says without editorial comment. This technique builds more empathy and compassion.

7. Break the tension by finding ways to have fun.
~~~
NY Mag 
Alpha Women, Beta Men

First, the wife starts to lose respect for her husband, then he begins to feel emasculated, and then sex dwindles to a full stop.

There's hope.

Korean Money: Bills

Korean paper money has very limited denominations: 1000, 5000, 10000, and 50000. 

As the amount increases, the paper size also increases. 

The 50k is the very recent addition to this. It has has been a long over due one, and it is the only bill with a woman featured on it. There has been proposals to have a 100k bill since it might be really handful to just carry 10k's and 50k's but it hasn't pushed thru because of the possibility of easier source of corruption. 

I have yet to see if they would decide to do so in the future. 

Why do you work?

Aside from everyday living and the deeper need for getting busy and accomplishing something, I have just come to add the need for investment seriously. It's not exactly a new thing for me because I was able to set aside some amount almost ten years ago. It wasn't just that active and it has stayed there for a while.

Right now, with my second wind of work opportunities, I am more aware in the need to seriously work to invest for the later years. I have to be able to set aside the amount every month and put in a growing investment vehicle that will give me an extra income in the future. It's not just put aside this amount, let it sleep and hope that I don't have to withdraw it that soon. It's more different now, I can try to visualize how I want live in the next few years. It doesn't hang on someone else's plans coz I really don't think he has any. I'll be steering my own boat, let them ride if they want to coz so far, I have been the push for the life decisions that we had done. :)

I've just opened my online investment account recently and finally funded it today. Come April and I would be able to buy some stocks if I want to. Now, I've not been really idle in investing all these years coz whenever my bank account surpasses 7 digits (it's pretty small in Korean won actually, but still) I feel like I am "rich enough to invest." Now, that is an exaggeration. :) I just have this uneasy feeling like, what will I do with this amount? It isn't that big really but I am just thinking if it stays in my current account, it would all most likely be used in shopping. That can be an addictive vice, I know.

So where have those extra won had gone? What investment vehicle I've tried?
a. mutual fund - sleeping coz it's hard to withdraw
b. one-time time deposit - easiest to vanish, now gone
c. lot - luckily, it's still a "lot" and my parents are kept busy with it
d. house improvement - cost us a lot, we used it anyway, but I couldn't say it was a good one
e. education - not exactly solid on paper yet except for a license, but it did help me
f. installment time-deposit - Completed one cycle so far to try it out, but I don't really know what to do with it after coz it wasn't enough for a decent one-time deposit plus the rates are not that good anyway. I had to find other place to move it.

Anyway, I've used some of it on education (again) and some on the online investment I've just started. (450 and 700 respectively) I've also signed up for a couple of new installment TD account.

I'm also looking into updating my home-country government savings, insurance system, etc. My parents have been the one doing the payments but I found that I can possibly do once or twice a year from here. So I'll be looking into ways to do that next. I'm pretty positive that slowly but surely, I will be able to increase my monthly income soon. I should be more ready for that though. I don't want to be caught up working my butt out and not knowing where to let my earning grow without me having to work that much later on. I know that I can find a more stable source if I want to and when I am ready. I can also visualize myself being able to afford to go back home more frequently without causing much dent on our finances. There will be a way and I might be able to profit on the sides even.

It's all in the horizon. I just hope that my family will be in good health for more years to come to be able to realize these.  

So for the immediate check list of investments:
a. study the online investment
b. check out the PAG-IBIG payment system, modified and increased one
c. restart the Ph banking things again with an authorization letter for my Mom maybe

That's it for now. I am not feeling suddenly. I do need a health check up one of these days.