if i will have a million

if you will receive a million today, what will you do?

me, here's my grand plan for my million...

1. the 20% or 200T will be given to various church and non-government institutions as a form of tithes:

a. Caritas Manila - is the lead Catholic agency for social services and development in the Archdiocese of Manila and a lead provider of technical assistance to social service and development ministries in the five other Metro Manila dioceses.

b. Love-a-Parish-Program - is a centerpiece outreach program of the Greenbelt Chapel (Sto. Niño de Paz, Makati City), which aims to aid hard-up parishes with monthly grants.

c. Gawad Kalinga - is a poverty-reduction and national-building movement lunch by Couples for Christ (CFC), a Catholic lay community, to care for worse-off Filipinos and survivors of natural disasters.

d. Anawim Lay Missions Foundation, Inc. - is a home of 55 abandoned elderly plus a few orphans and physically and mentally handicapped persons founded by Catholic Lay Preacher and Best Selling Author Bo Sanchez in Brgy. San Isidro, Rodriguez, Rizal.

e. He Cares Foundation Inc. - is a Christian non-profit organization that helps extremely poor street children in Metro Manila by providing basic needs like food, clothing, education and medical assistance, as well as spiritual support. it was founded by full-time lay missionaries, Joe Dean Sola & his wife, Ardis in 1996 at 11 Acuña Drive, Philvirra Homes, Project 8, Quezon City.

f. Tahanan ng Pagmamahal Children's Home Inc. - is an organization that provides love, decent food, safe and clean shelter and other basic necessities to orphaned, abandoned and/or neglected children. It was founded by Rey Ortega located at 146 st francis street, bgy oranbo pasig city

g. SMFI Scholarship Program - is the flagship program of the Simbayanan ni Maria Foundation that caters to the educational needs of deserving yet underprivileged youth of Taguig City. it is founded by Rev. Fr. Anton C.T. Pascual

h. Philippine National Red Cross - is the premier humanitarian organization in the country, committed to provide quality life-saving services that protect the life and dignity especially of indigent Filipinos in vulnerable situations.

though 20% is too little, it can still change and support people's lives.

2. the 30% or 300T will be allocated to finance my existing business--the computer sales & services. it still needs revolving capital and payment of existing loans.

3. the other 30% will be used to fund the creation of my new business that would compliment my existing business--a computer & internet shop.

4. the 10% or 100T will be used to purchase additional balanced fund from my mutual fund provider. this will serve as our retirement fund.

5. the remaining 10% will be deposited in a bank and will serve as an emergency fund.

there you have it.

so, if there is anyone out there reading this blog with lots of millions in his/her pocket and don't know what to do, you can share it with me and let's do this together. :)

God bless!

budgeting 101

the third part of our financial literacy seminar in SFC is budgeting 101.

here are some tips on how to take care of your finances.

1. give first the ten percent (10%) of your net monthly income (less tax) to God as tithes. this is a priority. remember it is God's money as discussed in our previous topic on financial stewardship. so don't focus on the 10%, but on the 90% we keep for yourself.

note: if the situation is really tight then you can ask for an excuse. you can give to God whatever amount you can. after all, what is important is the condition of your hearts when you give.

2. allot another ten percent (10%) to your retirement fund. why retirement fund? because you cannot just entrust your future from your Social Security System (SSS) or Government Service Insurance System (GSIS) monthly pension when you retire. it may not be enough to sustain your daily expenses specially your medication. remember, you may live longer than you expected. invest your retirement fund through long term financial vehicles such as mutual funds, bond funds, etc.

note: if your money is not enough to buy shares from mutual funds, you can save it first in your preferred bank or cooperatives. when your savings is enough then transfer it to financial institutions that offers financial management like mutual funds. whatever happens don't touch it. you should only use it when you retire.

3. again allot another ten percent (10%) for your emergency fund. this is to ensure that your retirement fund is safe from your emergency needs. put this to your preferred bank or cooperatives to maintain the liquidity of your money.

note: for emergency purposes, you will need at least six (6) times equivalent of your monthly income.

4. live on the remaining seventy percent (70%). yes, you read it right--live on the remaining 70% of your monthly income. you will need to prioritize your expenses. avoid unnecessary spending. delay self-gratification. learn to simplify your lifestyle. don't spend more than what you earn. that's suicide. if you think that you cannot do it, think again. if there's a will, there's a way. you must have will power, determination, discipline, patience and hard work.

note: if your expenses overshoot your budget and you still need to get more money to augment your expenses, try looking for other means. try selling anything. as long as it's legal and moral. remember, money problems are just mind problems. you can solve it.

5. ensure your family. your insurance is for your future needs if you live longer. but what if you die young or become physically handicapped? what will happen to your family? what will happen to those people that are dependent on you and your income? don't leave them helpless. if possible, get a life insurance to protect your family/dependents.

note: to compute on how much insurance that you really need to get, multiply your annual expenses by 10.

source: Bo Sanchez, 8 Secrets of the Truly Rich