Keeping Away With Spending Spree Every Christmas Season

By:  Gilbert M. Forbes
Financial Wellness, Stewardship and Financial Literacy Advocate
DepEd CALABARZON

Keeping away with spending spree every Christmas season is challenging budget and financial wise individuals once more.  Stores are really keeping up with the time when bonuses are released to all salaried workers and employees both government and private- making their displays more mouth watering and extremely tempting than ever.

PHOTO courtesy of http: ant.sillydog.org

Shelves are updated with new and trendy items particularly tech and gizmo stores. These stores have even partnered with credit card companies to allure customers of buying their new models of cell phones, computers, high resolution and dynamic LCD television sets, etc.  One wouldn't be exempted of thinking of buying one of these to replace their ancient gadgetries for those who have long settled to surplus items like me.

To others who are riding with the craze of always embracing whatever is new on a yearly basis will certainly not be left behind starting from their trendy already cell-phones.  But to those who are already awaken and have already decided to prepare for a financially independent life, how could they escape the temptations?  Here are the tips.

1. If you have a debt, think of paying it first.  If you can pay it in full, better.  It will free you from a lot worries and stress in the future.
2. If you have no debt, save and start increasing your passive income as fast as you can.  Or start a small business.  One can start a business even from a Php500 capital. What more Php5 000 to 10 000.  Financial experts are saying that bonuses and other financial rewards salaried workers receive every Christmas season are not categorized as active income as such, they are suggesting that it should not be spent and should go directly as savings.  But since we just learned it, we could settle saving at least 20- 50% of it.
3.  Budget and stick to it.  Budget is the  lists of things to buy for a given time or season like Christmas..  List down only things that are really needed.  Review the budget two to three times for the last minute changes.  There is no more rewarding for any individual if he/she is always successful in sticking with her monthly budget. It is a part of self-restrained and discipline.
4. Always think of the end in mind as the best selling author of 7 Habits of Highly Effective people, Stephen Covey says.  When you think of the end in mind, you are thinking of the future that you want for your self and your family.
5. When temptation to buy and to be in, tickles or tempting your mind, ask only this question, Do I or we really need it? If we need it, can we still post phone having it?  If not, in what degree will it benefit us the most considering our financial standing?

At present, many just ride on the craze.  I just can't imagine that many will stumble on buying a laptop, a netbook or a wi fi ready cellphones when all they know is texting.  Or they are not engage into any industry except on-line gossiping, chit chat or tit for a tat.  It is just disgusting at times to meet and know people owning expensive cellphones but most of the time have no loads and are asking for pasa load.

I also know a lot of high-end cell phone owners who don't use their cell phones to the max because they are simply ignorant of its features.  That it could be used to store and play music and video as an mp3 or ipod can do.  That it can be used as a walk man or radio tuners.  That it could be connected to their stereos for more easy listening pleasure.  That it can record and take videos and more!  That they no longer need to buy doodles or USB sticks to connect to the broadband internet because 3g cell phones could be used as modems.

We'll one individual I know just bought a new MP4 player, an amplified speaker and a radio tuner!  He later bought a broad band USB stick or doodle and is planning to apply for a wifi connection in their area where even 3G signal is non existent.  The said individual has no life insurance,and a bank savings account that earn interest.  No other assets as well except for his gizmos and gadgetry, some jewelries and elegant fashion clothes.  We'll he drives a brand new company car and resides (as a care-taker) in a condo unit of a relative working over seas.

Though occasionally returning from his home province, in a tiny coconut and rice planting villages, he just developed an inner dislike to mud and dirt.  The way he speaks suddenly changed too with the full accent of a traditional manileño.  May be as an influence of dwelling in a city, it could be that his mind was infected by its pollution.

Principal's Should Be Effective Managers- Luistro

Department of Education Secretary Armin Luistro has callеd on all principals to bе morе proactivе in managing schools bеcausе studеnt performance is a reflection of how wеll thе principals perform thеir job.  (this article is lifted from www.depedteacher.blogspot.com)

Spеaking during thе Principals’ Forum of thе National Capital Region – Philippine Еlеmеntary School Principals’ Association (NCR-PЕSPA), Luistro likеnеd thе principals to his trustеd captains manning thе frontlinеs: “If wе wеrе in a battlefield, you arе in thе trеnchеs, in thе thick of battlе еgging your soldiеrs to fight on. You arе thе first linе of dеfеnsе who havе thе fееl of thе tеrrain, thе full grasp of thе situation and who know thе capability of your еvеry soldiеr.” Thе forum aimеd to enhance thе qualitiеs of principals as school managers who arе rеsponsiblе for thе learning outcomе of studеnts.

Luistro strеssеd that hе and othеr DеpЕd officials cannot not takе crеdit for what truly bеlongs to thе principals’ - thе direct management of schools. “Wе can only sеt thе dirеction and providе thе vision, support еndеavors and drеams. But it is thе principals who arе truly responsible whеn it comеs to school outcomеs and who dictate thе tempo of progress in thеir rеspеctivе placе of assignments.” PЕSPA is a national association of Elementary school hеads which supports Deped’s programs and activities.

To datе, thе secretary has alrеady visitеd 25 schools unannouncеd. Hе would sit at thе back row and obsеrvе how thе teachers conduct classеs and if thе students connеct. This is part of his unorthodox way of monitoring thе statе of public schools and how thеy arе bеing run by thе school hеads. His school visits also allow him to sее know how first hand thе resource gaps that nееd to bе urgеntly addrеssеd.

“In еight of my tеn visits, I must admit that I am inspirеd by what I saw and еxpеriеncеd whilе obsеrving from thе back row. But thеrе wеrе also sad storiеs that makе my hеart sink,” Luistro sharеd.

Luistro said that principals should not bе confinеd in thеir officеs but out in thе schools whеrе thе action is. “Principals, who just stay in thеir officеs and do not pеrsonally monitor thе situation in thеir rеspеctivе schools, do not transform Philippine education.

• Thе principals should bе doing thе rounds,
• inquiring on thе nееds of thе tеachеrs,
• fееling thеir inadеquaciеs, 
• sharing thеir joy and 
• sympathizing in thеir griеf 

 bеcausе principals should bе on top of everything that happеns in thе school,” hе addеd.

Luistro еxplainеd that principals should possess thе capability to translatе thе vision of thе dеpartmеnt into rеality, of translating plans into action.

An eternal optimist, Luistro said that, “I always want to sее and draw out thе bеst in еvеryonе. To maximizе thе potеntial of thе young students, wе should also maximize thе potеntial of thе teachers and thе principals.”

Thе department is pushing for thе adoption of thе national competency-based standards for school hеads;

• thе administration of thе national qualifying examination for principals; 
• thе development and implementation of programs to еnhancе thе managerial and leadership competencies of principals;
• thе downloading of thе maintеnancе and othеr operating еxpеnsеs; and 
• thе allocation of rеsourcеs basеd on nееds.

Deped sееs that education reforms can only happеn if thе principals arе handson. Thеy should also ablе to inspirе thеir constituеnts, to еnеrgizе thе pеoplе bеlow us and еarn thе rеspеct of thosе abovе thеm. “Principals should bе ablе to corrеct, to еncouragе, to sеt thе standard and to livе by еxamplе,” Luistro еxplainеd.

Hе addеd that asidе from school administrators, thеy should also bе thе “dirеct link to thе community who will opеn thе door for morе stakеholdеrs to invеst in public еducation. Thеy should bе ablе to еngagе thе local dеcision-makеrs, thе private sеctor, thе non-government organizations so that thеy can bе our partnеrs in achieving our school improvement plans.”

All of thеsе arе thе essence of School Basеd Management. “Thеsе arе part of DеpЕd’s vision to makе principals not just educators, but еffеctivе managеrs as wеll,” hе said.

Luistro also noticеd thе fast turnovеr of principals, which to him is not thе idеal situation. Hе wants to push that bеginning nеxt yеar, thе tеrm of thе principal should not bе lеss than thrее yеars but not morе than fivе yеars.

“Wе havе to givе our principals еnough timе to еnablе thеm to fully implеmеnt what thеy havе sеt out to do and maybе еnjoy thе fruits of what thеy havе sown. Lеt us givе our principals thеir momеnt to еnjoy thе dividеnds from all thеir physical, intеllеctual and еmotional invеstmеnts,” furthеrеd Luistro.

“Malaki ang tiwala ko sa aking principals. (I havе grеat trust to my principals.) I еntrust you thе teachers and thе studеnts. Parents entrust you thеir childrеn. Thе nation еntrusts you thе futurе. Tiwala ako na hindi nyo ako bibiguin, (I am confidеnt that you will not fail mе.) bеcausе you arе thе department,” said thе Deped chiеf.

(Reposted from an original article as described in the link entitled, Principal Performance: 8 out of 10 rated Inspiring on Unannounced Visit)

Enhancing Home Economics and Livelihood Education (EPP) Curriculum Towards Productivity

Gilbert M. Forbes
DepEd QUEZON

Some quarters have been reacting negatively to the recent order of DepEd to strengthen EPP in our schools which they say would jeopardize computer education.DepEd Order No. 108, S. 2010 Enhancing Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum Towards Productivity

So long, that we have put more emphasis on computer education which the late secretary Bro. Andrew Gonzales had noticed. Accordingly, he said that computer education in our schools have benefitted only TLE, and never did create an impact on the over-all standards or quality of performance across learning areas.

A lot of school heads even the not so tech savvy ones who have limited understanding on computers as a powerful tool of learning other than as EPP-TLE tool have rode on this craze since the late nineties. Many have been successful in putting computer laboratories in their schools which benefitted them in their promotions but not the improvement of the over-all learning standards, neither the teachers to be computer literate at least.

As a result, there are even reports that many schools across the country are highly indebted due to mounting electric bills, maintenance and operating cost. For instance, there are schools which received brand new computer sets even when there is no electricity in the area and so the said computers are left to rot slowly.

While there are also many schools which have good success stories to tell in the light of the computer education in their schools, much have the opposite. It has become more of a liability rather than an asset.

Now that a new DepEd Order have been released, it would really be a great boost particularly to enterprising schools who’s teachers and personnel are attuned to the importance of Agriculture and Manual Labor. Implemented properly and coherently, schools particularly those with large track of vacant lots would be able to produce and earn for sustainability of their feeding programs as well as have an additional non-traditional source of income.

More importantly, it will successfully renew the promotion of the value of manual labor among the pupils, students and parents alike. The significance of farming not only as a decent job that give us food on our tables and most of all, give many of our country men a fall back in times of underemployment and unemployment will also get emphasis and promotion. Now that, farming has been identified as a dying profession, this really is a great boost.

Indeed, a wise decision of the Aquino regime to start in the education sector as it moves forward in its objective of food self-sufficiency.

Being Truly Rich: Gaining Financial Freedom (Paglaya sa Kakapusan) Second Part in a Series

Ayon sa isang eksperto sa paghawak ng pera o tinatawag na financial management specialist na si G. Francisco J. Colayco, "kaya ng bawat isa ang magingmalaya sa kakapusan. Kung ikaw ay kumikita, mayroon kang pagkukunan ng puhunan at ito ay kaya mong palaguin. Kailangan lang ay mag-umpisa ka na agad."

Nailagay sa ating kaisipan na mahirap maging mayaman ang mahihirap. Ang pagiging mahirap daw ay bigay ng tadhana o kaya naman ay kawalan ng swerte. Ito ang uri ng mga paniniwala na dapat alisin upang maging malaya sa kakapusan. Ayon kay G. Colayco, ang pagkita ng salapi at pagpapalago ng kita aymagkasing-halaga. Ang dapat daw nating matutunan ay ang magplano sa pamamahala ng ating kita. Ayon sa kanya dapat nating tandaan ang mga sumusunod:

• Alamin ang pangangailangan sa hinaharap.
• Paghandaan at alamin ang mga wastong paraan upang makamit ang perang sasagot sa mga pangangailangan.
• Ibagay o baguhin ang iyong pangangailangan para sumang-ayon sa iyong kakayahan.

Kailangang ating tandaan na ang kayamanan ay ang pagkakaroon ng salapi na pangtustos sa oras ng ating pangangailangan. Ang ating pangangailangan sa araw-araw ang magtatakda kung ano ang sapat na kayamanang akma para sa atin. Ang ating pangangailangan sa araw araw ay dapat iakma sa ating kakayahan. Dapat tayongmamuhay kung ano lamang ang ating kaya.  Ayon kay Colayco mayroon daw apat na antas ng ating kakayahan sa pananalapi:

• Antas ng Pag-uumpisa - ibig sabihin ang lahat ng iyong kita ay galing saiyong sariling oras at pagod. Ang pinaka-unang dapat mong gawin aymaghanap ng pagkakakitaan. Ang iyong sariling lakas at talento ang iyongunang puhunan kung kaya dapat mong pagyamanin ang iyong sarili dahil ito ang una mong puhunan.
• Antas ng Pagpapalaki ng Kita - Narating mo na ang antas na ito kung nagtatrabaho ka pa rin ngunit 20% ng iyong kabuuang kita ay nanggagaling na sa interes ng iyong ipon o kita ng napamuhunang pera.
• Antas ng Pagkakaroon ng Kita Galing sa mga Ari-arian (Assets) -Narating mo na ang antas na ito kung nagtatrabaho ka pa rin ngunit 30-60% ng iyong kabuuang kita ay nanggagaling sa interes ng iyong naipon o kita ng napamuhunang pera.
• Antas ng Pagreretiro - Narating mo na ang antas na ito kung 100% ng iyong kita ay nanggaling na sa interes ng iyong naipon o kita ng iyong napamhuhunang pera kung kaya maaari ka nang hindi maghanap-buhay.

Ang mga antas na ito ay hindi nakabatay sa gulang ng tao. Maaring bata pa aymarating na ang antas ng pagreretiro dahil sa matalinong pamamahala ng pera. Maaari rin namang kahit matanda na ay hindi pa ito makarating sa pinaka mataas na antas. Hindi rin masasabing huli na ang isang tao kung siya ay magsisimula sa matalinong pamamahala ng kanyang pera kung siya ay matanda na. Walang pinipili itong edad.

Ngunit mas makabubuti na habang maaga pa ay kumilos na sapagkat sa lahat ng nawawala na di na puwede pang ibalik ay ang oras o panahon.  Reference: Modyul 19, Ang Pilipinas sa Pambansang Kaunlaran, Bureau of Secondary Education, DepEd Complex, Meralco Avenue, Pasig City. 

You may also like to read:

•  Ang Tunay na Mayaman (Being Truly Rich: A Series on Financial Literacy and Personal Finance in Filipino) 
• Knowing How Financially Healthy or Un-healthy We Are (Being Truly Rich: Third Part in a Series)  
• Seven Ways to Avoid Bad Debt (Pitong Paraan ng Pag-iwas sa Masamang Utang) 
• Value of Personal Finance as Advocates Promote Validated by Orman's Visit, A Wake Up Call to Skeptics   
• Financial Education, A Must for Teachers

Ang Tunay na Mayaman (Being Truly Rich: First Part in A Series on Financial Literacy and Personal Finance in Filipino)

By:  Gilbert M. Forbes
DepEd Quezon, CALABARZON

Para sa marami sa atin, mayaman ka kapag ikaw ay nakatira sa isang mansion sa loob ng sikat na subdibisyon. Maraming sasakyan, kumpleto ang bahay sa kagamitan, mamahalin ang kasuotan at alahas sa katawan at malaki ang suweldo o kita. Ngunit gaano man karangya ang pamumuhay ng isang tao sa ating paningin, hindi ito sapat na batayan upang maituring ang sinuman na mayaman.

Para sa mga eksperto, ang usapin ng yaman ay nasusukat sa kanyang net worth at kung gaano ito tatagal. Ang net worth ay ang kabuuang halaga ng pera at ari-arian pag binawas na ang lahat ng pagkakautang o lialibilities. Halimbawa, maituturing na mas mayaman pa ang katulong ng isang milyonaryo sa Ayala Alabang kung ang kanyang ari-arian at pera ay kulang pang ipambayad sa lahat ng kanyang pagkakautang.

Bukod sa net worth, ang yaman ay nakabatay rin sa uri ng life style o pamumuhay. Halimbawa, kung may 150 Milyon ka at wala nang inaasahan kundi ito at dahil sa marangyang pamumuhay ay nakatakdang tumagal lamang sa loob ng 40 taon ay mas mayaman pang maituturing ang isang ordinaryong magsasaka na kumikita lamang ng sapat at nakapagtatabi ng sapat para sa kanyang pagtanda o pagreretiro.

Sa makatuwid, ang tunay palang mayaman ay iyong naabot na ang antas ng tinatawag na kalayaang pinansyal o 'financial independence' ayon sa antas na nais o pinili. Ito ay ang antas ng pamumuhay na hindi mo na kailangan pang maghanapbuhay sapagkat sapat na ang iyong ari-arian para suportahan ang mga batayang pangangailangan sa araw-araw ayon sa uri ng pamumuhay o life style na nais habang buhay.

Syempre, kung nais natin ng marangyang pamumuhay, mangangailangan ito ng malaking halaga ng passive income. Ang passive income ay kitang mula sa naipundar na mga negosyo kung meron, ari-arian tulad ng paupahang bahay, bukirin, interes ng perang naimpok sa bangko, dibidendo mula sa mutual funds, stocks at iba pang investments, pension mula sa retirement fund bukod sa SSS o GSIS at iba pa. Active income naman ang tawag mula sa ating kinikita sa ating trabaho na bunga ng ating pagpapawis, kakayahan, lakas, talento at iba pa.

Ang kalayaang pinansyal o financial independence ay tinatawag ding retirement stage ng mga financial experts sapagkat hindi muna kailangan pang puwersahin ang sarili upang maghanapbuhay o mapako sa routine ng regular na trabaho. Ito iyong estado ng pamumuhay na ikaw ang may kontrol sa iyong oras at ito ay maaaring makamtan sa maikli man o mahabang panahon depende sa paghahandang ginagawa mo ngayon.

Kaibigan, kung hindi ka masaya sa pinansyal na katayuan mo ngayon, pano ka kumikilos upang ito ay masolusyonan? Ipinagwawalang bahala mo ba ang mga bagay na maaari namang mapaghandaan at maiwasan ngayon pa lang? Alalahanin sanang ang lakas at kalusugang dulot ng kabataan ay may hangganan.

Ang sabi ng Bibliya sa wikang Ingles, “The wise man saves for the future, the foolish man spends whatever he gets.” Proverbs 21: 20. Saan ka nabibilang kaibigan?

(Ang artikulong ito ay kauna-unahan sa mga serye ng mga sulating inihanda para sa kamulatang pinansyal ng mga guro, empleyado sa pamahalaan at pribadong sektor, manggagawa at sa buong sambayanang naniniwala sa kabanalang hatid ng pagiging mabuting tagapamahala ng mga biyayang nagmumula sa poong Maykapal. Inspirasyon ng sulating ito ay ang aklat na Pera Mo Palaguin Mo o Wealth Within Your Reach ni Francisco J. Colayco at Rich Dad Poor Dad ni Robert Kiosaki.)

Maaari ring basahin ang sumusunod:

Being Truly Rich: Gaining Financial Freedom (Paglaya sa Kakapusan) Second Part in a Series

Knowing How Financially Healthy or Un-healthy We Are (Being Truly Rich: Third Part in a Series)

Eight Steps to Get-out of Bankruptcy and Debt (Walong Paraan ng Paglaya sa Pagkakabaon sa Utang)

Sustaining Gained Grounds on the Way to Financial Freedom (Tuloy-tuloy Tungo sa Kalayaang Pinansyal)