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Financial Plans: Basics and Know-Hows

Financial Plans: Basics and Know-Hows

June 8, 2020 | by HC Mutual

A financial plan is an evaluation of your income, budget, and expenses—an actionable guide to achieving your goals. While many people find this intimidating, you can create one easily by understanding how it works and how it can benefit you. Take it one step at a time and work at your own pace.

Let us help you get started by breaking financial planning down to the basics.

The building blocks of a solid plan.
Before you sketch out your plans for the future, here are the key terms and financial components to learn and consider:

  1. Monthly budget – Track your spending and allocate the right amount to your living expenses, utilities, food, rent (if any), and travel costs. Check out our guide to budgeting here.
  2. Savings – Starting on your savings early can help you grow financially, and ensure a comfortable life for your family. The KayaMo Saver’s Plan makes this easier with its salary deduction scheme and flexible payment terms.
  3. Debt management – It’s ideal to include steps to paying off debt and dues in your financial plan. Review your monthly budget and consider what expenses can be removed or cut down.
  4. Emergency funds – As we face unprecedented times, it is advisable to have financial safety nets on top of your savings. Set up your emergency funds for unexpected expenses.
  5. Insurance and retirement plans – These plans can help you achieve financial security in the long run. Look into insurance and retirement programs that can address your needs and fit into your budget.

Creating your financial plan
It’s okay to start small when building your first financial plan—it doesn’t have to be complicated to be effective. Here are our tips to making a simple and practical one:

  1. Figure out your financial situation – An honest evaluation of your finances can help you make concrete plans. List down your household’s income, monthly expenses, and savings. Place them side-by-side and compare the numbers to have a better understanding of what you’re earning versus how much you’re spending.
  2. Set short-term and long-term goals – These will set the direction of your financial plan. Try setting goals with timelines like paying off a certain debt within 6 months, saving an extra Php 2,000 in 2 months, or buying your first home within 2 years. 
  3. Outline your action plan – Now that you know what you want to achieve, you can focus on how you can get there. Are you making the most out of your monthly budget? Have you considered loans? Do you need extra income or is it a matter of reallocating money?
  4. Record your finances – We understand that official paperwork can be difficult to complete, but if possible, keep a copy of your pay slips, bills, taxes, payments, receipts, etc.
  5. Don’t hesitate to seek advice – Talk to people who have experience to gain insight on options that you can explore and research. At HC Mutual, we also share Financial Wellness Tips and resource materials to help you.

Working on your financial plan gives you a clearer vision of your financial journey, including your milestones and low points. By setting definite goals, you can determine the right plan of action and take the best path towards securing the future for yourself and your family.

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Finance Management Financial Plans HC Mutual Personal Finance

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The first steps to planning your budget

The first steps to planning your budget

May 29, 2020 | by HC Mutual

Many people believe that going on a budget means tightening the belt and cutting down on expenses. However, budgeting goes beyond that. It’s about allocation and planning, making sure that your hard-earned money is spent on the things that truly matter and make you happy.

If you’re new to budgeting, here are some tips that can help you begin and follow through your plans for the coming months and the long-term.

Track your spending.
Step one is to know the ins and outs of your spending habits.
For at least 30 days, take note of where you’ve been allocating
your funds. How much do you spend on groceries, utilities, rent
(if applicable), and travel expenses? You should also look at
your monthly subscriptions and plans, if any, as well as your
shopping or leisure expenses.

Know your income.
Before you begin spending, know what funds you’re working
with. How much do you earn? How many people are paying for household expenses? The more you know about your finances,
the better you can plan your budget.

Leave room for the unexpected.
Always overestimate funds for basic needs, emergencies, or unplanned expenses. Leaving a buffer in your budget is
especially helpful if you are self-employed or if your income is
inconsistent.

Set goals.
When planning your monthly budget, set small and big goals for
yourself. Whether it’s paying off your debt, decorating your
living room, or buying your first home, take the necessary steps
to make it happen. Accomplishing milestones can help inspire
you to keep going and to do better.

Include your savings in your budget.
Treat your savings as part of your utilities or monthly
obligations. Set an amount to “pay” consistently. To make
saving easier and lighter for you, we offer the KayaMo Saver’s
Plan. This disciplined financing program keeps you on-track of
your budget through a salary deduction scheme and flexible
payment terms, helping you save up for emergencies and
long-term goals.

Keep an updated record.
Whether it’s through an app, a notebook, or a spreadsheet, we
recommend documenting your finances. Keep your receipts
and use them to better track your spending. By having your
monthly income and expenses recorded, you can create a
clearer and well-grounded plan.

While it’s good to keep to your budget, remember that you have the choice to adjust it according to your priorities. Budgeting should not be a painful activity—it’s a tool to make your life easier and a stepping stone to achieving your future goals.

Tags
Budgeting Tips HC Mutual Monthly Budget Personal Finance Saver’s Plan

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Taking the leap: Are you ready for your first home?

Taking the leap: Are you ready for your first home?

May 22, 2020 | by HC Mutual

Choosing to buy your first home is one of the biggest decisions of your life. It is a commitment and a dream come true, which is why
you need to make sure that you’re ready before taking this major step.

There are many things to consider before going out to house-hunt: your savings, available properties, and your family’s preferences.
To prepare you for this life-changing move, here are a few questions that you can ask before buying your first home.

What kind of house do you want?
Knowing exactly what you want and what your family needs can
work wonders on your financial plans. Factor in the plot size,
floor area, configuration, and location of a potential home
when budget-planning to help balance costs to what you’ll
spend living in it. Consider the household’s accessibility, fuel
and transportation expenses, monthly bills, and other
day-to-day expenses.

Have you compared property prices?
Be sure that you’re getting a fair price for your home. Research
similarly sized properties in different areas and neighborhoods.
Make a list of your options and weigh out the pros and cons.
What are the amenities? Are there other inclusions? How long
has it been on the market? By comparing houses and taking
time to make an informed decision, you can get the most out of
what you’re paying for.

How will your savings look after your purchase?
A good place to start when buying a house is where you’ll be financially after you sign the deal. Will you still have enough for utilities,
essentials, and additional fees? Being ready for your first home goes beyond meeting its market price. Look at how much you’ll have
left for your monthly budget and savings.

How stable is your source of income?
Before making your decision, secure a steady and long-term
source of income. How many people are earning for the
household? Do you share bills and split living expenses? Having a
stable livelihood on top of your savings will ensure a happy and
comfortable life for your family in the long run.

Are you ready for lifestyle changes?
The process of paying for and maintaining your property can
greatly affect your lifestyle, especially for the first few months.
Review your monthly budget and consider: Do you need to lower
your mobile data plans, allocate more for utilities, or spend less on
leisure activities? Evaluate what changes can be made to cushion
your savings as you settle in your new home.

Have you considered your financing options?
One way to ease the financial load when buying a house is to apply for a loan. Look at the interest rate, payment terms, and loan
amount. Does it cover what you need? How does it fit into your budget? We at HC Mutual take these into consideration. We have
offers like the KayaMo Home Loan—with flexible terms and a wide range of partner home developers—to provide a smooth-sailing
journey to your first home.

Owning a place that you can proudly call yours is a major milestone. It is a decision best made with your family and an investment
that can last through generations. You don’t have to rush into it. Give yourself enough time to work through your financial goals at
your pace and build up enough savings before taking the leap.

Tags
Budgeting First Home HC Mutual Home Loan Savings

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Keeping your family healthy in your first home

Keeping your family healthy in your first home

May 11, 2020 | by HC Mutual

Every Filipino deserves to enjoy comfortable and worry-free lives in their own homes. Your living space is where you nurture and
share milestones with your family, which is why it is important that your home is equipped to protect you and your loved ones from
disease and illness.

The World Health Organization (WHO) has developed evidence-based recommendations on housing and health to make sure your
home is safe and healthy. Check out these guidelines to know what to look for while house-hunting or updating your home.

Regulate indoor temperature
With our country’s hot climate, we need to be mindful of indoor temperatures. If your home runs too hot, you risk dehydration, heat stroke, and other pulmonary disease. It may also affect sleep quality and the immune system, especially for children and the elderly. To help cool down, WHO recommends proper ventilation (and taking advantage of the night air), window shades, green spaces, and thermal insulation.

Prevent household crowding
This aspect of housing covers the size and capacity of your home. Studies show that crowding may increase the risk of disease, sleep disorders, and stress. Before choosing or building your home, it is best to take your family’s numbers into consideration.

Remove injury hazards
Globally, about a third of injuries occur at home. However, you can minimize this risk by freeing your space of hazards like uneven flooring and steps, inadequate lighting, and unprotected hot surfaces. Prevent home injuries by adding gates and stoppers on your stairs, guards on stoves, and child-safety locks on your doors and windows. It is also best to inspect your floors to make sure that they aren’t too slippery especially when wet.

Make your home accessible
An accessible environment can help persons with disabilities enjoy better health, accomplish everyday tasks easier, and improve their quality of life. You can start by adding hand railings, ramps for stairs, safety frames on your toilets, and push/pull door handles. You can also rearrange your furniture for easier access or adjust indoor lighting, depending on each room or family member’s specific needs.

Have clean water at hand
Access to clean water is one of the most important things to consider when moving into your home. It is optimal to have at least one water supply and multiple taps within the house to sustain hydration, prepare food, and maintain personal hygiene.

Improve indoor air quality
Damp and dusty surroundings, food preparation, and smoking can pollute your home’s air, which may then lead to a weakened immune system, allergies, and disease. To combat these risks and to improve air quality, it is recommended to have proper ventilation, prevent smoking indoors (especially around children), and to keep your living spaces clean.

A happy and carefree life begins with good health. Cherish your loved ones by making sure your first home is up to standard and conducive to the well-being of the whole family.

Source: WHO Housing and Health Guidelines (2018)

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First Home HC Mutual Home Loan Home Tips Housing and Health

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Going Beyond the Expectations

Pleased to have met the top executives of Homecredit Mutual Building and Loan Association (left to right): Mr. Kevin R. Lynch (President/CEO), Ms. Mylene H. Paris (Marketing Head), Ms. Virgie Ventura (Asst. Manager Client Services Dept.) and Mr. Michael C. Kaiser (Head Client Services Dept.)

Going Beyond the Expectations

February 17, 2020 | by Marilyn Amoro, HC Mutual Member

Pleased to have met the top executives of Homecredit Mutual Building and Loan Association (left to right): Mr. Kevin R. Lynch (President/CEO), Ms. Mylene H. Paris (Marketing Head), Ms. Virgie Ventura (Asst. Manager Client Services Dept.) and Mr. Michael C. Kaiser (Head Client Services Dept.)

My daughter and I had the pleasure of meeting the top executives of Homecredit Mutual Building And Loan Association. I’ve been a member of this association since 2010 and I’m honored to have a trusted partner for roughly 10 years. They’re one of the associations I’ve known that goes beyond their service.

Year 2016 when I gave birth to my youngest child thru c-section at the Las Piñas Doctors Hospital. I was unconscious all throughout as I passed out when I got right at the doorstep of the hospital. Sadly, due to severe pre-eclampsia, my delivery led to a heart and lung complication (pulmonary congestion) so I was sent to the ICU (Internal Care Unit) after staying at the emergency room. When I woke up, there were tubes in my body and had to take lots of medicine thru IV infusion. The delivery was successful but I had to undergo lots of tests. Many times, three regular doctors would always tell me the same thing over and over again when they visited me, that only a small number of women can outlive this case, stating only 2 out of 10 can survive. My OB-GYN told me that I was so lucky for having a second life that she even advised me to offer a thanksgiving mass once I get out of the hospital.

I’d wanted to be released from the hospital since day one because I know the longer I stay, the higher our bills would get.

While my baby daughter was declared healthy after staying for 2 days at the nursery section, I, in my weakest state, stayed in the ICU for 7 days to have my heart and lungs monitored. After being released from the ICU, I stayed in a regular room for 3 more days. Our hospital bills kept on increasing each day and it’s something that we didn’t expect. Thankfully, we had friends and loved ones who helped us go through that situation.

Homecredit Mutual Building And Loan Association provided financial assistance during that time, aside from the help we received from our relatives, friends and our immediate families. Without them, we couldn’t survive financially. Ms. Virgie Ventura, Homecredit Assistant Marketing Manager, even visited me in the hospital that time to check my condition. She met my family twice and I can vividly remember what she said, “You are blessed, you have a very beautiful family”.

I will always be thankful to those who have helped my family during that time, most especially those who have always prayed for my fast recovery. I still have the encouraging notes, letters and heartfelt text messages with me. When I look back, I still can’t believe I’ve surpassed that challenge in my life. It may have brought us to a financial and health difficulty but it gave us another source of inspiration to live. That day has changed my entire life as our littlest angel came to our lives. It all happened with a purpose and that purpose made our family much happier and made us more united (me and husband most especially).

It brought me to a realization that you will always be tested many times, but if you have trusted friends and reliable partners in life, things will be a lot easier to handle. They will go beyond what you expect them to do, it’s all because they care about you.

Ms. Virgie Ventura (Asst. Manager Client Services Dept.), my daughter, Raulyn and I

https://bit.ly/32s9CJL
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Cash Loan HC Mutual Saver's Loan Testimonials

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