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Pay Yourself First

Pay Yourself First!
Tips to boost your savings through reverse budgeting

July 11, 2023 | by HC Mutual

We have entered the second half of the year. Let’s take this time to evaluate our personal goals and how far we have come in achieving them.

“Have I saved enough money?” is probably one of the most common questions we ask ourselves, and it is always disappointing when we find that we are nowhere near our saving goals. Yet, with our current economy, staying committed to our financial goals continues to be more challenging: it is not surprising that even professionals with a decent monthly salary have little to nothing allotted for their savings account. 

If you’re one of those having difficulty building your savings, all is not lost. There’s a saving method called “reverse budgeting”, anchored on the idea of paying yourself first before anything else. This method is perfect for those who want to grow their savings and have set a deadline for their financial goals. 
What are the advantages of reverse budgeting?
1. It forces you to live within/below your means.
Do you find yourself living more expensively as your income increases? You are not alone. In fact, this tendency is quite common. With reverse budgeting, you will be forced to live within or below your means even if your income increases. This means that a bigger fraction of your income can be allotted for savings.
2. It You can achieve your financial goals sooner.
Reverse budgeting is a savings-oriented strategy. It involves planning your expenses based on how much you want to save per month. It enables you to prioritize your saving goals, commit to your saving method, and eventually acquire the goal you set for a particular period or even earlier than you planned.
3. It converts your DESIRE to save money into a NECESSITY. 
Since reverse budgeting involves paying yourself first BEFORE settling your mandatory expenses, saving becomes a responsibility every time you receive your salary. This develops your discipline and commitment in reaching your financial goals.
How do you apply reverse budgeting? 
1.Plan your way of spending based on how much you want to save.
Set how much money you want to save in a given period of time, then analyze how much you have to save monthly to reach that goal. Consider your monthly income, as well as mandatory and discretionary expenses per month.

This is also where you have to decide which discretionary expenses to remove. Discretionary expenses include subscriptions to various services, gym memberships, online shopping, and other wants that you can live without.
2. Research savings plans that can serve as good investments for you.
Being knowledgeable about your options for savings plans is a good strategy for maximizing your savings. Choose which plans work for you and which will help you achieve your financial goals sooner. This is also where you have to decide which discretionary expenses to remove. Discretionary expenses include subscriptions to various services, gym memberships, online shopping, and other wants that you can live without.

Here are some things to consider:
  • Interest rates
  • Minimum balance requirements
  • Savings type (e.g. Regular savings vs. time deposit) 
  • Automatic saving options
There’s a saying that one should not put all their eggs in one basket – and this also applies to saving. Consider opening multiple accounts so you can have more flexibility and maximize earning interest from different avenues.
3. Open a secure savings account and automate your savings. 
When you automate your savings, there’s a better chance you won’t be able to use the money for anything else, and can help make paying yourself first an easier habit.

HC Mutual provides adaptable and cost-effective plans that empower you to manage your finances and live the life you aspire. Our savings plans offer attractive interest rates and encourage you to save automatically via payroll deduction or automatic debit arrangement (ADA) – so you can easily expedite the growth of your savings and accomplish your financial goals sooner.

Select the plan that suits you best, and witness the remarkable growth of your savings.
  • Flexible payments terms of 3, 5, or 7 years
  • 3% earnings from your savings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase
with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan
LEARN MORE

Starting and committing to a new saving method like reverse budgeting can be daunting at first. 

But with dedication to pay yourself for all the hard work that you do, 

you can eventually turn it into a habit that you won’t regret getting into. 

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Beware of Scammer Tricks!

Beware of Scammer Tricks!
Tips to Avoid Falling Victim to Scams

June 22, 2023 | by HC Mutual

Have you experienced getting a text message from an unknown number stating that you won a cash prize from a raffle you don’t remember joining? How about an email from an online shop asking you to click a link to claim your discount? Or a phone call from a “bank representative” asking you for some of your personal details?

These are some common examples of scams that result in the victim’s loss of funds, or even identity theft. It is easier to fall into these traps nowadays because scammers know more ways of fooling people: They can do it through text messages, chat, emails, calls, posts, fake websites, and more.

This should serve as a wake up call to everyone. If scammers are coming up with more creative schemes, it would be best for you to be more vigilant and knowledgeable about the effective ways in avoiding scams. Here are some tips that you should know!  
1. Familiarize yourself with the latest form of scams.
Scammers have become more creative with their strategies. Here are some of the most common scams that you should avoid:
  • Online purchase scams – Customers are tempted to avail unrealistic deals but the products do not arrive.
  • Loan scams – Customers are offered affordable loans online but they are required to provide their personal details and monetary deposit first before the loan is processed.
  • Social scams – Scammers impersonate your family or friends online or through text messages then ask you for financial help to get out of an emergency. 
  • Impersonation scams – Scammers pretend to be bank representatives and convince you to avail of credit cards or give your personal information so they can assist you in preventing your account from being locked. 
Other forms of scams include fake websites that require you to supply your personal details and credit card details (also called “phishing” websites), fake sellers in social media, and malicious pop-ups. Always be aware of the different ways scammers can reach you so you can avoid falling into their illegal schemes. 
2.Update and secure the login credentials of all your accounts.
Most mobile banking apps encourage you to update your passwords after a given period of time. Make sure to follow this practice to improve the security of your accounts.   It would also be best to keep track of all your passwords in your mobile banking app, email, and social media accounts. Secure them in a list only you can access and avoid saving your passwords in your devices. Enable two-factor authentication or use an authenticator app so it won’t be easy for hackers to open your accounts. Lastly, connect to your mobile banking accounts using only a trusted WiFi source; using a public WiFi hotspot offers less security.
3.Always check the senders of the text messages, emails, and chats you receive.

Before replying and clicking any links within the message, double-check the senders of the text messages, emails, and chats you receive. Most scammers can now create emails that appear to be from legitimate sources, with minimal differences compared to official company email addresses.


Here are some of the red flags that you should watch out for:

  • Misspelled words or grammatical errors in text messages, chats, or emails
  • Signs of urgency
  • Requests for sensitive/personal information
  • Sketchy links or email addresses
  • Deals that are too good to be true

In terms of text messages and chats, avoid interacting with unknown numbers and users. Official companies usually have registered contact numbers that appear on your mobile phones when they message or call you.

4.Update and secure the login credentials of all your accounts.
A fake support call usually comes with a warning that they cannot help you if you do not give them your personal details immediately. Banks, e-wallets, and other service providers will not ask for your birthday, account numbers, passwords, OTP’s, and the like. Drop the call and check your accounts for any unauthorized transactions. You can also report the incident to the company being impersonated in the fake support call.

5.In terms of choosing where to put your money, choose a savings account that is proven to be secure.
HC Mutual ensures its members that their hard-earned money is always safe. Aside from this, you can also grow your savings with good interest rates! Choose the plan that works best for you and start building the life you aspire to have.
  • Flexible payments terms of 3, 5, or 7 years
  • 3% earnings from your savings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase
with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan
LEARN MORE

Always be aware and careful with who you interact with online or through texts and calls. Be suspicious by default so you can meticulously assess the credibility of the person trying to interact with you. Scammers can be more creative with their schemes, but if you practice being more vigilant, you can avoid falling for their tricks. 

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Why Budgeting Should be a Part of Your Holiday Planning

Empower Yourself through Financial Discipline
Practical Tips to Grow Your Savings and Reach Your Financial Goals

May 26, 2023 | by HC Mutual

Being financially disciplined takes a lot of work and patience. In our current economy, it is tempting to park our savings goal and concentrate on attaining our needs and buying the things that we want. However, the best way to get our money’s worth is if we pay ourselves first. 

Reaching a substantial savings goal can be very rewarding. Just imagine what you can do—like purchasing your dream car or house, going to your dream destination, or taking a break from working for a while. 

Your progress highly depends on your commitment, patience, and motivation to grow your savings. To help you stay committed to being financially disciplined, here are some easy-to-follow tips! 

1. Always set a clear distinction between your needs and wants.
 

This helps set your priorities straight. When you clearly and regularly categorize your needs and wants, you can avoid spending on items or services that you don’t need for the week or the month. You can easily identify what to pay or purchase first before considering the rest of the items or services on your list. 

If ever you want to buy items that you don’t need, wait for a day or two before deciding to buy it so you can make sure that your priorities come first. 

Have a copy of your list of needs on your smartphone so you can take a look at it every time you think of buying something.

2. Categorize your financial goals into three:
short-term, mid-term, and long-term.

Categorizing your goals helps in realizing your priorities. Here’s an example of how you can categorize your goals:

With clear and categorized goals, it’s easier to be reminded of why you’re
saving and get motivated to develop wise spending habits.

3.Track your progress monthly and give yourself simple rewards for your accomplishments.

 

It’s important to make sure that you’re on track to growing your savings and achieving your goals. Practice monitoring your expenditures and savings regularly so you can identify what practices work for you and in which areas you need to improve. 

Most people find it greatly motivating to visualize progress. You can use a notebook or board as your tracker. Get creative with it so there’s an element of fun whenever you mark your settled payments or purchases. You can also use free digital tracker apps so you can double-check it wherever you are. 

Of course, nothing’s better than having your hard work rewarded! Whenever you’re able to pay all your bills or reach your target savings for the previous months, treat yourself by going to your favorite restaurant, buying new clothes, going to the cinema, or anything that can motivate you.

4.Open a rewarding savings account.

 

It’s best to have a part of your financial discipline on autopilot. This assures that you will always pay yourself first every time you receive your monthly income. Having a savings account with good interest rates also helps you grow your savings and achieve your financial goals sooner. 

HC Mutual offers flexible and affordable plans that help you manage your finances effectively so you can start building the life you aspire to have. Choose the plan that works best for you and watch your savings grow.

  • Flexible payments terms of 3, 5, or 7 years
  • 3% earnings from your savings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase
with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan
LEARN MORE

Staying committed to being financially disciplined and growing your savings can be daunting but with
effective strategies and tools, you can effortlessly integrate it into your daily life until you can finally experience its fulfilling results.

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Start Your Journey Towards Financial Discipline

Start Your Journey Towards Financial Discipline
Effective Strategies to Develop Smart Money Habits

January 25, 2023 | by HC Mutual

Developing financial discipline is one of the best things you can do for yourself. It refers to the ability to take charge of your income and expenditures: understanding how much money you earn and spend and how much you should save and invest. It also involves veering away from bad spending habits and including mindful spending in your daily lives.

It might sound difficult to attain knowing that the economic impact of the pandemic is still experienced by everyone. However, you can start gradually by building up wise spending habits one by one until it becomes part of your daily life. The sacrifices are worth it in the long run—having financial discipline enables you to achieve your financial goals sooner. It also helps you acquire financial security that eventually empowers you to create the life you aspire to have.

To help you get a good start, here are effective ways in developing financial discipline:

1. Educate yourself.
 

Learn how to manage your finances from different resources. Read books or credible websites, watch informative videos, listen to podcasts, or talk to people you know who have mastered financial discipline. Choose the practices that you believe will work for your lifestyle and slowly integrate it into your habits. Avoid being too hard on yourself if you can’t get the hang of it immediately—building discipline requires utmost patience.

2. Eliminate unnecessary expenses.
 

Committing to financial discipline comes with delaying or letting go of expenses that you don’t need. Here are some tips:

  • Unsubscribe from paid applications or premium accounts that you don’t always use.
  • Reduce the number of online shopping apps on your phone.
  • Learn how to cook affordable and easy-to-prepare meals so you have other options aside from dining out or using food delivery apps.
  • Don’t feel obligated to buy something that’s on sale. Wait until you have the budget for it.
  • Avoid buying the latest clothes, shoes, or gadgets if you still have a lot to use and have no other reason for buying it aside from the fact that it’s on-trend.

Reducing your unnecessary expenses does not mean that you cannot have fun using your hard-earned money. Its main goal is for you to establish a balance between spending for fun and spending wisely.

3. Set specific and realistic financial goals.
 

Having specific and realistic goals are more motivating because they are more attainable, and could give you the confidence and feeling of achievement that is necessary for effectively changing your spending habits. You can start by categorizing your goals into short-term and long-term goals so you know which ones to prioritize. Take a look at this sample list:

Short-term goals

  • Create a weekly/monthly budget
  • Pay off existing debts and credit card bills
  • Set up an emergency fund

Long-term goals

  • Buy a property
  • Travel abroad
  • Seek sound investments
4. Protect and grow your savings.
 

Put up a savings plan that will help you achieve your financial goals and help you build the discipline of saving. You can set in your mind to not touch that fund, all while it earns interest. HC Mutual offers flexible and affordable plans that help you manage your finances effectively so you can start building the life you aspire to have. Choose the plan that works best for you and watch your savings grow.

Secure your future with
  • Flexible payment terms of 3, 5, or 7 years
  • 3% earnings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan

LEARN MORE

Starting your journey towards developing financial discipline may be difficult at first but with the proper motivation and strategies to guide you, it will be easier to master and until it becomes second nature to apply it in your daily life.

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Cash Loan HC Mutual Save Money Saver’s Plan Savings Plan

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Why Budgeting Should be a Part of Your Holiday Planning

Why Budgeting Should be a Part of Your Holiday Planning
Useful Tips to Avoid Going Broke after the Holidays

November 23, 2022 | by HC Mutual

Christmas is fast approaching. As early as now, Filipinos are starting to brace themselves for the happiest and busiest time of the year. Parties, events, and celebrations are filling up your calendar, and now that COVID-19 restrictions have loosened compared to the previous years, it goes without saying that Filipinos are bound to go all out.

Quick reality check: planning and attending this series of festivities entails bigger expenses. While it’s a given that food, gifts, and travel are anticipated costs, there will be unexpected expenses that might hurt your wallet. Given today’s economy, it’s much wiser to plan your holiday spending in advance, so that you can fully enjoy the season without risking financial security.

While making the most out of the season is your priority, it’s also important to consider what happens next. If you overindulge, there’s a good chance you’re sacrificing your financial stability for the following year. You don’t want to welcome 2023 with unpaid bills, do you?

To help you achieve stress-free holiday spending, here are some budgeting tips:
1. Take advantage of the best holiday deals as early as now.
 

It’s true that during this season, temptations are in every corner of the real and digital world. Brands and businesses come up with their own ways to get you to buy something from them. Flash sales, holiday contests, and product bundles line up to capture the attention of eager-to-spend Filipinos.

With proper financial planning, you can take advantage of this endless arrival of holiday deals. You’ll enjoy more flexibility when you go out to shop. You can decide which sales promos provide more value for your money. With no pressure to spend just because time is running out, you’ll walk out of the mall feeling satisfied with the decisions you’ve made.

2. Create a list of expenses to monitor your budget.
 

Christmas is the most wonderful time of the year. For some, it can also be a stressful one, because you get twice as many of your usual commitments. There are financial decisions you have to make here and there, and it can definitely take the fun out of the season.

Building a holiday-specific budget lets you make your potential purchases more predictable. By creating a list of expenses and categorizing them according to importance, you’ll have a solid plan as to how you and your family can ensure enjoyment without being caught off-guard, money-wise.

3. Spend responsibly using the 50-30-20 rule.
 

A realistic holiday budget lets you know if you’re on the brink of overspending. It allows you to track your purchases, thus preventing you from damaging your savings. It’s important to remember that the Christmas season only lasts for a while. Sooner or later, the holiday decorations will be taken down, Christmas carols will stop playing, and everyone will go back to their usual routine.

If you’re looking for ways to spend responsibly, the 50-30-20 rule is a surefire way to build a budget that goes far beyond the holidays. This easy and efficient budgeting method divides your income into categories: 50% for needs, 30% for wants, and 20% for debt payment and savings.

And if you have yet to acquire a savings plan, HC Mutual provides fast, affordable, and hassle-free financial services that help you save money effectively and sustainably. Through its 5ave Up! program, you can build disciplined savings, and be on your way to the life you deserve.

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan

Everyone expects this Christmas to be merrier than the previous ones. Throughout the season, you might find yourself itching to spend excessively. Let your priorities be your guide. Start a budget and be wise in your spending decisions.

Merry Christmas, everyone!

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Wise Spending on the Season of Giving

Wise Spending on the Season of Giving
Tips on How to Save Money during the Holiday Rush

September 22, 2022 | by HC Mutual

For Filipinos, Christmas is always a season of giving and in whatever situation the country is, holiday traditions remain alive in most Filipino homes.

People consider end-of-the-year festivities as their reward for overcoming another year—justifying the reasons to celebrate it through parties, family gatherings, and gift giving. The upcoming 13th month pay and other bonuses that employees will receive makes it even more tempting to go extra; it is not uncommon for many Filipinos to go all out and spend all their money for special occasions.

This is a hard habit to break—but considering the state of our economy in the past years, it is wiser to include savings as part of your gift to yourself this upcoming holiday season. Here are some of our tips for saving even during the season of spending:

Watch out for holiday sales.
 

Buying gifts does not need to burn your pockets empty. You can start by taking advantage of the shopping season: there will inevitably be massive sales, promos, and discounts both in shopping malls and online shops. Even before December, you can already spot deals on many items like gadgets, clothes, home essentials, and appliances. Buying on-sale items also lets you buy in bulk for a cheaper price so you can get everyone something for the holidays.

Stay-at-home dinner is the new cool.
 

Another money-saving practice is doing a home potluck rather than eating at restaurants. Since you can choose where to buy the ingredients for your recipes, it will be cheaper than eating out. As a bonus, you can choose to celebrate at home or in another preferred location instead of scrambling in the crowds or stressing to get reservations.

Unleash your creativity.
 

The holiday season is the time of the year when people spend a lot of time with their families. It is a good idea to bond over new money-saving holiday traditions while adding more fun to the mix: Instead of buying gifts, you can choose to be more creative and give each other homemade presents for Secret Santa.

Homemade gifts such as custom-painted coasters, phone cases, plates, mugs, scented soaps, bath bombs, and jewelry are also more personal because you can create it according to the personality of the receiver.

Reward yourself with a savings plan.
 

One of the best gifts you can give to yourself and to your loved ones is a savings plan. Instead of spending a huge amount on material things, it is smarter to secure your future as a gift to your future self and those you care about.

HC Mutual provides fast, affordable, and hassle-free financial services and loans that help you save money and achieve your goals. If you are aiming to purchase your dream home or car, the KayaMo Saver’s Plan can help you acquire it faster. Aside from its easy saving options and flexible payment terms, you can also enjoy access to KayaMo Family Saver’s Plan which extends the full member benefits to your relatives.

Avoid spending all your cash at once.
 

If you are planning to give your loved ones a travel spree or any extravagant gift for the upcoming holiday, consider taking out a loan – taking into account your budget for the next months – so as not to spend all your cash in one go. In this way, you can celebrate the holidays as you wish without worrying about how much is left of your hard-earned savings.

Plan for a brighter future.

Get on track to acquiring your financial goals with a convenient and flexible plan. The KayaMo Saver’s Plan is designed to help Filipinos safeguard their hard-earned savings and secure a better future.

  • Flexible payment terms of 3, 5, or 7 years
  • 3% earnings per annum
  • FREE 1-year Accidental Life Insurancecoverage worth Php 100,000
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Make your dreams possible.

Any dream is within reach with a multi-purpose loan that offers low interest rates.

  • Interest rates as low as 0.88%
  • Loan release within 24 hours of approval
  • Fast and hassle-free loan application
LEARN MORE

It is highly tempting to go overboard with spending during the holiday rush. However, it is way smarter to have a sense of control so you will not deal with any financial stress after the holidays. Have merry celebrations and wise decisions!

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