Setting up a STOP-LOSS on Personal Finance: It works!
We've just arrived at our destination after around 6-hour drive from our hometown, General Santos city. We are here now in one of the remote communities of the mountainous part of Compostela Valley province.
As we arrive, we were into meeting with our relatives and into chatting given that we've not seen them for quite a while. I really missed the kind of life here. I used to grow up in a community where there were no electricity and water were literally being fetched from the spring and hauled to every household. However a lot has changed already: Families here don't have to fetch water anymore because reservoir has been built and water hoses run to every household and thus faucets are now being installed in kitchen, restrooms, etc...
But the province has been experiencing drought for a couple of months and the situation has affected the water supply of the community. Water supply here right now is occasionally available during the morning and for only a few hours. So most of the families here are returning to the old days- faucets in sinks & bathrooms are unusable for they have to fetch water from their water tubs & huge pails which families had to fill whenever water is available. This kind of situation has deteriorated their way of living - e.g. comfort, efficiency & effectiveness in household management.
But one household here got all their faucets fully functional! What I have noticed first was that unlike the rest, there were no pails and tubs lying anywhere in their backyard except for one drum besides their comfort room, which is used to be there ever since. They utilize it as a reservoir for rain water and used/recycled water for flushing toilet bowls, cleaning floors, watering plants, etc...
I found out that this guy - the father and a husband had built his own reservoir of around 3 to 4 Cu. Meter capacity where the water source is being tapped into and all of his faucets and water lines in his home are being connected as well. This guy is playing smart because he established a strong foundation for his families' needs - water. He even built this system long before, even during the time of abundance where the situation they are in right now was unimaginable. Most of the people think that having this kind of system is unnecessary and its just a waste of resources and efforts, especially during the time of abundance, comfort and at times where life is just calm and so good. Conversely, during the time of difficulty, busyness or hectic schedules.
The same is true with most of the financial structures of the Filipino family. Very few have intended to put a stop-loss in their finances: a contingency plan if worse things happen. As a result, most of the families are being caught up with the unexpected and thus, suffer extreme loss at time of catastrophe. This is why it is very important to establish an income protection plan and an emergency fund.
Ideally, a family should have an Emergency Fund of at least 6 times of its monthly living expenses and more or less 10 years of Income Protection. By having these properly set up, a family man can be free from worries of the "WHAT IF"s for his family, can be free from the stress of worrying that most of the time had been enticing every breadwinners to work harder - I mean working abusively e, g, forced to do overtime, depriving the body's proper rest, forsaking quality time for the children, family and friends, and many more.
Like this guy in this village, he played smart at the onset. I can see that this couple, they are busy people too. His wife is a public school teacher and they have a nursing baby while this guy is the Operation key personnel of a mining company that does exploration in the neighboring municipalities. He is required to climb into the mountains by motorbike or by foot to perform his job, but he refused to give in to the deterring voices like "I'm too busy", "There's a lot of better things to attend to", "It's no need, the main reservoir is Big enough - no need to worry", etc... His family's benefits? It saved them to do the extra work of fetching water from somewhere and his family has maintained the usual state in their household. Moreover, this guy has enabled his family and his home to be a blessing to others at times of distress for some neighbors have come and ask to fetch water for their family to drink. They also a blessing to my family since they allowed us to use their bathroom and toilets for us - thanks Kuya John.
If you really have concerns for your future and for your family, you need to be free. You have to establish a strong financial foundation and aspire to disconnect or to break free from the mainstream and from the system that has entangled and enslaved every family around the world. Should there will be a recession, or the financial market has crashed, should there be inflationary deflation, currency devaluation, bank runs or maybe a family downsized because of job lost, death, or disability - your family can thrive and continue to live the life you want them to have if you play smart with your finances. Establishing a STOP-LOSS by setting up an Emergency Fund and an Income Protection program are the initial step to financial freedom.
As we arrive, we were into meeting with our relatives and into chatting given that we've not seen them for quite a while. I really missed the kind of life here. I used to grow up in a community where there were no electricity and water were literally being fetched from the spring and hauled to every household. However a lot has changed already: Families here don't have to fetch water anymore because reservoir has been built and water hoses run to every household and thus faucets are now being installed in kitchen, restrooms, etc...
But the province has been experiencing drought for a couple of months and the situation has affected the water supply of the community. Water supply here right now is occasionally available during the morning and for only a few hours. So most of the families here are returning to the old days- faucets in sinks & bathrooms are unusable for they have to fetch water from their water tubs & huge pails which families had to fill whenever water is available. This kind of situation has deteriorated their way of living - e.g. comfort, efficiency & effectiveness in household management.
But one household here got all their faucets fully functional! What I have noticed first was that unlike the rest, there were no pails and tubs lying anywhere in their backyard except for one drum besides their comfort room, which is used to be there ever since. They utilize it as a reservoir for rain water and used/recycled water for flushing toilet bowls, cleaning floors, watering plants, etc...
I found out that this guy - the father and a husband had built his own reservoir of around 3 to 4 Cu. Meter capacity where the water source is being tapped into and all of his faucets and water lines in his home are being connected as well. This guy is playing smart because he established a strong foundation for his families' needs - water. He even built this system long before, even during the time of abundance where the situation they are in right now was unimaginable. Most of the people think that having this kind of system is unnecessary and its just a waste of resources and efforts, especially during the time of abundance, comfort and at times where life is just calm and so good. Conversely, during the time of difficulty, busyness or hectic schedules.
The same is true with most of the financial structures of the Filipino family. Very few have intended to put a stop-loss in their finances: a contingency plan if worse things happen. As a result, most of the families are being caught up with the unexpected and thus, suffer extreme loss at time of catastrophe. This is why it is very important to establish an income protection plan and an emergency fund.
Ideally, a family should have an Emergency Fund of at least 6 times of its monthly living expenses and more or less 10 years of Income Protection. By having these properly set up, a family man can be free from worries of the "WHAT IF"s for his family, can be free from the stress of worrying that most of the time had been enticing every breadwinners to work harder - I mean working abusively e, g, forced to do overtime, depriving the body's proper rest, forsaking quality time for the children, family and friends, and many more.
Like this guy in this village, he played smart at the onset. I can see that this couple, they are busy people too. His wife is a public school teacher and they have a nursing baby while this guy is the Operation key personnel of a mining company that does exploration in the neighboring municipalities. He is required to climb into the mountains by motorbike or by foot to perform his job, but he refused to give in to the deterring voices like "I'm too busy", "There's a lot of better things to attend to", "It's no need, the main reservoir is Big enough - no need to worry", etc... His family's benefits? It saved them to do the extra work of fetching water from somewhere and his family has maintained the usual state in their household. Moreover, this guy has enabled his family and his home to be a blessing to others at times of distress for some neighbors have come and ask to fetch water for their family to drink. They also a blessing to my family since they allowed us to use their bathroom and toilets for us - thanks Kuya John.
If you really have concerns for your future and for your family, you need to be free. You have to establish a strong financial foundation and aspire to disconnect or to break free from the mainstream and from the system that has entangled and enslaved every family around the world. Should there will be a recession, or the financial market has crashed, should there be inflationary deflation, currency devaluation, bank runs or maybe a family downsized because of job lost, death, or disability - your family can thrive and continue to live the life you want them to have if you play smart with your finances. Establishing a STOP-LOSS by setting up an Emergency Fund and an Income Protection program are the initial step to financial freedom.
Till next, & for your freedom.
Bong Bungalan Jr.
Financial Literacy Advocate / Financial Advisor
http://beFinanciallyFreePinoy.blogspot.com
Posted via Blogaway (Note: Posting date has been delayed due to unavailability of internet connection in the area. This is posted the day after we returned back home in Gensan.)
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