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Personal Finance

The Six Times You Need to Spend More

By Admin, Brighterlife.com.ph

Comments (2)

Groceries-BL-sq“Cheaper doesn’t always mean it’s better,” is not a very popular belief for nothing.  Just as in the same note, expensive isn’t always better. A walk through the grocery aisles will plague you with a barrage of better and cheaper options, all claiming of the best quality. While we may not be sure if they are indeed the best of the best, here are some guidelines on where a brighter life means forking out a little bit more.

1.  Food. Food ranks up high in the list of everyday necessities and yet, what it does to the body can be easily overlooked, hence, the seemingly smart shopper will pick up the cheaper option.

Why you need to think about spending more: Quality food is harder to source and usually comes farther away from the city. It also means that fresher food comes in less to no preservatives at all which requires some serious storage / delivery conditions and it takes a long time to prepare. The next time you decide to go for fast/street food, think of all the preservatives you’re about to ingest and the hospital bill that may come with it. 

2.  Education. The measure of most parents’ success, according to the SOLAR FLARe, is to be able to send his child to the best school out there. While there are many geniuses who have made it big without finishing college such as Steve Jobs, it will always remain to be a cornerstone of knowledge and a foundation for determining a person’s success in life. Tuition fees, even at the lowest level of preschool already costs an arm and a leg. If you are planning to have a child in the future, it is advised to start stashing away money in an investment vehicle to give it time to grow interest and be enough even through university. This calculator may be able to help you determine how much you need for your kid’s degree. To get an idea as to how much you might need, try this calculator.

3.  Health. It isn’t so much as to spending for health – it is getting an Health Maintenance Organization (HMO) card when you’re healthy and not scrambling for one when you’re in the ER. A simple trip to the ER for something as small as a stomachache can set you back for PHP 5,000 at a private hospital. If you have an HMO, which is typically anywhere from PHP 1,200 to PHP 2,500 a quarter, it can cover your bill for PHP 150,000 – PHP 250,000. If you’re gainfully employed, your employer should be covering you and your dependents. However, if you’re a freelancer or a business owner, you might need to check out what HMO option fits you the best. Things you should consider: accessibility to you and your family, availability for emergencies, how easy you can make the payments, coverage, terms and affiliation with hospitals and doctors.

4.  Life Insurance. You wish you never have to use it but the fact is, at some point, you will have to. Unless you’re a vampire, of course. Especially if you’re a parent to young dependents, you are encouraged to secure at least five times of your annual salary to take care of your family while recovering from the loss. This adds up when you have businesses, properties and other liabilities that need to be settled when you pass. Don’t be fooled by myths – life insurance isn’t reserved for the wealthy BUT it is for the smart and the prepared. For a quotation, you can ask for an advisor.

5.  Bed and mattress. Because we spend a third of our lives sleeping and over time, bad mattresses often cause back and neck pains, which will make us cranky, which can make us less productive. What you lose is more than what you could’ve spent on a firm, thick mattress {no need to be memory, but if you can afford it, why not}. Look out for deals and clearance sales to give your back the much deserved rest it needs.

6.  Shoes. While it is every girl’s splurge now and then, we are not talking about the glittery, five-inch kind. Shoes were invented to prevent our soles from being burned or injured by the ground we walk on, moreso the ones we use for sports. Invest in a good pair of office shoes you can use everyday, especially if you walk a lot. If you’re a runner, think twice about buying that pair on sale if the quality makes you doubtful. Running in subpar shoes increases your risk of a foot injury, which would mean a trip to the hospital.

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amor on

Buying insurance 5 times your annual income will only put you at risk. Your spouse may just kill you for the insurance money. And when you die, your children will become lazy; they will not go to school, will get involved in drugs, just go to parties, and have the good times which you never had because you made sure that they will have fun later. Getting a huge life insurance will mean that you will have to forego all other things that you should enjoy while you are alive and with your loved ones. Not to mention preventing you from buying property which is a real long term investment that you can also enjoy while living. Have fun, Go travel abroad. You deserve the fruits of your labor. You became successful without your parents’ insurance, so should your kids. You are just making the insurance firms happy and rich. They make us fear the future and in the meantime we will have no present. If you are working and wise, you will have some life insurance. Maybe enough to cover expenses for the next two years. Then you could have some form of real estate to get a living from, or some sort of business. Then you can have mutual funds or equities which your kids can enjoy later if you die early, or enjoy in your retirement, by which time your kids should no longer need money for schooling. Maybe you can put some money in trust for the kids to ensure their education, with a proviso that the money should be for education alone, to be paid directly to the school, and if the kids don;t go, they forfeit the money, and it should go to charity, so that they do not become lazy.

    Tara on

    Thank you for your comment, Amor. As another use, one can also use his/her own life insurance as a form of retirement or as a business capital. Hope that helps 🙂

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