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How to budget for your family travels?



By Brighter Life Team

Budgeting for our travels was a lot easier when it was only me and my husband, but now that our kids are grown, budgeting has become more challenging.

I was fortunate enough to travel with my husband to some countries when I was younger and each place always made us excited, curious, and happy. On each trip we took together as a couple, I learned many things about him, about myself, and about how we were similar in our budgeting skills.

While he was officially at work during some of our trips, I would go out on my own to grab a quick bite of the country’s local delicacies and also to check out the stores. I would use this time to check the prices of leather goods, sports shoes, and even miniature items to complete my collection at home.

These mall visits and price checks taught me to identify what I really need and what I just want to splurge on.

Traveling for four

Budgeting for our travels was a lot easier when it was only me and my husband, but now that our kids are grown, budgeting has become more challenging. Now, the equation goes: Travel Expenses x 4 adults.

If we want to have a worry free travel with the kids, then it is important to iron things out way before our intended vacation date. We may travel for different reasons but the questions we need to answer are constant for everyone.

How much will the trip cost including food, accommodation, and “pasalubongs”?
Are we staying with relatives during our trip or do we stay at a hotel?
How many are going to travel?
How long will the trip be?
Will we be joining a tour or go around on our own?
Have visas, passport, and airport tax fees been included?
Answering these is very important because the expenses will be in foreign currency, and if not planned well, it can turn out to be stressful and heavy on the budget, and the mind. These should be the least of our worries when we are in a foreign land.

A smooth and worry-free travel is possible if saving is started early. If the expenses are too much for the pocket, then maybe, the budget needs to be reconsidered and travel plans can be deferred.

Empowering kids

Traveling is a great way for kids to learn about new cultures and to experience new things, but apart from these, we also turn to traveling as a way to teach our children how to be mindful of their budget.

It’s important to trust kids with money even if they’re still young. My cousin, who’s a child psychologist, once advised me to give them daily school allowances as it would make them appreciate the value of money and the discipline needed in spending it accordingly. Similarly, when we travel here or abroad, we give them their own pocket money. The night before the trip, we give each of them their cash allowances and once we reach our destination, we immediately have them observe how money exchange works and let them do the math.

We always look forward to our travels, but now that we have kids, we want to spend it with them while we still can. We know that after a few more years, they will already have their own plans and we know that they would have mastered the skill of traveling on a budget. As parents, the support we will give them for travel advice will still be 101%, if they seek it. In the process, we might learn a thing or two from them as well.

The Getting Started life stage is where you start to find yourself and break boundaries. You may be motivated to keep up and even surge ahead of the pack no matter the cost, but it’s a good time to build your assets for your own needs.

After all, seeking freedom to be your own person comes with financial obligations and responsibilities. But as you learn to support yourself, the Getting Started life stage becomes a jump-off point towards financial maturity.

Goals and Characteristics

-Values independence and idealism
-Prefers a mobile lifestyle
-Saves for travel, gadgets, and experiences
-Dreams of owning a car, a house, or a condo
-Aspires to give back to parents
-Owns bank deposits
-Needs savings, an emergency fund, life insurance, and investments

SUN Smarter Life Classic is a protection plan that provides double life insurance coverage throughout your lifetime. It also offers living benefits that you can use in case of emergencies or immediate need for cash.



Benefits of SUN Smarter Life Classic:

Life insurance coverage

Make a smart move and ensure your family’s future no matter what happens. This product provides life insurance coverage equal to double the Face Amount from Day 1 until you reach 100.

Enhance your plan with the addition of riders or supplemental benefits which provide added protection for contingencies such as accidents, disability and illnesses.

Living benefits

Use your policy as an alternative source of funds in case of emergencies or immediate need for cash. Instead of borrowing from various financial institutions or giving up your priced possessions in exchange of money, you may use your guaranteed cash value and avail a policy loan. A portion of your coverage may also be given in advance in case of a terminal illness.

What’s more, the non-guaranteed dividends which your policy may earn can be availed as a cash benefit that can be used to pay future premiums or purchase additional coverage. Dividends can also be left to accumulate.

Flexible premium payments

Make payment more convenient depending on your goals. Pay regular or you can opt for a shorter guaranteed payment period of 5 or 10 years only.

You may choose to pay your premiums annually, semi-annually or quarterly. Monthly payment through Auto-Debit or Auto-Charge may also be arranged after payment of the initial quarterly premium.

NOTE: Benefits indicated above are subject to the specific guidelines set by Sun Life and the actual provisions of the insurance policy contract.

SUN Smarter Life Elite is a protection and savings plan that provides double life insurance coverage throughout your lifetime, giving you peace of mind while you take steps in achieving your life goals. Alongside the insurance protection it provides, you are also entitled to receive guaranteed cash benefits which you can use to increase your savings.

Benefits of SUN Smarter Life Elite:

Life insurance coverage

Make a smart move and ensure your family’s future no matter what happens. This product provides life insurance coverage equal to double the Face Amount from Day 1 until you reach 100.

Enhance your plan with the addition of riders or supplemental benefits which provide added protection for contingencies such as accidents, disability and illnesses.

Lifetime guaranteed cash benefits

Enjoy guaranteed cash benefits for life starting at the end of the sixth year and every two years onwards. You may also choose to leave your cash benefits to accumulate and be available for future needs.

Living benefits

Use your policy as an alternative source of funds in case of emergencies or immediate need for cash. Instead of borrowing from various financial institutions or giving up your priced possessions in exchange for money, you may use your guaranteed cash value and avail a policy loan. A portion of your coverage may also be given in case of a terminal illness.

What’s more, the non-guaranteed dividends which your policy may earn can be availed as a cash benefit that can be used to pay future premiums or purchase additional coverage. Dividends can also be left to accumulate.

Flexible premium payments

Make payment more convenient depending on your goals. Pay regularly or you can opt for a shorter guaranteed payment period of 5 or 10 years only.

You may choose to pay your premiums annually, semi-annually or quarterly. Monthly payment through Auto-Debit or Auto-Charge may also be arranged after payment of the initial quarterly premium.

NOTE: Benefits indicated above are subject to the specific guidelines set by Sun Life and the actual provisions of the insurance policy contract.

3 Ways to Go from Financial Zero to Financial Hero
By Lianne Martha Laroya

Do you know which heroic financial decisions can save your day? Read on to find out!

In the theory-laden world of personal finance, various concepts are readily available to everyone who's willing to learn about money management and investing:

“Don't borrow more than 20% of your take-home income.”

“In investing, you should buy low and sell high.”

“There is a direct relationship between risk and potential return. The higher the risk, the higher the potential return is.”

Everywhere you look – in books, in magazines, in blogs, in radio shows and even in television – a multitude of personal finance tips are always available to welcome you. This phenomenon begs the question, “Where do I start now?”

Before anything else: DON’T FRET. You can start with these three tips - embodied in their superhero incarnations - to make that jump from financial zero to a financial hero.

1. Spend Trooper

Why you ignore this:

You think that having a spending diary means you need to list out all your expenses down to the last centavo in a complicated Microsoft Excel spreadsheet. Also, you have to categorize your expenses and use elaborate color-coded sections in order to track your money, and that’s just too much work!

What it actually is:

The Spend Trooper won't require you to do a lot of effort, really. You just need to carry a small notebook and a cute little pen with you wherever you go, or download an expense tracker app in your phone. Using these tools, list down the date, the item you paid for, and the amount that you paid.

At the end of the day, add all your expenses. Do this again for the next days, until you've completed a month. At the end of the month, get the average of your expenses and figure out which items put the biggest dent on your wallet.

Personally speaking, I scoffed at this tip when I was just starting out: “Seriously? That takes up a lot of hard work.” It wasn't until I realized I had more month at the end of my money that I started doing this. Back then, if you asked me how much I spend monthly on myself, I'd probably say around P8,000. When I actually did this tip, I discovered that I spent P12,000 monthly pala! Where did all that P4,000 go?

Superpower:

Awareness, peace of mind, and conscious spending

A conscious mind can utter conscious words. Conscious words can plan conscious actions. Conscious actions give birth to conscious decisions.

If you don't know how much you spend per month, how can you know how much you want to set aside for your future?

2. Professor P

Why you ignore this:

You think that, you have to deprive yourself of your “wants” just so you can afford your “needs”.

What it actually is:

Your bare essentials are different from other people's bare essentials, so don't just take their word for it. Make the effort to really discover what you value.

List down your three priority items. Then, spend as much as you'd like on them. But, hear this: you have to cut back on items that are not on your priority list.

For example, for some people, cable may be a basic need. Weekly clothes and shoes shopping may be an essential. But for me, they're not. One of my priorities is travel so I splurge on my traveling experiences, but I cut back on others: I don't have cable; I buy high-quality clothes maybe four times a year and high-quality shoes once a year. I'm also not a gadget person but I wouldn't hesitate to spend money on airline fees and accommodations.

Superpower:

Satisfaction, a guilt-free desire to pursue personal finance, and goal planning – after all, you should Plan, You Only Live Once !

Everything is a matter of priorities.

Because let's face it, if it's not important to you, then why are you spending money on it?

3. Captain Automation

Why you ignore this:

You want to automate a system where 20% of your take-home pay would be put in another savings account that you can never ever touch – but you think that setting this up would be messy, complicated, and difficult.

What it actually is:

Nowadays, most banks and investing companies allow you to automate your savings, insurance premiums, even your investments! For example, in Sun Life, you can automate your VUL contributions monthly. You can even do automatic fund transfers for your mutual fund investments.

As you must know, personal finance is a lifestyle. It’s a long-term commitment. Being consistent with your saving and investing not only adds icing to the cake - it bakes your whole financial cake.

Superpower:

Self-control, a sense of fulfillment in knowing that you're closer to your goals, and a consistent saving/investing habit

Because taking control of your finances and of your life is not about how many books you've read, how many websites you've visited, or how many case studies you've analyzed.

Money management is simply planning, prioritizing, performing your action steps and, most of all, producing real, honest-to-goodness results.

Sun MaxiLink Bright is an investment-linked life insurance plan that offers a combined benefit of insurance protection and investment, providing you financial security and peace of mind while you grow your money over time. It enables you to build funds for at least 5 years and offers you an option to even add more into what you have initially saved for better growth potential. This can help you get financially prepared for any upcoming life goals or any life milestones.

Benefits of Sun MaxiLink Bright:

1. Life insurance coverage

Secure your loved ones' future with guaranteed life insurance benefit equivalent to at least twice your plan’s Face Amount, which goes to your family in the event of untimely demise. The amount can be used to help your family in their daily expenses and to ensure that they can still fulfill the dreams you have planned together.

You may also add supplemental benefits or riders to provide additional protection for contingencies such as accidents, disability and illnesses.

2. Flexible investment options

Choose among the investment fund options to address your different investment objectives and risk appetite.

3. Professional fund management

Take advantage of Sun Life's professional fund managers' investment experience and expertise.

4. Funds for future needs

Build funds for your child's education, a comfortable retirement, or an important life milestone. In case of an emergency, money comes in handy via a partial fund withdrawal.

5. Manageable premium payment

Pay for at least 5 years or opt to increase your fund’s value through top-ups or excess payments on top of your regular premium.

6. Loyalty bonus

Keep your policy active for at least 10 years and reap rewards in the form of Loyalty Bonus. The bonus can be used as an additional source of fund to boost your investment or simply to help you achieve your dreams faster. Loyalty bonus is not guaranteed and depends on several factors including the fund’s average monthly balance.

NOTE: Benefits indicated above are subject to the specific guidelines set by Sun Life and the actual provisions of the insurance policy contract.

Sun MaxiLink Prime is an investment-linked life insurance plan that offers a combined benefit of insurance protection and investment, providing you financial security and peace of mind while you grow your money over time. It enables you to build funds through a manageable payment scheme and offers you an option to even add more into what you have initially saved for better growth potential.

This can help fund future long-term goals or any life milestones.

Benefits of Sun MaxiLink Prime:

1. Life insurance coverage

Secure your loved ones' future with guaranteed life insurance benefit equivalent to at least twice your plan’s Face Amount, which goes to your family in the event of untimely demise. The amount can be used to help your family in their daily expenses and to ensure that they can still fulfill the dreams you have planned together.

You may also add supplemental benefits or riders to provide additional protection for contingencies such as accidents, disability and illnesses.

2. Flexible investment options

Choose among the investment fund options to address your different investment objectives and risk appetite.

3. Professional fund management

Take advantage of Sun Life's professional fund managers' investment experience and expertise.

4. Funds for future needs

Build funds for your child's education, a comfortable retirement, or an important life milestone. In case of an emergency, money comes in handy via a partial fund withdrawal.

5. Manageable premium payments

Pay for at least 10 years or opt to increase your fund’s value through top-ups or excess payments on top of your regular premium.

6.Loyalty Bonus

Keep your policy active for at least 10 years and reap rewards in the form of Loyalty Bonus. The bonus can be used as an additional source of fund to boost your investment or simply to help you achieve your dreams faster. Loyalty bonus is not guaranteed and depends on several factors including the fund’s average monthly balance.

NOTE: Benefits indicated above are subject to the specific guidelines set by Sun Life and the actual provisions of the insurance policy contract.

Basics

1. What is a mutual fund?

A Mutual Fund is an investment company that pools together money from different investors and invests them in various securities depending on the investment objective of the fund. The mutual fund company issues shares to the public that represents their holdings in the fund.

2. What are the different types of Mutual Funds available?

There are four basic types of mutual funds currently available in the market categorized according to the investment objective of the fund or the investments that the fund is primarily invested in.

-Money Market Funds invest purely in short-term (one year or less) debt instruments.

-Bond Funds invest in long-term debt instruments of governments or corporations.

-Balanced Funds invest both in shares of stock and debt instruments.

-Stock Funds / Equity Funds invest primarily in shares of stock.

3. What is NAVPS?

NAVPS or the net asset value per share represents the price of one share from a mutual fund. All shares in a mutual fund are bought and sold using the NAVPS, which changes every business day depending on the market performance of the fund.

4. Affordability

If the NAVPS of the mutual fund you are invested in increases or appreciates, you can sell your mutual fund shares for a profit. In the same way, if the NAVPS of the mutual fund you are invested in decreases or depreciates, you may realize a loss if you redeem.

Like any other investment instrument, mutual funds are best held long-term especially for mutual funds that have investment objectives of capital growth such as equity funds.