Volume 10 / Issue 37 / 2013
mind&spirit Lotto and the Walk of Faith
make a difference The Road to Financial Independence
body&soul Choose to Be Healthy
love&money Write Your Last Will and Testament Wise Credit Card Use
just asking Does having an insurance mean I don’t trust God?
Editor’s Page From My Heart
To Start a Relationship with Christ
Dear Readers, Money has always been an important issue, not only in today’s world, but even in ancient times. The Bible has many verses which talk about money and its purpose. The way we use money determines whether our money will be a blessing to us and the ones we love, or cause us pain. In this issue, we talk about different ways to improve our financial outlook that will also show our faith in God. Interestingly, some people think gambling is the quickest way to get rich. BJ Sebastian, Senior VP for JG Summit Inc. talks about this issue in an interview by one of our writers. In another article, Kendrick Chua, a Registered Financial Planner and a Chartered Wealth Manager writes about practical ways we can be financially independent. There’s an article on how we can use our credit card wisely, and lastly, we deal with the importance of writing a last will and testament. It is my hope that this issue will encourage us to think of better ways to reach our goal of becoming financially independent.
Admit you have sinned. “For all have sinned and fall short of the glory of God.” Romans 3:23
Believe in Jesus. “For God so loved the world that
He gave His one and only Son, that whoever believes in Him shall not perish; but have eternal life.” John 3:16b
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onfess and leave your sin behind. Stop sinning. “If we confess our sins, He is faithful and just, and will forgive us our sins and purify us from all unrighteousness.” 1 John 1:9 To continue growing in your relationship with Christ, fellowship with other believers, read the Bible and pray!
Evelyn Damian, Editor
Thank you for your financial help! We need a little help from our friends... MOMS has no subscription price; it is supported completely through contributions. We distribute 58,000 copies each quarter for free. To help support this publication, send cash or check made payable to: Asia Pacific Media Ministries FAO MOMS. To make a direct deposit, use our BPI, C/A #2431-0042-27. All contributions are used entirely for the outreach of this publication. Thank you!
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Tres Cruses Baptist Church Assembly of God-Poblacion, Clarin, Bohol Friend from Buguias, Benguet The Neighborhood Church-Caloocan City UEC-Gen. Santos City WM of City Assembly of God-Gen. Santos City
Photo by Don David Previous Issue: Making A Difference MOMS Editorial Staff (L-R): Johnson, Evelyn, Kim & Patrick
MOMS EDITORIAL STAFF Chief Editor Kimberly Snider Editor, MOMS Evelyn Damian Editor, MIP Alvin Tud Distribution Johnson Li Cover & Layout Patrick Tan
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Current Issue: Money Matters
Published quarterly by Asia Pacific Media Ministries Unit 2608 Raffles Corporate Center, Emerald Avenue, Ortigas Center, 1605 Pasig City, Philippines Telephone: 914-9767 E-mail: moms@apmedia.org Reproduction of photos and articles is prohibited without permission.
Mind & Spirit
Lotto and the Walk of Faith by Nathan Maliwat
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laying lotto is almost a Filipino past time. Hundreds line up in lotto ticket booths, hoping to win the big, jackpot money to get out of poverty. Sadly, only few people think about whether playing lotto is really worth it. Can we really have a good life by betting on it? I interviewed BJ Sebastian, an economist by profession, in order to explain the real deal on lotto. BJ works as Senior Vice President for JG Summit Holdings, Inc. which includes big companies such as Cebu Pacific, URC and Robinsons Land Corporation. Why do you think many Filipinos bet on lotto? Many people want to get rich, but they don’t want to work hard. If they can get their blessings by simply winning the lotto, they would rather depend on luck—or “swerte”— than on hard work. Is there any harm in believing in luck? Believing in chance means depending on something that does not exist. Chance or luck is nothing. There’s no power behind chance. In short, believing in luck is actually believing in nothing and that can be very dangerous. Can we say that betting on lotto is a problem? Yes, it is a problem that causes moral, social and even economic problems. But at its root, betting on lotto is really a spiritual problem that is caused by a wrong view of God. Many people who bet on lotto also believe in God. Can someone believe in God and in luck at the same time? If they believe God, they know that He is the only being we are accountable to. If they believe in chance, which is essentially nothing, then they don’t really believe in God. Whenever they play lotto, they trust in random acts that they hope will go their favour. But the only source of favour in the universe is God. So they should trust in Him. Why do many people depend on luck more than on God? That is because they don’t want to follow God’s rules. One of His rules in I Timothy 5:8 says that we need to work in order to eat. Working is in our nature. God, who created us after His image, is a worker God. He worked for six days, and on the seventh day he rested. But people, by nature, are also impatient. They refuse God’s rules because they want easy money. But God wants us to develop patience and perseverance. God is more concerned with our character than our money.
Does betting on lotto harm a person’s attitude, especially towards work and money? When people depend on luck, they refuse to work hard and be diligent to improve themselves. Sometimes when they get too involved in lotto or gambling, they start taking higher risks and start losing a lot of money. Why do people fail to see what is wrong with betting on lotto? People find it harmless because lotto involves small money and they think it is okay because everybody is doing it anyway. But in gambling, more often than not, the gambler loses. Only a few people who bet on lotto actually win big money. The possibility of winning is so low that they lose money bit by bit, every time they bet on the game. Some people say they bet on lotto to help their families. Does this motivation make betting on lotto right? Even with the right motivation, people still face the same problem. They remain impatient and fail to prepare or plan for their lives. If they really love their families, they would plan very early on. They would save money and work hard on a job. The Bible tells us to be diligent and to plan ahead because in God’s economy, what we sow we reap. What will make people change their minds about betting on lotto? People should start with a right relationship with God. Once they have that, it’s easy to obey his rules. They won’t want to trust in luck. I think the devil’s greatest lie is that there is such a thing as luck. But there is no such thing as chance. There is only God. If God is the force behind everything, then we should do as He pleases. His word tells us that if we work hard, we will be blessed. We put ourselves in the way of blessing and we learn that what we sow, we reap. It is that simple.
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Kendrick Chua is a Registered Financial Planner and a Chartered Wealth Manager. He has contributed personal finance articles to different publications and has given out talks in schools, companies and organizations.
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n January 8, 2013, ANC’s On the Money featured Ditas Comoda for its Everyday Millionaire episode. Comoda, a self-made millionaire is somebody viewers can learn from. After all, she has reached a coveted position; a status for which many of us aspire. Comoda was not born to a rich or even a welloff family. “My father was just a taxi driver,” shares Comoda during the interview. Neither did her work as an executive secretary for a local company provide her with the luxury of a large salary. Comoda achieved the milestone employing principles used by those who join the ranks of the financially free: frugal living, diligent saving and proper investing. Frugal living: knowing the needs from the wants. Frugality is often misconstrued as stinginess. It is not; although there is a fine line between the two. Frugality is understanding the difference between the things we need and the things that we want. Even if Comoda became a millionaire, she still follows a simple lifestyle. She advises, “Live simply. You should identify carefully your basic needs and wants.” Unfortunately, Filipinos in general do not know how to distinguish between the two. We buy the latest gadgets, sport branded clothes, and dine in fancy restaurants because we believe we need to impress others, and brag about our success. There is nothing wrong with that. Neither is pampering ourselves with this luxuries from time to time. Doing so can even motivate us to work even harder. This becomes a problem when we cannot afford the luxuries, and all too often, the sad reality is, we cannot. Everything is bought on credit. Celebrity finance
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guru Suze Orman said it well: “We spend the money we don’t have, to buy the things we don’t need, to impress the people we don’t like.” “Spending the money we don’t have” is a major impediment to achieving financial independence. It buries us deeply in debt, and the Bible is very clear about it. Proverbs 22:26-27 says, “Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.” Keeping a huge amount of debt does not help us sleep well at night, does it? Understanding what we need as opposed to what we want and not going into debt is the first step to realizing our goal of financial prosperity. Diligent saving: cornerstone of financial freedom. What is the most common formula for saving? It is income less expenses equals savings. Whatever is left at the end of the month gets stashed away. But more often than not, this does not work because we are inherently consumers. We will always find something to buy and spend our money on--whether we need it or not. Common Formula
Income - Expenses Savings
This human quality is why finance professionals advise an alternate formula instead: income less savings equals expenses. A good rule of thumb is stashing 10 to 20 percent of your income as savings. If you look at
Make a Difference the national average, the savings rate of the Filipinos is pegged at 12 to 16 percent. So if you are netting P20,000 a month, set aside P2,000 to P4,000 as your savings. If you find it difficult to save that much, then begin with a smaller amount. What we want to establish is the discipline of saving. Suggested Formula
Income - Savings (10-20%) Expenses
You can also treat savings the same way you treat other expenses. When you treat it that way, you have no choice but to “pay” it, or else face the consequences. That kind of pressure can actually work in your favour. In the Bible (Gen. 41:47-49), Joseph demonstrated how to save and set aside resources for future needs. Because of this knowledge, he was able to lead Egypt through terrible famine. We might not face any famine, or tragedies of that proportion; but the principle of saving regularly can help us weather unwanted and unforeseen crises. Investing: the secret in becoming financially free. It is important to realize saving alone is not enough if we want to achieve financial independence or freedom one day. The key to reaching that status, of not worrying about money anymore, is through proper investing. Comoda reached millionaire status by doing just that. We have worked hard for money; now its time to let money work hard for us. Remember the Parable of the Talents in Matthew 25:14-30? The first and second servant managed to grow the money their master left them. However, the third servant just dug a hole and buried it. His master was enraged by his lack of action and banished him. Economically, there is a very good reason why we need to try our hands at investing. That is inflation. Inflation is the rise of the prices of particular goods and services over a period of time. The “value meal” we used to buy for less than P30.00 twenty years ago now costs P65.00. Inflation is not going to stop! That is why our money should keep up with the rise in costs. That is where investing comes in. Conventional wisdom is that money in banks earns interest. It is true and it is a way to save. But it cannot be treated as an investment because the interest our bank deposits earn cannot keep up with the inflation
rate. Yes, we have easy access to our money but by no means is it the most efficient way of growing it. As a rule of thumb, we need to set aside three months worth of savings as emergency fund before we can start saving for investments. One financial instrument gaining popularity is mutual funds. In a mutual fund, a fund manager combines your money with other people’s money, then he finds something to invest the money in. For as low as P5,000 an investor can open a mutual fund account, and reap benefits once exclusive only to the rich. However, before putting your money in a mutual fund, be careful to research first about the mutual fund company’s stability, track record and where funds are invested. Seek the counsel of people you trust. Best of all, mutual funds have sub classifications that cater to all kinds of investors. Whether you are a conservative investor that seeks only to preserve your capital or an aggressive one that goes only for the highest return, mutual funds can provide you that. Yes, there is risk involved. Remember mutual funds are not guaranteed by the Philippine Deposit Insurance Corporation and you bear the risk of losing your money. Being good stewards. Lest we forget, everything we are enjoying right now is because God graciously provided it. As good stewards of God’s resources, it is important that we reach out to those who are less privileged. Here’s the tricky part: how much help do we give them? There is no definite answer to this question. What we want to establish is righteous giving-- enough to help tide them through the crisis but not so much that we foster a beggar’s mentality. The compassionate nature in us makes us want to help so much that it becomes a burden whether we realize it or not. Proverbs 3:27 tells us, “Do not withhold good from those to whom it is due, when it is in your power to do it.” It is clear then: help when it is due them, and when it is in our power to do so. When helping makes people become lazy so that they just rely on our charity to help them get by, then it is not “due them” anymore. And, when helping becomes grudging, we need to stop as well. The three principles commonly shared by the financially free are boring and old fashioned. But it is because they are boring and old fashioned that they have proven effective. These principles won’t let us “get rich quick.” We trudge the road not everyone dares take because we can pin our hopes on the promise that God desires us to be prosperous.
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Body & Soul
Choose to Be Healthy by Grace Felizardo
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man who is truly healthy, although he may not know it, is indeed wealthy. Foundational to our health is the food we eat, because we are what we eat. Let’s look at three of the staple foods in our kitchen and see what will benefit our body. Rice There are different types of rice. White rice is what remains after the rice grains are milled and the bran and germ are polished away. Brown rice and red rice both still have the germ and the bran as a part of the grain. Obviously, the bran and germ give the rice its color. As a result, both brown and red rice are higher in magnesium and other minerals. They also have more fiber. Fiber slows down the speed at which carbohydrates are converted into blood sugar. The more fiber the rice (or any carbohydrate food for that matter) contains, the slower the ensuing process of converting carbohydrates into blood sugar (also called glucose). For children and individuals who need to gain weight, white rice is beneficial for you. Those of us who do not want more fat stored in all the unsightly places, and those that have insulin related problems (or diabetics), brown or red rice is the right choice. Milk Next to yoghurt, milk provides the highest calcium mineral per serving which we need throughout our lives. Milk contains calcium, vitamins D and A, important nutrients for bone, eye and tissue health. Together with these nutrients, however, we are drinking milk fat. If you are watching your weight, you need to take a look at the different kinds of milk available in the market. Whole milk or fresh milk, as indicated by its name, has all the original content of milk, nothing was taken out from it. Growing toddlers until they become teenagers benefit from drinking whole milk. In a published study, they observed that long-term avoidance of milk is associated with small stature and poor bone health. Low-fat or light milk is when some of the milk fat is removed. Based on labels found on milk cartons locally available, less than half of the total fat is taken out per serving. This should take some worry off weight watchers. Skim or non-fat milk, is milk from which practically all the cream (also called milkfat) is removed. Many nutritionists and doctors recommend this for people who are trying to lose or maintain a healthy weight. Skim milk tends to have a slightly watery texture which some consumers do not enjoy but this is a good choice for people who would like to take care of their heart or those with heart disease and those who are careful about keeping their cholesterol levels within the normal range.
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Cooking Oil Health conscious individuals are cautious when it comes to choosing cooking oil. Let’s take a look at the most widely available cooking oils in the market. Vegetable oil is any oil obtained from plants. They are mostly derived from one particular plant source or a blend of two or more oils such as palm oil, soya bean oil, canola oil, corn oil, sesame oil, including coconut oil and others. For this reason, the amount of fats (saturated, mono and polyunsaturated) the individual oil contains depends on whatever plant the oil is made of. Saturated and Trans Fats are types of fat that come mainly from animal sources. Saturated and trans fats are not beneficial because they raise the total blood cholesterol and low-density lipoprotein (LDL) levels, which increase our risk of cardiovascular disease. Saturated fat may also increase our risk of Type 2 Diabetes. They include beef fat, pork fat, shortening, stick margarine and butter. They are found mostly in meat and dairy products, as well as in some vegetable oils, such as coconut and palm oil (tropical oils). Most saturated fats tend to be solid at room temperature, with the exception of tropical oils. Because of this, they’re typically referred to as solid fats. Incidentally, butter is high in saturated fat, while margarine tends to have more unsaturated fat. Monounsaturated and Polyunsaturated fats are good because they lower bad cholesterol and reduce your risk of heart disease. Monounsaturated fats are found in both plant and animal products, such as olive oil and canola oil. Among the oils compared, olive oil has the lowest level of monounsaturated fat which again, lowers LDL. Polyunsaturated fats are found mostly in plant sources like safflower, sunflower, soybean, corn, cottonseed. Foods made up mostly of monounsaturated and polyunsaturated fats are liquid at room temperature, such as olive oil and corn oil.
Love & Money Write Your Last Will and Testament
Wise Credit Card Use by Hazel Angela Javier
by Jeanne Ching
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ily’s mom passed away more than 20 years ago. She and her siblings had to pool their resources to settle their mom’s hospital bills and burial expenses. Recently, they found out that their mom had left some land titles and stock certificates. Now they have another dilemma - how do they recover the assets and divide them among themselves? Things could have been a lot easier had their mom left a last will and testament. What is a last will and testament?
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e are becoming a cash-less economy. More and more people are using credit cards to purchase both everyday necessities and “oncein-a-blue-moon” luxuries. Credit card companies craft many promotions and offer freebies to entice people into signing up for their credit cards. What you need to know about credit cards: 1.
Finance charge – if you don’t pay the full amount due for each billing period, the credit card company will apply a finance charge of more or less 3.5% depending on the credit card company to your balance and new purchases. Always pay the full amount due on or before the due date.
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Late payment charges – this is an additional charge for not paying on or before due date.
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Annual Membership Fee – there is a yearly membership fee, however, you can request waiving of fees by calling the credit card company customer care hotline.
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Restructuring of credit – if the unfortunate event happens that you’ve been “swamped by” too much debt, you can call the credit card company and arrange for installment payment terms at a lower interest rate.
A last will is a legal document that declares your preference of how things are to be done. A testament is a legal document that states how an estate or property will be managed after one dies. Why is it important to have a will and testament? These documents help ensure that your belongings are passed on to the people you choose without delay or argument. With a will, you can distribute your properties of equal value to your heirs. For example, you might give the house to your spouse, money to Juan, business to Ana, or some heirs may just give-up their portion in favor of another. A written will lightens the load on your loved ones whether it concerns financial or simply sentimentally valued possessions. A last will helps ease the stress effect on your beneficiary, and shields them from unnecessary expenses while dealing with the loss of a loved one. In a will, you can name a guardian of your preference for your minor children in case something happens. This will prevent the state and social services from stepping in and choosing a guardian in your absence. Who can write a last will and testament? Everyone of legal age and has a sound mind is eligible to write a will and testament.
Here are some tips to remember before paying with your credit card: 1.
As much as possible, use your credit card only in emergency situations.
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Never think of your credit card as an extension of your wallet. Don’t buy more than what you can afford to pay. Sometimes the conservative way of apportioning our money into need-specific envelopes is still the best way to budget! Just because you have a credit card limit doesn’t mean you have instant cash!
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And lastly, remember the age-old tip -- always ask yourself: “Is this something I need or just something I want?”
How do you write a will and testament? There are two ways to do it. • Notarial Will – this requires at least three credible witnesses and should be acknowledged by a notary public that it was made by the testator. • Holographic Will – is a will that is entirely handwritten, dated and signed by the testator. Where should you keep it? You may keep your will in a safe where someone trusted can have access to it soon after you die, or give it to your lawyer, or have the person you may name as the executor of your will keep it.
Our world today gives so much value to material things. The Bible says we are called not conform to the world. Our treasure is in Christ Jesus.
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Q A
I have hesitated to buy insurance because I feel like it would mean that I was putting my faith in my insurance and not in God. Does buying insurance mean I don’t have faith God will take care of me?
Having yourself or members of your family insured doesn’t mean you do not have faith in God. Instead, it shows how seriously you take the responsibility of being a good manager of the resources that God has given you. The Bible encourages God’s people to prepare for the challenges of life. For example Proverbs 13:22 says, “A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.” Trusting God doesn’t mean we stand idly by and refuse to take advantage of the opportunities that He provides for us. The Bible encourages a person of faith to both save and invest for the future. Many insurance programs are a form of inheritance that you can leave to your loved ones. For example, a good educational insurance can provide financial resources for your children to finish school. Then, they can have access to better career opportunities that will even benefit your grandchildren. A pension plan provides a steady source of finances for you when you retire; while a memorial plan eases the financial burden on your family should you pass away. While all these are practical and wise preparations for the future, our ultimate security is in the faithfulness of God who alone is the source of everything we need for life and existence.
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