By Lynda C. Corpuz

Nurse Cristina Rotor, 27, spent about P8,000 buying holiday gifts for her grandchildren, friends, parents, and boyfriend (plus his parents and brother). Call center agent, Russell Macahilas, 31, meanwhile, spent on an appliance showcase of 32” TV, component, and refrigerator. The price: about P50,000 to P100,000 – all spent for her Christmas last year.

Cristina and Russell say that though they spent that much for 2007 holidays, it was a planned spending for them. How about you? Have you already set aside a budget for this Yuletide season? Or are you guilty of the following holiday spending mistakes?

Holiday hangover: You get “blind’ during the holidays. With the 13th, 14th, and whatever bonuses you receive during the end of the year, you somehow get lost with how much money you’re receiving. That financial blindness you’re having can be attributed to the misconception of the more you spend, the more you make people happy (by giving them gifts they probably don’t like in the first place).

Holiday check: Draw a holiday budget. Even Santa Claus keeps a list of what to give to those who are nice all year round (all right, Santa Claus may not true, but his gift-giving list is). Having such list will help you track of what you should buy (and for how many) versus what you would actually spend when you hit the mall, check a holiday bazaar, or brave your way to 168 in Divisoria.

Holiday hangover: You’re having “holiday guilt.” You just thought your homemade chocolate chip cookies suck and not suitable as giveaway or you think you should give a more expensive gift to your Mom because you’re closer to her than to your Dad, or you got an unexpected present from your grumpy boss or an office enemy. Such situations, among others, could put you on the spot and lead you to overspend, as you don’t want to deal with such holiday guilt.

Holiday check: Be guilt free. It’s always said that it’s the thought that counts, but at times, we overspend so as to please everybody this holiday season. But think of the global financial crunch, surely those you love (and are wishing to receive gifts from you) are also in the savings mode, and would probably not to expect much this so-called difficult time.

Holiday hangover: You procrastinate. True, there are mall-wide sales all year round, and you probably bought in advanced some of your Christmas giveaways from these, but you’ve been putting off sending those gifts, say, to your relatives in the province or in abroad.

Holiday check: Shop early, wrap fast, and send those gifts on time. The more you shop late, the more you have to content with overpriced items and deal with the throng of late holiday-shoppers like you. Also, send those gifts to faraway recipients before the Yuletide rush, or end up paying more for the shipping cost. While this country follows holiday economics (where public holidays are moved to the nearest weekend), Christmas is that one holiday that’s fixed here, so that should keep you in track to spread the holiday cheer on time.

As for Cristina and Russell, they will not have to deal with such holiday blunders, for they are keen not to spend that much, compared to what they spent last year.

For Cristina, she’s not sure if she’s going to spend that much again this season. “Because whenever I hit the mall and I see something that I know is ‘perfect’ for a particular person, I buy it right away, and that serves as my holiday gift,” she shares. But she’s sure she would still spend on toys, clothes, bags (for her), among other things.

For Russell, she says she will not spend that much anymore, or get anything that is too expensive. “I’m now saving for some travel options,” she ends.

The Registered Financial Planners Institute and Personal Finance Advisers Philippines Corporation are pleased to announce their first joint event entitled, “Pesos and Sense – Weather Proofing Your Personal Finance” on October 29, 2008 from 1 to 5 pm at the Makati Sports Club.

For this event, we have invited the following bestselling authors and practitioners to articulate how personal finance can indeed be weather-proofed:

Chinkee Tan – The Right Perspective On Money
•   Bestselling author of “Till Debt Do Us Part”
•   Lifestyle Trainer
•   Former actor turned Millionaire
•   One of the most sought after speaker on practical financial management

J. Randell Tiongson, RFP – Prosperity Begins with “S”

•   President and COO, Personal Finance Advisers Philippines Corporation
•   20 years of experience in the financial services industry
•   Director of the Registered Financial Planning Institute Philippines
•   Co-founder of www.income-tacts.com, the country’s premiere personal finance on-line community
•   Columnist/Writer, Business Mirror Newspaper, Moneysense Magazine, My Money

Francis J. Kong – The Right Pursuits in Life
•   The country’s leading motivational and inspirational guru
•   Author of 10 best-selling books
•   Award-winning radio program on DZFE and a most read columnist of the Philippine Star
•   License holder for John Maxwell and Zig Ziglar programs
•   Extensive experience in business
•   Featured in many of the major business conventions and conferences both here and abroad

People who should attend this event are individuals interested in improving their personal financial management as well as practitioners who want to get insights on how to help their clients better manage their finances.

The cost for attending the seminar is One Thousand Eight Hundred Pesos (P1,800.00) per person, VAT inclusive or a special early bird rate of One Thousand Five Hundred Pesos Only (P1,500.00) – Great value for fantastic learning from 3 of the country’s most respected speakers and trainers.

For more inquiries, please call Rachelle at 634-2204

By Excel Dyquiangco

When William Shakespeare said “neither a borrower nor a lender be,” he was probably referring to Evelyn Corpuz. The 37-year old, who used to work for a variety show in a television network, learned that borrowing money indeed can pose a hazardous threat to a relationship. Not only is she P30,000 in debt to both her mother and sister, she admits she feels guilty about not paying them back – it has already been over a year since she borrowed from them.

And aside from not having a job right now to pay back the money lent to her, the sad part about the whole thing is that her relationship with her mother and sister isn’t what it used to be. It has become a little bit tainted, all because she is having a difficult time paying her debt.

Sounds familiar? More than not paying back what you owe a friend or a close relative, the risk of ruining a perfectly good relationship is at stake. At one point in your life, you are faced with a dilemma and a scenario. What if you are not able to pay back the money you owe your mother, what happens next? Are you willing to sacrifice the relationship because you have a hard time paying back the money that was lent to you? And the more important question: if that happens, will your relationship with a family member or a friend ever return to normal?

Actually, it can, as long as you are aware of the things that you need to do to get right on track. According to independent financial planner Josefino Gomez, borrowing money from a friend or a relative shouldn’t even be this risky – if you know what to do. He lists down a couple of things that you should remember in order to be a “good” borrower and still keep that bond with friends and relatives intact.

Avoid borrowing in the first place. If you can avoid it, don’t borrow money. Borrowing costs more since it often involves interest. Even if your mom won’t charge interest, the fact that you need to borrow means something is wrong with your finances. It could actually be a sign that you need help with perhaps your spending or saving habits, or both.

Explain your reason for borrowing. Your lender certainly wants to know how you would use the money. Borrowing money must be used as a last resort and certainly not to obtain unnecessary stuff like a new gadget (your father-in-law will certainly not be amused). You can justify asking for a loan for a real emergency, such as hospitalization, or for something that steadily appreciates, like a house or education, but not for more volatile investments like stocks.

Put it on paper. Treat it as any other loan. This should clear up any misunderstandings in the future. Be sure to state the principal amount, interest rate, term, and frequency of repayment. Also add provisions for possible extensions and remedies for failing to keep your promise. You can do away with formalities if the amount is a few hundred pesos. But for more significant amounts, insist on documenting the loan.

Pay back what you owe in any way possible. Be diligent in repaying. But what if, just like in Evelyn’s case, you are struggling to repay? Josefino Gomez says not to run and hide because the lender might think that you have no intention of returning the money. “Just be honest and be sincere,” he says. “If you owe someone P10,000, you should pay some amount back to show that you are sincere. Even P100 a day or a week will show sincerity. After a year (P100 x 52 weeks), you would have paid about P5,200, more than 50% of what you have owed.” Money can be gained or lost easily but once your reputation – and worse your good relationship – is lost, it is hard to get back.

Exercise humility. If your best friend or sister starts nagging you about your loan, don’t get defensive or agitated. Put yourself in the shoes of your lender. How would you feel if you were on the other side of the fence? You can avoid being nagged or even hounded if you show (and not just promise) earnest commitment to repay. Regardless, swallow your pride. You got yourself in this mess, so suck it up. Better, do whatever it takes to pay back and mend your strained relationship.

Establishing your reputation as a good borrower will pay off. Josefino says, “If you have shown your sincerity and have upheld your honor, you’ll reap the rewards of ready money in the future.”