How to plan for your financial Future: A Glimpse at the X-Curve

Image: By Parkon/
Image: By Parkon/


In planning for your financial future, there are two questions that need to be addressed. First, what if you die too soon? And second, what if you live too long?

And of course, the next logical questions to consider are: (1) if you die too soon, will there be enough for your family and loved ones? (2) if you live too long, will there be enough for you to sustain your lifestyle without depending on your children, other relatives or charity?

If you die too soon

Do you know how much caskets cost? It can range from P30,000 to P110,000 depending on the type of casket. If you want to purchase a gold plated one like the late comedy king Dolphy, you’ll have to prepare 1.8 million pesos (according to news). How about the land in the cemetery where you will be buried? The Funeral services? And add to those, the food that your family will be providing to the visitors during the wake?

If you love your family, you will need to help them. It will be bad enough for them that they will lose you. Don’t make it badder for them that your funeral will scrape off their wallets.

The solution: Insurance.

Bro. Bo generally suggests (and I suggest too) that you buy a term insurance. That is an insurance for a limited time, say 10 years. It has the lowest premium among all other types of insurance. The catch: this is on the premise that in that span of 10 years and you did not die, you would have built your wealth enough to cover the would-be insurance coverage. But by all means, get an insurance for your family when you still have big responsibilities and still on the process of building your wealth. That brings me to question number 2.

If you live too long

Some time ago, I used to be a part of an outreach program where volunteers visit the elderly. In one of the visits in a Home for the Aged, I was fortunate to hear the story of one Lola (Grandma). Let’s call her Lola Linda. She said that she used to make clothes for the movie stars. She mingled with them and she was earning big time. I wonder whatever happened to her fortune. Now that she is unable to work, she is depending on charity. She would still wear make-up, she would dress up and wear cheap jewelleries to reminisce the glory days –but are now long gone.

The solution: Save and Invest

Don’t get me wrong here. I love Lola Linda. I would hug her if I see her. But I believe that her fate would have been different if she saved and invested her earnings instead of spending them lavishly. She would not depend on charity. Perhaps, she would have donated to charity instead.

I thank the Lola’s like Lola Linda who gives me an idea of how I would be in the future if I do not take care of my finances now.

What do you want to see in the future?

In my twilight years, I want to have enough for me to live with and more to share with others. I would want my future children to be happy to see me, not avoid me because I became a burden to them. I want to wear a big smile to my future grandchildren while handing them chocolates or candies on Christmas Day. On that day when my responsibilities are little, I would want to have big savings and living on interest maybe.

The X-Curve

Now that, my friends, is the concept of the X-Curve shown below.

Copyright: IMG Corp.


P.S. Do you want to know where you are at now in your finances and how you can strengthen further your financial foundation? Contact me to set an appointment with the financial trainers of IMG Academy.

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