If insurance is brought up in a conversation, people might say it’s an expense, they don’t need it, some might say it’s a scam or simply ignore it. Here in the Philippines, we rarely talk about it. I don’t even remember my high school teacher mentioning this, not even during college. Believe it or not, my parents are not that familiar with it as well. The question is how important is insurance in the financial pyramid?

I myself wasn’t financially literate for the past 30 plus years. Why, nobody taught me how. The only time I increased my financial IQ is when I experienced financial turmoil. During that time, I know there’s something wrong. My income is above average but still I have debts and maxed out credit cards. I know I have to change or else I’ll be trapped in this financial abyss. My first step, I attended the Kerygma Conference.

One of the things that I learned is that God is present in every aspect of our lives including our finances. Money is a gift from God and we need to learn how to manage it. I used to believe that starting a new business is the only way to be financially independent. Guess what, my financial concerns worsened because I started a business that I’m not familiar with. I tried to run it on my own and no mentors to guide me. Profit is the only thing in my mind. Unfortunately, it failed.

One of the most attended classes in the Kerygma conference was “How to get out of debt”. I was surpised of the number of attendees. Young adults were there and even folks in their retiring age! That day I realized it’s really a problem. During the session, the financial pyramid was mentioned. It’s the first time I have heard of it. However, me knowing its concept, changed everything.

I’ve learned that before anything else, you need to get protection or insurance. Why, if you get sick or die, everything that you have worked hard for, your car, house and savings will be gone in a matter of days. You will even drag your family in this problem. If you get sick for example, it is natural for a Filipino family to help their family member. They will resort to debts with high interests to pay your medicine or hospital bills. Having Insurance, will give you peace of mind that you won’t go through with this.

Knowing the financial pyramid also helped me get rid of my credit card. Cutting it into pieces never felt so good by the way. My family is on its way off being debt free. The saying “Knowledge is power.” might be a cliche but true. Knowing the basics will prevent you from making financial mistakes.

I’ve decided to become a financial advisor not because of the money but rather with the advocacy. I have the opportunity to make a difference in the lives of many by providing financial security. It’s about time that we level up our financial IQ. Investing time to learn it will benefit us in the long run. Learning pays the best interest anyway. The best time to change your financial mindset is now... or it might be too late.

DISCLAIMER: We are sharing this based on our experience and might not be for everyone.

The base in the financial pyramid.