HEARTSIGHT

CHRISTINA LLANES MABALOT

My Personal Journey to Financial Competency

We can financially prepare for our child's future, as well as unexpected crises. Determine to educate yourself and gain the financial skills from here on. You need to plan for the best and be prepared for the worst.

Today, there's a crisis that's real and tangible. Economic deficiencies, to say the least, are one of the significant setbacks from lockdowns. I am no financial expert, but I've been flat-broke several times and have bounced back. I'd like to offer some advice if your finances have caught a virus.

KEEP YOUR HEAD ON YOUR SHOULDERS

A financial crisis can drive you crazy. You can make the most unsound decisions and worsen your problem when emotionally unwell. It doesn't help to quit and sink into depression, squander your remaining money, or forget about your predicament. The best way to handle it is to get a grip of your senses, face the situation, weigh your options, and work out a logical plan.

It seemed like yesterday when I heard myself say, "I hate math, so I'll never manage finances." As a woman with low vision, college graduation signified my freedom from all numbers-related activities. I had gone through unimaginable ordeals just to pass math courses, and dealing with numbers again in any way would conjure horrible images for throwback-Thursdays. But when I set up a school, the lawyer obligated me to keep track of finances. I pitched all my valid and convincing excuses, e.g., "I'm blind, a woman, and hopeless in math." The man responded, cut and dry, "you manage either finances or failure."

He was right. Not knowing much about something isn't an excuse for not learning. Could the lack of knowledge in parenting stop me from being a mother? No way! So, I rewired my brain to like dealing with money.

Unlike Trigonometry, math that I'll never use, financial management is a life skill that will build one's future to live more comfortably. The truth is, my disability drains my pocketbook, and I had no stable source of income. And yet, I was burdened with the expenses of a speech software, growing cab fares (which equal a monthly vehicle payment), eye medications, and salaries for a sighted guide or reader. No school would hire me, so I determined to set up my own. The promise of monthly wages hung in the balance. I needed to get my ducks in line, and the biggest involved finances.

Embracing much-needed change goes beyond knowing you need to do something different, like stopping a bad habit, relationship, or attitude. I think most of us are aware of what we need to do to improve our lives. But, we do what we know is right when fear from impending consequences invades our hearts. One stops smoking of one's fear of dying from lung cancer. I manage my finances because I dread becoming a worthless bum. Change gets real when a crisis becomes palpable and emotional. So, I took up my cross and followed my legal advisor. And boy, was I thankful I started relatively young.

AMAZING CAPABILITIES: Attitude is everything. When dealing with any crisis, a positive attitude will keep you pushing. Be sure to have backup plans, just in case some don't work. Never lose heart. Your focus and priority should be on successfully getting out of the rut.

Financial competency is essential for a growing family. Who would have thought we'd be blessed with a visually-impaired child? When Jem came into our lives, I was well into my second entrepreneurial venture, so I had enough sense to double up on our finances. I got scarred by how my mother had always lectured my only sighted brother to be industrious. He was warned that in the future, he'd be caring for all his siblings – four in total. Dumping the financial burden on my only sighted brother set him up for failure. Who wouldn't be overwhelmed with such a responsibility? Parents, never assume that your children without disabilities will take on the responsibility of caring for their sibling(s) with special needs. Also, don't be misled into thinking that the government will automatically sustain your child. They need to be poor, with assets under $2,000 to be subsidized. We can't passively accept that deal.

Society doesn't realize the hidden costs of families and individuals living with disabilities. Medical care tops the list of exorbitant expenses. While medications improve functionality, their cost will kill you. Most insurances don't cover the full amount needed for personal assistance, durable medical equipment, and that Uber ride to the doctor's office. Housing, transportation, utilities, and even food, just about every necessity for living, entail extra expenses for special needs people. I feel like, the more "included" we are in society, the more expensive life becomes. theconversation.com/the-hidden-extra-costs-of-living-with-a-disability-78001

Because of these financial constraints, we are left with two options. We either try to earn more, or gain the financial skills that will help us manage our money. The latter sounds easier.

WHAT TO DO : FOUR STEPS TO BECOMING FINANCIALLY COMPETENT

1. Create a budget

Since it is the only way you can manage your money on a daily basis, budgeting is the rock upon which finances are built. You'd know exactly where your money is going, and you can streamline your expenditures. In case you're hard up with bills, budgeting might even help you cover all your monthly expenses. If you don't have a budget, you're long overdue for creating one.

The first commandment of budgeting is: do not live beyond your means. If breaking this law were punishable by death, no adult would be alive in America. Most of us have spent money we don't have to buy stuff we don't need, using the very tempting credit card. Are you guilty of this crime? Examine your statements for the past three months. Make an inventory of purchases that you can live without — that 16th purse, that 11th watch, those ginormous cups of coffee with the mermaid, and so on. Add them all up. Then, ask yourself, "How much do I make in a month?" Be accountable and turn from your splurging ways!

Budgeting is planning on how to spend your money wisely. It is our guide to reaching a financial end. For our community, our goal is, after paying essentials, leftover money should go towards saving the future of our children with special needs. Sum up necessary expenses, such as housing, vehicles, insurances, utilities, groceries, and additional costs for your child's unique requirements. Hopefully there will be an amount left over from your monthly net income to be put aside for our purpose.

The safer way to save is to set aside at least 10% of your household income every month, before anything else. Since the goal is to gradually increase what you can set aside for your child's future, we might as well call our spending plan "tighten your belt." Let's think like a millionaire whose mindset is on acquiring more savings for investments, and stop acting wealthy for the moment. Follow your budget like you're tailgating a vehicle that will lead you to a pot of gold. To make budgeting enjoyable, look up some apps that will help at: blog.disabilitycanhappen.org/top-budgeting-apps-available

2. DEATH TO DEBT

I'm talking about the debt we've accumulated from luxuries, not from basic needs. Luxuries include clothes, travel, toys, eating out, and stuff we don't really need and can't return. Materialism has blinded us to equate happiness with owning stuff. Indeed, we've acquired more goods and, in the process, have disabled our financial potential. When our family moved to America, we were fascinated by how many credit cards an individual can have. We were in the land of the free; free to shop anytime, free to buy every whim and fancy, and free to feel miserable about growing debt. Several months later, the engineering firm my husband worked for filed for bankruptcy. I realized then that I could actually keep quiet for days when in shock. On the day of reckoning, my husband and I did the math. How much did we owe on our credit cards and how much did we need to pay monthly?

The long and short of it is, if you don't know offhand how much you owe, and if more than 30% of your take-home salary goes to paying credit card debts, you're in the red. We worked contractual, even taking on odd jobs to pay our bills and debt. We labored nights and weekends until we got a job. Since then, we vowed to pay off our credit cards and use them only for essential things. We charged this crisis to experience. The first rule in liquidating debts is to stop adding to it. When you're tempted to buy a luxury item, imagine you're feeding a fire-breathing dragon that burns up your earnings and your ability to build your child's future. Know exactly how much your debt is costing you each month. Imagine that same amount of money going to savings that could eventually be turned into a special needs trust. Stamp that figure in your mind as your goal to keep you gungho in tackling your debt. Figure out a plan for paying it off. You can set a doable target amount each month and monitor it. I always allot more to pay off the credit card with the highest interest rate. Schedule all your payments on the same date monthly so you won't forget. Put away the cards you've paid off, but never close your account or your credit score will slump. As one preacher said, there is life after debt.

3. save

With a budget in place, and as you pay down your debt, you'll have more to save. As a family with special needs, we've learned to expect the unexpected, like sudden medical bills, or necessary assistive technology on top of possible major car or home repair, even job loss. Experience taught me to always maintain an emergency fund. I'll never forget the time when Jem was closest to losing her vision due to her rocket-high eye pressure. Her ophthalmologist prescribed eye drops that cost more than liquid gold. It was a do or die decision to save her vision and our emergency fund saved the day. It kept us from using plastic money and incurring debt. A good target for an emergency fund would be at least three months' worth of expenses.

Make sure you're not leaving money on the table. Research, network, or get nosy about benefits your child might be missing out on. Money saved is money earned and "free" is always in our budget.

4. turn savings into investments for your Child's future

Envision your child's future. Since you know your child best, you would have an idea of his life as an adult. Would he have a college degree and possibly get employed? Or would he be dependent on programs? What about living 3. save With a budget in place, and as you pay down your debt, you'll have more to save. As a family with special needs, we've learned to expect the unexpected, like sudden medical bills, or necessary assistive technology on top of possible major car or home repair, even job loss. Experience taught me to always maintain an emergency fund. I'll never forget the time when arrangements? Such questions could guide you in setting a long-term savings goal for money to put into a special needs trust or other investments that suit your needs. Factor in your child's current cost of living. Estimate the value of this amount 10 to 15 years from today, considering the rate of inflation. Take an inventory of your estates, like 401-K, real estate properties, and other assets or valuables. If your estate has enough to cover your child's future cost, you're lucky. Otherwise, determine the difference between the value of what you currently own from future expenses for your child. Set the amount as your long-term savings goal for building a special needs trust. In my opinion, the best way to fund a special needs trust is through life insurances.

DETERMINE TO GET OUT OF THE CRISIS

Attitude is everything. When dealing with any crisis, a positive attitude will keep you pushing. Be sure to have backup plans, just in case some don't work. Never lose heart. You can wait out most crises and bounce back on your feet. Your focus and priority should be on successfully getting out of the rut.

PLAN NOW

We can financially prepare for our child's future, as well as unexpected crises. Determine to educate yourself and gain the financial skills from here on. You need to plan for the best and be prepared for the worst. Initially, you may feel overwhelmed and apprehensive about making sacrifices, but that's better than being regretful tomorrow.

Before migrating to America, our family enjoyed a comfortable life. My husband and I had built an apartment building. After bank loan payments, collection from rentals would be a reliable source of income. It would sustain us during retirement and provide for our children, especially Jem, when we're gone. Simultaneously, we had a prosperous massage livelihood. We got the concessions in the big hotels, and we provided a living for several masseurs with visual impairment.

I delivered consultancy services on the side, and my husband, an engineer, contracted projects. We had life insurances, college education plans for our kids, and other investments. We were technically set up for the future, except for one thing. We were concerned that Jem might not maintain her residual vision. At that time, the Philippines didn't have the medical technology and resources for her visual condition. One day, my brother in America advised that we consult his family ophthalmologist. He was a glaucoma specialist in New York who was an expert in aniridia. We made the tough decision to leave everything behind, pack up, and start over in America. Most of our friends and relatives thought we'd gone mad, but our hearts were set on Jem's education, employment, success, and happiness. Set your sights on your child's tomorrow. Draw a vision board to motivate you to invest in his or her future every day.

GOOD NEWS!

Wait! Don't quit reading. I have some good news for you. Financial planning for your child's future isn't limited only to controlling money from your grave. Your children can actually have an account that they can enjoy while you're alive. Help your child to Achieve a Better Life Experience by creating an ABLE account. The beneficiary of an ABLE account is the owner, the person with a disability.

Contributions to the account are not taxed and can be made by the owner, family, special needs trust, or any person. The beauty of the ABLE account is that the beneficiary may have more than $2,000 without losing eligibility for public benefits. The account owner can withdraw money at any time for qualified disability expenses. En-ABLE your child today. Learn more at: ablenrc.org/what-is-able/what-are-able-acounts

HELP IS AVAILABLE

Don't be overwhelmed by all this money talk! You don't have to do it alone. Consult your family and community. Better yet, seek a certified financial planner and make sure the expert is a chartered Special Needs Consultant. Review the credentials of financial planners very carefully before contracting one. You can also check out financial planning systems like:

• enablesnp.com/free-special-needs-planning-system

• kidshealth.org/en/parents/needs-planning.html

Should you decide to improve financial competency during these uncertain times, you will gain a lasting benefit from the pandemic. As Benjamin Franklin once said, "An investment in knowledge pays the best interest." Don't let your finances be another pandemic casualty. •

HEARTSIGHT

Christina Llanes Mabalot is physically blind from aniridia, but has a vision. She enjoys touching people's lives to bring out the best in them. "Heartsight" explains her ability to see with her heart. Christina earned her B.A. degree and Masters in Education from the University of the Philippines, Diliman, specializing in Early Intervention for the Blind. She later received Educational Leadership training through the Hilton-Perkins International Program in Massachusetts, then worked as consultant for programs for the VI Helen Keller International. She has championed Inclusive Education, Early Intervention, Capability Building and Disability Sensitivity programs. She was twice a winner in the International Speech contests of the Toastmasters International (District 75) and has been a professional inspirational and motivational speaker. Christina is blissfully married to Silver Mabalot, also physically impaired, her partner in advancing noble causes. Their children are Paulo and Jem, who has aniridia.