Loans

I'm thinking of creating a directory of Financing Institutions available for the Filipinos.

Why? Because i personally believe that loans are not bad. We Filipinos must learn to disassociate loans from the normal lines of thoughts such as "utang na loob" or "pabigat".

Let me tell you a story I keep on telling to people afraid of taking out loans:

You see, I work for a financing company. And for over a decade now, i have seen people actually make good with their loans from us. Almost all our clients, actually. Of course we also have delinquents.

This is why  I do not discourage people from taking out loans.

You know what's bad? If he uses that loan to buy something which WILL NOT earn - like a cellphone, or a watch, or a TV set. Then he's in trouble.

On credit cards:
Image via Wikipedia
One of my staff is very enterprising. Do you know what she uses her credit cards with high credit limits for?  Strictly for BUSINESS only. How? Here:

With high, i mean up to P200k per card. She has friends who do not have credit cards but are so bent on  buying high end items such as new refrigerators, tvs. aircon, etc. So she offers that she uses her card to buy them the items, but she'll collect monthly from them. for principal, interest AND, check this out, a little patong (profit). Isn't that clever? That's making money out of plastic.

I haven't followed her footsteps, by the way. First, because i do not have credit limits that high (i get awed at how high credit limits credit card companies can actually afford to give middle-income earners nowadays). And i'm not much into usury.

But i must say, this is a smart way of making extra money. (By the way, have you been checking out my page about "earning extra"?. Click here)

So you see, as long as you use loans to make money, nothing is wrong with it. Investing is the name of the game. Saving money is not enough (read my post about what to do with money saved here). One needs to find ways to create money and build wealth.

Let's start looking at loans the positive way. The old way is not applicable anymore. The world has changed.

Information is key, people!

PS
You might want to read:

This could change your life forever.

 

Read carefully as this may change your life forever. Are you ready for the next big step? Read the rest of this article below.










The 1st quarter PH stock Market report is now out. Get your copy of the Philippine Daily Inquirer (PDI) now. It's on section B2.

In it, my friend Doris Dumlao interviewed a number of local equity experts on their views on the current scenario AND, brace yourselves coz here comes the surprise!!!! - their top picks for the next quarter.

That's FREE advice for you right there. Grab your PDI copy now and start your journey. Get involved, know your way around the Philippine stock market and the options readily available for you. Be in the know.

It's all there. The corporations which will make you retire as multi-millionaires. Change your life right here, right now.

Truly readers, information is key!

Readers' question: How do i save money?

A reader emailed me, asking "how do i save money?".Another one asks my opinion on Francisco Colayco's suggestion (in his book, Pera mo, Palaguin mo) of using envelopes.

With this post, I hope to answer these questions in the simplest, and most effective way i can. In fact, i will only use 3 words: Just do it!

I'm sorry if you were expecting a magic formula. But folks, really, ask yourself, how else do you expect yourself to save? In my opinion, there is no formula. Just willpower.

By all means you can, save every excess centavo. These add up. It's developing the habit that's more important. Once you've developed the habit, and have made this automatic and lasting, I promise you, you will very soon be taking the next big leap which is "growing your money" thru investments.


I can relate to you, ordinary Juan Dela Cruzes. I've been there. I am living proof that this is possible. Discipline, willpower and a bias for action. These are key.

Hesitant still? Also read (click links) relevant topics about:

a) Why create wealth?
b) Why save?
c) Money-saving tips
d) Investing 101
e) What to do with money saved

what to do with money saved

As you now know, every penny counts. If you've been following my posts, i'm betting you're now well on your way to creating your own wealth.

Let's recap. So far, i have taught you to:

1. Realize and admit you have a problem first

2. Understand your "big why"

3. Take action - know what to prioritize when it comes to spending

4. Start saving
5. Start valuing your time

Now we go to the next lesson to be learned- What to do with money saved.

For beginners:

My advice at this point? Go to your nearest bank. Open a passbook account, start saving there regularly. 

The objective is for you to develop the habit of not pocketing your excess pesos. Put it where you cannot have ready access to it. Remember it's a passbook, and not an ATM account. It's also a way for you to become at ease with the people inside banks.

For people with credit card problems:  

Start paying up. Little by little. Just face it and get over it. 

For people who are now ready for the next big leap: 

Start investing. Read my previous post re Investing 101. Choose among the items there. Research, ask around. Consult with knowledgable people. Start small. Just do it.

Details in my next posts. I promise you readers financial freedom. Start believing.