The Pinoy's Power Nap

It's been a while. I missed writing my thoughts away.

Something for you readers.....

THE POWER NAP

They say power naps are good for you. However, the ordinary Filipino do more than just nap in the afternoon. They (we) sleep.

I am referring to the lazy ones of course. Or those who just don’t understand that time is gold. Or those who think their work for the day – and so are their income for the day – are enough for them to afford  a longer nap than usual.

When I was in the US,one of the first things i noticed was the ordinary US street (kalsada). They are almost empty , unlike in the Philippines where in every corner you’ll see some group of people chatting their time away. I’m talking adult half-naked males puffing cigarettes and women (sometimes even carrying around babies) here, by the way.

Dear reader, ever wondered why we have become this way? Or who taught us to be this way? Or why? Again, our society permits us to be like this. I have never heard of anybody in the Philippines who  EMPHASIZED that this is bad. No one, Nada.

“Kulang na nga ang kinikita natin sa maghapong trabaho, may gana pa tayong makipag-tsismisan sa kanto? O kaya matulog sa hapon?”

If we want wealth to follow us the rest of our lives, let us stop following  the old ways. Let us value TIME more. I mean 100x more. Be productive; Find work; Find means to earn extra cash during your spare time.

DO NOT TAKE A longer NAP than usual. It is bad. Even  shameful.

When you’re retired and gray, you’ll have plenty of naps and tsismis time. But today, while you still can, be as productive as possible. Always be on the lookout for extra income. Earn more cash. Seach for it; Ask around; Think of ways to earn more.

Once again  dear readers, do not let the world pass us by. Pinoy, wake up. It is time.

Make Money from Quitting Smoking

Another victim of the smoking habit 

The news about the recent death of  Jo Ramos, daughter of former Philippine President Fidel V. Ramos so shocked me that I stopped whatever it was I was doing and started typing my thoughts away, hence this post in this blog.

I have quit smoking 2 years ago. Mainly because I wanted real change to happen to my life. I knew the health risks early on. Since day 1, actually. But still, I let myself get hooked.

Why quit? 

Quitting smoking is one of the hardest things I have ever done. Yet, it was the sweetest. To this day I consider it as one of my personal achievements.

Knowing the money involved in smoking was, I admit, only secondary to me back then. Even when I finally decided to quit, what I knew I was going to save was not the biggest motive for me to quit.

A challenge to all Pinoy smokers.

Now that I am a bonafide victor of the habit, I cannot help but look ahead. In the spirit of teaching the average Filipino, which is really the main objective of this blog, I shall direct the readers attention to MAKING MONEY OUT OF QUITTING SMOKING.

Readers, if you are smokers, ask yourselves and be as honest as possible:

1. How much are you really spending for cigarettes?
2. How much from your daily or monthly income does smoking eat up?
3. What things do you deprive yourself and your family by your smoking?

Personally, I just came to a shocking realization:

Because I have been smoke-free for 2 years now, I have actually saved this amount: P21,000.

How do I actually know?

I used the smoking calculator app, which I stumbled upon in the web. Click here. It is from the Canadian Cancer Society.

The smoking calculator.

Try it. Go ahead and see for yourself how much money can you actually make from quitting smoking.

Shocked? I can’t blame you.

Information is key, peeps.

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The shocking truth about credit cards

The truth about credit cards






A good friend on mine, Albert, wanted me to feature what I think of credit cards in the Philippines. His questions vary from why do Filipinos seem to be in love with credit cards to how credit cards work to how to get out of credit card debt. More importantly he asks, what are my personal experiences with credit cards.

Albert, here’s for you.

My story:
1 year into my regular employment, I began noticing my co-workers getting their credit card applications approved left and right. One girl actually purchased a new cellphone from it right away. One guy actually even told me that he knew of people “making money” from credit cards by overlapping bills and withdrawing from credit cards to settle payments.

Young, innocent and stupid as I was, I began envying these guys. Soon enough, I was applying for a card myself. 2 failed tries and a year after, there it was – my very 1st credit card. The initial CL (credit limit)? P20,000.
Fast-forward 10 years later:
I still have 1 credit card. It’s the same one that got approved 10 years ago. It’s from the same bank. And it’s still worth only P20,000. The unpaid balance to date? Somewhere around P2,000, including this year’s annual membership fee of P1,500.

I guess I was just lucky. Or just plain kuripot. I didn’t get too much tempted to use the credit card all these years. I remember using it for large purchases (appliances) when I got married, but completely paid it off in about a year. No, I didn’t know too much what the credit card trap meant. I wasn’t as well-informed as I am now. Like I said, I was just simply lucky.

Now here’s what I learned over the years:

Yes, you can live without credit cards.
Yes, credit cards will work for you only if you have the discipline to pay your loan off in equal installments.
No, there is no way you can make money out of credit cards. The interest rate is way too high for anyone to afford it.
No, it is not wise to have the biggest credit lines, or multiple cards. These are all temptations.
I remember one cozy night me and my wife were talking about credit cards. Our discussion ended with us both sighing “ The credit card is the devil”. Of course, it was just a metaphor. But you get the message.

And so I lecture today:

When in deep credit card, gather your wits together and start paying off. There is no way around it. None. Just set a portion of your income every month and pay directly to your bank.

Credit card companies DO NOT want you to pay big chunks. It’s a not-so-secret- secret: They need to make money from you paying off only your month’s interest. So do yourself a favor and stop being nice to them.

Stop collecting credit card accounts. I promise you, this habit will take you directly to the trap.

Maintain only 1 credit card. The one with the smallest interest rate.

Pay only for stuff your cash on hand will permit you to. Stay away from credit card points. These are temptations. Remember the devil metaphor?

So there.

Be wise, people.

Being informed is key.

The Secret Millionaire

Have you heard of this show that's been taking the US by storm?




Very very touching show. Very moving.

Watch clips here:

What the show is about: 

America's richest will spend a week in poor communities PRETENDING they're one of them. Ultimately, they learn valuable lessons about life, and choose to reward some unsung community heroes with hundreds of thousands of dollars of their own money.

Excerpted from the show's website:

"Residing in local housing on welfare-level wages, these "secret millionaires" will try to find the most deserving people within the community. We're talking about those selfless individuals who continually sacrifice everything to help anyone in need, and ultimately encourage others to do the same.



Throughout this incredible experience, the millionaires will come face-to-face with some truly extraordinary people who put their own needs aside for the sake of others. At the end of the journey, they'll reveal their true identity and donate their own money to these local heroes."

My take: The public should be fed a lot more of these kinds of TV shows. I'm wishng it will be shown in the Philippines very soon.

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Money saving tips from a housewife

I wanted to know how other Filipinos in this time and age look at money matters, so i put up some sort of an experiment: I asked around.









Here's what a 30-something wife and mother of 2 has to say. Her name is Brenda, and is a dear friend of mine.

Enjoy!

HOW TO SAVE MONEY WISELY:

As housewife , it is important for me to be able to manage money wisely it ensures a healthier financial future, less financial stress and having enough to take care of emergencies, and less worries as well. Here are the things that I always done to save:
Save on electricity
I make it a point that I always turn off and unplug electrical items when not in use. When we go out I checked that I turn off all electrical devices and updating old appliances to save energy and avoid wastage.
Shop at discount sources
I can save money by shopping at discount sources and before buying an item I compare it with different stores in order to save money.
Cook more
A lot of families spend a lot of money on eating out.  For me, it is usually cheaper to eat home-cooked meals.  I always cook more so that I can often save money.  You will often have leftovers that can be used for lunches.
Do not overbuy
It is important for me not to overbuy, every item should be carefully considered.
Making a budget also is a good way for me to figure out my finances and the ways in which I can save money.

There may be occasions when you spend more than you should, but what matters is that you have the tools in place to help you get back in control of your finances. Saving money does not only help you afford a better financial future, but it is crucial that you have money set aside to use in case of emergencies. When saving is your goal and you work hard to achieve it, you will see yourself managing money better.

What newbie investors need to know

    




Newbie? Here's what you need to know. 





Investing Early is key. I have been emphasizing this over and over again in my blog.

With this post, I will teach readers the 2 types of investments:

1) lending investment
2) ownership investment.

What is lending investment?
It is actually “lending your money to institutions in exchange for a profit. Putting money in the bank is lending investment. Money in a savings account or in a time deposit is actually a loan to the bank.

What is ownership investment? 
It is the acquisition  of OR OWNING assets (shares of stock, property, etc.) with intention of periodically earning income from these assets. In ownership investment gains or losses are actualized only when the asset is sold. This type of investments are generally  more suitable for long term goals.

Now the more important stuff. Guides in Investing:

Know that:
a) the higher the return, the higher the risk;
b) the longer the time, (investment period), the lower the risk; and
c) the longer the time, the higher the return

Investing is a choice. Retiring rich is a choice. If you know what you're doing early on, nothing will stop you from retiring rich. Doing something NOW rather than later (or none at all) IS A FAR BETTER CHOICE to make.

Again, it’s developing the habit that’s more important. When you muster the discipline, you will retire rich.

Good luck and happy investing!

What you should know about stock investing in the Philippines

                


Let me start with this statement: Stocks are by far the most risky of financial instruments, but also the most profitable. It is not for the faint of heart. But it sure warrants the average Pinoy's attention.

Here's what you should know about stock investing in the Philippines according to the PSE.

What are stocks?

A share of stock is evidence of a fractional ownership in a corporation. Buying a share of common stock is in fact buying a share of a business. An individual who owns shares in, say, Petron or PLDT has an ownership interest in that company and is called a stockholder or shareholder. This ownership is also referred to as having equity in a company, hence, stocks are also called equities or equity securities. The percentage or proportion of ownership depends on how many of the company’s share one owns.

Where can you buy or sell stocks?

The stock market is the place where shares of stock are traded while the stock exchange is the organization that provides the facilities for the buying and selling of securities. The trading floor is the place where member-brokers trade daily. The Philippine Stock Exchange (PSE) is the only operating stock exchange in the Philippines and has two trading floors located at the PSE Centre in Pasig City and at the PSE Plaza in Makati City.

When can you buy or sell stocks?

Trading at the PSE is from 9:30 a.m. to 12:00 noon in a continuous session daily, except Saturdays and Sundays, legal holidays and days when the Banko Sentral ng Pilipinas (BSP) Clearing Office is closed.

Who can buy or sell stocks?

As the organization that facilitates stock trading, the PSE is not directly involved in the buying and selling of securities. It is the Members (also known as member-broker or member-firms) who can buy or sell stocks for the investors since they are authorized and licensed by the Securities and Exchange Commission (SEC) to transact business as a broker and/or dealer or securities.

A stockbroker acts as an agent or middleman between the investor and other buyers/sellers. As an intermediary, the stockbroker executes orders for clients, purchasing or selling the stocks on the stock exchange. On the other hand, a dealer acts as the principal rather than an agent – buying and selling for his/her own account.

How can you buy or sell stocks?

a) Choose a stockbroker.
b) Open a brokerage account.
c) Place your order with your broker.

What is the minimum amount you can invest in the stock market?

The minimum amount of money needed to invest in the stock market depends on the minimum amount of shares to be traded for the stock. This minimum amount will be determined by the prevailing market price of a particular stock. For each stock the minimum amount of shares to be traded is fixed and depends on the price range of the stock


How can you make money in the stock market?

As owner of a corporation’s share of stock or stockholder, your return can come from either dividends or capital gains.

Dividends are periodic payments made by the company to its shareholders from its current and past profits. It is paid in either of two ways. The first and most common method is cash; the second method is known as stock dividend.

Cash dividend    This income is computed by multiplying the number of shares held by the cash dividend rate declared. For example, if a company declares a P0.25 per share cash dividend to tits shareholders, a stockholder with 10,000 shares of stock will receive a cash dividend income of P2,500 (P0.25 x 10,000).

Stock dividend    This dividend is given to shareholders in the form of additional stocks, instead of cash. For example, a company with one million outstanding shares declares a 25% stock dividend. A stockholder who owns 10,000 shares will receive an additional 2,500 shares (355% of 10,000) for free as a stock dividend. This stockholder now owns 12,500 shares.

Dividend payments are not automatic. All dividends must be declared by the company’s Board of Directors, but it is the decision of the company whether to declare dividends or not, the amount and when it will be paid. Usually, the higher the company’s profit, the higher the dividends paid to the stockholders. But if the Board decides not to declare a dividend, the common stockholders receive nothing. Common stockholders cannot demand dividend payments even if the company is profitable.

Capital gains. This results form capital appreciation, or an increase in the market value of the stock you own. For example, an investor buys 10,000 shares of stock at P2.00 per share. After several weeks, the market price of the stock increases to P3.00.  If the investor decides to sell all his shares, he will be getting a total value of P30, 000 which represents a 50% capital gain form his purchasing value of P20, 000. Thus, capital gains are profit made due to an increase in the market price of a stock form the purchase price.

What do you need to do before you invest?

Before making any investment, you must first evaluate your current and potential means, and determine the goal or purpose of making the investment. Every investor should ask himself the following questions before making the first purchase:

“How much money do I have to invest and can I afford to invest without adversely affecting my life-style?”
“What is the purpose of my investment?”        

“How much return would you accept as reasonable for your investment?”
“How much risk am I willing to accept?”      

Ultimately, useful tips include:
Investigate before investing:
It is not advisable to put your money into any stock without first looking at the corporation. Issues that have to be looked into are: market share and sectoral importance, the financial performance of the company as shown in the annual and other financial reports, the management, development plans, growth opportunities, etc. Please ask your broker for assistance in selecting the stocks.

Diversify your portfolio.
Diversification is the opposite of “putting all your eggs in one basket,” a practice that is as risky as putting all your funds in one stock. Although temptation of putting everything into one stock might be very great, especially when the price is moving upward, it should be avoided. It is one of the basic rules in stock market investing. Diversification, on the other hand, is the investment strategy of investing in different industry sectors and if possible, different stocks from different reduce your risk considerably.

Don’t rely on rumors.
Frequently, rumors circulate in the stock market, especially when there is heavy trading. At such times, people launch rumors as to where the stock price will go, often to make money out of it. Rumors and hearsay should be carefully checked and verified by the investor. Consider the source and the motive behind the launching of the information and never act on the basis of a rumor that cannot be verified.

Monitor your investments.

So there. Information is key!

Happy investing!