X-Curve is a powerful concept that our company has brought from the USA. It's a simple yet very powerful concept that will ensure financial success if executed properly.
It simply states that while we are young we have little or no savings and that as we grow old we must follow the Law of Building Wealth. That is, we must be able to increase our wealth and have lots of money as we grow old.
Conversely, When we are young and starting to build our family, we have a very huge responsibility that as we grow old we must ensure we follow this time, the Law of Decreasing Responsibility. The only way we can reduce the responsibility is by increasing our wealth. For every peso we save and invest, is a peso reduction in our responsibility.
X-Curve clearly shows us that we can move from ACTIVE INCOME EARNER to PASSIVE INCOME EARNER if we follow the Law of Building Wealth.
The early stage of building wealth is a precarious or very insecure stage. This stage is ACTIVE INCOME earning stage. We may have the capability to earn income to support our responsibility for we are still young, but the income which is very temporary is supporting a very permanent need. Thus, this must be addressed to ensure financial success. The solution is to have instant money for the family in case the bread winner, or the one who generates the income is incapacitated or is taken by the Lord. In financial services, this is called PROTECTION, and in plain language INSURANCE.
The later stage of building wealth should be prepared for as well to achieve the PASSIVE INCOME earning stage. This is by ensuring we have correct savings and investments. Investments placed on financial instruments like MUTUAL FUNDS and STOCKS that will yield high interest rates and yet are safe. This is to ensure that we have lots of money when we grow old which can generate interest income that will fund our retirement and most especially our HEALTH CARE. This way we live on the interest of the money we have saved and invested.
In our company, we wont sell you insurance or investment instruments. What we do is teach you and make you expert on this X-Curve Lessons, that you will be compelled to do it for the love of your family and yourself.We shall also show you what investment instruments like MUTUAL FUNDS, STOCKS to get into, when to get into it. Will make you your own financial planner and broker by executing the X-Curve Lessons.
Happy X-Curving in Action!
God bless!
Monday, June 28, 2010
Tuesday, June 15, 2010
Understanding Pooled Funds by FELY SANTIAGO on Philippine Online Chronicles
Here is a simple explanation on Mutual Funds which Fely has contributed...
I started investing in pooled funds in 2008; then the market crashed! I was so scared in being a first time investor of pooled funds. But today, after two years of regularly investing, even as low as P1,000.00 each month, my rate of return stands at 30 percent. Not bad for an amateur. I wish I started this 30 years ago as soon as I started earning from employment
What are pooled funds? They are investment vehicles that offer a higher rate of return compared to bank deposits but not without risk. They are measured in terms of net asset value per unit (NAVPU) or net asset value per share (NAVPS). There are two kinds of pooled funds here in the Philippines –unit investment trust funds (UITF) and mutual fund.
UITF versus Mutual Fund
The major difference is that UITF is a bank product managed by the treasury department. Unlike in mutual fund where you buy shares, you buy investment units in UITF. Therefore you do not have shareholders right when investing in the latter.
Although UITF is a bank product, it is not covered by Philippine Deposit Insurance Corporation (PDIC). This means investors bear the risk of losing their money. Additionally, UITF is not governed by any specific law but since they are offered by the banks, they are still under Philippine banking laws regulated by the Banko Sentral ng Pilipinas (BSP).
On the other hand, mutual funds have strict regulations from Investment Company Act of the Philippines which are highly regulated by the Securities and Exchange Commission (SEC).
So what is a mutual fund? Many people still don’t understand what it is. Well, struggle no more. Mutual Fund is like a cooperative where you put your money together. It does not matter how much each member initially puts in. Some can put in minimum required amount which is P5,000.00 in most cases; and for additional investment, as low as P1,000 pesos. This money is then handled by a Fund Manager who is responsible for fund allocations. The Fund Manager chooses which stocks or bonds to invest on. However, he is limited by certain guidelines of investments as promulgated by Securities and Exchange Commission.
Mutual Funds are offered by investment companies independently registered with SEC. Therefore, when you buy a mutual fund share, you become a shareholder of that company and you acquire the rights of a regular stockholder; including right to vote and right to receive dividends, among others.
Types of Funds
Financial goals and risk appetite will determine which fund is most suitable for an individual. The more popular funds one can get into are:
Bond Fund
This fund primarily invests in government-issued securities. It's like giving your money to be used by the government with the promise that the government will pay it back with interest. In short, this is your money lend to government.
It is considered risk-free because the government has two ways of paying investors: print more money and raise revenues through tax collections. On the average, Bond Fund performs four to six percent a year.
Money market fund
Similar to bond funds, money market fund also has a conservative stance since they invest in fixed income securities. These securities mature in one year or less hence, the term money market. Money market fund performs two percent a year on the average.
Stock fund or equity fund
Equity fund primarily invests in shares of stock of listed companies. The bigger allocation of equities within the portfolio allows the fund to attain a more aggressive growth rate. Thus, this is riskier, more volatile, and can result to either higher gains or high losses. Since equity fund tracks the index, the rise and fall on a daily basis is reason for the volatility of the fund.
In 2008, Philequity Fund, one of more popular mutual funds lost 41 percent. In 2009 however, it recovered and recorded a high of 65 percent! A lot of those who knew how to invest in the mutual funds earned a lot. For the past 16 years though, Philequity Fund grew at an average of 20 percent despite the ups and downs of the market.
Balanced fund
Balanced fund invests in both bonds and equities. It combines the low-risk-low-gain of the bond fund and the high-risk-high-gain of the equity fund.
Instead of having the money allocated on the risky equity funds, or on the conservative bond funds, the money pooled together is invested by the fund manager on both giving investors the best of both funds. Balanced fund performs 12-15 percent on the average.
Today, there are a total of 42 mutual funds listed in the country. 20 of these are bond funds, nine are equity funds, eight are balanced funds while the remaining five are money market funds.
On the other hand, there are 78 UITFs listed in the country. 32 are peso bond funds, 21 are dollar bond funds, 10 are peso money market funds, five dollar money market funds, nine peso equity funds and one dollar equity fund.
Now that we know what mutual funds are, I challenge you now to transform this knowledge to action and reap the harvest later. If you invest on a fund that can earn a rate of 12 percent a year for the next 25 years at P1,000.00 pesos a month, you will be able to accumulate P1.8 million (P105,881 in present value).
Make that P5,000.00 per month and you’ll have P9.4 million after 25 years (P552,939 in present value). So who says, it’s difficult to accumulate millions? Continue investing ten years longer and you’ll accumulate P32 million (P606,064.97 in present value)! The higher the rate of return, the higher your money will grow in the long run to meet your needs for retirement, child education and cash fund.
So there you are! It does not take you much money to accumulate millions. What you just need is the financial literacy how and where to invest; and the discipline to put in small amounts on a regular basis that will soon accumulate to millions.
Now that you know what are pooled funds, don’t procrastinate. Start investing NOW!
I started investing in pooled funds in 2008; then the market crashed! I was so scared in being a first time investor of pooled funds. But today, after two years of regularly investing, even as low as P1,000.00 each month, my rate of return stands at 30 percent. Not bad for an amateur. I wish I started this 30 years ago as soon as I started earning from employment
What are pooled funds? They are investment vehicles that offer a higher rate of return compared to bank deposits but not without risk. They are measured in terms of net asset value per unit (NAVPU) or net asset value per share (NAVPS). There are two kinds of pooled funds here in the Philippines –unit investment trust funds (UITF) and mutual fund.
UITF versus Mutual Fund
The major difference is that UITF is a bank product managed by the treasury department. Unlike in mutual fund where you buy shares, you buy investment units in UITF. Therefore you do not have shareholders right when investing in the latter.
Although UITF is a bank product, it is not covered by Philippine Deposit Insurance Corporation (PDIC). This means investors bear the risk of losing their money. Additionally, UITF is not governed by any specific law but since they are offered by the banks, they are still under Philippine banking laws regulated by the Banko Sentral ng Pilipinas (BSP).
On the other hand, mutual funds have strict regulations from Investment Company Act of the Philippines which are highly regulated by the Securities and Exchange Commission (SEC).
So what is a mutual fund? Many people still don’t understand what it is. Well, struggle no more. Mutual Fund is like a cooperative where you put your money together. It does not matter how much each member initially puts in. Some can put in minimum required amount which is P5,000.00 in most cases; and for additional investment, as low as P1,000 pesos. This money is then handled by a Fund Manager who is responsible for fund allocations. The Fund Manager chooses which stocks or bonds to invest on. However, he is limited by certain guidelines of investments as promulgated by Securities and Exchange Commission.
Mutual Funds are offered by investment companies independently registered with SEC. Therefore, when you buy a mutual fund share, you become a shareholder of that company and you acquire the rights of a regular stockholder; including right to vote and right to receive dividends, among others.
Types of Funds
Financial goals and risk appetite will determine which fund is most suitable for an individual. The more popular funds one can get into are:
Bond Fund
This fund primarily invests in government-issued securities. It's like giving your money to be used by the government with the promise that the government will pay it back with interest. In short, this is your money lend to government.
It is considered risk-free because the government has two ways of paying investors: print more money and raise revenues through tax collections. On the average, Bond Fund performs four to six percent a year.
Money market fund
Similar to bond funds, money market fund also has a conservative stance since they invest in fixed income securities. These securities mature in one year or less hence, the term money market. Money market fund performs two percent a year on the average.
Stock fund or equity fund
Equity fund primarily invests in shares of stock of listed companies. The bigger allocation of equities within the portfolio allows the fund to attain a more aggressive growth rate. Thus, this is riskier, more volatile, and can result to either higher gains or high losses. Since equity fund tracks the index, the rise and fall on a daily basis is reason for the volatility of the fund.
In 2008, Philequity Fund, one of more popular mutual funds lost 41 percent. In 2009 however, it recovered and recorded a high of 65 percent! A lot of those who knew how to invest in the mutual funds earned a lot. For the past 16 years though, Philequity Fund grew at an average of 20 percent despite the ups and downs of the market.
Balanced fund
Balanced fund invests in both bonds and equities. It combines the low-risk-low-gain of the bond fund and the high-risk-high-gain of the equity fund.
Instead of having the money allocated on the risky equity funds, or on the conservative bond funds, the money pooled together is invested by the fund manager on both giving investors the best of both funds. Balanced fund performs 12-15 percent on the average.
Today, there are a total of 42 mutual funds listed in the country. 20 of these are bond funds, nine are equity funds, eight are balanced funds while the remaining five are money market funds.
On the other hand, there are 78 UITFs listed in the country. 32 are peso bond funds, 21 are dollar bond funds, 10 are peso money market funds, five dollar money market funds, nine peso equity funds and one dollar equity fund.
Now that we know what mutual funds are, I challenge you now to transform this knowledge to action and reap the harvest later. If you invest on a fund that can earn a rate of 12 percent a year for the next 25 years at P1,000.00 pesos a month, you will be able to accumulate P1.8 million (P105,881 in present value).
Make that P5,000.00 per month and you’ll have P9.4 million after 25 years (P552,939 in present value). So who says, it’s difficult to accumulate millions? Continue investing ten years longer and you’ll accumulate P32 million (P606,064.97 in present value)! The higher the rate of return, the higher your money will grow in the long run to meet your needs for retirement, child education and cash fund.
So there you are! It does not take you much money to accumulate millions. What you just need is the financial literacy how and where to invest; and the discipline to put in small amounts on a regular basis that will soon accumulate to millions.
Now that you know what are pooled funds, don’t procrastinate. Start investing NOW!
Wealth Academy Training Schedules all Over Philippines
UPDATED: JUNE 15, 2010
.
Iligan City
June 19 - Saturday, 1 pm
Series 1: Money Management Strategies
by Jerecho Placido, Associate Financial Planner
IMG-Wealth Academy Iligan Office
2nd Floor Preface Building (2nd floor of Aruma and Back of Po Video)
Burgos cor de Leon St.
Iligan City
.
Cagayan de Oro
June 18 - Friday, 6 pm
Series 1: Money Management Strategies
by Jerecho Placido, Associate Financial Planner
IMG-Wealth Academy Cagayan de Oro Office
Door 2, Ground Floor, Malayan Building
Velez St.
Cagayan de Oro City
.
Puerto Princesa, Palawan
June 15 - Tuesday, 5:30 pm
Series 1: Money Management Strategies
June 16 - Wednesday, 5:30 pm
Series 2: Finance and Investment 101
June 17 - Thursday, 5:30 pm
Series 3: Creating Multiple Streams of Passive Income
June 19 - Saturday
Series 1: Money Management Strategies at 10:00am
Series 2: Investment and Finance 101 at 2:00pm
Series 3: Creating Multiple Streams of Passive Income at 4:00pm
Unit E One Wescom Plaza,Wescom Road,
Puerto Princesa City 5300
Davao City
June 16 – Wednesday
Series 1: Money Management Strategies
June 19 – Saturday
Series 1: Money Management Strategies
5th Floor, Landco Building,
Bajada
Davao City
IloIlo City
June 19 and 20 – Saturday and Sunday
Series 1: Money Management Strategies @ 9:30 am
Series 2: Finance and Investment 101 @ 1:30 pm
Series 3: Creating Multiple Streams of Passive Income @ 3:00 pm
IMG-ILOILO WEALTH MANAGEMENT ACADEMY
Room 4, 3rd flr., No. 144 Iloilo Asian Lumber Bldg.
M.H. Del Pilar St., Molo, Iloilo City
5000 Philippines
Cebu City
June 15 - Tuesday, 7:00 pm
Series 1: Money Management Strategies by Michael
Series 2: Finance and Investment 101 by MD Jun Seratu
Series 3: Creating Multiple Streams of Passive Income by CEO Noel Arandilla, RFP
6th Floor, FGU Ayala Center
Cebu Business Park
Cebu City
Makati City
.June 16 – Wednesday at 7pm
Series 1: Money Management Strategies
Series 2: Finance and Investment 101
RSA Mutual Fund Training
.
June 19 – Saturday at 7pm
Series 4: Upstart School @ 1:30 pm
General Training @ 2:00 pm
Series 1: Money Management Strategies @ 2:00 pm by CEO Noel Arandilla, RFP
Series 2: Finance and Investment 101 @ 5:30 pm
Series 3: Creating Multiple Streams of Passive Income @ 5:30 pm
IMG-Wealth Academy Makati, Corporate Headquarters
3rd Floor King’s Court 1 Building
Dela Rosa cor Pasong Tamo
Makati City
.
Iligan City
June 19 - Saturday, 1 pm
Series 1: Money Management Strategies
by Jerecho Placido, Associate Financial Planner
IMG-Wealth Academy Iligan Office
2nd Floor Preface Building (2nd floor of Aruma and Back of Po Video)
Burgos cor de Leon St.
Iligan City
.
Cagayan de Oro
June 18 - Friday, 6 pm
Series 1: Money Management Strategies
by Jerecho Placido, Associate Financial Planner
IMG-Wealth Academy Cagayan de Oro Office
Door 2, Ground Floor, Malayan Building
Velez St.
Cagayan de Oro City
.
Puerto Princesa, Palawan
June 15 - Tuesday, 5:30 pm
Series 1: Money Management Strategies
June 16 - Wednesday, 5:30 pm
Series 2: Finance and Investment 101
June 17 - Thursday, 5:30 pm
Series 3: Creating Multiple Streams of Passive Income
June 19 - Saturday
Series 1: Money Management Strategies at 10:00am
Series 2: Investment and Finance 101 at 2:00pm
Series 3: Creating Multiple Streams of Passive Income at 4:00pm
Unit E One Wescom Plaza,Wescom Road,
Puerto Princesa City 5300
Davao City
June 16 – Wednesday
Series 1: Money Management Strategies
June 19 – Saturday
Series 1: Money Management Strategies
5th Floor, Landco Building,
Bajada
Davao City
IloIlo City
June 19 and 20 – Saturday and Sunday
Series 1: Money Management Strategies @ 9:30 am
Series 2: Finance and Investment 101 @ 1:30 pm
Series 3: Creating Multiple Streams of Passive Income @ 3:00 pm
IMG-ILOILO WEALTH MANAGEMENT ACADEMY
Room 4, 3rd flr., No. 144 Iloilo Asian Lumber Bldg.
M.H. Del Pilar St., Molo, Iloilo City
5000 Philippines
Cebu City
June 15 - Tuesday, 7:00 pm
Series 1: Money Management Strategies by Michael
Series 2: Finance and Investment 101 by MD Jun Seratu
Series 3: Creating Multiple Streams of Passive Income by CEO Noel Arandilla, RFP
6th Floor, FGU Ayala Center
Cebu Business Park
Cebu City
Makati City
.June 16 – Wednesday at 7pm
Series 1: Money Management Strategies
Series 2: Finance and Investment 101
RSA Mutual Fund Training
.
June 19 – Saturday at 7pm
Series 4: Upstart School @ 1:30 pm
General Training @ 2:00 pm
Series 1: Money Management Strategies @ 2:00 pm by CEO Noel Arandilla, RFP
Series 2: Finance and Investment 101 @ 5:30 pm
Series 3: Creating Multiple Streams of Passive Income @ 5:30 pm
IMG-Wealth Academy Makati, Corporate Headquarters
3rd Floor King’s Court 1 Building
Dela Rosa cor Pasong Tamo
Makati City
Sunday, June 13, 2010
Be debt free Saturday, 12 June 2010 05:32 PM Fely Santiago on Philippine Online Chronicle
This is an article of Fely on Philippine Online Chronicle....
When I say, get rid of debt, I mean bad debt because there are two kinds of debt: good debt and bad debt. Bad debts are debts that increase your liabilities like a purchase of appliances on installment using credit card or a car loan. Good Debts are debts that increase your assets like borrowing money from the bank to fund your business, or taking advantage of a bullish stock market through a margin loan. The focus of this article will be more of getting rid of bad debts.
If there is any school that would grant us PhD in Debt Management, I think I would qualify and even get an award for it. Thus, I assure you, I know what I am talking about when I say getting out of the debt trap can be done.
You see, my spouse and I were really earning well with salary of six figures each. However, we were really not keen in managing our finances because of low financial IQ. Because of our big monthly income we just thought it was okay to have debts because we can pay for it. Wrong! We only realized much later that our debts and loans from our many credit cards and different loaning facilities ballooned to more than seven figures. Name it, we have it: SSS loan, PAG-IBIG loan, coop loan, emergency loan, personal loan, housing loan, car loan, multi-purpose loan, and even the pawnshop. The power of compounding interest was working against us. Instead of growing our money, we were losing a lot of money to these debts. We would borrow money just to pay off another loan. That went on and on until we realized that the monthly income is about to stop! Where will we get the money to pay our debts?
Now, did I get your attention?
This problem of living on borrowed money or debts affects so many millions of lives or perhaps billions worldwide. According to a Banko Sentral ng Pilipinas (BSP) media release, credit card receivables stand at P130.7 billion in first quarter of 2010. I am sure you, who is reading this article right now has some contributions to this enormous debt plaguing our society.
Mind you, this is not isolated to the low-income bracket or the middle class. This engulfs even those in the higher income bracket of our country. My relatives abroad are not spared from this. I am sure you do hear the same stories from your relatives abroad. There are also reports that many Filipinos in Dubai were put in jail in view of debts they cannot repay. In America, many are facing foreclosure and filing bankruptcies since they can no longer pay off their monthly housing amortization.
Loans and debts make people do things that lead them to more problems. Instead of finding a solution, they create more problems because they don’t know how. Worry not. There is a solution to these perennial issues on debt management. It just requires an education, a plan and a lot of discipline.
In our case we were really just fortunate that before we got into deep, deep trouble because of our debts, we got ourselves financially educated. We got a financial wake-up call when we attended the seminar of Bo Sanchez’ “How to Be Truly Rich” and “Truly Rich Financial Coaching”. So we search out for more and attended other wealth-management seminars thereafter. With the knowledge acquired and applying what we learned we got better equipped to handle the problem we were on.
So here they are, I am sharing the steps I took to get rid of the grip of debt!
Steps To Get Rid Of Debts
The first step is to stop borrowing NOW! Make that difficult decision not to spend on borrowed money. Kick off the habit of impulse buying especially using your credit card. Cut your credit cards immediately if you are drowning in credit card debts. Don’t spend money that you will still earn in the future because that money may never come! Create a budget so you spend only on what you need and within your budget.
Second step is to define a strategy to pay off your debts. List all the existing loans you have and line it up with the amounts and interest the loans has. For example:
1. Credit Card - P100,000 - 3.5 percent per month
2. Housing Loan – P600,000 – one percent per month
3. Coop Loan – P150,000- 0.75 percent per month
Come up with the deadline to pay off these loans prioritizing payments to the one with the highest interest. Then talk to your creditors and tell them about your plans and negotiate for a better payment scheme with the least interest, penalties or finance charges.
You may also look at balance transfer scheme offered by some banks if they can give you the least interest payments. If you can borrow money from a relative or a friend without interest, much better but promise to pay them.
Also plan to pay more than what the required minimum payment is. If you receive extra money from bonuses or windfall, use it to pay off your debts. The earlier you pay your debts off, the better.
Third Step is to increase cash flow. Reduce your expenses. Make a list of all your expenses and find out where you can reduce or eliminate. Live below your means. Simplify your life. Don’t go for that latest gadget or latest bags or shoes. Liquidate all none performing assets. Sell things in your cabinets, garage, or living room that you do not need and turn them to cash to pay off your debts.
Find a way to have alternative source of income to increase your cash flow. Use your spare time to earn additional income. There are a lot of companies that offer you this opportunity. Or turn your skills or hobbies into income-generating business. By increasing your cash flow, you are on your way to pay off debts faster.
Fourth step is to create emergency fund so you don’t have to borrow money again. Set aside three to six months your monthly income for emergency needs like minor illness, loss of job, and other unexpected spending. If you are forced to borrow money again because of emergency, then getting rid of debts becomes difficult again. So start building small amounts of money for your emergency fund and make sure you use it only for “emergencies”.
Lastly, as you execute this plan, make sure you keep yourself in the company of people with the same desire and discipline. Don’t go with people who are “spenders”. Go with people who are “savers” and “investors” so you yourself can start building your wealth and be totally freed from the bondage of “borrowing”.
Take it from me because by doing these simple steps I can proudly say “I DID IT!”
When I say, get rid of debt, I mean bad debt because there are two kinds of debt: good debt and bad debt. Bad debts are debts that increase your liabilities like a purchase of appliances on installment using credit card or a car loan. Good Debts are debts that increase your assets like borrowing money from the bank to fund your business, or taking advantage of a bullish stock market through a margin loan. The focus of this article will be more of getting rid of bad debts.
If there is any school that would grant us PhD in Debt Management, I think I would qualify and even get an award for it. Thus, I assure you, I know what I am talking about when I say getting out of the debt trap can be done.
You see, my spouse and I were really earning well with salary of six figures each. However, we were really not keen in managing our finances because of low financial IQ. Because of our big monthly income we just thought it was okay to have debts because we can pay for it. Wrong! We only realized much later that our debts and loans from our many credit cards and different loaning facilities ballooned to more than seven figures. Name it, we have it: SSS loan, PAG-IBIG loan, coop loan, emergency loan, personal loan, housing loan, car loan, multi-purpose loan, and even the pawnshop. The power of compounding interest was working against us. Instead of growing our money, we were losing a lot of money to these debts. We would borrow money just to pay off another loan. That went on and on until we realized that the monthly income is about to stop! Where will we get the money to pay our debts?
Now, did I get your attention?
This problem of living on borrowed money or debts affects so many millions of lives or perhaps billions worldwide. According to a Banko Sentral ng Pilipinas (BSP) media release, credit card receivables stand at P130.7 billion in first quarter of 2010. I am sure you, who is reading this article right now has some contributions to this enormous debt plaguing our society.
Mind you, this is not isolated to the low-income bracket or the middle class. This engulfs even those in the higher income bracket of our country. My relatives abroad are not spared from this. I am sure you do hear the same stories from your relatives abroad. There are also reports that many Filipinos in Dubai were put in jail in view of debts they cannot repay. In America, many are facing foreclosure and filing bankruptcies since they can no longer pay off their monthly housing amortization.
Loans and debts make people do things that lead them to more problems. Instead of finding a solution, they create more problems because they don’t know how. Worry not. There is a solution to these perennial issues on debt management. It just requires an education, a plan and a lot of discipline.
In our case we were really just fortunate that before we got into deep, deep trouble because of our debts, we got ourselves financially educated. We got a financial wake-up call when we attended the seminar of Bo Sanchez’ “How to Be Truly Rich” and “Truly Rich Financial Coaching”. So we search out for more and attended other wealth-management seminars thereafter. With the knowledge acquired and applying what we learned we got better equipped to handle the problem we were on.
So here they are, I am sharing the steps I took to get rid of the grip of debt!
Steps To Get Rid Of Debts
The first step is to stop borrowing NOW! Make that difficult decision not to spend on borrowed money. Kick off the habit of impulse buying especially using your credit card. Cut your credit cards immediately if you are drowning in credit card debts. Don’t spend money that you will still earn in the future because that money may never come! Create a budget so you spend only on what you need and within your budget.
Second step is to define a strategy to pay off your debts. List all the existing loans you have and line it up with the amounts and interest the loans has. For example:
1. Credit Card - P100,000 - 3.5 percent per month
2. Housing Loan – P600,000 – one percent per month
3. Coop Loan – P150,000- 0.75 percent per month
Come up with the deadline to pay off these loans prioritizing payments to the one with the highest interest. Then talk to your creditors and tell them about your plans and negotiate for a better payment scheme with the least interest, penalties or finance charges.
You may also look at balance transfer scheme offered by some banks if they can give you the least interest payments. If you can borrow money from a relative or a friend without interest, much better but promise to pay them.
Also plan to pay more than what the required minimum payment is. If you receive extra money from bonuses or windfall, use it to pay off your debts. The earlier you pay your debts off, the better.
Third Step is to increase cash flow. Reduce your expenses. Make a list of all your expenses and find out where you can reduce or eliminate. Live below your means. Simplify your life. Don’t go for that latest gadget or latest bags or shoes. Liquidate all none performing assets. Sell things in your cabinets, garage, or living room that you do not need and turn them to cash to pay off your debts.
Find a way to have alternative source of income to increase your cash flow. Use your spare time to earn additional income. There are a lot of companies that offer you this opportunity. Or turn your skills or hobbies into income-generating business. By increasing your cash flow, you are on your way to pay off debts faster.
Fourth step is to create emergency fund so you don’t have to borrow money again. Set aside three to six months your monthly income for emergency needs like minor illness, loss of job, and other unexpected spending. If you are forced to borrow money again because of emergency, then getting rid of debts becomes difficult again. So start building small amounts of money for your emergency fund and make sure you use it only for “emergencies”.
Lastly, as you execute this plan, make sure you keep yourself in the company of people with the same desire and discipline. Don’t go with people who are “spenders”. Go with people who are “savers” and “investors” so you yourself can start building your wealth and be totally freed from the bondage of “borrowing”.
Take it from me because by doing these simple steps I can proudly say “I DID IT!”
Wednesday, June 9, 2010
New President...New Hope? We'll be Rich!
Yeheey...we have a new, duly elected, and I sincerely believe to be an anointed President! Finally, poverty and corruption can be eliminated. Pot holes will soon be paved, bridges to be built, more jobs will be created, more investments will come, more tourists will visit the land, prosperity , and morality will reign over our nation. Finally, I will be rich!
I hope and pray for these to indeed happen and I know President Elect Noynoy will be true to his promises. But I am sure these happen won't unless each one of us contribute our own small ways. More so, we cannot be rich simply because a new President has been sworn in. I know that is too simplistic and even borderline lunacy. Being rich is not tied up to who is in power in Malacanang. It is incumbent upon each one of us. It is within our powers.
All we need are: Financial Literacy- how to manage our finances , how to save and invest properly, and Discipline- to do what we must do to secure our family and our future... Not a new President. Got my point?
Let's continue to pray for our country, for one another , for our leaders, specially our New President, and couple this with firm resolve and action to contribute our own small way and be Truly Rich.
God bless!
I hope and pray for these to indeed happen and I know President Elect Noynoy will be true to his promises. But I am sure these happen won't unless each one of us contribute our own small ways. More so, we cannot be rich simply because a new President has been sworn in. I know that is too simplistic and even borderline lunacy. Being rich is not tied up to who is in power in Malacanang. It is incumbent upon each one of us. It is within our powers.
All we need are: Financial Literacy- how to manage our finances , how to save and invest properly, and Discipline- to do what we must do to secure our family and our future... Not a new President. Got my point?
Let's continue to pray for our country, for one another , for our leaders, specially our New President, and couple this with firm resolve and action to contribute our own small way and be Truly Rich.
God bless!
Sunday, June 6, 2010
Independence Day!
June 12, 1898 brave Filipino patriots led by then Gen. Emilio Aguinaldo declared our country's sovereignty from the Spanish rule. But did we really become absolutely independent?
This will surely spark controversies and debates. Right? How is this related to being truly rich? Well, there is no direct connection. Being truly rich is of different kind of independence. Independence from financial worries, from debts and loans obligations, from stress of working for the money, and from stress of keeping up with responsibilities.
I know the feelings and effects of being trapped on a financial rut hole for I've been there and is still witnessing same scenario with many other people whom I love, and those whom I just met for the first time.
Some case really literally trapping them inside a jail depriving them of liberty. And worst, they are in a foreign land. Some people lost their homes as the banks foreclosed their properties as they default on their payments. And still some about to lose their homes in a matter of weeks for the same reason. And greatly affecting also their family as it resulted to separation.
I really thank God, we learned how to manage our finances , even if I consider it late, and is able to be financially free.
It is an intricate yet simple process that is founded on Financial Literacy - How to save and invest properly, and on Discipline- to do what we must for our future.
If you want to learn the step by step to Financial Independence, read through my earlier blogs, it will tell you the details.
Happy reading.
Happy Independence Day!
God bless!
This will surely spark controversies and debates. Right? How is this related to being truly rich? Well, there is no direct connection. Being truly rich is of different kind of independence. Independence from financial worries, from debts and loans obligations, from stress of working for the money, and from stress of keeping up with responsibilities.
I know the feelings and effects of being trapped on a financial rut hole for I've been there and is still witnessing same scenario with many other people whom I love, and those whom I just met for the first time.
Some case really literally trapping them inside a jail depriving them of liberty. And worst, they are in a foreign land. Some people lost their homes as the banks foreclosed their properties as they default on their payments. And still some about to lose their homes in a matter of weeks for the same reason. And greatly affecting also their family as it resulted to separation.
I really thank God, we learned how to manage our finances , even if I consider it late, and is able to be financially free.
It is an intricate yet simple process that is founded on Financial Literacy - How to save and invest properly, and on Discipline- to do what we must for our future.
If you want to learn the step by step to Financial Independence, read through my earlier blogs, it will tell you the details.
Happy reading.
Happy Independence Day!
God bless!
Thursday, June 3, 2010
June Wedding.... Then What's Next?
June is the "marriagest" month of the year. Yes I invented that word. Kim "Matang Lawin" gave a very good trivia about why June is month for wedding.
First, it is because June is generally the start of cool , but comfortable weather all over the world. Those on the temperate zones experience cooler respite from the summer heat as the rains usually starts to pour by this period. For those in the part of the world that experiences winter, this time of the year is spring and is the nicest weather.
Second, June is taken from the Greek Goddess Juno, the counterpart of Venus- Goddess of Love. So it is a pagan tradition to have tying of the knots in this love month....not February...
So much of Greek mythology.
What does it have to do with being Wealthy? Oh, I tell you there is so much connection as weddings are actually the starting point of a marriage. And marriage is the beginning of family life, the starting point of increasing responsibilities, and if not properly prepared for, weddings becomes the beginning of the end of marriage due to financial issues, and thus crashing the hope of being wealthy.
Weddings entail a lot of preparations and planning, and inevitably a lot of money outflows. Thus, this is where the biggest pressure of couple comes in. I have heard so many stories of couples preparing so much for the wedding day itself, and after the wedding finding themselves in deep financial trouble, and in view of this, the marriage suffers, and eventually leads to a disastrous separation.
When Fely and I were engaged and planned our wedding, we have only both of us to rely on. Thus, we carefully studied our finances and carried out our wedding celebration to how much we can afford. Thus the wedding did not end up as a financial trap for both of us.
This is what couples must look at before they jump into their wedding. They must look beyond the wedding celebration for there is this married life they need to look forward to. Financial planning for weddings should not be myopic. It must extend beyond the wedding ceremonies. Plans should include the eventual additions to the family, a new home,and many other needs and responsibilities.
I know the pressures of planning for the wedding for I've gone through it. Adding plans for what is in store after the wedding is equally important and challenging. But believe me, if you want to start right your married life right after the wedding, plan for it.
Don't let your June wedding or whatever month you plan to wed end up in separation due to financial issues. Plan ahead for what comes next after the wedding...
God bless!
First, it is because June is generally the start of cool , but comfortable weather all over the world. Those on the temperate zones experience cooler respite from the summer heat as the rains usually starts to pour by this period. For those in the part of the world that experiences winter, this time of the year is spring and is the nicest weather.
Second, June is taken from the Greek Goddess Juno, the counterpart of Venus- Goddess of Love. So it is a pagan tradition to have tying of the knots in this love month....not February...
So much of Greek mythology.
What does it have to do with being Wealthy? Oh, I tell you there is so much connection as weddings are actually the starting point of a marriage. And marriage is the beginning of family life, the starting point of increasing responsibilities, and if not properly prepared for, weddings becomes the beginning of the end of marriage due to financial issues, and thus crashing the hope of being wealthy.
Weddings entail a lot of preparations and planning, and inevitably a lot of money outflows. Thus, this is where the biggest pressure of couple comes in. I have heard so many stories of couples preparing so much for the wedding day itself, and after the wedding finding themselves in deep financial trouble, and in view of this, the marriage suffers, and eventually leads to a disastrous separation.
When Fely and I were engaged and planned our wedding, we have only both of us to rely on. Thus, we carefully studied our finances and carried out our wedding celebration to how much we can afford. Thus the wedding did not end up as a financial trap for both of us.
This is what couples must look at before they jump into their wedding. They must look beyond the wedding celebration for there is this married life they need to look forward to. Financial planning for weddings should not be myopic. It must extend beyond the wedding ceremonies. Plans should include the eventual additions to the family, a new home,and many other needs and responsibilities.
I know the pressures of planning for the wedding for I've gone through it. Adding plans for what is in store after the wedding is equally important and challenging. But believe me, if you want to start right your married life right after the wedding, plan for it.
Don't let your June wedding or whatever month you plan to wed end up in separation due to financial issues. Plan ahead for what comes next after the wedding...
God bless!
Tuesday, June 1, 2010
No Small Living....Think Big for your Future
Most common issue I encounter with people who do not prepare for their future, and resist to take steps to ensure they leave something to their family is simply lack of foresight, hope, and dreams.
And you know what, it affects all kinds of people from different levels of earning capability and age. Some will say they don't even have enough to survive or subsists in their daily existence. Some will say, "I'm giving them good education and that's enough, they must take care of themselves, and as for me, let the future take care of itself".
I can predict a disastrous future for them. Hopefully, they were awakened and do something to change their mindsets before it's really too late. It' will be difficult to change people's mindset, but we need to give them information to make them change from within.
But, the good news is that, many young people are beginning to realize early in life the right way. Students, young professionals in their early twenties already think about their future including their retirement which is not common years back. That's a good sign. So many are now dreaming and thinking big for their future.
So how do we Dream Big and Think Big? What is the foundation of this? It's all about love. Yes, LOVE. If we love our family, we will ensure they have something to live on with. If we love ourselves, we will ensure that we will have a comfortable old age. Our guide on this preparation for our future is found on Book of Proverbs: 13:22" A good man will have wealth to leave to his grandchildren..." and in another version: " A wise man leaves inheritance to his children's children..."
Being good and being wise requires the right knowledge. A good guide to make sure we have something is found on the story of Joseph in Genesis: 41:1-36. We really have to ensure we keep 1/5 of our harvest for our future. As to where you will put your 1/5, you've go to learn the how to properly and safely invest.
Be good and wise! Dream big for your future!
God bless!
For your investing guides...just email us or send your response to this blogspot....
And you know what, it affects all kinds of people from different levels of earning capability and age. Some will say they don't even have enough to survive or subsists in their daily existence. Some will say, "I'm giving them good education and that's enough, they must take care of themselves, and as for me, let the future take care of itself".
I can predict a disastrous future for them. Hopefully, they were awakened and do something to change their mindsets before it's really too late. It' will be difficult to change people's mindset, but we need to give them information to make them change from within.
But, the good news is that, many young people are beginning to realize early in life the right way. Students, young professionals in their early twenties already think about their future including their retirement which is not common years back. That's a good sign. So many are now dreaming and thinking big for their future.
So how do we Dream Big and Think Big? What is the foundation of this? It's all about love. Yes, LOVE. If we love our family, we will ensure they have something to live on with. If we love ourselves, we will ensure that we will have a comfortable old age. Our guide on this preparation for our future is found on Book of Proverbs: 13:22" A good man will have wealth to leave to his grandchildren..." and in another version: " A wise man leaves inheritance to his children's children..."
Being good and being wise requires the right knowledge. A good guide to make sure we have something is found on the story of Joseph in Genesis: 41:1-36. We really have to ensure we keep 1/5 of our harvest for our future. As to where you will put your 1/5, you've go to learn the how to properly and safely invest.
Be good and wise! Dream big for your future!
God bless!
For your investing guides...just email us or send your response to this blogspot....
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