Category Archives: Personal Finance

Pinoy Money Mistake: Credit Mismanagement.

This is Part 2 of 3 of the Money Mistakes Among Pinoy Series

Part 1 | Part 2 | Part 3

After Discussing the First Pinoy Money Mistake about Overspending, This blog post will discuss about Credit Mismanagement.

Credit Mismanagement is brought to you by your Personal Loans, Credit Cards, Mortgages

According to Market Manila 2011, Southeast Asian Central Banks 2008: Philippines has 28% of total household debt in the form of credit card loans.

I believe this is true, I was once buried in credit card debt. Most of Credit card users, used their credit cards for “WANTS” and needs, there is a wise spending technique in using credit card.

Use your credit card, if you can fully pay the card before it’s deadline. Because the moment that you pay minimum, you are already in Financial problem. Enjoy the perks that you can get from the credit card like bonus points but don’t be buried with debt with credit card or else you will suffer the consequence of having a compounded monthly interest to your credit card.

Using the compounded formula as an example if you have a 10,000 debt and you did not pay for your debt in one year, your debt will be affected with compounded interest as follows:

Given : @ 2.5% Interest Monthly

10,000 x 1.025^12 = 13,448

Imagine your wants today could increase to a nightmare on the following years if you will not use your credit card well..

So today’s take.. Use your credit card wisely.. But did you know that you could reverse that compounded interest if instead of buying your wants is Investing you hard earned money.?

Money Mistakes Among Pinoy (Needs VS Wants)

This is Part 1 of 3 of the Money Mistakes Among Pinoy Series

Part 1 | Part 2 | Part 3

We have shown in our previous post on What Can IMG Do For You, at this post I will let you see some facts and Money mistakes of Pinoys in General.

One of the most problem of Pinoys is Overspending / Not Living Within One’s Means

We normally go to “SALE” or any other Promotion that is normally shown in the television, Billboards, newspapers, or even text messages. 0% Interest Installments is also a great Marketing Tool that leads people to unplanned expenditures.

In reality most people spend on WANTS and not NEEDS.

In short many becomes attached to “Materialism” without knowing it.

We need to spend more in NEEDS rather than wants,

I was also shocked to know that According to the survey by OSLO (NGO-micro finance in the PH)

  • 1 out of 10 OFWs FINANCIALLY BROKE
  • 8 out of 10 OFW’S DON’T HAVE SAVINGS FOR RETIREMENT

This is really truly, previously I also don’t know about financial planning and I normally spend on tech gadgets and things that can only depreciate after some time. Learning Financial literacy help me to understand that it is better to invest that to buy things that is normally due to social peer pressure.

Buyer should asked themselves that real purpose of buying material things..

As an example, Buying an Ipad, Buying a new 3G Phones, and more..

WANTS are things we can live without and NEEDS are things we cannot live without.

So the next thing you needs to ask yourself before buying, is Can I live without this?

More Filipinos are also having problem with Credit Mismanagement.. I will explain this on our next post.

 

Learn What IMG Can Do For You

IMG is probably new to you, and you don’t have any idea about the company. first of all I belong to the Truly Rich Maker Group of IMG, I am working in Saudi Arabia as a Mechanical Engineer (in short, OFW), when suddenly I came to know about IMG.

I became interested when an IMG Associate presented me the vision of IMG.

They told me that they want to convert people from SPENDERS to SAVERS to INVESTORS to ENTREPRENEURS.

I was once a Spenders and I realize that I need to learn about Financial Literacy to have a better future.

We at IMG we want to change the saying that “the rich get richer and the poor get poorer.”

We also believe that :

“the average person, even the poor, has an equal chance to become wealthy if given the RIGHT INFORMATION.”

It is all a matter of mindset…

If you want to stay poor you will be poor for life.. if you want to take step to be wealthy, you could be wealthy but you need to take step..

IMG OFFERS TOTAL FINANCIAL SOLUTION

1. FINANCIAL LITERACY

  • Learn to be your own FINANCIAL ADVISER
  • Learn how to manage your money
  • Get out of DEBTS! Make money work for you

2. DISCIPLINED APPROACH TO INVESTING

  • Develop the habit for the STEPS AND CONCEPTS to be introduced
  • Build proper and SOLID FINANCIAL FOUNDATION

3. Direct Access to Financial Services Companies

  • Receive first hand information
  • Be Your Own Broker and earn from your own needs

4. Investment and Business Opportunity

  • Invest in top companies in respective industries
  • Business opportunity towards PASSIVE INCOME
  • DEBTS! Make money work for you

In our next post we will show you DATA and Information about the present Filipino situation in Financial Literacy.