Investing Even in Debt?

20 Wednesday Aug 2014

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Seminars about investing and YouTube videos about investing are now easily accessible. Facebook post and updates talks about investing and savings. In reality it makes our drive to invest as soon as possible more.

So what if you want to start investing and yet you are filled with credit card debts, Will you start investing in Mutual Funds or stock market even if you are in a big financial mess? For me it’s a big NO.

What I meant is that paying of your credit card debt or any debt is the start of your investing. While paying your credit card, you will start the habit of saving a portion of your salary or income to pay off your debt. Normally I recommend 70, 20, 10. 70 % of your income is for expenses, 20% of your income is for your investment and 10% of your income for your Tithes or Love offerings. Use the 20% to start paying off your debt.

When time comes that you have paid off your debt, you will then be in a habit of saving a portion of your salary. The same amount that you used to pay your credit can now be used to build you emergency funds. After the emergency funds then you can go into Mutual Funds or even stock market if you can take the risk.

The idea is that you should not be investing in Mutual Funds or Stock Market if you don’t have Emergency Fund and still in debt because if time comes that you need money due to emergency, chances are you will get your investment even if it is still losing.

So be wise in your investing decision. In addition you need to set your goal prior to Mutual Funds or stocks investing. Knowing your goal will determine the amount of risk that you can take. Knowing your risk, may allow you to determine the type of investment portfolio will you go.

So be wise and Happy Investing. Study first before investing.

SEA`s tallest towers – Fun Facts!

07 Thursday Aug 2014

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Burj Khalifa (previously called Burj Dubai)

Dubai, UAE

(Southwestern Asia)

height: 828 m

floors: 162

Located in the heart of the desert, Burj Khalifa has one of the most advanced cooling systems in the world.  The water collected from air conditions of Burj Khalifa is said to be equal to 20 Olympic-sized swimming pools per year. The water is then recycled and used for landscaping. 2

Makkah Royal Clock Tower Hotel

Mecca, Saudi Arabia

(Southeast Asia)

height: 601 m

floors: 120

The Makkah Clock Royal Tower will be the biggest clock tower in the world and the second tallest building in the world. The clock tower itself will be used for the call to prayer within the city of Makkah or Mecca.

Taipei 101

Taipei, Taiwan

(East Asia)

height: 509 m

101

Even though there are 61 elevators inside the tower, French climber Alain Robert  (aka French Spider Man) decided to climb Taipei 101 legally on Christmas Day in 2004.

Shanghai World Financial Center

Shanghai, China

(East Asia)

height: 492 m

floors: 101

When architects decided to change the design of the Shanghai World Financial Center it resulted in an extra bill of $200 million due to the advanced designs which included a structural system re-design, a foundation re-design and increased safety features.

International Commerce Centre

Hong Kong, China

(East Asia)

height: 484 m

118

The height of the International Commerce Centre was scaled back from earlier plans because authorities didn’t allow buildings to be taller than mountains surround Hong Kong.

Petronas Tower 1

Kuala Lumpur, Malaysia

(Southeast Asia)

height: 452 m

floors: 88

Petronas Twin Towers were the tallest buildings in the world until 2004 but they are still  the tallest twin buildings in the world. It cost US $1.2 billion to build Petronas Towers.

Wisma 46

Indonesia, Jakarta

(Southeast Asia)

height: 261.9 m

floors: 46

Wisma 46, also known as The Fountain Pen building because of its unique shape. One of the most interesting facts about the building is that it has been featured in the “Need for Speed: Underground 2” movie.

 

source: saudi.lamudi.com

Inflation climbs to 4.9% in July (source: NSO)

05 Tuesday Aug 2014

Posted by in Business and Economic News

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I just saw this news in My ColFinancial Dashboard:

Inflation climbs to 4.9% in July
The NSO reported that inflation rose to 4.9% in July, the fastest rate of inflation since November  2011. This brought year-to-date inflation to 4.3%, still within the BSP’s projected range of 3-5% for  2014. The acceleration in inflation was largely due to food and non-alcoholic beverages with prices  rising by 8.2% during the month. (source: NSO)

It only means that the value of your money decreases by almost 4.9% this month. So if you are invested in banks giving 1.5% interest, you are automatically loosing due to the inflation. The Investor’s aim is to get interest higher that inflation. So better start learning.

Invest and Do not gamble, Learn first. happy Investing

Will PSEI disprove the Ghost Month?

04 Monday Aug 2014

Posted by in Stock Market

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Philippine Stock Exchange (PSEi)-706795

Credit : travelerparadise.blogspot.com

Today, PSEI closes at 6998.37 a little short from 7,000 level. Everybody is saying that the market have entered the what so called Ghost Month. Based on the previous years, Investment is not showing a good sign during this month but the market showed different thing today.

One thing is for sure nobody can really predict the outcome of the market. We need to stick with our investing plan and continue investing.

If you want to go with the flow of the PSEI, you may invest in “FMETF“, the first ever ETF in the Philippines. First Metro’s ETF was listed last December 2, 2013 at Philippine Stock Exchange. ETF means Exchange Traded Fund, a fund being traded in the exchange. To be more specific it is an equity fund being traded in the Philippine Stock Exchange (PSE).

What will happen tomorrow in PSEI?  Will this year end higher than 7400? Let’s see.

 

Financial Freedom, Invest After Being Debt Free

24 Monday Mar 2014

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Not everybody can experience financial freedom, actually it is rare to see people who is experiencing financial freedom. But how could you really experience financial freedom? I believe it is only, if you are debt free.

Before, when I have surplus money I normally opt not to pay future payment such as monthly amortization and school fees. Because what I believe is that I can still use the money to make it grow. But sad to say it always lead me to debt.

There are times that you spend money which could cover advance payment for school to your wants. If you have money in your pocket or ATM the tendency is you can easily decide buying your wants instead of paying your monthly payment in advance.

As an example SSS payment can be made for the whole year. If you will not pay for the whole year, even you are capable to do so, tendency is that monthly SSS payment can be one of the reason why you will be in debt. Sometimes small amounts when accumulated will give head ache and lead you to be buried in debt.

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It is also the reason why most people who have declared being debt free in credit card tends to borrow again due to unavoidable circumstances. Those are people who after paying off their debt, did not work out for their emergency funds.

For OFW who owns Credit Card in Philippines, it is not wise to use the credit card overseas. As per computation the moment an OFW uses his Philippine Credit Card overseas, he have to pay additional 3% of his purchase due to exchange rate adjustment. By the way it my personal experience.

Investment shall only be made if you are debt free. I must admit that I did investment even if I am not debt free, but the sad things is that there are times I need to pull some of my investment just to cover my emergency needs. I need to learn investment in the hard way.

It is really important to be educated before investing. Know the risk and opportunities before investing. Don’t just go to investment because your friend told you to do so, or because your idol to you to do so. Be prepare in investing and learn to know your risk tolerance.

Happy Investing

Investing Needs Focus, No Risk Free Investment

22 Saturday Mar 2014

Posted by in Personal Financing

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If you decide to invest you need to be focus. You need to focus on your goals. I need to remind you the basics of investing, know your goal before investing into any investing vehicle.

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For short term goal, invest to a non-risky investment and for long term goal you may invest in riskier investment. It is a fact that time reduces the risk of any investment, but time does not eliminate the risk. Every investment has its own risk you just need to make sure that you understood the risk before allowing yourself to be part of that investment.

When a broker says that they are offering a “Risk Free” investment I could say that it is a scam, or the broker does not know what he is selling and he is only after the commission.

Many of my colleagues who got their insurance due to sales pitch of brokers does not know their policy well, they don’t even know why they get those insurance. And worse they feel that it is a burden paying those insurance.

Insurance is a must in investing. Without insurance, your investment might be wasted. Just imagine being sick without insurance, definitely the last resort to do is to touch your investment especially if you did not work out you emergency funds.

There are lots of investment vehicle, before going to a certain investment, learn and know the risk associated with it. Before getting the next investment you need to master the ins and out of your chosen investment.

In addition always remember not to keep all your eggs in a basket. Which mean don’t keep your investment in a single investment company. Diversify.

Investing is Not Easy, But Definitely Rewarding

18 Tuesday Mar 2014

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invest-2Who says that investing is easy? For me it is not, it involves self discipline and goal setting. Imagine choosing to invest your hard earned money in replacement of having fame in your office by owning a new gadget that worth thousands of pesos. I was a spender for almost 10 years before I learn investing, and I could say that it is not easy changing paths going to Financial secure life.

It was easy to spend and use my credit card and spend on my “wants” rather than stopping my craving with new gadget in town. After learning about financial literacy by joining different Facebook groups and talking to mentors as well as reading books about finance, it made me realize that even investing is hard at first, time will come that it will be your life style. In addition it feels good to know that at least you are expecting something for your future.

I said it’s rewarding because time will come, you will harvest the fruits of your hardship in investing. Time will come that you can meet your goals and objective in investing.

Imagine being financially secured when you get old, you can do whatever you want like doing your ministry for the Lord or even travelling all over the world.

It is better to suffer for a while and gain in the future.

Here are 10 things I regret in doing for the past 10 years before i become an investor.

  1. I did not bother paying my SSS
  2. I did not even save or open a mutual fund account while blogging earning is good.
  3. I did not put 20% of my income to any investing vehicle.
  4. I did not read books during my spare time.
  5. I did not talk to people who knows about investing.
  6. I perceived insurance as not important because I am young.
  7. Investing to educational funds which I did not learn first  and ended me paying for nothing due to bankruptcy.
  8. Not investing in Training and seminars.
  9. Procrastination
  10. Believing that every financial adviser only wants my money.

Some of the items as mentioned above might be what you are doing now, I suggest learn from my mistake and start learning before investing. Good day.

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COL Financial Will Soon Offer Mutual Funds and UITF

23 Sunday Feb 2014

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investing_thumb.jpgSoon COL Financial will offer mutual funds and UITF as mentioned in the Philstar article. COL Financial who happen to be my stock broker will broaden their product to include mutual funds and UITF. This is an advantage for us OFW who like to diversify our investment through other types of investment.

It is always good to be in mutual fund if an investor cannot monitor their stocks investment.

In reported disclosures, COL Financial said it entered into agreement with the asset management arm of Ayala-led Bank of the Philippine Islands (BPI) and Sun Life Asset Management Co. Inc. (SLAMCI).

ColFinacial have also signed a memorandum of agreements with BPI-Asset Management and Trust Group “with respect to the participation of the company in certain funds of BPI for the benefit and account of the company’s clients.”

For the SLAMCI partnership, COL Financial said it plans to offer mutual funds to its clients. Mutual funds are also pooled funds, but are offered by insurance and other investment companies, and regulated by the Securities and Exchange Commission.

ColFinancial customers can tap in the SLAMCI mutual funds which currently manages seven mutual funds under the Sun Life Prosperity family of funds, including fixed or bond fund, equity fund, balanced fund, government securities fund, money market fund, and dollar-denominated funds.

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Start Investing As Early As Possible

19 Sunday Jan 2014

Posted by in Personal Financing

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Asset.jpgDid you know that you are losing potential gain every time that you delay your investing. This is what I regret in doing 10 years ago. I just started investing about 2 years ago, and I told myself that I should have done this the first time I had my salary. I had wasted lots of potential gains for the last 8 years buying unnecessary things that easily depreciate. I mean buying high tech mobile phones and Laptop including accessories. I have also paid lots of interest to the credit card company because I do not know how to handle my finances.

Some say that it’s not good to invest this year because the market is down, if you would like to ask me then I think it is a good time because after some time, market will definitely go up, then the shares that you bought low can be sold high which could turn into high profit.

It’s a matter of starting and studying. Whenever you started investing and study about it’s in and outs you will definitely make it a habit.

Investing is not only for rich people, it’s for wise people. Wise enough to think about the future. Actually most of the rich people have invested time studying the market and studying the pros and cons of the market. They read a lot of books.

For me, I would like to retire happy and do whatever the Lord wants me to do in His ministry.

Just a reminder don’t be too focus in richness because it will lead to greed. Always remember that the God controls everything. Either Market up or Market down our Lord does not change and so are you. Happy Investing.

OFW Investors Should Take Advantage Now

28 Wednesday Aug 2013

Posted by in Stock Market

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We know that Philippine Stock Market (PSEi) is now low due to what is happening in other part of the world like Syria and the possible FED tapering as they say. Lots of foreign investors are pulling out their money and transferring to some places where there is possibilities of gaining more. In fact as of this writing PSEi is trading at 5605 which is almost the same price as of November 2012.

So how are we going to take advantage of this time?

For your information Peso exchange rate is now higher than before, upon checking, the present exchange rate is Php 44.5/USD. For us Online Filipino Workers and Overseas Filipino Workers, our salary is higher than before when it is converted to Philippine Peso. Technically all dollar earning people should take advantage of this time.

So here we go, If we have a higher salary and the market is low, it is really high time to invest, so that when the exchange rate goes back to it’s normal rate which is 40 to 42 and the Philippine Stock Market (PSEi) goes back to 7403, which is the all-time high in PSEi, your gain will be sizeable.

So don’t spend your extra earnings due to higher exchange rates, invest the difference and delay your gratification. Because the tendency of OFW is to buy things which are not important when they have extra cash. So better change your attitude towards money.

I suggest to have a cost averaging strategy in investing, just invest a constant amount on a monthly basis and wait until the market goes up. This is really advisable for younger generation but if you are already at age higher than 60’s I would not suggest you to enter into stock market or mutual fund connected with equity fund. Instead go for a less risk investment.

Younger generation have lots of time to recover, as the market have it’s cycle. I would like to share my Video Blog about saving early.


Video is edited by my daughter : Micaella

How to Eliminate Bad Debt

30 Tuesday Jul 2013

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Elimination of debt is a dreams of many Filipinos buried in debt. Debt can be categorized in to two types, good debt and bad debt. So today let us discuss about the bad debt. Bad debt is commonly accumulated through excessive spending of wants. It is also called consumers Debt. Consumer debt is a big problem in Philippines that needs to be eliminated. people in Debt needs to pay it off before moving to investing. I believed that paying off your loans is already investing, since you can stop the compounded interest of your loan.  I suggest not to invest if you are buried in debt. Commitment, Focus and Discipline shall be the attitude of a person who want to get out of debt.

So here are the 13 steps out of debt as suggested by Rowena Suarez, Registered Financial Planner, in her interview at ANC Money.

  1. Face the problem
  2. Commit to get out of debt
  3. Decide of the time frame.
  4. Make an inventory of your debt
  5. Record your expenses – Getting out of debt is like going on a diet, you need to be aware of everything you eat.
  6. Determine your needs and wants
  7. Let go of your wants
  8. Use your wants money to pay your debt
  9. Choose Debt with the highest interest rate then pay it off.
  10. Work out a payment scheme with your creditors
  11. Pay with Cash
  12. Find other source of income
  13. Learn from your experience and make it your life choice.

Above mentioned steps are really practical ways in order to eliminate debt. This might sound easy but in reality it is not. Again those in debt shall be Committed, Focus and Disciplined.