2010 Looking Back

2010 has been a fruitful year because of the many blessing that came my way. I had lots of grabbed opportunities, gained great friends, saved more than what I’m supposed to save, learned more lessons and played more games.

I cannot count all the blessings I received this year but I can enumerate some.

First and foremost, I thank the Lord for the great health of my niece. I know mama and papa are watching over you little Cata. Stay healthy, eat well and be happy. If God permits, I will give you a poodle soon.

Next, I want to thank the Lord for the great wisdom about finances. Through this wisdom I was able to set-up a great foundation this year. Greater than what I had last year. I hope everything goes according to plan. If not, I know that You have another plan and Your will be done.

I want to thank my friends for the gift of friendship. Friends don’t have to be together all the time. They just have to connect and update every now and then. They don’t have to give gifts. Because true friendship blossoms even without the icings of the cake.

I also want to thank the not so friendly acquaintances. You taught me a good lesson about life: that everybody has to experience a little dose of you to be good on relationships. Great lessons are learned from bad experiences they say. And I owe you these lessons.

~Till then.

The Best of 2010

Traveling is one of my passions. And I must say I travelled too much this year.

Last January, Paul and I went to Coron, Palawan. It was our first time to explore the island and we were fascinated by nature.

Come April, I was able to conquer Mt. Pinatubo.

Then a sudden trip to the suburbs and I found my friends and I in Mt. Romelo.

(photo courtesy of Mary Joy Torres)

We also went beacheneering in Batangas.

(photo courtesy of Mary Joy Torres)

We celebrated hubby’s birthday in Boracay.

And went to Baguio three times.

So next year I won’t be traveling as much because I need to save money for my ultimate destination on 2012. Yey!

~Till then.

National Book Store Heads Up

One of my favorite bookstores, National Book Store (NBS), has tied up with Apple products to grace it’s new section – The Work Station.

The section will feature a full line of Apple producs which include Macbooks, iMacs, iPods and accessories. For the mean time, the Work Station is available at selected NBS outlets but I am hoping that it will go nationwide.

This move of National Book Store will definitely boost its sales and also the sales of the Apple products.

Life is a Choice

My friend told me that life is a series of choices. You live your life according to the choices you make. You will always find yourself in crossroads. One road may lead you to success. Others may lead you to more challenges. If you choose a path make every experience count. Make every little detail live in your memory. Because you can never go back. You can only say, “If only.”

I am an abnormal 24 year-older once. While every 24 year old ladies shop, I study about finances. While they party, I stay at home. While they buy things, I save. These are some of the choices I made. Choices that for me are great. Because they made me realize that life is not a matter of what you have. Instead it is a matter of what you give.

~Till then.

Is going abroad the solution to poverty?

My cousin’s wife is going abroad. She’s bound to go somewhere in the Middle East. She told us this is the only solution so that she can give her two sons a better life. She will be one of the so-called heroes of the new generation.

Yes she will be earning a lot more than what she earns here in the Philippines. But unless she decides to make a difference, the money will be wasted. And I’m hoping this will not happen.

Getting a huge salary is just another beginning. What you do with the huge salary is the process. Remember, it’s not the amount of money you earn but the amount of money you save and invest.

~Till then

How was your 2010 financially?

Another year has passed and the statement "I don't have savings again this year" is very common. Most Filipinos lack investment knowledge. Only few know about the stock market, mutual funds, bonds, etc. Most of us are happy with the 4% annual interest in the bank while enjoying the 3.5% monthly interest (that's 42% annual interest) in our credit card. It's because most of us where taught since childhood that the only savings facility are the banks.

The following could have been your mutual fund financial statement applying the concept of money cost averaging.

Wow! Your 120,000 capital gives you roughly 30,000 tax-free. Yes, its tax-free here in the Philippines.

That's money working for you!

If you continue saving 10,000 monthly for five years and considering a conservative 15% annual interest (conservative because the current actual average five year return is 20%), your money will grow to 930,448.61.

That amount might not be enough to buy your dream house or own a condo unit but who knows, you might be bored in investing 10,000 monthly and increase it 15,000. That would mean a higher return in the future.

Remember, "time not the timing is your best ally in investing". Do not procrastinate and start investing Now!

~Till then.

Sleeping my Way to Great Relationships

For a long period of time I’ve been depriving myself of enough sleep. I used to sleep only 5 hours a day and I tell you it’s not at all great. My attitude was affected due to lack of sleep. I was erratic. I easily got angry at small things. My aura is always not good. And I always have a lot of mood swings.

Then my boyfriend told me to get eight hours of sleep every night. Adjusting my body clock is not that easy because I’ve been having sleep problems since time immemorial. But since I’m very much eager to change something I gradually change my sleeping habits.

Since then, my friends noticed a different me. I’ve been actively participating in discussions inside the house. I sleep soundly. I serve others better than I do before. And I am actively participating in health activities more than ever.

I love my body and myself. I love sleep.

~Till then.

Three Ways to Give Tithes

I was once a non-believer on tithes. Why? Because I was raised to give but a lot lesser. I am not saying that my parents were not great. Actually they were great. They taught us to fight life and not to be dragged by life where ever it wanted us to be. But the thing is, they did not have the proper wealth attitude. And that I want to change.

If you want to experience abundance in life you should start to learn to give without expecting anything in return. For truly rich (from Bro Bo Sanchez) people give more.

1. Give to the Church.

It is stated in the Old Testament that we should give 10% of our income to the church. But in the New Testament we were asked to give according to our heart’s desire. So follow your heart. The heart of abundance gives more for he experiences and wants to share prosperity in life.

2. Give to family.

Giving to family should not be an obligation. It should be given in our hearts’ content. Giving to the family gives us the joy of paying back what they have given to us.

3. Give to your favorite charity

If you have a favorite charity or organization, make it a habit to give donations and financial support because these charities are run through the support of other people.

~Till then.

Smile! It’s Contagious

Smile is like a disease. It’s is highly contagious and can infect thousands of people in a fraction of a second. It is a great way to start a day.

I don’t know a lot of people and they don’t have a reason to smile at me. But when I started to smile at them automatically they smile back at me.

How pleasing can it be seeing others smile back at you.

How NOT to break your bank account on Christmas!

I got this tip from a friend and I was so amazed because I did not feel robbed when I shop for Christmas presents.

The tip: Save a portion of your monthly income for your Christmas presents.

It may be a hundred, five hundred or a thousand pesos depending on the amount you choose. For as long as you commit to the plan nothing will go wrong on Christmas.

For the past 11 month I was able to save more than enough for the kids and I am so happy I can give away extra cash for charity.

~Till then.

Going Back to the Basics

Most people think and act in complicated ways. Last week I was solving a math problem. I searched for formulas which I think can solve it. The formulas were so complicated and I ended up not solving the problem. And then I took a break and refreshed my mind. Then suddenly I realized I complicate things too much and forgot the basic equation.

That scenario can happen in real life especially in our finances. We think in complicated ways and we forget to stick with the basics. We want shortcuts. We want instant.

For example, a person wants to get rich. He wants it so bad that he is willing to do anything for it. Then a certain organization offers him answers to his quest and he agreed to be part of it. He sold things for the organization and earn a lot of money from it. He earned more than enough that he felt he was having so much and began spending the fortune. He spent so much and then one day he found himself back to square one.

What did he forget? Obviously, he forgot to save and invest. He was clouded by the emotion of having too much that he feels it is alright to spend too much also. He forgot the saying, “everything that goes up must come down.”

If you are at the peak of your career or starting to go to the top don’t forget about the basics. Save and invest for the future. And stay invested as long as you can.

~till then

Wants and Needs: A Realization

Three nights ago my friends and I attended a seminar on finances and one of the topics discussed is all about wants and needs. The speaker, Rex Mendoza, defined need as a state of generic deprivation arising out of our human conditions. In simple terms, a need is something you have to have while a want is something you like to have. Needs are the thing you can’t live without while wants are the opposite. What amazed me last night was the realization that needs vary from person to person. We had to go back to the Maslow’s Heirarchy of Needs to fully understand.

Basic needs include food, shelter and clothing. Food keeps us nourished, shelter protects us from animals and clothing keeps us warm. These are the basic definitions of the three. But these definitions will vary. For example, a person needs to eat to survive. A simple dish can satisfy him. If he has money, he would want to eat in a better restaurant. He wants it so bad that it becomes a need to eat in a better restaurant. I cannot say that it is the same food. All I can say is that both foods can satisfy him. It is human nature to want something better. The only thing that matters is if he can afford.

What am I leading you to? I want you to realize that needs are relative. It may be a need for me but is not a need for you and vice versa. For example, I need to read a book to relax my mind. The way I relax may not be your way. Maybe you want to listen to the radio or watch the television. Therefore we have different needs in terms of relaxation. And these needs drives how we spend our money.

~till then

An Encounter

A while ago, I was in Megamall to shop for some gift when suddenly I remember a friend’s experience who was lured to listen to a 45-minute discussion about saving money.

I made them lure me also just so I can observe their marketing strategy. Here are my observations.

1. The inviter initially asked me if I use credit card. I said, no. Then he followed the question, “How about an ATM?” I said, yes!

Having a credit card or an ATM is a must! For their promotion they say.

2. The inviter told me I am qualified to win their raffle promo. He made me sign a piece of paper and asked some few questions and then discussed the mechanics.

He was a fast talker. I hardly understand what he was saying. I made him repeat.

3. He made me understand that he will not sell insurance to me. He will just give me a chance to win a brand new car!

The car was placed in front of their office. I wonder if anybody had won the contest already. To win the car one must play a slot machine type of game matching 8 numbers.

4. I told him I was not interested about the promo but I want to know more about their company. He made me enter an office.

They are always talking about their promotion. They are not there to sell insurance but to enlist me for their promo. And they will give me a freebie as part of their promotion provided that I have a minimum balance of 20,000php in my account at that moment.

5. Since I don’t own a credit card they want to know if I have more than 20,000php in my savings account. They want me to hand them my receipt which I forbid.

Nobody, over my dead body, should know how much I have in my ATM. I was furious about the idea. They want me to check my account balance right there and then and then show them my receipt. My boyfriend doesn’t even know how much I have in my account. They kept on insisting but I refused.

Funny thing was, one lady (who is wearing the same uniform as the others) heard about the commotion and kept signaling me not to let them see my account. She kept on shaking her head. Even their co-worker disagree about the idea.

6. A certain Roland discusses to me about the company. He showed me their business permits, the owner of the company and boasted about their superbrand award.

Any business can have a business permit. Don’t boast about it. I don’t know the “Superbrand” award. I’m sorry.

7. Roland discussed to me the importance of saving money. But he was certain that their product may not make you rich but at least you’ll have a fallback.

I’m glad he was honest that their product will not make me rich. That was an honest answer from an agent.

8. Roland finished the one-hour presentation with their endowment product. The only product they offer.

The insurance company has been in the industry for 47years. I wonder what their actuaries are doing? They only have one(1) product and it is way way over priced. Imagine, you will pay almost 1Million pesos to be covered with 1.5Million pesos only? If I were the client I would have invested 1M in stock market and let it grow at 12% interest giving me more.

Other observations:

Roland kept on congratulating me as if I won a contest. He also tapped me several times to attract my attention. I was distracted by the client on the other table. The presenter was almost howling at the man because he was not paying attention. I even told Roland about it. He simply said "That's the way she talks." When he noticed that I was really distracted, he transfered me to another table away from the distraction.

Towards the end of the discussion I found out that Roland is afraid of my ball pen because I write on his paper. His gesture sent a negative message to me. Was he forbidding me to write on his paper? Was he forbidding me to compute? FYI, I computed his product in front of him. He doesn't even know the total amount of his product when he was telling me that it's a model product. When I asked him what is his plan, he boasted about his 175K worth of insurance. My jaw dropped in amazement because earlier he told me he is the bread winner of the family. He just ended the conversation with, "At least there is something!"

I did not get any freebie nor i was able to play the slot machine. But at the end of the day I made two souls realize the importance of financial education.

~till then

Caught in a rat race? Get out of it in 5 simple ways

What is a rat race?

According to wikipedia rat race used for an endless, self-defeating or pointless pursuit. In programming, it is like an infinite loop. To illustrate it further it is waking up in the morning going to work then pay the bills.

1. Decide

Your success in getting out of the rat race depends on how strong you have decided to get out of it. Everything begins with a decision. Even the simplest thing like waking up in the morning is a decision. As early as this stage you have to decide. Don’t procrastinate. Decide now!

2. Make a financial plan

If you don’t know how to make a financial plan then sit with a financial planner to guide you through your way.

1. Set-up a budget and live within that budget
2. Save at least 20% of your income.
3. Invest money in higher earning facilities.
4. Forsee unpredictable events

3. Implement the plan

Planning is easy but implementing the plan is not. It always entails extra effort and extra patience to implement the plan. Implementing a plan is like planting a tree. You cannot see the result right there and then. It takes time to grow and bear fruit. Patience is always a virtue.

4. Review the plan regularly

Your plan today may not suit your future goals. Be pro-active in evaluating your plan. Then do the necessary measures to align the plan to achieve what you want. Prevention is always better than cure.

5. Be open to changes

The only permanent thing here on earth is change. See changes as opportunities. Always have a positive outlook on changes.

~till then

http://www.clipartguide.com/_named_clipart_images/0511-0809-2414-2252_Cartoon_Man_Drinking_Coffee_Trying_to_Wake_Up_clipart_image.jpg

http://www.clipartguide.com/_named_clipart_images/0511-0907-1220-3960_Cartoon_of_a_Guy_Sleeping_at_Work_clipart_image.jpg

http://images.clipartof.com/small/5722-Man-With-Bills-And-Past-Due-Notices-Clipart-Illustration.jpg

http://www.clipartguide.com/_named_clipart_images/0511-0907-1220-3971_Cartoon_of_a_Man_Sleep_Walking_clipart_image.jpg

Christmas in the Air

Hmmm... The air smells like Christmas. The radio plays Christmas songs. The building where we live is decorated with Christmas ornaments. Christmas is coming and I'm so excited!

First, I'm excited because my birthday is fast approaching! I wish I could spend this day away from work but unfortunately I can't. Nevertheless I will celebrate it with my closest friends after work.

Second, the company Christmas party will be in PICC! This will be my 4th Christmas party with the company I am working for.

Third, gift giving gift giving! It's the thought that counts.

Fourth, Baguio again!

Fifth, I will see my nephews and cousins again!

Excited much!

Merry Christmas!

~till then

image from: http://gymnicetic.files.wordpress.com/2009/12/christmas_globe.jpg

Getting into Deep Debt

from the book Nice Girls Don't Get Rich(Lois P. Frankel, PhD)

This is one of the most fatal mistakes a person (not only girls) can make that can ruin the road towards abundance.

Having a credit card is almost inevitable especially if one treats it as an emergency fund. But this plastic can be your vehicle to poverty.

How can a woman get into so much debt?

I'll share to you some reasons in the book Nice Girls Don't Get Rich.

1. Making lost time with material things.

Giving expensive gifts to a person doesn't necessarily mean you love them more.

2. Envy.

It's not because everybody has it, you got to have it also.

3. Live today and let tomorrow worry for itself.

If this is your motto, you'll really find yourself in big trouble.

4. Impulsiveness.

Control your emotions so that you can control your money.

5. Appearances.

You will not die if you will not have that fancy car or that expensive dress.

Coaching Tips:

1. Always be conscious where your money goes.

2. If possible, get rid of the card if you cannot control yourself.

3. Be contented with what you have.

image from: http://drscoundrels.com/wp-content/uploads/2010/05/debt.jpg

It is really not a matter of how much you earn

It really makes me sad when I encounter somebody who earns a lot (more than what I earn means 'a lot' for me) but who just saves in a bank and who thinks banks are the greatest investment facilities. I have nothing against banks. It's just that I don't recommend it as an investment facility. Mind you, banks are not investment vehicles. They are just there to cater for our emergency funds.

Let me ask you, how much is the salary of a manager? 50 thousand? 80 thousand? 100 thousand? Or even higher. No doubt their salary is way way bigger than mine. But let me tell you, the sad part when you earn more is you intend to increase your lifestyle to suit your status. The mindset goes like this, "Oh, I didn't have a good time when I was an 'ordinary employee'. Now that I'm a manager I should enjoy a lot. Anyway the company is there to feed me." And there goes the spending.

On the other hand, if the manager is a saver but is afraid of other types of investments like mutual funds and stock market then there is still a problem. Let me show you a computation so that you will understand. For example, the manager can save 50 thousand pesos per month but puts his/her money in a bank earning one percent (1%) per annum. The employee, on the other hand, can save 10 thousand pesos but puts his/her money in an investment facility which earns twelve percent (12%) per annum. Let us assume that the manager's age is 40 while the employee is 25. The manager has 20 years more to save while the employee has 35 years more before retirement. (Note: I am assuming that they will both retire at age 60.)

From the table above, it is clear that the 'regular employee' who saves lesser than the manager has a whopping 58 million pesos worth of retirement fund while the manager who saves in a bank has a retirement fund of 13 million pesos.

It only shows that, it is not important whether you have big money or small money. The thing is, you regularly save and invest in the right vehicle. Thirteen million is not bad. But if the manager knows the right facility then he could have accumulated more.

~till then

Potatoes with Tuna Salsa

Ingredients:

Potatoes

Tuna (flakes in oil)

Tomatoes (cut into cubes)

Onion (minced)

Salt

Pepper

Instructions:

Slice potatoes thinly then deep fry.

Mix tuna, tomatoes and onion in a small bowl.

Add salt and pepper to taste.

Arrange potatoes around the salsa and then serve.

~till then

OC Salad

Ingredients:

Lettuce

Pears

Carrots

Tomatoes

Cold Salad

Mayonaise

Calamansi

Instructions:

Arrange all ingredients as shown in picture.

Sprinkle Calamansi juice all over and then serve.

~till then

Boracay Astoria de Boracay Story!

While walking along the shores of boracay, a man in white tshirt approach us and offered us a free buffet dinner. Wow, I was amazed and curious about it so my girlfriend asked what's the catch. The guy told us that there's nothing, it's just a way of promoting the Astoria hotel.

So we decided to go with it, after all the free dinner is a win win for us. The dinner starts at 6:00 pm so just past 6 we walk our way to station 1 where it is located. As we approach the hotel, we were introduced to one of the managers. He told us the we can have the free dinner and after that there will be 90 minute presentation about the hotel. With a live band and good dishes we enjoyed our one hour free dinner. The food was great. However, we are still wondering what’s in exchange for this wonderful dinner.

After the sumptuous dinner we were introduced to one of the salespersons. She started her talk by getting to know more of us. She then introduced the new marketing strategy of Astoria, the timeshare. It is a form of ownership or right to use a property usually a hotel or condominum. For more info on timesharing, you can refer to this wikipedia link .

To avail of the benefits of their timeshare, you must have to pay the membership fee and on top of that is an annual maintenance fee which is almost 10,000 pesos. The membership fee is quite big but she warned us at the start that if the membership fee would largely affect our financial status then it’s better not to avail it. The membership fee ranges from 300k to 500k but because they are in promo they oferred us a 20% discount. She presented some payment terms to pay the membership fee and a 25K is needed at the start.

We told her we don't have that big amount of money. We asked if we can have more time to research about it but she insisted that the offer only stands for just one night. She was very firm with the “one night only” offer so we declined it.

We thought that this was a very big financial decision for us so we needed more time to research and think it over. We thought that the offer will be good for those above middle class family who are constantly having their vacation. We also think that the “one night only” is not a good marketing strategy. We believe that clients should be given time to research and consult among their circle of influence.

Upon getting home, I googled Astoria, and read some good and bad comments about it.

Our advice is, before jumping to any financial decision, you must do your research.

~till then

Boracay Hotel Hopping!

My initial IT was fun-filled with all the activities I could think of. But Paul wanted to relax while in Boracay so he insisted that our itinerary be simplified. I agreed but I refused to delete this activity - hotel hopping.

Enjoy!

Discovery Shores

(the best hotel in Boracay! *we think!)

Fridays Boracay

Ambassador in Paradise

Astoria de Boracay

(click here for Astoria Story)

Boracay Regency

Alta Vista de Boracay

~till then