Archive for Personal Finance

FRUGALITY: The Easiest Way to Earn Money Part 2

This is the continuation of FRUGALITY: The Easiest Way to Earn Money Part 1

 

Franchising, Public Utility Vehicle Business

– A P5,000 to P50,000 capital is needed to start a small food stall or a small enterprise in order for you to procure the necessary equipments, services, man power and other stuffs needed to kick off.

For owning a public utility vehicle which can be a tricycle, jeepney, taxi or a van – a P200,000 to a million pesos capital is required to start off your business. You also have to consider the cost of your license and the franchise fee, or ‘prangkisa’ in vernacular, to be able to join in the roster of a Transport association.

This does not include the pressures and conflicts you’ll have to face just to finally receive that much coveted “extra income”.

 

The Verdict

After reading the above procedures, with all its risks and challenges, can we agree that living frugally is indeed the easiest way to earn extra money?

By simply saying ‘No’ to unnecessary expenses or adopting a no-frills lifestyle, we can certainly add a significant portion of income to our over-all savings. You can immediately gain more cash as you had decided not to spend it on doodads.

My point here is that, it takes a lot of steps, experience and even determination to acquire an additional source income whether you’re in the office or out there in the market. That is why, we should first start by simply being frugal and slowly take the steps to acquire those assets.

Please don’t think that I’m here to discourage you to start your own business or to invest in any financial products. Actually, it’s much better if you do those things. I am only emphasizing the fact that acquiring a secondary source of income is not as easy as we think. This will also serve as a reminder about the value of frugality.  

Just as this old adage goes:

A penny saved is a penny earned.

 

Ano ang mga Morning Habits mo?

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Good morning mga Mare’t Pare!

‘Lam mo ba na ang ibang kababayan natin, habang nag-kakape, ay may habit na i-check ang kanilang mga Stocks investment tuwing umaga?

At dahil may mga mobile apps nang available at sa dumadaming available 3G/LTE/WiFi connections sa Pinas eh mas madali na nating malalaman kung ‘rising’ o ‘tanking’ ang ating punlang salapi. Ugali mo rin ba ito?

The Power of Habits

Magandang makagawian na natin ang mag-check ng ating Personal Finance at Investments regularly. Syempre, hindi naman kailangan na araw-arawin pero as at least man lang ay once or twice a month. Kung itong Facebook, Twitter, Instagram at iba pang Social Media accounts natin, halos minu-minuto nating chine-check, what more pa kaya itong ating bank and investment account diba?

5 Financial Checks for Crisis Preparedness

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Typhoon Haiyan had wreaked havoc in Central Visayas, causing unbearable misery and pain to the Filipino people. It also entails a great financial loss on their properties and livelihood which will certainly take months, or even years, to regain. This is such a terrible experience to remember.

Let’s ponder for a moment and think about this:

Suppose that we are residents of Tacloban City and suddenly, a natural disaster like that destroyed our homes and took away our loved ones – How should we respond? Are we really prepared for that kind of ordeal?

Today, let’s assess ourselves and check our personal resources if we really have what it takes to weather that kind of brutal storm.

Let’s ask ourselves and honestly answer these questions:

 

1. Do I have an Emergency Fund, which is worth at least 2 months of my living expenses, for me to survive?

2. Do I have an Auto/Home Insurance that will cover any damages on my house, vehicle and other properties? Do all of my family members, including myself, have medical insurance?

3. As a bread-winner, can my family (who depends on me) still survive in case that I got fatally injured or passed away unexpectedly? Does the coverage of my Life Insurance suffice?

4. As the ATMs in the area were inaccessible and destroyed, do I have a Reserved Cash-On-Hand at home that I can use to evacuate?

5. Do I have another house/ real estate property which my family and I can live in, aside from our humble abode here?

 

Those are the 5 Questions each of us should honestly answer. How do you rate yourself in terms of Financial Preparedness?

The next step for this exercise is to spell a plan of action in order to mitigate risks and strengthen your financial moat against life’s mishaps. And there is no better time to do it than today!

Empower yourself so that you can be able to lend a helping hand to others. Choose to be prepared as early as now for any famine, drought, pestilence, war and other calamities that might come into our land.

Kabayan, let us be a man of means, and not the one in constant need!

Filipino Financial Stewardship

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We will never be progressive and be financially secure if we continue to spend more than what we earn and if we regularly purchase all of life’s glamour (which doesn’t bear any monetary fruit in the future) on credit / by installment, or at the expense of other people’s labor, sacrifice and effort.

We used to blame our perpetual poverty to the government, to our family and to anyone else instead of ourselves. I’ve seen and experienced enough of our indiscretion where we Filipinos, including OFWs, are splurging cash like mad on doodads just as soon as there’s money in our hands. Yes, I agree that the corruption of our leaders had lead to our financial woes, however, it doesn’t necessarily mean they are the only ones to blame.

Given our situation, we should instead save a larger portion of our income for the future or better yet, acquire cash generating assets that’ll increase our net worth and provide steady flow of income in the years ahead.

The choices and expenditures of our yesteryears are now the reality in which we happily enjoy, or sorrowfully toil. Thus, if we are still living in constant financial struggle, that is largely because of us and definitely not by anyone else!

Of course, we need comfort and little luxuries for ourselves and as well for our families, but we should buy them sparingly, to avoid putting ourselves, and our family who depends on us, in great jeopardy. Spending all our hard earned money on leisure and deliberately disregarding our financial needs for tomorrow will be our bitter regret later on.

It’s your Life.
It’s your Decision.

So if you got cash-strapped, don’t ever annoy other people for personal loans, or “Utang” in vernacular, just to save you from the mess that you, yourself, have done but instead:

  1. Courageously face your problems;
  2. Negotiate humbly with your creditors to pay them little by little and
  3. Force yourself to change your spending habits.

For the rest of us, don’t easily give-in on the requests of our friends, officemates, church-mates, relatives or anyone who always borrow cash just to get by. Based by my experience, these kind of people hardly learn their lesson if we keep on paying the bills that they should be paying.

While some of these charlatans live a stress-free life, you are unfairly working hard and bearing an uncomfortable lifestyle just to save more dough. That is why you really have to say “No” to them, just as they deserve it and let them experience these life-changing failures, so they’ll be better in handling their personal finance.

Let the change begins with us.

The Philippines is now experiencing a beautiful, modern renaissance but we still need to continue working hard for our nation to be truly progressive. Together, our land will bloom once again, just as it was before.

Mabuhay ang Pilipinas!

I-Pagtanggol ang Credit Card Information!

Kadalasan, tayong mga may Credit Cards ay nag-tatabi nang mga paper bill statements na natatanggap natin kada buwan. Ngunit alam nyo ba ng may potential risk ang pag-ta-tago ng mga ito?

Kung mapapansin mo ang iyong monthly bill, ay explicitly na nakalagay dun ang Credit Card numbers at iba pang information ng iyong account. Sa ibang mga banko ay tinatago na nila ang mga ito sa kanilang pinapadalang statements, pero meron paring mga banks na mayroon paring ganito.

Minsan, sa dami ng ating mga kalat eh maaaring ma-miss place natin ang sulat na ito o maaari rin ay aksidente mo itong matapon kung saan man. Dito na lumalabas ang panganib na maaring magamit ang sensitibong impormasyon na nasa papel na ito, para ika’y maisahan at manakawan ng pera nang hindi mo namamalayan!

Isipin mo nalang na may biglang lalabas sa bill statement mo na mga items na hindi mo naman binili ni hindi na-enjoy, pero ikaw ang mag-babayad! Sa mabilis na panahon ngayon ng teknolohiya, ay mas dumadali nang mag-nakaw ng personal at pinansyal na detalye natin kaya’t mainam na maging masinop at maging mapag-matyag sa iyong Financial Security.

Minsan nang bumili ako ng cellphone sa isang Mobile Phone shop sa Makati ay nagbayad ako gamit ang aking Credit Card. Habang bumibili ako, biglang sinabi sa akin ng store keeper na:

“Boss, may proseso po kami rito na i-la-log ang Credit Card information. I-su-sulat lang po namin yung details para sure”

 

Para sa mga baguhan eh panigurado, taas noo nilang hahayaan ang store-keeper na i-sulat at i-xerox ang Credit Card nila dahil sa pag-iisip na ibabalik naman nila ito. Pero ito ay napakalaking pagkakamali sapagkat once na nakuha na nila ang mga numbers, security number at expiry date ng card mo eh magagamit na nila iyon para sa online transactions.

 

May karanasan rin ako na explicit na naka-indicate ang aking credit card number and expiry date sa resibo ng kinainan kong Restaurant! Muli, isa na naman itong panganib sa iyong Financial Life dahil magagamit ng mga masasamang loob ang impormasyon na ito para ika’y manakawan.

 

Kaya para maka-iwas sa ganitong pangyayari ay dapat tinatabi ang mga bills na ito sa isang secured na lugar at ni-shre-shred ang mga paper statements ng pinung-pino para makasigurado na hindi mababasa ang mga sensitibong pinansyal na detalye na nakapaloob rito.