Ways to be debt free: Why do you need to write down your expenses

source: http://archive.dyestatcal.com/?pg=dyestatcal-2009-Cross-Country--Road-to-State

I would like to expound a little about writing your expenses by my story.

source: http://phcommute.multiply.com/journal

I just graduated college, reviewed for the CPA board exam, took it and failed. At first it was not that an issue but it came to me I am already a college graduate and I am not already the responsibility of my parents; I should be on my own now. So just like the rest of my classmates in college who failed we all started looking for jobs to make a statement. I applied here and there until I finally landed an accounting staff job at Robinsons Supermarket Inc. Head Office in Eastwood Libis, Quezon City.

source: http://www.wix.com/jacinthtravel/tours

It was convenient. I live in Project 3 and the jeepney ride to Kalantiaw in Project 4 was near and from there another jeepney ride going to Eastwood. And so I started working and also started reviewing in the weekends. I am out of the house from Monday to Sunday. And you know what, if you are out there you spend. My salary was at starting which was around Php 8,200.00 only. It was truly a dip into the real life.

Back then I was able to read Bo Sanchez's book Simplify and Live a Good life. There I found the idea of writing down one's expenses to the detail. Funny it was I was an accounting student and now working as an accounting staff doing record entry for a company making sure I balance my records to the centavo and yet I don't balance my own expenses.  

Back then the Starbucks Planner was a hit and I am one of those who makes sure when I can afford a Starbucks coffee my booklet get stamped. I got one after some months or a year and that planner ended up a expense book. My sister laughs at me because I made a supposed to be diary a record book. You will see in every page what I spent on that day the moment I step out of the house till my eyes closed at night.

source:http://www.thirstyblogger.com

I learned that there are expenses that are really indispensable and there are some that are unnecessary. In order to save you cut on the unnecessary and manage the indispensable. With that I finally realized I am already starting to have a savings. From there I was able to have an idea how much money I am saving and how can I manage my expenses. 

Then I took the exam again but got conditional this time. Transferred to a job with a better time frame and self studied. Took the exam and at last I passed. I searched a job requires a CPA and landed in Orica Philippines. from there and nearly working for 4 years I was able to save up about Php 60,000.00. This savings is now invested at a variable fund at PhilamLife. 

What lessons did I learn from writing down my expenses?

1. It strengthened my discipline. It made me able to follow the goals I

    set because I can see right in front of me what is going on.

2. I learned that if you focus on something nothing is impossible.

3. It is not a matter of time management, it is more of how well you

    pick your choices.

4. Sometimes you just cant believe where your paycheck go but if you

    write it down you will know.

5. People will annoy you not because you can't go with them for a bar

   session(and because I don't drink and smoke, I only drink coffee) but

   because they envy me having savings at an early age and while still

  a bachelor.

Something I just wanna share :)

source: http://www.dailytut.com

Just this morning I got this email and guess what it made me smile. For the longest time for nearly 6 years I am now a certified Paid Content Blogger or so hahahaha I really don't know what is the term but I got my very first payment from Google AdSense. Check it out:

sorry guys can only show these details for security reasons

I thank all my readers and subscribers who continue to support my blog. It is so inspiring to hear or when I get to have chats with former classmates, former co-seminarian(yes I am former seminarian), friends, and even people I don't know leaving comments or messages through the chat box that I have a nice blog and they learned a lot in my blog. Also thanks to all the Google AdSense advertisers and other affiliates that allowed me to promote their product or service through my blog.

Hmmm tomorrow probably I will go straight to the nearest Western Union to cash it in. Will save and donate most of it but I can spend a small portion of it to celebrate it....probably a movie...and I am thinking Captain America.

I hope you won't get tired of my humble ramblings and storytelling in this blog. Will continue to write helpful tips in stocks, personal finance, updates, and other investment vehicles in the Philippines and beyond(like the Internet). 

Workshop Anyone?: Start Your Own Business Enterprise (SYOBE)

source: http://csentrepinoy.org.ph

I got this email from a Facebook notification about Start Your Own Business Enterprise Workshop by Center for Small Entrepreneurs.

To learn more about this workshop and other information about Center for Small Entrepreneurs check their webpage at http://csentrepinoy.org.ph

PERSONAL DISCLOSURE: The owner of this blog is not paid to endorse or assure anything in regards to this workshop. The owner of this blog posted such announcement as a way of opening up means for persons who would like to start their own business but needed guidance. Caveat emptor

Who is Washington SyCip

source: http://www.century-properties.com

Washington SyCip (b. June 30, 1921) is a Chinese Filipino accountant, founder of the Asian Institute of Management and Sycip Gorres Velayo and Company. 

A product of the Philippine public school system, Sycip was in the United States completing a post-graduate degree during the outbreak of the Second World War. His father, who was in Manila at the time of the Japanese invasion, was taken into custody and detained by the Japanese. After hearing reports that his father was executed by the Japanese, SyCip enlisted in the war effort. He was recruited into a "special code breaking" class and was later deployed to India as a codebreaker.

After the war, SyCip started his own practice of accountancy. He eventually partnered with Alfredo Velayo and Ramon Gorres to form what is now known as SGV. Sycip has received numerous accolades in the fields of accountancy and consultancy.

His father, Albino SyCip, was known as the "Dean of Philippine Banking". The senior SyCip was one of the first ethnic Chinese to be admitted to the Philippine Bar.

SOURCE: www.wikipedia.org

For a complete biography of Washington SyCip click here.


For his affiliations click here.

Ways to be debt free: Allocating your salary or earnings

source: http://blog.mdsuburbanhomes.com

One way to be able to get out of debt and start investing is allocating your salary or earnings. 

Wait what did I say "allocating your salary?" Yup you can save and allocate your salary even if your salary is small. If you haven't read my post about starting investing even with a small salary click here.

The problem with most of us is cash management. Sometimes when we get our paycheck we pay it all to our debts leaving us cashless until the next paycheck thus forcing us to borrow so that we can pay for our daily living. Others save some but eventually touch that set aside money because some "sale" is so attractive(click here). Others put all their money in time deposit thus they are unable to get it out when they encounter emergencies thereby forcing you to borrow again. 

See my point.

That is why you and I have to allocate our resources or to put it direct our limited cash so that we have something to pull out without affecting other things that need cash. So how do you allocate your limited cash so that you wont be trapped and end up borrowing?

It is so surprising that the Holy Bible has something to say about allocating your money:

Ecclesiastes 11:2 

Give portions to seven, yes to eight, for you do not know what disaster may come upon the land.

It does not necessarily mean that you have to divide your salary or earnings to seven or more upon receipt but it is a good practice to do so. As for me I have initially divided it into six parts I called funds. You can make it into 4 or 8 but that entirely depends on you but as for me I am sticking to six and probably add another in the future when the need arises. Also it does not mean that each category should be equal because we have different needs base on our lifestyle, our age, and other factors. 

The concept here is to allocate a portion to each category or "funds" so that we have something ready for anything that may come up or befall us. As the quote in the movie "Mechanic" says "Amat Victoria Curam" which means "Victory Loves Preparation"

Let me share to you why I divided it to six:

One: Retirement Fund

This fund is for my retirement in the future. The value of your money now will be decreased as time progresses due to what we call inflation. In order to fight inflation we have to make money increase so that we can cope up with inflation. This fund could be set aside form time to time and when a certain amount is reached will be invested in stock, mutual fund, or a time deposit that gives a return above inflation.

Two: Investment Fund

You might wonder why do I have an Investment fund when I already have a Retirement Fund. Well why only save for retirement when we can increase more our current finances by investing it to other financial  vehicles like small business, stock investment, debt investment, or short term placement of cash that gives a fair return. This way you can have extra for the current time and at the same time add more to your already existing Retirement fund any extra you may make from this fund.

Three: Savings Fund

Again it may seem like this is already a duplication but hey savings fund are monies you set aside also which you can pull out for an opportunity that may give you a nice return. Also you can use this fund if you are saving for something that you have been dreaming to buy or take like a vacation in Bali or a 21 inch flat screen TV or maybe the latest laptop or an Ipad. This is the fund where you can put it and wait 

until it reaches the amount you need to purchase your wish list things.

Four: Emergency Fund

Yup this one is for those things that just pop up right in times you are not expecting like sudden hospitalization, disaster, and other "beyond control" events in our lives.

Five: Expense Fund

This one is self explanatory. You live thus it is logical that you spend money for some expenses that you do in order to live day by day. This might be the one with the biggest percentage of your salary or earnings.

Six: Tithes or Donations Fund

Hey you got to share your blessings. Most of the time you pass the opportunity to bless others because you don't have anything left for it so to make sure you bless others with your wealth you allocate some for this.

As for the additional fund I am thinking of creating a fund for insurance. This one might be another duplication with Emergency fund but this one is for something that we can setup so that besides the money save in the Emergency Fund we have more funds to cover such unexpected expenses. I am still in the exploratory stage for this. My beloved has introduce me to insurance and we are looking at the best options available out there. There are so many types of insurance thus a careful study must be done. Though I remember that my first investment has an attached insurance up to 60,000.00 pesos that wont be enough to cover me up as I aged.

Again save, allocate, and make these funds grow to outdo inflation. 

"Amat Victoria Curam"

Investing word of the day: Back door listing

source: http://dequitypartners.com.au

This word probably became popular due to the East Asia Power Resources(PWR) price uptrend caused by the takeover of Century Properties Inc.

source: http://www.century-properties.com/

Here is what Investopedia says:

A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.

Century Property might have opted to be listed in the Philippine Stock Exchange and sees East Asia Power Resources as good way to be listed by Backdoor listing below is an excerpt from a disclosure submitted by PWR to the Exchange regarding the purchase of Century of PWR making it a wholly owned subsidiary.  

Century Properties, Inc, (CPI) has commenced a negotiated purchase thru a Deed of Assignment of Shares of Stocks dated 31 May 2011 with El Paso Phil. Energy, Inc, for the following acquisitions.
1. 67,096,092 common shares of East Asia Power Resources Corp (PWR) equivalent to 1.888% of PWR
2. 284,250,000 common and preferred shares of EPHE Phils. Energy Co. Inc. (EPHE) resulting to an indirect acquisition of equivalent to 91.695% of the total issued and outstanding capital stock of PWR.

In another disclosure, during the special meeting of the Board of the Corporation, East Asia Power Resources Corp, held today,July 11 2011, the incumbent directors of PWR successively tendered their resignations and in their place, the following were elected as directors to fill in the vacancies and serve the unexpired term of their predecessors for the incumbent year.(click here to read more)

Bible quote of the Day: Matthew 13:44-52

sources: http://commonmansbiblejourney.wordpress.com and http://list-of-birthstones.com

Jesus said to hisdisciples: “The kingdom of heaven is like a treasure buried in a field, which aperson finds and hides again, and out of joy goes and sells all that he has andbuys that field. 

Again, the kingdom of heaven is like a merchant searching for finepearls.When he finds a pearl of great price, he goes and sells all thathe has and buys it. 

Again, the kingdom of heaven is like a net thrown into the sea,which collects fish of every kind. When it is full they haulit ashore and sit down to put what is good into buckets. What is bad they throwaway. Thus it will be at the end of the age. The angels will go out andseparate the wicked from the righteous and throw them into thefiery furnace, where there will be wailing and grinding of teeth. 

Do youunderstand all these things?” They answered, “Yes.” And hereplied, “Then every scribe who has been instructed in the kingdom of heaven islike the head of a household who brings from his storeroom both the new and theold.”

The gospel today talks about Value. What for you is valuable?

In stock investing we look for stocks of value by using Fundamental analysis. We research and study companies who has potential to be of worth in the coming months or years. 

But far more than knowing the value most people forget that when Value is being sought after one has to make the same amount or maybe near the same amount of sacrifice to obtain such valuable item which in case of the stock market is the stocks.

Far beyond the stock market what are other things valuable that you will sacrifice anything to obtain it? Probably your family, your wife, your work, your house, or maybe your collection. In doing so you on other hand sacrifice something to keep such valuable things that you posses and at times you have to choose because one thing is more valuable than the other like sacrificing your barkada nights to be with your wife, or sacrificing a out of town trip with your college friends to support your childs basketball game.

We have different things we value, we also have different standards when deciding which is valuable. But at the end of the day we must ponder upon if we have been valuable to others. God sees us valuable that He is able to sacrifice His son for us. 

Often times we forget this. There are times that God knocks on our hearts for a charitable work but instead say no to Him because we have been saving up money for that new phone, or we have set that date for your Boracay getaway, or maybe Harry Potter's last movie is out and you want to see it.

P.S. Would like to invite you for something that you might be able to share a little bit of your time, or your blessings, or your skills. There is a GK Build at Bulaklakan Quezon City this coming Sunday, July 31. For more details you can check my blog post at Share Your Helping Hand.

Investopedia Videos

source: www.investopedia.com

I know the stock market is an alien world you and I are in with the bizarre languages, symbols, and terminologies we encounter every day of the trade. Thanks to Investopedia and other sites and also our broker's site where we can get the information we need to decipher what buzz the market is talking about. 

source: http://www.financialnews.ro

But still we can maximize our learning experience if such information can easily be retained in our brains. Some download ebooks and audiobooks which they can access easily so that they can read or listen to the topic which they don't understand like Candlesticks, MACD, RSI, Bollinger Bands, Backdoor listing, Market Rally and the rest.

But what if we can see such info and explanation in a video? 

I remember back then when a friend's friend came here with his Japanese friend who wants to learn English asked how can Filipino kids who has no formal English lesson able to communicate to an American or anyone who speaks to them with English. The answer was the Tube a.k.a. the Television.

source: http://www.faqs.org

It is easy to remember when what we are learning is an engaging presentation just what the television does. That is why Robert Kiyosaki invented Cashflow 101 and 102. A board game about financial management which aims to get out of the rat race. The game actually covers accounting(a subject most wont like to talk about) and financial management. The more you play it the more you learn it and retain the concept.

That is why I want you to watch the Investopedia videos by going to http://www.investopedia.com/video/. The videos are well made that it presents the concepts of investing in a concise and easy to understand way, you get to learn the meaning of the nose bleeding words you have been encountering and reading in the newspaper every day. 

Free Value Stock picks for all APF Expert Stock Screener Subscribers

Awhile back I posted about a service from APF Trading called Expert Stock Screener(yup the one up there in the banner).

They have just sent me an email regarding a value added service which comes free to all subscribers to their powerful Expert Stock Screener. The free service is called APF's Value Stock Picks. 

Why did they added this service? We know that we hold some stocks for we believe in the company's capability to provide earnings in the long run thus if we can get a hold of these stocks when their valuation is good we can maximize our limited funds and accumulate such stocks.

Below is an excerpt from APF's website about Value Stock Picks:

New to Value Investing? Start with these 4 Pillars:

Pillar 1: STABILITY		APF Value Stock Pick Criteria 1: We pick out stocks from the larger half of their sector.
Pillar 2: EARNINGS		APF Value Stock Pick Criteria 2: Within each sector, we pick out stocks that are most undervalued based on P/E.
Pillar 3: BOOK VALUE		APF Value Stock Pick Criteria 3: Within each sector, we pick out stocks that are most undervalued based on P/B.
Pillar 4: DIVIDENDS		APF Value Stock Pick Criteria 4: Within each sector, we pick out stocks with the highest dividend yields.
		APF's VALUE STOCK PICKS

If you are not yet subscribed to APF Trading's Expert Stock Screener click the link below:

Ways to be debt free: How come your still not financially free?

 source: http://www.thebigdreamer.com

It has been awhile since I updated this series. An incident lately prompted me to write. 

Though people have finally paid off their debts and started saving up still it seems that they are still stuck in the same situation from where they were before: living from paycheck to paycheck, always only able to save up very small amount for their retirement fund and emergency fund, and as if no matter what they do they can't keep up with the rising prices.

Well I have this friend who is now living through a government agency because of a financial windfall that came to his family. Little by little he is picking up himself. But one day he ask me if I can loan him money. So I was startled. Then he told me that he has a friend who is selling a vehicle at a bargain price and he thinks it is a good price and it would greatly help him since he will be able to go to work better with a vehicle rather than using public transport. I said I don't loan at all. And told him how about your goals of becoming financially free if you loan gain how will you pay for it since your current pay for now only covers your rent and your daily meal. 

And then he realizes my point. He was awaken and he thank me that I guided him.(This is just a fictional story)

Most of the time people forget what have they been working on: that is to get themselves out from the rat race.

In my story if he buys the bargain vehicle yes he will have a comfortable  ride going to work but in the process he added another debt which his current finances can't afford and there is a high likelihood that due to his comfortable and reliable ride he might start oversleeping and be late at work because at the back of his mind he has vehicle to use no more catching up the bus.

Most people who after paying all their debts go again into debt because they can't let go of their old lifestyle: The lifestyle of having what my rich neighbor has even though I cant afford it.

If you noticed there are only few Overseas Filipino Workers or OFW that has truly succeeded after doing their stint in abroad. The problem is when they are abroad they send money to their families and their spouses buy a flatscreen, get cable, remodel the house, buy luxury which they never had before and saying that "because we can afford it now lets get them". Where did all your hard work go? Where did your salary go?

 source: http://negosyongmaypuso.blogspot.com/

All went to consumer goods. Consumer goods are things you buy to be consumed and never generate back additional income.

source: http://dbseconomics.blogspot.com

Some OFW are wise. They send money to their spouse and tell them either to save in a bank with a good interest return, put it in UITF, or even better buy a Van, a Rental property, or do Five-Six, to earn extra money. The van is use either as a school service for students of the rich schools or even a delivery van for small operations for province to Manila and back routes. Rental property like apartments gives back rental income. And the well known 5-6 gives back income as an interest.

Most fail to achieve financial freedom after finally paying their last debt because they get back to their old lifestyle. One has to be focused on the goal. Wouldn't you like to retire young and without thinking of your expenses?

Action my friend, you make the call. You need to change our lifestyle. You need not follow the standards of your neighbor; make your own definition of success.

Want to follow Investing in Philippines by Email?Click here

First Metro Capital Markets Seminar July 20, 2011

The first round of the seminar is already finished but you can catch up on the second series on July 20 which is today.

Hope you can catch up!!!

CitisecOnline 2011 Mid-Year Briefing on August 1, 2011

Are you in the Philippines? Attend the CitisecOnline Mid-year Briefing titled "Second Half is Looking Better"

With the recent action of mining stocks, surge of PWR(East Asia Power Resources), the new trading rules and system, and the upcoming ASEAN Exchange the PSEi might reach the 5,000 level this second half.

So if you have nothing to do after work on August 1 please signup for the event and take a peek at what is expected for the next half of 2011.

Click here to REGISTER online.

Stock Market News: EDC eyeing expansion in Chile

source: http://www.energy.com.ph

EDC to expand geothermal projects overseas

07/17/2011 | 04:37 PM 

Energy Development Corp. (EDC) may soon be operating 13 concession areas in Chile as part of its overseas expansion program.

EDC president and COO Richard Tantoco said they have also “submitted bids for five other concession areas in Chile" on top of the 13 applications for concession areas there.

The company, an affiliate of the Lopez-led First Gen Corp. is looking to becoming an international geothermal company.

“In 2010, we began to plant the seeds for global expansion in countries like Chile, Kenya and Indonesia and we hope to see these initiatives bear fruit in the next few years," said EDC chairman and CEO Federico Lopez.

In March this year, EDC set up EDC Chile Limitada, a subsidiary in Chile. EDC Chile Limitada is a limited liability company incorporation in Satiago, Chile, that explores, evaluates and extracts minerals or substances to generate geothermal energy.

Tantoco added that EDC is also looking into possible geothermal project areas in Indonesia, where they are also applying for greenfield concession areas.

“In Indonesia, progress has been slower as we continue to explore areas and consider joint venture with holders of concession areas," Tantoco said.

EDC has also received join venture offers from different countries, owing to their 35 year experience in geothermal technology, said Tantoco.

“Here, we will tread carefully and prudently, and work only in jurisdictions with attractive resource and favorable investment environment," he added.

The overseas projects are expected to begin in 2015 or 2016. Tantoco did not give cost estimates of the expansion but said that a geothermal project costs around $4 million per megawatt to develop.

In May this year, EDC posted a decline in net income for the first quarter of 2011 because of lower revenues and higher acquisitions costs, slipping 61.4 percent to P3.77 billion while core net income went down 61 percent to P1.23 billion.

EDC has 1,199 megawatts (MW) of geothermal capacity and 132 MW of hydro installed capacity. The company is also working on an 86 MW wind farm in Northern Luzon. - BC/KBK, GMA News

source: http://www.gmanews.tv 

For those who are still confused about the Stock Market

source: http://thedailydigi.com

While searching the internet with the help of our friendly Google.com I came upon this slide from our very helpful guys in the PSE.com.ph.

Please check it out and you might gain a clearer understanding of the Stock Market.

PSE Lec2

View more presentations from Maf Mariñas

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