Personal Finance, Family and Career

Posts from — April 2011

Find Ways to Earn More To Save More

In order to save more, you would have make the gap between expenses and earning bigger.

SAVINGS = EARNINGS – EXPENSES

It is quite simple and the math is sound. For example we save Php12,000 per yearwith a 10% compounding interest per annum, in twenty years we would have a PhP687,299.99. However, if we bump up our savings to Php18,000 per year, we would have saved Php 1,030,949.99. A huge difference, right?

The usual problem with us right now is that we have little to no savings and it is because of the lack of income. We hear protests almost every month about employee groups making protests in the streets for the government to increase wages in the country, however it is not that easy.

The government has to look on to the companies that the companies have enough income to support their current employee wages. An increase in wage might mean doom for any company not earning enough, thus causing increases in the already high unemployment rate in the country.

What can we do?

We should have multiple streams of income. Having multiple streams of income means that have more than one source of income(aside from our job).

  • Get a part-time job. We normally have 8-hour jobs in our country, which actually consumes 9 hours including lunch break. However, having an 8-hour job doesn’t mean that you stop there. You can still get a part-time job.
  • Start a part-time business. In this day and age, many business can be set up easily. My girlfriend has a reloading business in their office and earning as much as 12% of her capital everyday. That’s much better than a bank time deposit.
  • Start a full-time business. You don’t have to slave around doing work for another person’s company. Start your own company. A lot of my friends now have their salon, web development, boutique businesses. It isn’t as difficult as you think.

April 27, 2011   No Comments

How to become a Millionaire in 3 Easy steps

I’ve had a chance to stumble upon a good read on CNN Money discussing how to become a millionaire on 3 easy steps. This article in particular states that there are 3 factors you need to manipulate in order to have a higher chance of getting rich and have a million dollars in your pocket.

  • Time you have to save/invest
  • How much you save/invest
  • The return on your investment

The most important of the three of course, is Time:

When you think about getting rich, what jumps to mind? Saving more money? Getting that money to work harder for you? Sure, those are critical elements. But they’re not nearly as important as time: How long you allow dictates how you pull the other two levers — which is why you want to estimate your schedule before going on to the next sections.

That’s the reason why the best time to invest is always now.

April 22, 2011   No Comments

How to Live With Cash Only

Credit card interest the most expensive debt one could accumulate. It is not surprising that most people tend to pay minimum just to keep up with the bills. Many people default.

To prevent yourself from accumulating credit card debt is easy. Don’t accumulate. Don’t use your credit card. Here’s the only tip you should do to prevent your hand from slipping into your wallet and retrieving the card. And I guarantee that you’d be thanking me.

Leave your credit cards and debit cards at home so you will not be tempted to use them.

Such a simple sentence but that is all it takes.

April 20, 2011   No Comments

Philippines to benefit from a US credit downgrade

Wick Veloso, treasurer of the HSBC, said in a briefing on Tuesday that a downgrade of the US credit rating, which has been triple A for years, should prompt foreign investors to shift funds to emerging markets, which led global growth in 2010 and have been expected to do so this year.

“If the negative outlook becomes an actual downgrade [of the US credit rating], more foreign capital inflows will go to emerging markets,” Veloso told reporters.

In 2010, foreign capital inflows to developing nations have started to rise given their fast growth rates and amid very modest recovery of the United States and other industrialized countries from the 2009 recession.

In the case of the Philippines, foreign capital inflows surged to $4.6 billion in 2010, rising by nearly 12 times the $388 million the previous year.

While additional inflows of foreign capital are an indication of confidence to the Philippines, some monetary officials are concerned about continued surge in the inflows because these are mostly short-term in nature and placed in portfolio instruments. What policymakers want to see is a rise in inflows of long-term and job-generating investments.

Veloso said there would be an added reason for foreign investors to place funds in emerging markets and from the United States should the latter’s credit standing eventually be downgraded.

I’m pretty happy with the news. This will probably mean more businesses opening up in the Philippines and more jobs being created (hoping for long term and job-generating investments). And with this indication, I might just increase my investments to ride the fore-casted economic growth.

April 20, 2011   No Comments