You Must Set Financial Goals

An old saying goes, “It doesn’t matter where you came from. It doesn’t matter where you are right now. What matters is where you are headed.” 

Hindi na mahalaga kung baon ka sa utang ngayon. It doesn’t matter kung pinahirapan mo ang sarili mo noon. Bakit? Kasi nakaraan na iyon. Wala ka nang magagawa.

Pero what matters is where you are headed.  Ang mahalaga ay kung saan mo gustong pumunta ngayon.  How would you like to see your financial status a month from now? One year from now? Five years from now? Ano ang mga financial goal mo?  Mayroon kaming naging participant sa seminar before at ito ang kanyang naging financial goals:

Goal 1: Mula ngayon, hindi na ako mangungutang. “One of the best decisions we have made in our lives, sa amin pong pamilya, ay ang desisyon naming hindi na kami mangungutang. Grabe! Dati ay lubog kami sa utang. Mahirap ang lubog sa utang. Kaya nag-desisyon kami na hindi na mangutang, at dahil doon, hindi na lumaki ang aming utang!”

Goal 2: One year from now, I will be out of debt. “Eh, Sir, kasi may mga utang ako ngayon.  Kinompute ko na within one year ay makakabayad na ako ng aking mga pagkakautang.”

‘Yung sa iba, maaring two years o three years bago makabayad, depende sa lalim ng pagkakautang. Kaming mag-asawa, ang goal namin ay mabayaran ang aming mga utang within one year.  Sa awa ng Diyos, within one year ay nakabayad po kami.

Goal 3: Two years from now, I will have P250,000 in my bank account. Ito ang gagawin mo kapag nakabayad ka na sa lahat ng iyong pagkakautang. Puwede ka nang magsimulang mag-save. Depende sa iyo kung magkano ang kaya mong i-save sa loob ng isang taon. Napaka-importante ng goal na ito.

Goal 4: Five years from now, I will have my own 5-bedroom house. Pero kailangan ay alam mo kung puwede nang bumili ng bahay o hindi pa. May kakilala kami, noong bumili siya ng bahay, lalo siyang naghirap at nagkabaun-baon sa utang. Kung hindi pa kaya, huwag munang bumili.

These are just examples of financial goals. Maari kang gumawa ng iba pa. Just remember: “Commit to the Lord whatever you do, and he will establish your plans.” (Proverbs 16:3 NIV)

Shared by Coach Amos

0923-1520501

Like: http://www.facebook.com/coach.amos

Follow: http://twitter.com/coach_amos 

Visit: http://coach-amos.blogspot.com

(Repost/Excerpted from Vic and Avelynn Garcia’s book entitled Kontento Ka Na Ba Sa KaPERAhan Mo? available in National Bookstore, Powerbooks, Fullybooked, OMF and other leading bookstores nationwide. Also available in Unleash International Bookstore. For details, please contact 0922-UNLEASH (8653274) or 664-0892, 632-0148 local 8002-8003.)

Vic Garcia is currently the President and CEO of Unleash International Corporation, a high-tech, high-touch, high-impact training company whose main mission is to unleash the highest potential in people towards success, happiness, and significance through licensed and originally authored, world-class, high-impact training programs. 

Vic has been in the business for more than 20 years and has gained the trust and confidence of countless organizations. He is also the author of the Unleash Workbook and Unleash Learning Systems. His area of competence varies from work and life improvement, financial management, leadership, system, productivity, teambuilding, and other specialized seminars that will unleash the highest potential in people. He served as a consultant and a management coach to a number of CEOs and leaders of different companies. He is often invited to different television and radio programs to share his expertise in unleashing the highest potential in people.

Learn and apply practical ways of effective financial management through easy and doable techniques when you follow this series weekly. Follow Vic on Twitter, @UnleashMoney. Also visit www.unleashinternational.com and Unleash International on Faceboook, www.facebook.com/unleashinternational.

70-20-10 Principle

We have already discussed two budgeting principles in the previous articles. Below we proceed to the third, let’s have a review: The first principle in budgeting is Piso ‘Yan and the second is Kurot principle.

Now, let’s go the third: the 70-20-10 Principle.

Ito ang pangatlong prinsipyo. Apply the 70-20-10 Principle. If you want to be an Unleasher, starting today, live within 70% of your income.

If you are earning P20,000, magkano ang 70% ng P20,000? Kapag hindi mo alam ang sagot, hindi ka talaga yayaman. Kailangan marunong kang mag-addition, subtraction, multiplication, at division ha. Napansin mo ba ang mga Chinese? Ang gagaling nila sa Math! So starting today, mag-praktis ng Math!

Ang 70% ng P20,000 ay P14,000. So starting today, live within P14,000. Sabi ng isang participant namin, “Sir, malabo ‘yan. May malaking problema, Sir! Nang mag-compute ako, 100% ng income ko ay ginamit ko at kulang pa! Eh, paano ako mabubuhay sa 70%?”

Huwag kang mag-alala. Sa aming librong Kasusuweldo Pa Lang, Ubos Na, tuturuan ka naming magbawas ang iyong expenses by 30%. Ibig sabihin, kapag naka-save ka ng 30%, puwede nang mabuhay sa 70%, tama?

Mayroon naman kaming dating participant na ang sabi, “Sir, kapag nagbawas po kami ng expenses by 30%, malamang mabawasan din ang budget namin sa pagkain.” Oo nga, mababawasan nga iyon!  Sabi naman niya, “Eh, malaking problema po yun. Sir, baka mangayayat naman kami ‘pag ginawa namin ‘yun.” Alam mo, tiningnan ko sila isa-isa at sinabi ko, “Alam ninyo, marami sa inyo ang kailangang mangayayat!”

Ang kagandahan sa librong ito ay makakatipid ka na, mangangayayat ka pa!  Hindi mo na kinakailangan pang mag-gym para mangayayat.  Sa gym, may bayad pa.  Dito, makakatipid ka na, mangangayayat ka pa.

The 70% of your income should go to your Revolving Fund. What is a Revolving Fund? Ito ‘yung panggastos mo buwan-buwan.

Your 20% should go to your Automatic Savings. Simula sa araw na ito, kung gusto mong yumaman, at least 20% of your income should go to your savings. Paano gagawin ito? Pagdating ng suweldo mo, i-withdraw mo sa ATM ang 30%. Iwanan mo ang 70% at ito ang panggastos mo buwan-buwan. ‘Yung 20%, ihulog mo sa separate savings account.. Huwag pagsamahin ang panggastos buwan-buwan at ang savings.

Para saan ang 10%? Dito pumapasok ang kanya-kanyang paniniwala. Ang paniniwala namin, we give our 10% (tithe) or more to God. That’s what we believe, pero kung hindi ka naniniwala, hindi ka namin pipilitin. Dahil ang paniniwala namin sa buhay, walang pilitan!

In one of our seminars, one participant asked me, “Why are you giving 10% of your earnings to God?” This is my answer. First, because we are commanded by God to do it. We give our 10% to God dahil mahal namin at gusto naming sundin ang Diyos.

“Bring the whole tithe into the storehouse that there may be food in my house. ‘Test me in this,’ says the LORD Almighty, ‘and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.’”  (Malachi 3:10)

Second, we invest our money wisely. Ipakikita namin sa iyo kung ano ang mangyayari kapag nag-invest ka. Iyong 20% mo, kapag inilagay mo sa bangko, magkano ang interest o ROI ng pera mo?  1%, 2%,  malaki o maliit? Maliit! Kami, kapag inilagay namin ang pera namin sa Diyos, magkano ang ROI? Ang pangako sa amin ng Diyos, one hundred fold! What is one hundred fold? That is more than 100%! Kung matalino ka, saan ka mag-i-invest?

Nakakita ka na ba ng bangkong nagsara? Yes! Nakakita ka na ba ng Diyos na nagsara? Wala! Ibig sabihin, our investment is secured forever with God!  So if you want to be financially successful, set aside 20% to savings. But if you want to be very, very, very rich, set aside 10% or more to God!  Pero… walang pilitan! Remember, God loves a cheerful giver.

“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” (2 Corinthians 9:7)

Shared by Coach Amos

0923-1520501

Like: http://www.facebook.com/coach.amos

Follow: http://twitter.com/coach_amos 

Visit: http://coach-amos.blogspot.com

(Repost/Excerpted from Vic and Avelynn Garcia’s book entitled Kontento Ka Na Ba Sa KaPERAhan Mo? available in National Bookstore, Powerbooks, Fullybooked, OMF and other leading bookstores nationwide. Also available in Unleash International Bookstore. For details, please contact 0922-UNLEASH (8653274) or 664-0892, 632-0148 local 8002-8003.)

Vic Garcia is currently the President and CEO of Unleash International Corporation, a high-tech, high-touch, high-impact training company whose main mission is to unleash the highest potential in people towards success, happiness, and significance through licensed and originally authored, world-class, high-impact training programs. 

Vic has been in the business for more than 20 years and has gained the trust and confidence of countless organizations. He is also the author of the Unleash Workbook and Unleash Learning Systems. His area of competence varies from work and life improvement, financial management, leadership, system, productivity, teambuilding, and other specialized seminars that will unleash the highest potential in people. He served as a consultant and a management coach to a number of CEOs and leaders of different companies. He is often invited to different television and radio programs to share his expertise in unleashing the highest potential in people.

Learn and apply practical ways of effective financial management through easy and doable techniques when you follow this series weekly. Follow Vic on Twitter, @UnleashMoney. Also visit www.unleashinternational.com and Unleash International on Faceboook, www.facebook.com/unleashinternational.

Kurot Principle

Last week, I discussed the first principle in budgeting. Ito ay ang Piso ‘Yan Principle. 

Now, let’s go to Principle No. 2: Kurot Principle.

Ano ‘yung Kurot Principle? Ay, ang ganda nitong Kurot Principle na ito. To better understand this, I will tell you a story of a person na balak bumili ng cellphone worth P1,000. Nagkataong mayroon siyang P100,000 na savings. Puwede ba siyang bumili ng cellphone? Puwede, kasi yung P1,000, kurot lang ‘yon sa kanyang savings.

May pangalawang taong balak bumili ng cellphone. Ang bibilhin niya ay worth P1,000 din. Mayroon siyang savings sa bangko na P1,000. Bumili siya ng cellphone. Anong tawag dun? Dakot na ‘yun! Dinakot lahat ang pera niya!

May pangatlong tao, balak bumili ng cellphone, pero walang savings.  P1,000 lang naman ‘yung bibilhin niya. Bumili siya. Anong tawag ‘dun?  Utang na ‘yun!

Ang tanong: ano’ng prinsipyo ang ginagamit mo sa buhay mo? Kurot, dakot, o utang?

Magtataka pa ba tayo kung bakit tayo naghihirap o baon sa utang? Ang gagaling nating dumakot! Ang gagaling nating umutang! Gusto mong yumaman? Starting today, matutong kumurot. Kapag may bibilhin, dapat kinukurot lang! Nagkakaintindihan ba tayo? Kapag ginawa mo ito, pangako, yayaman ka.

Pag-aralan nating muli ang mga pinakamayayaman sa Pilipinas, ang Chinoy. Again, bakit sila mayayaman? Ang gagaling nilang… kumurot!  Tayo ang gagaling nating… dumakot! Sasampolan kita…

Pinoy vs. Chinoy Businessman 

May dalawang negosyanteng nagsimula ng kanilang negosyo, isang Pinoy at isang Chinoy. Ang capital nila pareho ay P100,000.

Sa unang buwan, si Pinoy, kumita ng P10,000. Ano ang iniisip bilhin? Cellphone. Si Chinoy, kumita rin ng P10,000. Ano ang gagawin niya? Idadagdag niya sa puhunan.

So magkano na ngayon ang puhunan ni Chinoy? P110,000! Si Pinoy, P100,000 pa rin, pero may bago siyang cellphone. Ang ganda!

Ituloy natin. After a few months, maganda ang takbo ng negosyo. Si Pinoy kumita ng P50,000. Ang Pilipinong may P50,000, ano ang balak bilhin? Bibili siya ng home theater, DVD, at LCD TV! Si Chinoy, kumita rin ng P50,000. Anong gagawin niya? Idadagdag uli sa puhunan niya. Magkano na ang puhunan niya? P160,000 na!

A few months later pa, ang Pinoy kumita ng P150,000! Ang Pilipinong mayroong P150,000, ano ang balak bilhin? Second-hand na kotse o pang-downpayment sa bagong kotse. Ang Chinoy, may P150,000. Ano’ng gagawin niya? Idadagdag sa puhunan! Magkano na ang puhunan niya? P310,000!

Buwan-buwan, si Pinoy kumikita. Dagdag siya ng dagdag ng gamit. Magkano ang puhunan niya? P100,000! Si Chinoy, buwan-buwan kumikita. Ano ang ginagawa niya? Dagdag ng dagdag sa puhunan niya. One day, Chinoy was able to save P1 million!  So ginawa niya, he approached one supplier and said, “Supplier, kung bibili ako sa‘yo ng worth P1 million, bibigyan mo ba ako ng discount?” Hulaan mo kung ano ang sasabihin ng supplier. “Of course, ang dami mong bibilhin, kaya bibigyan kita ng additional 5% discount!”

Ngunit naisip ni Chinoy, “Hindi naman yata maganda na sa akin lahat ang 5%. Ang gagawin ko, bibigyan ko ang customers ko ng 3% discount at sa akin na lang ‘yung 2%.” Ibig sabihin, bababa ang presyo ng kanyang mga ibinebentang produkto.

It just so happened na magkatabi ang tindahan ni Chinoy at ni Pinoy. Pareho sila ng mga produktong ibinebenta. Given the situation, kanino kayo bibili? Kay Chinoy, because it’s cheaper. Ano ang mangyayari sa negosyo ni Pinoy? Malulugi na. Kasi mas mahal ang kaniyang produkto. Ano ang gagawin niya? Ibebenta niya ‘yung kotseng nabili niya ng P150,000. Sino ang bibili? Siyempre, ang maraming pera, si Chinoy. Tatawaran pa ni Chinoy ang kotse ng P80,000. Dahil gipit na si Pinoy, kahit palugi ay ibebenta na rin niya.  Si Chinoy ngayon ay nagkaroon ng kotse na murang-mura lang!

After a few months, mauubos din ang P80,000 ni Pinoy. Ano ang susunod na gagawin ni Pinoy? Ang home entertainment niya ay ibebenta na rin. Magkano? P20,000 na lang. Sino ang bibili? Si Chinoy. Darating ang araw na pati ang cellphone ni Pinoy ay ibebenta na niya. Magkano niya ibebenta? P2,000 na lang! Isang araw, magsasara na ang negosyo ni Pinoy. Ano ang gagawin niya? Malamang, magtatrabaho na lang siya kay Chinoy. Ito ang kuwento ng bansang Pilipinas!

Naalala mo pa ba noong araw, mas mayayaman ang mga Pinoy kaysa sa mga Chinese. Bakit nagbago? Ano ba ang problema natin? Dakot kasi tayo ng dakot! Sila, kurot lang ng kurot!

Mayroon kaming naging participant before na nagsabi, “Sir, hindi naman totoo ‘yan! I know a Chinoy, he drives a BMW. That’s a P5 million car! Kurot ba ‘yun?” Malamang kurot ‘yun! Noong binili niya ‘yun, mayroon na siyang P100 million na savings!  So kurot lang ‘yun!  Nandiyan ka pa ba?

Isang Kahig, Isang Tuka 

Saan ka makakakita ng mga taong isang kahig, isang tuka? Saan? Sa squatters area? Magtigil ka! Gusto mo’ng makakita ng mga taong isang kahig, isang-tuka? Sa Ortigas, sa Makati, may makikita ka.

What do I mean? Kapag hindi ka sumuweldo ng isang buwan, mabubuhay ba ang pamilya mo? Kung wala kang credit card, kung mawalan ka ng trabaho ngayon, ilang araw ang aabutin para mabuhay ng matino ang pamilya mo? Kapag nawalan ka ng suweldo, patay ka!

Ang mga Chinoy, kahit hindi muna kumita o magnegosyo, mabubuhay ng maganda. Bakit po?  Kasi many years ago, kumahig sila ng kumahig at tumuka lang konti. Kaya marami sa kanila ngayon, tuka na lang ng tuka. Maraming Pinoy, kapag hindi tayo kumahig, wala tayong tutukain.

Ito ang masakit–sometimes, kahit matanda na tayo, kahig pa rin tayo ng kahig. Gaano karaming Pilipino ang 60 years old  na ay trabaho pa rin ng trabaho? Puwede ba, simula ngayon, kumahig ka nang kumahig at iwasan munang  tumuka. I-deprive ang sarili ng kaunti.

Ang pinakamasakit sa lahat ay ito–one day, you want to work, but you cannot work. You are already old. Why? Nagpakasasa ka kasi noong bata ka pa. Inubos mo na lahat ng lakas at kalusugan mo sa bisyo.

Tanong: Masama ba’ng bumili ng mahal? Sagot: Hindi! Basta kinukurot lang! Kapag nakakita ka ng kasamahan mong naka-Nike shoes, huwag mong husgahan kaagad iyong tao! Malay mo, kinurot lang niya iyon. At the end of the day, what is happening to other people is not important. What’s more important is what is happening to you.

The Bible says in 1 Thessalonians 4:11, “Make it your ambition to lead a quiet life. You should mind your own business and work with your hands, just as we told you.” 

Next week, I will discuss the third principle in budgeting.

Shared by Coach Amos

0923-1520501

Like: http://www.facebook.com/coach.amos

Follow: http://twitter.com/coach_amos 

Visit: http://coach-amos.blogspot.com

(Repost/Excerpted from Vic and Avelynn Garcia’s book entitled Kontento Ka Na Ba Sa KaPERAhan Mo? available in National Bookstore, Powerbooks, Fullybooked, OMF and other leading bookstores nationwide. Also available in Unleash International Bookstore. For details, please contact 0922-UNLEASH (8653274) or 664-0892, 632-0148 local 8002-8003.)

Vic Garcia is currently the President and CEO of Unleash International Corporation, a high-tech, high-touch, high-impact training company whose main mission is to unleash the highest potential in people towards success, happiness, and significance through licensed and originally authored, world-class, high-impact training programs. 

Vic has been in the business for more than 20 years and has gained the trust and confidence of countless organizations. He is also the author of the Unleash Workbook and Unleash Learning Systems. His area of competence varies from work and life improvement, financial management, leadership, system, productivity, teambuilding, and other specialized seminars that will unleash the highest potential in people. He served as a consultant and a management coach to a number of CEOs and leaders of different companies. He is often invited to different television and radio programs to share his expertise in unleashing the highest potential in people.

Learn and apply practical ways of effective financial management through easy and doable techniques when you follow this series weekly. Follow Vic on Twitter, @UnleashMoney. Also visit www.unleashinternational.com and Unleash International on Faceboook, www.facebook.com/unleashinternational.

Piso ‘Yan Principle

Nakakita ka na ba ng taong nag-planong sirain ang buhay niya? Malamang, hindi pa. Pero bakit maraming taong sira ang buhay? Kasi, hindi sila nag-plano ng kanilang buhay. 

Ang sabi nga nila, “People don’t plan to fail, they just failed to plan.”  

Ito ang isa sa pinakamalaking problema ng mga Pilipino. Hindi tayo marunong mag-plano. Asar na asar tayo sa pagpa-plano. Kaya hindi tayo yumayaman.

Eh tayo, ano ang ginagawa natin? Bara-bara ‘bay, o kaya, “Que sera, sera, whatever will be, will be!  The future’s not ours to see!  Que sera, sera!” Ganyan tayo!

Ang pagyaman ay hindi tsambahan. Itanong mo kay Tony Tan Caktiong, Henry Sy, o kaya kay Lucio Tan o kay John Gokongwei. Hindi sila tsumamba sa pagyaman. Nasa plano nila iyon. So ang buhay, pina-plano! Kaya napaka-importante ng pagpa-plano.

Ito ang Step No. 5 on how to unleash the highest potential of your money: You must plan to achieve your goals by having a… budget. Paano mag-plano sa pera? Dapat mag-budget.

What is a Budget? 

A budget is a plan that balances income and expenses. Napakasimple ng budget. Babalansehin mo lang ang iyong kinikita sa iyong expenses! Ganoon lang? Oo, ganoon lang.

Pero bago ka namin turuan kung paano mag-budget, tuturuan ka muna namin ng three very powerful budgeting principles! Sa totoo lang, gawin mo lang ang tatlong ito, gaganda na ang buhay mo (kahit hindi mo gawin ‘yung iba). Pero mas maganda kung gagawin mo itong tatlo at gagawin mo rin ‘yung iba. Tatlong prinsipyo, tandaan!

The First Budget Principle 

Ang unang prinsipyo: “Piso ‘yan.” 

Ano ang gagawin mo kung sa paglalakad mo sa kalye ay nakakita ka ng piso? Ano ang gagawin mo? Dadamputin?  Dadamputin mo ang piso? Ang dumi-dumi na ‘nun!

May halaga pa ba ang piso ngayon? Aber, ano ang mabibili ng piso? Ano? Kendi? Alam mo, ang laki-laki ng problema nating mga Pilipino. Ang pisong madumi, pinupulot natin. Ang pisong malinis, tinatapon natin.

Ano ulit? Ang pisong madumi, pinupulot; ang pisong malinis, tinatapon!

Anong piso ang tinatapon natin? Heto: gaano na karaming piso ang itinapon mo sa walang kakuwenta-kuwentang text?

Ito ang sinasabi ko sa iyo: importante ang piso. Ang problema, kapag lumapit sa iyo ang anak mo at humingi ng piso, anong gagawin mo?  Bibigyan mo?  Hindi! Bakit? Wala ng bata ang humihingi ng piso! Hindi na sila humihingi ng barya! Gusto nila, papel!

Ang sabi ng Nanay, “P20 bibigyan ko. Sir, P20 LANG naman ‘yan e! Pag-aawayan pa ba ‘yan?”

Kapag nagpunta ka ng mall, nakakita ka ng T-shirt. Dating P500, ngayon ay sale. P200 na lang.  Bibilhin mo?

“Syempre naman, Sir!  Nakatipid ako ng P300!”

Nakita mo lang ay nakatipid ka ng P300. Hindi mo nakita na gumastos ka ng P200! Sa isang T-shirt na hindi mo naman gaanong susuotin.  Nandiyan ka pa ba?

“Sir, sayang naman. Sale!”

Hindi mo malaman ang gagawin mo. Nanginginig ka pa na parang ayaw mong umalis kasi baka pag-alis mo ay mawala na yung T-shirt! Kaya ayaw mong umalis! Ayaw mo pang umuwi. Ang laki ng problema mo! Sayang kasi P200 LANG!

Ito po ang unang-unang prinsipyo sa budgeting: Piso ‘yan! Piso ‘yan! Basahing muli… PISO ‘YAN!

Mula sa araw na ito, bago bumitaw ng piso, ilagay sa isip, PISO ‘YAN! Hindi piso LANG ‘yan! Napaka-importante niyan. Bago bitawan ang piso, pag-isipan muna nang matagal. Pangako, yayaman ka.

Sino ang pinakamayayamang tao sa Pilipinas ngayon? Mga Chinese taipan!  Tony Tan Caktiong, Henry Sy, Lucio Tan, Gokongwei! Iyan ang mga mayayaman! Alam n’yo ba kung bakit sila mayaman? Dahil sa kanilang budgeting principles.

Ano ang budgeting principles ng mga Chinese? “Hindi mabubuo ang piso ‘pag walang singko.” Sa kanila, importante ang singko. Kaya bago sila bumitaw ng singko, pinag-iisipang mabuti. Tayo, tapon na lang nang tapon.

Kung gusto mong yumaman, bago bumitaw ng piso, isipin muna, piso ‘yan!

Application: Halimbawa, nagte-text ka at mag-se-send ka na, pero naisip mo, piso ‘yan! Huwag mo na lang i-text! Napaka-simple! Nakatipid ka ng piso. ‘Pag nakatipid ka ng 100 na P1, P100 na iyon. ‘Pag nakatipid ka ng 10 na P100, isang libong piso na iyon. Alam mo ba na ‘pag may isang libong piso ka, P999,000 na lang, milyonaryo ka na?

Paalala lang, ang ibang mga text, related sa trabaho ha!  Hindi ‘yun ang pinag-uusapan natin. Iba naman ang mga walang kakuwenta-kuwentang text at ang mga text na “Wer na u?”, “Here na me!”, ”K” – ito yung mga ‘yun. Iba po ‘yung office-related. Doon po tayo kumikita. These are not expenses.  Ano’ng tawag doon? Investment. May ROI (return on investment) ‘yon!  Okay ‘yon!

So, kapag humingi ulit ang anak mo ng piso, ano ang gagawin mo? Ako, kapag humihingi ng piso ang anak ko, hinihingan ko ng justification. Tinatanong ko, “Anak, bakit ka nanghihingi ng piso?” Ang sagot ng bata, “Kasi Daddy bibili ako ng candy.”

Tanong ko ulit, “Bakit mo kailangan ng candy?” Ang sagot ng bata, “Gusto ko po kasi… uh… uh…” Wala ng masabi ang bata. Wala ng maisip. Kaya, “Uh… gusto ko lang po!”

Hindi puwede ‘yun! Kayo ba sa kumpanya n’yo, puwedeng, “Sir, kailangan ko po ng P10,000.” Kapag tinanong ka kung bakit, ang sagot mo ba ay, “Gusto ko lang po!”  Hindi puwede!  Dapat may dahilan!

So, anong sasabihin mo sa bata – “Bakit mo kailangan ng candy?” Kakamot na lang ng ulo ‘yun at sasabihin sa iyo, “Sige po, ‘wag na lang po!” Nakatipid na ako ng piso!

Next week, pag-uusapan natin ang ikalawang budgeting principle.

Shared by Coach Amos

0923-1520501

Like: http://www.facebook.com/coach.amos

Follow: http://twitter.com/coach_amos 

Visit: http://coach-amos.blogspot.com

(Repost/Excerpted from Vic and Avelynn Garcia’s book entitled Kontento Ka Na Ba Sa KaPERAhan Mo? available in National Bookstore, Powerbooks, Fullybooked, OMF and other leading bookstores nationwide. Also available in Unleash International Bookstore. For details, please contact 0922-UNLEASH (8653274) or 664-0892, 632-0148 local 8002-8003.)

Vic Garcia is currently the President and CEO of Unleash International Corporation, a high-tech, high-touch, high-impact training company whose main mission is to unleash the highest potential in people towards success, happiness, and significance through licensed and originally authored, world-class, high-impact training programs. 

Vic has been in the business for more than 20 years and has gained the trust and confidence of countless organizations. He is also the author of the Unleash Workbook and Unleash Learning Systems. His area of competence varies from work and life improvement, financial management, leadership, system, productivity, teambuilding, and other specialized seminars that will unleash the highest potential in people. He served as a consultant and a management coach to a number of CEOs and leaders of different companies. He is often invited to different television and radio programs to share his expertise in unleashing the highest potential in people.

How Do You Make Money From UITF Investing?

I consider UITF’s as one of the most basic and simplest investment product out there.
Surprisingly, many are not aware what it is exactly, and how one makes money from it.
That’s why for today, I’m providing a basic explanation of what UITF means.
I will tell you how how it works; how you make money from it; and of course, where to go if you want to invest in UITF’s.

So the first question that we should answer is, what does UITF stand for?
It’s an acronym for Unit Investment Trust Fund.

First, I want you to focus on the word “FUND” because that’s what it is basically – a pool of money from many individuals.

Who gets the pool of money? The bank… or more specifically – the trust, investment or treasury department of the bank.

A UITF is an investment product that most, if not all, commercial banks offer. And if you want to invest in a unit investment trust fund, then all you have to do is to go to a bank.

UITF is a generic term and banks often call them by many different names. One thing that they all have in common is that they have the word “FUND” at the end.

When you invest in a UITF, you are actually buying “units” or shares of the fund, that’s why there’s the word “UNIT” in UITF.

And the price of one unit is often called NAVPU or Net Asset Value Per Unit.
So if the NAVPU of a UITF is at P1.50 and you invest P30,000 into the fund, then you will get 20,000 units of the fund in exchange for the money you gave to the bank.

When you invest in a UITF, the bank will (and should) give you a certificate that states exactly how many units you own. And in our example, your certificate will state that you own 20,000 units.
— So far so good? Read it again if it’s unclear. —

What happens next now?

Well the bank, specifically the fund’s manager (or managers), will use your money and invest it in “more complicated” investment products like government securities, bonds, the stock market and many others.

That’s why there are many kinds of UITF; and it’s name usually indicates where the money is being invested by the fund manager.

How do you earn from UITF?

The fund manager (who has everyone’s money) will now do his (or her) best to make the money grow by making good and sound investing decisions.

An equity fund manager, for example, will constantly study and monitor trends in the stock market so that the pool of money from the fund that is invested in it grows.

At the end of the day, if the market went well and the fund manager was able to make good decisions, then the net value of the fund will increase.

On the other hand, if the market went down, and the fund manager was not able to cut investment losses, then the net value of the fund will decrease.

How do you know if the fund manager of your UITF had a “good day” or a “bad day”?

Check the price of the NAVPU. The change from yesterday’s price will indicate if it was a good day or a bad day for the fund. And note that the NAVPU changes everyday!

If the NAVPU yesterday was P1.50 and today it became P1.51 – then the market was good. But if the NAVPU today went down to only P1.49 – then the market was bad.

— The moment you’ve been waiting for… —

Now this is how you earn (or lose money) from UITF investments…

Remember that your money is in the fund, and what you have in your possession is just a certificate that says you own 20,000 units.

When the time comes that you need the money, you can just go to the bank and say that you will redeem your investment.

This is basically saying that you want to give the 20,000 units back to the bank and you want to take your money out of the fund. When you do this, the bank cannot say “No” and they are obliged to exchange the units for cash based on the current NAVPU.

So let’s say after one year, the NAVPU has become P1.65. If you redeem your investment at this point, then you will receive P33,000 – which means you just earned P3,000 by investing P30,000 for one year in the UITF.

However, if the NAVPU after one year went down to P1.40 and you redeem your investment because you really, really need the money, then you will only receive P28,000 – which means you just lost P2,000.

And that’s how UITF investing works!

If you understood all that, then you should know that mutual funds basically work the same way.
Of course, this is a very simplified version and there will be fees, documentary stamps, taxes and specific bank terms and conditions that you should be aware of before you invest in UITF’s.
Repost from fitzvillafuerte.com

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Comparing Term, Universal, Variable, and Whole Life Insurance Policies (Each Type of Insurance Policy Has Benefits and Drawbacks)

Navigating the life insurance landscape can be tricky. You are sure to encounter a number of different policies and terms such as whole life, term life, cash value, variable life, and much more. How can you make sense of all the different types of policies and know that you’re making the best choice? Here’s a quick breakdown of the most common types of insurance policies and the pros and cons of each.

Term Life Insurance

Term life is exactly what it sounds like. You purchase life insurance for a specific term, or set amount of time. You pay premiums for the entire length of the term and once the term is up, your death benefit is gone. Term life does not have a cash value component so your entire premium is simply used to keep the policy active. Once the term is up, you stop paying premiums and the policy expires. This is what makes term life one of the most inexpensive life insurance policies.

But even term life is broken down into a few different categories:

Level Term – Your premium and death benefit remains the same for the entire length of the term, whether that is 10, 20, or even 30 years.

Annual Renewable Term – The death benefit remains unchanged throughout the term, but the contract renews annually, usually with an increase in premium each year. Initially, premiums may be less than in a level term policy, but over time it can become more expensive.

Decreasing Term – Here, the death benefit decreases each year while the premium remains the same. The policy ends when the death benefit reaches zero.

Advantages of Term Life Insurance

Term life policies are usually far less expensive than whole, universal, or variable life insurance. Term life also has a very specific coverage period—typically in terms of 10, 15, 20, 25, and 30 years. This allows you to only buy as much coverage as you need. For example, if you’re only concerned about life insurance while you have dependents at home or a mortgage to pay, you can plan out how long and how much coverage you need.

Disadvantages of Term Life

There is no cash value component of the policy. Your premiums strictly go towards the policy and do not earn interest or otherwise accumulate. And having a specific term can also be a drawback. If you purchase a 20-year term policy and after 20 years decide you’d like to extend your coverage, you may need to undergo proof of insurability and could be denied additional coverage or need to renew at a significantly higher premium.

Universal Life

Universal life insurance builds on term life and adds a cash component. Here, instead of just selecting a specific term and putting 100% of your premium towards the policy, part of your premium will actually go into a cash account in the policy. This cash account earns interest and accumulates tax-deferred.

Advantages of Universal Life

Universal life insurance provides additional flexibility. Because it has a cash component you could actually temporarily stop making premium payments as long as the cash value can cover the cost of insurance. In addition, you may also be able to increase or decrease the death benefit over time. Also, you can usually borrow against the policy in the form of a loan.

Disadvantages of Universal Life

Universal life is more expensive than term life. While some of that added cost will be going into the account in the form of building cash value, the rates you earn on that money may not be the best going rates. This is why many financial professionals recommend buying term and investing the difference. This allows you to still purchase a death benefit while having the flexibility to invest the difference anywhere you choose.

Variable Universal Life Insurance

Variable life insurance is very similar to universal life with one major difference. With this type of policy you aren’t earning a specific rate of interest in a cash-value fund, but instead you can invest this portion in a variety of different investments like mutual funds. So, you get much more control and can choose where to invest the cash-value portion.

Advantages of Variable Life

You’re still guaranteed the minimum death benefit as long as you keep up with the minimum premium. You also have the flexibility to invest the cash-value portion in a variety of investment vehicles. If you make wise investment decisions you can take advantage of significant tax-deferred earnings on those investments.

Disadvantages of Variable Life

By investing part of your policy in possibly risky investments, if the market turns south and you lose a lot of money, you’re putting your policy in jeopardy. A significant drop in account value could force you to pay additional premiums just to keep the contract in force. In addition, the expenses associated with the investments in variable universal life may be significantly higher than you might pay elsewhere.

Whole Life Insurance

As the name implies, whole life is meant to insure someone for their whole life. Like universal life, whole life has a cash-value component. In most cases, in a whole life policy the premium and death benefit are fixed.

Advantages of Whole Life

There are no surprises with whole life. You have a guaranteed premium, interest rate, and death benefit for the life of the policy. The cash value also grows tax-deferred and also typically allows for withdrawals and loans against the policy.

Disadvantages of Whole Life

Whole life is generally more expensive than both term and universal policies. This is largely due to the added guarantees that come with whole life. Also keep in mind that the policy is not flexible. If you determine you want more coverage or would like to increase or decrease your premium, which probably isn’t an option. Finally, the interest earned on the cash-value account may be less than you could obtain elsewhere.

Choose Your Life Insurance Carefully

As you can see, there are a number of options available and there isn’t a single right answer for everyone and every situation. If you take the time to learn what each type of policy offers you can be sure to get an insurance policy that’s right for you and not just what someone is trying to sell you. Re-post from About.com

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0923-1520501

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