My own story : From P20 to P10,000

One day sa isang Financial seminar na pinuntahan ko, itinuro nila yung importance ng pagkakaroon ng emergency fund.Ito yung pondo na dapat meron tayo just in case something happens na di natin inaasahan like may kailangan isugod sa ospital, kailangan ipaayos na bubong, nawalan ka bigla ng trabaho, etc.Dito mo kukunin yung pera para di na magagalaw yung savings mo or yung budget mo sa isang buwan/kinsenas.

Immediately after the seminar, bigla ko narealize, oo nga tama sila..I MUST do something to have this type of fund.

So habang nasa bus ako pauwi, nag isip ako ano ba yung mga pwede ko igive up na mga bagay para makapag save ako at least 20 pesos a day.

At ito ang isishare ko....Sana makatulong sa inyo in 1 way or the other.

For 8 years na nagwowork ako sa Ortigas, eto yung daily route ko:

Una, sasakay ako ng jeep mula sa street namin hangang Buendia which is about 1 kilometer away.So ang pamasahe ay 8:00.

Then sasakay ako ng bus going to SM megamall.Ang pamasahe naman ay 21 pesos.Pagbaba ko, maglalakad ako ng mga 1 kilometer goig to the office, halos pareho na distansya mula sa street namin hanggang Buendia.Same route pauwi.

So naisip ko na maglakad mula sa street namin hanggang opisina para makaipon....(joke lang)

Kidding aside, It made me realize one thing---- since naglalakad naman me from Mega mall to the office, bakit hindi ko rin lakarin mula sa street namin hangang Buendia and vice versa then itabi ko yung dapat pamasahe ko araw araw.Anyway 10 minutes na lakad lang naman.makakaipon na ako for my emergency fund and at the same time exercise ko na din.In other words, I am hitting 2 birds in 1 stone.

To cut the story short, hindi na ako nagpatumpik tumpik pa.Sinimulan ko agad kinabukasan.So yung 16 pesos na dapat sana pamasahe ko, ginawa kong 20 pesos a day at tinatabi ko lang yun....NEVER kong binawasan yun as part of my discipline.To make it 7 days a week, pag payday ko, nilalagyan ko siya ng at least 40 pesos to compensate yung 2 araw ko na rest day( Sometimes I put 100 pesos).

Eto yung exciting part.After a year, nakita ko SOBRANG effective.Nakaipon ako almost 8k, JUST SAVING 20 PESOS A DAY.

So nag level up ako, nagisip ako ng way para gawin ko siya 40 pesos a day ng hindi nababawasan yung budget ko sa isang kinsenas.So umiral ang pagiging business minded ko.

Nag isip ako ng pwede ko ibenta sa office gamit yung kaunting halaga mula sa emergency fund ko.So I ended up selling peanuts and cornick sa mga officemates ko and ok naman kinalabasan.So patuloy ko pa din ginagawa yung 20 pesos a day at yung pagbebenta so patuloy na lumalago yung pera for my emergency fund.

So bakit ko shinare to sa inyo?

Friends I would like you to realize na hindi dahilan yung kulang ang sweldo para makaipon. All you need is DETERMINATION AND THE COMMITMENT to save..PERIOD!


Let us do the math:

20.00 x 30 days = 600 pesos
600.00 x 12 months = 7,200 pesos

So ang tanong ko ngayon sayo, ano yung mga bagay na pwede mo igive up? Sa tingin mo 20 pesos lang kaya mo isave isang araw? I doubt it.

Kung mahal mo ang pamilya mo o gusto mo mabago ang takbo ng buhay mo, you MUST do something TODAY.

Stop making excuses. Do something positive.Sorround yourself with the right people na talagang makakatulong sa yo.

Ngayon I am challenging you.Kaya mo bang gawin ang mga to for your family and loved ones:

    >Can you  Quit smoking, save your health and save the money instead?
    
    > kaya mo ba magbaon ng pagkain sa opisina instead of  spending 60 to 100 pesos everyday?

    > Kaya mo bang maglakad ng short distance instead of  taking a jeep or taxi?

    > Kaya mo bang limitahan pagbili ng starbucks, pearl shake, soft drinks and be health concsiouns by drinking more water as replacement?

    > Kaya mo bang magisip ng mga bagay na pinagkakagastusan mo araw araw na hindi naman importante na pwede mo igive up?

    > At higit sa lahat, kaya mo bang gamitin ang spare time mo sa mga bagay na kapakipakinabang at pwede mong  imonitize o kumita ng extra kaysa paggala sa mall, dvd        marathon, spending hours in facebook na unproductive?


Friends lahat ng ito ay ikaw lang ang makakasagot.

At the end of the day, you are responsible for your own actions.


KUng ano ang kalagayan mo 10 years from now ay depende sa mga aksyon na gagawin mo ngayon.

Kung gusto mo maging kayod kalabaw pa din 10 years from now, then DO NOT MAKE ACTIONS TODAY!

Kung gusto mong sabihin sa anak mo 10 years from now na "anak di ka na magtutuloy sa kolehiyo kasi di kita kayang pagaralin pa", then tuloy mo lang yung nakasanayan mo.



If you ask prosperity from God, He answers it buy giving you the right people and the best opportunities...It is all up to you how you respond!!



Sana po nakatulong sa inyo!


I an not an expert financial adviser.In fact I only know a little. I can only share something I learned from experience and from the knowledge that I have acquired through continous learning,



PLEASE DON'T FORGET TO SHARE THIS BLOG AND  PUT A COMMENT BELOW.


If you have questions or any help about saving and investing please feel free to text or call me at  09331935796.
email me at : michaedllanes@gmail.com

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Investment 101 :How to invest in stock market the easiest and most convenient way

        Perhaps you may be thinking that stock market investment is only for rich people or for those who have a wide knowledge about how stock market works. I had the same impression before. Though I had a  very small idea how it works but it did not really  cross my mind to invest -----not until I attended a 2- hour seminar on long -term stock market investment. I was so amazed that I can be a stock holder of a gigantic company in the country just by investing 5,000 monthly, quarterly or even annually. So  right  there and then I started my initial investment at Ayala  Land, Inc. The rest, as they say is history.

And that is what I am going to share with you since I believe God gave me this knowledge not just for  myself but for others as well. This is my simple way of  serving Him.

So lets get started!

 Let me begin by defining the most commonly used terms in stock market :

 STOCK MARKET
     A place where shares of publicly listed companies are bought and sold. In the Philippines, It is the Philippine Stock Exchange that governs the local stock market

STOCKS
     Shares of ownership in a company. So for instance, you purchased 100 shares of PLDT, then you become a part-owner or share holder of that company. In layman's term, "nakibakas ka sa puhunan  ng PLDT" for them to have more money to expand the business instead of them borrowing from the bank.

BROKER
     One/company  that acts as an agent or middleman for buying and selling of stocks and in return they get commission for each transaction.

DIVIDEND
     The share in the profits of a corporation which is paid to the stockholders out of the unrestricted retained earnings.In other words, if the company is earning they declare dividend and give it to all stock holders ( dividend amount multiplied by number of shares).This is the other way to earn in stock market.

I am not going to make your nose bleed for now so I won't add more terms,at least for now!

SO WHY STOCK MARKET INVESTMENT?

History would tell that investing in quality stocks yields greater returns compare to other investment vehicles.This is really a sound investment especially that Philippine economy is doing quite well in the past few years.In the US there is a big percentage of Americans  investing in stock market.But in the Philippines, it is a long way to go. But more and more Filipinos now are into this kind of investment. We used to have that notion that investing in stock  market is only for rich people-----not anymore. Even
an employee earning a minimum wage can invest in  stock market.There is now a wide education in the country teaching people to save money and invest in this vehicle.It only took me 2 hours of my time for  the seminar on basic long term investment in stock
market.So you can definitely do it yourself.

HOW DOES IT WORK?

 There are two types of stock market investment:

     1. Trader - A market trader is someone who has a wide knowledge about this investment tool.He knows how to play with it, easily anticipates when the price goes up or down. If you are this type, you need to closely monitor the market every single day. Don't worry we are not going to tackle this, at all.

      2. Investor - This is the easiest one.And this is what my friend and I  have been doing for quite a  while now.We don't care about the market if the proices goes up and down, even if the economy is good or bad.Why? becuase we are doing it long term like 10 to 20 years (so if you start at the age of 22, by the time you reach 40, you are alreay millionaire).All  you've got to do is to REGULARLY buy shares monthly, quarterly or annually with the same amount like 3,000 to 5,000.It should be CONSISTENT and
LONG TERM. The bottomline is we are doing cost averaging (I will site an example later).THe good benefit of this is it develops descipline since you know there is an investment that you should  save  money for on a regular basis.


HOW TO EARN ON THIS INVESTMENT?

It's pretty simple! 

 First things first, you need to have a broker to  transact for you.In my case I attended a seminar conducted by the top stock broker in the country so  they became my broker eventually.After you open an account with your broker, you are now ready to buy shares.The price per share depends on the prevailing price on that trading time you are buying it.  For instance, you have deposited 5,000 to  buy shares of Ayala Land for 25.00 per share on that day.This means you can buy 200 shares.Then you do the same process REGULARLY (monthly, quarterly or  anually). That depends on your budget.

 Your money will earn in 2 ways :

       1. Price appreciation  - This is the increase in  market price of the stocks you bought. So lets say you bought the share for 25.00 in January and in December you need the money and decide to sell it and on that day the price is 30.00 then you earn 5.00 per share so If you have accumulated 1000 shares then you have gained 5,000.

      2. Dividend - Periodically, companies declare  dividend to its share holders.That means the company did well in the current period so they are sharing the profit.So For example, they declared 0.20 cents per share dividend, and you accumulated 5,000 shares. So that means you get 1,000.

THE POWER OF COST AVERAGING  ( The secret why rich people become richer)

Peso cost averaging is defined as investing a FIXED amount at a regular interval like monthly, quarterly,  etc.For example, 3,000 every 3 months.

To illustrate, lets say you have decided to invest  3,000 a month in stock market and the price keeps on going up and down everytime you buy shares:

MONTH      INVESTMENT        PRICE PER SHARE        # OF SHARES BOUGHT

 January          3,000                               20.00                                               150 
 February        3,000                               22.00                                               136                                            March              3,000                              23.00                                                 130                     
April                  3,000                               21.00                                                142             
May                   3,000                               21.00                                                142
 June                 3,000                               22.00                                                 136        

 TOTALS       18,000                              N/A                                                   836         


So If you are going to sell your 836 shares of stock in  June with the prevailing price of 22.00, that would  be a total of  18,392. You earned 392.00.

 Analysis: 

 The above illustration proves how effective cost  averaging is. You don't care if the price goes up or down on the day you buy stocks for as long as you CONSISTENTLY buying on a REGULAR basis, then your  money grows. So Imagine if you do it long term like  10-20 years. You can enjoy your retirement.You can  even retire early if you start investing in you 20's.That is the principle of cost averaging.You let your  money work for you.It makes your money grows while you are sleeping or having a vacation.

 TIPS : Make sure that you invest in the big companies  that will stay in the industry for decades.That minimizes risk. 

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Saving and Investing : Where to start?

Most of us would like to be financially succesful. That is actually the main reason why we work hard, at times we even work beyond the traditional 8-hour shift.Others may even do business in between.But still, the moment you receive your pay check, it just slips through your hands and you ask yourself where did my hard-earned money
go? If you can relate to this, then you are one of those people who tend to mismanage their finances.I know you want to get over this dilemma and want to start enjoying every single cent that you work hard for.

Let me share you the 10 commandments for personal finance 
management:


I.  Thou Shalt Take Action
II.  Thou Shalt Pay Off All Credit Card Debt
III.  Thou Shalt Understand the Difference Between WANTS and NEEDS
IV.  Thou Shalt Live on Less Than You Earn
V.  Thou Shalt Pay Yourself First
VI.  Thou Shalt Set Financial Goals
VII.  Thou Shalt Educate Yourself and Be Responsible for Your Decision
VIII. Thou Shalt Save and Invest
IX.  Thou Shalt Protect Your Finances
X.  Thou Shalt Donate to Worthy Causes and Those Less Fortunate


Just to summarize this, Here are the basic steps you MUST start doing now.It is never 
too late:

        > Stop borrowing money for bad debt, meaning money that would not generate income   like you borrowed money to purchase unnecessary stuff.

        > Do not spend more than you can afford. Your formula should be income less savings = expenses. You should always put aside an amount for savings

        >If there is really a need to purchase something, look for a store first where you 
can purchase it at a cheaper price.

        >If you own a credit card, do not bring it all the time especially if you will be going to a mall.At times we tend to be impulsive.

        >If you already have savings, do not put all your money in the bank. You have to invest it or put up a business.

        >Make use of your God-given talent and monetize it.For instance, you are good in drawing, then make it as a money machine to generate income or think of a  business out of it. 

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                     Planning your dream house?


                       You can visit my website at:
    http://michaeldllanes.wix.com/pinoydreamhouse