Last Christmas, we probably received cash as gifts from some of our wealthier or purportedly wealthy relatives. Some have received a substantial amount, while others may have received a relatively small amount of money. Others may have received big bonuses or Christmas incentives. So what happened to the money that you received? Did you spend all of it already? Are you still keeping it under your mattress? Are you planning to buy some gifts with your Christmas bonuses ? Here are some ideas ways on what to do with that money. 1.) Put your money in the bank – Contrary to what most people think, banks are not only a place where you could keep your money safe. Banks offer several ways wherein you can make your money grow. Savings account only offers small interest rates. Time deposits on the other hand offer a higher interest rate. Time deposits however are sort “long term investments” since you cannot withdraw your money for a long period of time. This will however give you a … [Read more...]
Financial literacy for OFWs
Janice, an Overseas Filipino Worker (OFW) regularly sends an average of P 30,000.00 to P 40,000.00 (Almost a $1,000.00 U.S) a month to support her husband and two children. After several years of working abroad she comes home expecting a loving husband and two healthy children to greet her. Instead she finds her household in disarray, her children not in school for more than a year; her husband living with another woman, no food in the refrigerator, debts piled up at the neighborhood store, no money in the bank and worst their house is about to be foreclosed by the bank. The scenario may be exaggerated and may even be fictional but this kind of situation is happening to thousands of Overseas Filipino Workers (OFWs). The Philippines is one of the largest foreign workers sending country. Statistics show that 1 out of 10 Filipinos are working abroad. Sadly, some OFWs and their families end up worse then what they were before financially then when they left to work abroad. A study … [Read more...]
Buy term invest the difference?
Some of us has probably heard of the saying “Buy term, invest the difference” when it comes to buying insurance and considering investments. But do we really understand what this means? And if we do understand what this means, why do financial planners recommend that you buy term and invest the difference while your insurance agent is pushing you to buy their recommended product instead. Most whole life insurance products in the market today are considered rip offs. In fact, these kinds of products have already been considered obsolete in the United States. (Term insurance refers to insurance with life coverage only, whole life on the other hand refers to term policy with an investment component. These kinds of products are usually presented as helping you “force” to save for retirement. The problem with the investment part is that they do not usually give a good rate of return) Sadly insurance agents are still selling products like these in the Philippines. What is more sad is that … [Read more...]
A stronger Philippine Peso . . . Fearless forecast for the months to come
Before we resume our regular stock market series and discuss the strengthening of the Peso. This is an important factor that plays a vital role in determining the economic outlook of our country. This will also help you decide when considering investments. When the dollar-Peso Exchange rate was still P44+ to a dollar, I told my dad to dump all his dollar, exchange it for peso and put it in mutual funds. I don’t know if my dad has listened to my advice, but now the exchange rate is now nearing P 40.00 to a dollar. For those of you living in the Philippines and who has still dollars in their accounts, it is not yet too late to exchange it to avoid loosing more in the months or even years to come. Except if something really bad happens to our political scenery or if there is a global economic catastrophe that will affect the world market, there is no reason that the Peso should continue to stop appreciating. I am not saying this because I am an expert in economics or that I … [Read more...]
The world’s best investment
Today is Christmas day. But my blogging schedule today is financial management and investments. I’ve been thinking lately about what to write on Christmas day, I don’t want to go about the traditional route focusing on Christmas topics (like the Corruption of Christmas or Should Christians celebrate christmas.) I finally found my topic by reconciling my blogging schedule and today’s special holiday. When talking about investments we always want to consider the rate of return. We want to know how much we will be earning per annum. We then compare it with other investments, weigh the risk versus the rewards and make a decision on the matter based on whether the risk involved is compensated by the reward that can be obtained. But what do you think do you think is the best investment in the world? The answer is found in the pages of the Holy Scriptures. The Bible says in Proverbs chapter 19:7, “He that hath pity upon the poor lendeth unto the LORD; and that which he hath given … [Read more...]