The golden voice of the 18th century performer sang this tune:
Now, what do say about 'Investment?'
The good old reliable dictionary says it is 'the action or process of investing money for profit.' Other related terms are: speculation; expenditure, outlay, funding, backing, financing, underwriting; buying shares, etc.
Too technical you might say, which is true in its sense. And why am I saying things about this? Or rather, what right or experience do I have for me to share my 2 cents on this part?
First, let me share this quote: 'When you learn, teach. When you get, give.' - Maya Angelou.
As an employee and a taxpayer for 7 years, I have been through a lot of highs and lows. (Mostly lows anyway.) I have shared the same experiences with my peers, colleagues, and other people I know. I work hard to earn enough to pay the bills, and of course to provide for self and keep some of whatever is left 'just in case.'
I have heard and read about the financial gurus and billionaires for tips. But not much from the 'middle-class' yet for obvious reasons. It won't hurt either learning and hearing from other's point of view.
+++
First job: Peers & Beers
Obviously I wasn't born to a wealthy family, I was a 'semi-scholar' at college, my allowance almost wholly goes for transportation expenses alone. My family helped each other out in one way or another. But that wasn't an excuse. I have heard of more 'isang-kahig-isang-tuka' and 'nagdidildil-sa-asin' hard life stories, so I don't have to spill more on that.
But what made me think harder is when I started to decide to get on the working force. For a year of working on a call centre, wherein the payday is every 15th and 30th of the month, my mind and life was programmed for just 2 weeks. It was a break-even life so to speak. My ATM is my saviour. It was so bad, I get declined with Credit Card applications since it was my first job. And living in Quezon City and working at Makati isn't a smart economic choice either. I have experienced to have literally just coins for transportation fare on the payday, and wait for hours for the bank to release the salary for all.
By the time I left the company, I gave myself an excuse of, 'Well, first job. Gotta enjoy after working hours. YOLO!' Did I save any? Perhaps, just a bit. Could I have managed more? Yes. Is it justifiable that as a single man, that I should just enjoy of what I deserved? Peers and beers said, HELLYEAH!
(there's more...)
+++ Credit Cardz
On to my second job, I finally pursued the right job for my profession, as a hospital nurse. The pay was really good, as compared to the other nurses working on other prominent hospitals. I manage my earnings better, I get to share in on the bills at home (at times.) But as every story, here comes the 'evil situation.' Two words: CREDIT CARDS. Plural. One after another, credit cards flow in one by one. During my 2 year work over there, I think I was given 5 to 6 cards. It was that bad.
So here I am thinking, wow! I can get rewards for shopping?! For grocery?! Amazing, let's swipe these badass cards!!!
And then at the brochures I'm like, 'I can get a free perfume! For 100,000 points! Let's do it!!!'
Later on, charge fees and late payment fees were like shouting 'HA!' at my face via the paper bills.
Realisation for those cards kicked in. Yes, I might me earning better than the last job, but the bills and payments just got added up with these fees. I learned CREDIT is money you do not have. Spend only what you have. I paid my dues and fees by the time I got to my next job. Bummer.
+++ Grass is Greener! (Is it?)
Here I come, a modern day hero, to a land far away. Joining the millions and millions of Overseas Filipino Workers. OFW. Saviour of the family, the golden child of the economy, the walking-ATM on the eyes of perhaps everyone that knows you.
3 years on as an OFW, at this stage, this is what the 'elder people' say is a 'settling stage.' 'Oh, I'm sure you're stable now, earning well, and maybe you could buy a house or a car now. I think you have both now right?!'
There are some truths in there, and sadly some are myths. Whether you work in the Middle East, Europe, Americas, on the skies, on the seas, or wherever on the globe, each has their own bills and expenses and priorities running. A 40 year old might have a different outlook than a 20 year old.
'Do we eat to live, or live to eat?' is almost the same as 'Do we work to pay the bills?'
I have read some articles like '10 million reasons why you should travel the world while you're young', or 'Enjoy life and party YOLO', or some contrasts like 'How to retire by 40.' Then you go like, 'Right on! Let's be badass!' Then some guilt-trip article goes 'LIFE IS NOT ABOUT MONEY.'
To clear things on, I don't have my own car or own house yet. And yes, I still have credit card bills. I could hear and read your mind now saying 'So WTH is this article about then?'
Well, before you shut this down, I will go back to the quote by the author Maya Angelou: 'When you learn, teach. When you get, give.'
I can say I have learned some, that's why I am sharing and maybe teach a thing or two. I have gotten some knowledge, which I am willing to give who would listen.
+++ 70-20-10
I dreamt of becoming either Bill Gates, Warren Buffet, Steve Jobs, or any other lottery winner, until the snooze alarm on my phone slapped my face to wake up into reality.
One of the great learnings I have this year was finding about Aya Laraya. He was the host of the program Pesos and Sense, and is a financial advocate. One of my favorite quotes by him is 'The earlier you start investing, the earlier you can stop working.' It does matter if you start doing it on your 20, rather than on your 40s or 50s. It is true in a sense, but each time I hear the words 'invest', I frown.
I've always thought investing was only for the businessmen who wear suits, goes to a 9-5 office work, ride a fancy car and carry around a suitcase. Or for those who own big companies with tons of spare time at the golf club or having a spa while doing a business meeting at a beach club.
Not entirely true ladies and gentlemen. With the right knowledge, research and of course, money. Since learning about Pesos and Sense, I've been trying to instill this: financial discipline. He gave a rule: Save first, then you spend. I had this moment where at the first hour of my pay, I spend and pay bills, and then save IF there are some leftovers. Which is practical, yet wrong. There is a 70-20-10 rule.
70% for living expenses
20% for savings
10% for debts
You can adjust these depending on your status and needs, but always make sure to take the saving first, and then the rest to follow. A very basic rule, yet requires heavy discipline. I'm not trying to be a party pooper or anti-YOLO if you must say that. I always keep on my mind, I may lose my job tomorrow for the next X years, but the bills and fees won't. And then do the math.
Live within your means. Spend on what you have and what you can.
+++ I got the money, now what to do?
'Don't put everything in one basket' or the saying goes. Diversify your funds, and learn to control your fear and funds at the same time. Study and prepare to learn.
There are various ways of investing. Traditionally, you can put it on the bank and let it grow. With the inflation rate and the interest % the banks give you, you'd be VERY lucky to have close to .05% of yearly interest rate. Then the withholding tax kicks in of course. Example of a bank is BPI. A 1,000 on the bank will give you 2.5 on a 0.250%.
If you're happy with that, good on you. If not, I don't blame you. Unless you are rich as a corrupt politician with multi-millions that can give you thousands at the minimum, then banks won't give you much. There are bonds, time deposits, etc. It is safer in terms of risk, and you can learn more about their policies and maximise it to your advantage.
This will boil down to your risk appetite. How much are you willing to share, to invest? If you are looking for a long-term investment, or for a short-term basis? Are you conservative where you want to invest but not earn much with less risk, or you want something big but of course comes with a bigger risk?
How about business? It is recommended especially if you do something you love and you want to do. Proper training, research and education with the right target and goal can take you places. But always keep in mind of the risk. Personally I have ventured into small-scale businesses both for long term and short-term. I have failed, and have succeeded.
Sometimes you win, sometimes you learn.
At the moment, I have 2 small side-project ventures/business. I'm still learning, but at the same time, I have gotten favorable results already. (No, not millions! Not yet!) I'm not to showboat here, the point is, it is doable as long as you are willing to take the risk and the learning curve. Growing pain is very true, and it did hurt my credit for a while, but I am willing to take that.
If you don't want to lose money in any investment, then don't start yet and do more research.
You may also choose to go into real estate. Be it land, a house, an apartment, a commercial space, any real estate property that you choose. I have thought about this for a long time, and a calculated risk as well. This is a very long-term, expensive venture. The end result, will depend on you. I thought of this for 2 reasons: I can have a property of my own in the future, or I can sell something very valuable if there is a need. With the current economy in the Philippines and the positive growth, it is a smart yet hard decision. Only go for what you can afford and what you can manage. Find and trust a company, and don't be afraid to ask. Ask the bank people, the agents, the company, the contractors. Plan for the future very carefully, again a calculated risk.
Then there's the stock market. Whoa. Big words. Wall Street, Dow Jones, Makati Stock Exchange. You've heard of it, but not everyone have the interest or the knowledge about it. This is a lengthy, more technical in terms of background and the know-hows. I've started on the stocks early 2012, and I am still learning up to now. I will leave you good links about the stock market here so you can understand better from the experts:
It's not about the money, money, money
We don't need your money, money, money
We just wanna make the world dance,
Forget about the price tag
Ain't about the (uh) Cha-Ching Cha-Ching
Ain't about the (yeah) Ba-Bling Ba-Bling
Wanna make the world dance,
Forget about the price tag.
Performed at a concerto by the great Jessie Julvenchi
----
Now, what do say about 'Investment?'
The good old reliable dictionary says it is 'the action or process of investing money for profit.' Other related terms are: speculation; expenditure, outlay, funding, backing, financing, underwriting; buying shares, etc.
Too technical you might say, which is true in its sense. And why am I saying things about this? Or rather, what right or experience do I have for me to share my 2 cents on this part?
First, let me share this quote: 'When you learn, teach. When you get, give.' - Maya Angelou.
As an employee and a taxpayer for 7 years, I have been through a lot of highs and lows. (Mostly lows anyway.) I have shared the same experiences with my peers, colleagues, and other people I know. I work hard to earn enough to pay the bills, and of course to provide for self and keep some of whatever is left 'just in case.'
I have heard and read about the financial gurus and billionaires for tips. But not much from the 'middle-class' yet for obvious reasons. It won't hurt either learning and hearing from other's point of view.
+++
First job: Peers & Beers
Obviously I wasn't born to a wealthy family, I was a 'semi-scholar' at college, my allowance almost wholly goes for transportation expenses alone. My family helped each other out in one way or another. But that wasn't an excuse. I have heard of more 'isang-kahig-isang-tuka' and 'nagdidildil-sa-asin' hard life stories, so I don't have to spill more on that.
But what made me think harder is when I started to decide to get on the working force. For a year of working on a call centre, wherein the payday is every 15th and 30th of the month, my mind and life was programmed for just 2 weeks. It was a break-even life so to speak. My ATM is my saviour. It was so bad, I get declined with Credit Card applications since it was my first job. And living in Quezon City and working at Makati isn't a smart economic choice either. I have experienced to have literally just coins for transportation fare on the payday, and wait for hours for the bank to release the salary for all.
By the time I left the company, I gave myself an excuse of, 'Well, first job. Gotta enjoy after working hours. YOLO!' Did I save any? Perhaps, just a bit. Could I have managed more? Yes. Is it justifiable that as a single man, that I should just enjoy of what I deserved? Peers and beers said, HELLYEAH!
(there's more...)
+++ Credit Cardz
On to my second job, I finally pursued the right job for my profession, as a hospital nurse. The pay was really good, as compared to the other nurses working on other prominent hospitals. I manage my earnings better, I get to share in on the bills at home (at times.) But as every story, here comes the 'evil situation.' Two words: CREDIT CARDS. Plural. One after another, credit cards flow in one by one. During my 2 year work over there, I think I was given 5 to 6 cards. It was that bad.
So here I am thinking, wow! I can get rewards for shopping?! For grocery?! Amazing, let's swipe these badass cards!!!
And then at the brochures I'm like, 'I can get a free perfume! For 100,000 points! Let's do it!!!'
Later on, charge fees and late payment fees were like shouting 'HA!' at my face via the paper bills.
Realisation for those cards kicked in. Yes, I might me earning better than the last job, but the bills and payments just got added up with these fees. I learned CREDIT is money you do not have. Spend only what you have. I paid my dues and fees by the time I got to my next job. Bummer.
+++ Grass is Greener! (Is it?)
Here I come, a modern day hero, to a land far away. Joining the millions and millions of Overseas Filipino Workers. OFW. Saviour of the family, the golden child of the economy, the walking-ATM on the eyes of perhaps everyone that knows you.
3 years on as an OFW, at this stage, this is what the 'elder people' say is a 'settling stage.' 'Oh, I'm sure you're stable now, earning well, and maybe you could buy a house or a car now. I think you have both now right?!'
There are some truths in there, and sadly some are myths. Whether you work in the Middle East, Europe, Americas, on the skies, on the seas, or wherever on the globe, each has their own bills and expenses and priorities running. A 40 year old might have a different outlook than a 20 year old.
'Do we eat to live, or live to eat?' is almost the same as 'Do we work to pay the bills?'
I have read some articles like '10 million reasons why you should travel the world while you're young', or 'Enjoy life and party YOLO', or some contrasts like 'How to retire by 40.' Then you go like, 'Right on! Let's be badass!' Then some guilt-trip article goes 'LIFE IS NOT ABOUT MONEY.'
To clear things on, I don't have my own car or own house yet. And yes, I still have credit card bills. I could hear and read your mind now saying 'So WTH is this article about then?'
Well, before you shut this down, I will go back to the quote by the author Maya Angelou: 'When you learn, teach. When you get, give.'
I can say I have learned some, that's why I am sharing and maybe teach a thing or two. I have gotten some knowledge, which I am willing to give who would listen.
+++ 70-20-10
I dreamt of becoming either Bill Gates, Warren Buffet, Steve Jobs, or any other lottery winner, until the snooze alarm on my phone slapped my face to wake up into reality.
One of the great learnings I have this year was finding about Aya Laraya. He was the host of the program Pesos and Sense, and is a financial advocate. One of my favorite quotes by him is 'The earlier you start investing, the earlier you can stop working.' It does matter if you start doing it on your 20, rather than on your 40s or 50s. It is true in a sense, but each time I hear the words 'invest', I frown.
I've always thought investing was only for the businessmen who wear suits, goes to a 9-5 office work, ride a fancy car and carry around a suitcase. Or for those who own big companies with tons of spare time at the golf club or having a spa while doing a business meeting at a beach club.
Not entirely true ladies and gentlemen. With the right knowledge, research and of course, money. Since learning about Pesos and Sense, I've been trying to instill this: financial discipline. He gave a rule: Save first, then you spend. I had this moment where at the first hour of my pay, I spend and pay bills, and then save IF there are some leftovers. Which is practical, yet wrong. There is a 70-20-10 rule.
70% for living expenses
20% for savings
10% for debts
You can adjust these depending on your status and needs, but always make sure to take the saving first, and then the rest to follow. A very basic rule, yet requires heavy discipline. I'm not trying to be a party pooper or anti-YOLO if you must say that. I always keep on my mind, I may lose my job tomorrow for the next X years, but the bills and fees won't. And then do the math.
Live within your means. Spend on what you have and what you can.
+++ I got the money, now what to do?
'Don't put everything in one basket' or the saying goes. Diversify your funds, and learn to control your fear and funds at the same time. Study and prepare to learn.
There are various ways of investing. Traditionally, you can put it on the bank and let it grow. With the inflation rate and the interest % the banks give you, you'd be VERY lucky to have close to .05% of yearly interest rate. Then the withholding tax kicks in of course. Example of a bank is BPI. A 1,000 on the bank will give you 2.5 on a 0.250%.
If you're happy with that, good on you. If not, I don't blame you. Unless you are rich as a corrupt politician with multi-millions that can give you thousands at the minimum, then banks won't give you much. There are bonds, time deposits, etc. It is safer in terms of risk, and you can learn more about their policies and maximise it to your advantage.
This will boil down to your risk appetite. How much are you willing to share, to invest? If you are looking for a long-term investment, or for a short-term basis? Are you conservative where you want to invest but not earn much with less risk, or you want something big but of course comes with a bigger risk?
How about business? It is recommended especially if you do something you love and you want to do. Proper training, research and education with the right target and goal can take you places. But always keep in mind of the risk. Personally I have ventured into small-scale businesses both for long term and short-term. I have failed, and have succeeded.
Sometimes you win, sometimes you learn.
At the moment, I have 2 small side-project ventures/business. I'm still learning, but at the same time, I have gotten favorable results already. (No, not millions! Not yet!) I'm not to showboat here, the point is, it is doable as long as you are willing to take the risk and the learning curve. Growing pain is very true, and it did hurt my credit for a while, but I am willing to take that.
If you don't want to lose money in any investment, then don't start yet and do more research.
You may also choose to go into real estate. Be it land, a house, an apartment, a commercial space, any real estate property that you choose. I have thought about this for a long time, and a calculated risk as well. This is a very long-term, expensive venture. The end result, will depend on you. I thought of this for 2 reasons: I can have a property of my own in the future, or I can sell something very valuable if there is a need. With the current economy in the Philippines and the positive growth, it is a smart yet hard decision. Only go for what you can afford and what you can manage. Find and trust a company, and don't be afraid to ask. Ask the bank people, the agents, the company, the contractors. Plan for the future very carefully, again a calculated risk.
Then there's the stock market. Whoa. Big words. Wall Street, Dow Jones, Makati Stock Exchange. You've heard of it, but not everyone have the interest or the knowledge about it. This is a lengthy, more technical in terms of background and the know-hows. I've started on the stocks early 2012, and I am still learning up to now. I will leave you good links about the stock market here so you can understand better from the experts:
http://trulyrichclub.com/
http://pesosandsense.com/
http://trulyrichclub.com/
http://tsupitero.com/
http://www.financemanila.advfn.com/
http://www.pse.com.ph/
These are just some of my favorite sites to visit and learn from. For almost 2 years on the stock market, yes I have lost some in the shares I have invested, but I am happy to say that I have gained more than I have lost.
+++ So, why Invest?
Before I was apprehensive in telling my friends, colleagues, or friends to talk about money and investments. Nobody wants to be labeled as 'mukhang pera' or do nothing but think of the costs and bills. Nobody wants to be labeled as 'mayabang' and mistaken for boasting of what you have gained. Nobody wants to be labeled as 'maraming pera' where people think of you as a cash-cow that can be asked for money in terms of need.
But I don't want to be called 'selfish' and just keep it all to myself. I wanted financial freedom, I want to retire early and enjoy the fruits of my labor while still young. I want to spend more time with my family and friends. I don't want to be an employee forever and rely on retirement pensions later on. I am thinking ahead for my future and at the same time, I am happy with the blessings I have now.
So here I am, a middle-class worker, an OFW, who wants to earn and earn some more so I could help my family and my future. I am proud to say I want to practice and preach more about investing. I'm telling you this cliche, you can do it. I have endured and currently doing it, why don't you?
P.S.
I wanted to invest because later on, I want to sing loudly:
We don't need your money, money, money
We just wanna make the world dance,
Forget about the price tag
It is a one of the great article i can say because you have discussed about the invest which is very useful to me as well. I must follow the discussion which is very essential for me as well. Keep it up.
ReplyDeleteJonathan