Tag Archives: money habits

Business for a Balikbayan

September 20, 2013Invest, Planardy roberto, Armand bengco, bo sanchez, bonus budget, bulgar, business portal, business trends, Cash loans philippines, chinkee tan, cosmopolitan magazine, david pilling, easy money, economic conditions, fallacies, financial times, foreign exchange, forex, Francisco colayco, gnn, grow money, gusto kong yumaman, how much to retire with, how to grow money, How to invest in stock market philippines, investment opportunities, Investments philippines, larry gamboa, lenddo, lenddo lending corporation, less is more, loans, Make money philippines, mario singh, money habits, Mutual funds philippines, of, Paano kumita ng pera, personal finance, pesonality, philippine economy, pisobilities, retirement, stock market, think rich pinoy, truly rich clubadmin

by: Francisco J. Colayco

An OFW asked my wife, Mary Anne, about setting up a mini-grocery store. This is the OFW’s letter:

Dear Mrs. Colayco,

I am an OFW working as a private carer here in England. I am planning to go back to our country to be with my family. I am thinking of putting up a mini grocery store as our location is ideal for such kind of business. I actually found the courage to make this decision after reading your book. I hope you can give me business recommendations.

Thank you.

—Rizza

This is Mary Anne’s response:

Congratulations on your desire to improve your life and to return to your family! Going into business is being an active entrepreneur. What is first and foremost is that you must really like the mini-grocery business and have the technical capability for it. Although having the right location is definitely a good start, you must not just choose a business for the sake of having a business. While you could have “employees”, you will need to understand the business completely before embarking on it.

If your idea is having a “sari-sari” store, it will be relatively easy but you will still need to understand the business. From talks with sari-sari store owners, you should have an inventory capital range of PhP10,000 and more. There may be costs for permits and fees for the barangay depending on the practice in your area plus of course any renovation you may need to convert your place to a store. A successful Owner said that if you want significant earnings, no less than PhP50,000 inventory capital is needed. Examining the margins that storeowners add, it seems that 20% is a good average. Assuming you can turn-over your inventory at least twice in one month, then you can have a gross profit of anywhere from PhP2,000 to PhP10,000 per month. You can add to your inventory as you become more successful.

Check out the rest of her response at HerWord.com!!!

What’s Your Investing Need?

September 18, 2013Invest, Plan, Shareardy roberto, Armand bengco, bo sanchez, bonus budget, bulgar, business portal, business trends, Cash loans philippines, chinkee tan, cosmopolitan magazine, david pilling, easy money, economic conditions, fallacies, financial times, foreign exchange, forex, Francisco colayco, gnn, grow money, gusto kong yumaman, how much to retire with, how to grow money, How to invest in stock market philippines, investment opportunities, Investments philippines, larry gamboa, lenddo, lenddo lending corporation, less is more, loans, Make money philippines, mario singh, money habits, Mutual funds philippines, of, Paano kumita ng pera, personal finance, pesonality, philippine economy, pisobilities, retirement, stock market, think rich pinoy, truly rich clubadmin

by: Guita T. Gopalan

Whenever I ask people what their investing goals are I’m often answered with silence and a blank face. Making money is not the only goal in investing… In fact, it SHOULDN’T be. With changing markets and global economies, we need to recognize how we are affected — making money (significant money – not the guaranteed less than 1% less taxes and fees from savings accounts) may not become reality and adjust our objectives accordingly. In fact just in the normal course of your financial life your investing needs change.

So what are they?

1. Capital Growth– Capital growth is when you want to have a significant increase in the value of an investment over time. Sa simpleng salita gusto mo ng malaking pera! This is best achieved through what we in Colayco Foundation call ownership investments. These are investments which you buy at a certain price and hope to sell at a higher price at a later time. Examples of these are stocks, mutual funds, business, bonds and government securities in the secondary market, real estate, jewelry, art and other collectibles. Investing for capital growth is generally an aggressive move. It requires you to accept high risks in exchange for high returns.

2. Regular Income – When you’re goal is regular income, basically you want to make sure that you get some fixed income every month/quarter/year. It’s very similar (in concept) to you contributing money to SSS for your retirement (investment) and then expecting pension payouts (regular income) when you are retired. Lending investments are best suited for this. Examples of such are deposit accounts, corporate bonds and government securities. Investments (as a financer or share holder) in profitable businesses is also an option. So is having real estate property rented out (or other types of rental business i.e. transport, power tools/machines). Owning preferred stocks or stocks that give regular dividends is also an option. It’s also possible to have a portfolio of investments (many investments – both with ownership and lending investments) where regular income is the objective.

3. Capital Preservation – Markets and economies are like roller coasters on steroids! Keeping your money safe from devaluation (going down in value) may be important, beneficial and even strategic for you. There are some financial instruments which are perfect for this. High interest bearing deposit accounts are most suited for very short time periods. Depending on your investment period you can also consider fixed income and money market mutual funds as well government securities. You won’t get high returns, but you will get some returns and maintain the value of your investment at the same time.

WAIT! There’s one more objective in investing – AVOIDING CATASTROPHIC LOSS

Mr. Colayco calls this ‘every investor’s negative objective.’ According to him, no investor wants his investment to be wiped out. No body wants not just no gain/profits/return but no principal/capital as well. So some tips – straight from the Finance Guru himself, FJC says:

• “A 100% loss starts with 10%” – Cutting your losses can be strategic. Remember its easier to earn back 10% than it is 100%.

• “Detach your persona from your investments” – Many terrible money decisions are a result of hyped up emotions. Make objective decisions and make decisions when you can be objective. You are not your money. And money is only money it can always be earned back!

• “Don’t invest in a scam” and “Stay with the winners. Avoid the losers” – Do your research – you owe it to yourself to invest in ventures/investments that have a chance. Don’t put in money just because your tita offered you the investment/opportunity.

JUST A REMINDER – these goals are not only about one specific investment but also about your whole investment portfolio (having more than one investment). It really depends on your needs and wants. For example, if you have saved up enough for next year’s tuition, you shouldn’t invest that for capital growth as the risk that the value may decline is too high. This is best invested in something that will give you adequate capital preservation. Another example are funds for retirement – regular income to replace one’s salary and to augment pension can be a primary goal, but you may want to invest in a capital growth instrument for your vacation abroad.

*Guita T. Gopalan is the current Managing Director of Colayco Foundation for Education

Wikang Filipino Para sa Maunlad Na Negosyo

August 26, 2013Shareardy roberto, Armand bengco, bo sanchez, bonus budget, bulgar, business portal, business trends, Cash loans philippines, chinkee tan, cosmopolitan magazine, david pilling, easy money, economic conditions, fallacies, financial times, foreign exchange, forex, Francisco colayco, gnn, grow money, gusto kong yumaman, how much to retire with, how to grow money, How to invest in stock market philippines, investment opportunities, Investments philippines, larry gamboa, lenddo, lenddo lending corporation, less is more, loans, Make money philippines, mario singh, money habits, Mutual funds philippines, of, Paano kumita ng pera, personal finance, pesonality, philippine economy, pisobilities, retirement, stock market, think rich pinoy, truly rich clubadmin

ni: Francisco J. Colayco

Bilang paggunita sa Buwan ng Wika, inimbita akong magbigay ng talumpati sa Kongreso ng Wikang Filipino sa Pamantasang Ateneo de Manila noong ika-20 ng Agosto. Ang aking paksa ay tungkol sa papel ng wikang Filipino para sa maunlad na negosyo. Nasa baba ang nilalaman ng aking talumpati. Nandito rin ang mga slides na ginamit ko: Pambansang Kongreso Ng Wika 82013

Lahat ng mga matagumpay na negosyo ay may tinatawag na ‘Elegant Solution,’ isang panukalang pang-negosyo na masasabing natatangi at makabago kayat mahirap kopyahin o gayahin. Tinutugunan nito ang isang problema o pangangailangan (maliit man o malaki) upang maging matatag ang aspektong pinansyal ng isang negosyo. Ang ‘Elegant Solution’ ay dapat maging simple at madaling maipahayag o mai-communicate – sa investors, mga kasosyo sa negosyo, mga manggagawa, at mga kliyente. Nakasalalay ito sa tiyak at malinaw na paggamit sa wika at sa kahulugang nais ipabatid nito. Ngunit narito rin ang hamon.

Sa loob ng 10 taon, marami nang mga Filipino mula sa iba’t ibang antas ng buhay ang lumapit sa Colayco Foundation upang humingi ng payo at tulong tungkol sa kanilang mga pinansyal na problema at layunin. Sa aming karanasan, napakarami sa mga lumalapit ang hirap magpahayag ng kanilang iniisip o nais sabihin, sa anyong pasulat man o pasalita.

Heto ang isang halimbawa kamakailan lamang: “dmami po ang lending q,nagng 3..isang 35taw,isang 20taw at 18taw arw arw q po hnhulugan un 10odys puwera p s co0p 30o,5,6 q po umb0t s 4,2 5otaw at 2 15taw,kumha po q ng hulgang m0t0r 2870 hul0g a m0nth n2ng oct.12 2o12,e2 pong jan 2013 my nagal0k dn po ng 1m0nth 2 pay pero mas mbba ung interes”

Ang nasa taas ay sipi lamang mula sa isang buong sulat na ginamitan ng ‘text shorthand’ o pagpapaikli gamit ang istilo ng pagsusulat ng SMS. Hindi ito nagtataglay ng istruktura o pagtatangkang isaayos ang mga ideya na gustong sabihin. Mahirap din intindihin at nakalilito ang mga terminong ginamit. Ang mas nakalulungkot, karaniwan ito kahit sa anyong pasalita sa aming mga seminar at iba pang event.

Kung ang mga Filipino, na natural na masipag at masigasig, ay makapagpapahayag lamang ng kanilang saloobin nang mas tiyak at malinaw, siguradong mas maraming oportunidad ang magbubukas. Malaki ang magiging pagkakaiba kung gagamitin ang mga konkretong salita sa pagpapahayag at hindi ang mga hindi malilinaw na salita tulad ng ‘kwan’, ‘yon’, ‘ganyan’, ‘yung ano’, at iba pa. Kung makakaugalian ng mga Filipino ang paggamit ng tiyak na wika at mapanuring pag-iisip, siguradong hindi lamang komunikasyon ang uunlad, kundi pati na ang paraan ng paggawa sa trabaho at pagtupad sa mga tungkulin. Mawawala na ang mga pahayag na, ‘konti lang’ upang sabihin na isang kutsarita lang ang kailangan, ‘malayo pa’ upang magbigay ng direksyon sa isang tindahang 10 kilometro ang layo, o ‘sandali lang’ upang sabihing tatagal lang ng limang minuto ang paghihintay.

Tanggalin na natin ang mga terminong ‘puwede na’, ‘medyo’ – mga pahayag na walang katiyakan na maaaring tanda ng hindi mapanuring pag-iisip at hindi pagpapahalaga sa pisikal na nangyayari. Kung magtatanong ng direksyon sa kalye, makakarinig ng mga “Banda doon sa dulo ng kantong ‘yon, tapos kumanan ka.” Di tulad sa ibang lugar, kapag nagtanong ng direksyon, may tutugon ng “Dumiretso ka ng 200 metro, kumanan ka, dumiretso muli ng dalawang kilometro (mga 25 minutong lakad o dalawa hanggang tatlong minuto kung naka-kotse). Siguradong marami pang ibang halimbawa.

Himukin natin ang mga Filipino na sanayin din ang kanyang paggamit sa wika, hindi lamang hanggang sa antas upang makaraos sa pang-araw-araw na pamumuhay, kundi para rin maging epektibo sa lipunan ang kakayahang niyang ito. Higit pa sa ordinaryong salita, anyo, o pagbikas – hayaan natin ang wika upang maging daan sa mapanuring pag-iisip, malinaw na pagpapahayag, at organisadong paggawa. Sa kalauna’y siguradong hindi magiging mahirap ang pagbabahagi sa ‘Elegant Solution’ at lalaki ang posibilidad na makakuha ng suportang pinansyal, teknikal, at pangangasiwa, upang makamit ang mga mithiin at pangarap para sa isang maunlad na negosyo.

Allocating Your Money in Every Life Stage

August 12, 2013Invest, Plan, Saveardy roberto, Armand bengco, bo sanchez, bonus budget, bulgar, business portal, business trends, Cash loans philippines, chinkee tan, cosmopolitan magazine, david pilling, easy money, economic conditions, fallacies, financial times, foreign exchange, forex, Francisco colayco, gnn, grow money, gusto kong yumaman, how much to retire with, how to grow money, How to invest in stock market philippines, investment opportunities, Investments philippines, larry gamboa, lenddo, lenddo lending corporation, less is more, loans, Make money philippines, mario singh, money habits, Mutual funds philippines, of, Paano kumita ng pera, personal finance, pesonality, philippine economy, pisobilities, retirement, stock market, think rich pinoy, truly rich clubadmin

In every stage of life, there is a proper way on how you should allocate your assets. Why is that so? In personal finance, this is the rule of thumb: take more risks when you’re young, less risks when you’re older. When you’re young, you have more time in your hands. Riskier investments are preferred at such stages because there’s more time for such investments to recover . On the other hand, less risky investments are preferred if you’re older. Aside from the fact that there’s less recovery time for you if you invest in risky investment, your primary concern at this stage is to have regular income to sustain your lifestyle.

Here’s an interesting summary on how you should allocate your assets properly:

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What’s Your Pesonality?

July 10, 2013Plan, Shareardy roberto, Armand bengco, bo sanchez, bonus budget, bulgar, business portal, business trends, Cash loans philippines, chinkee tan, cosmopolitan magazine, david pilling, easy money, economic conditions, fallacies, financial times, foreign exchange, forex, Francisco colayco, gnn, grow money, gusto kong yumaman, how much to retire with, how to grow money, How to invest in stock market philippines, investment opportunities, Investments philippines, larry gamboa, lenddo, lenddo lending corporation, less is more, loans, Make money philippines, mario singh, money habits, Mutual funds philippines, of, Paano kumita ng pera, personal finance, pesonality, philippine economy, pisobilities, retirement, stock market, think rich pinoy, truly rich clubadmin

Curious about your money habits? Want to know the pro’s and cons of how you handle your money? Why not try the following quiz to find out:

When you’re at a mall, what do you usually do first? *

A. I immediately think of what to buy for others when I get home.
B. I check my shopping list and buy only what I need
C. I walk around and when I see something I want, I immediately buy it.
D. I head to my favorite shops and splurge.
E. I go around and when I see new arrivals. I check them out and buy them if I can
F. I head to an ATM and withdraw just enough money to buy what I need, then I do my business and go home immediately.

When buying a new phone, what do you consider? *

A. Simplicity. I don’t wanna attract too much attention.
B. Long-term durability, so I won’t need to replace it or have it fixed every now and then.
C. Whatever. If it’s there and it looks good, I’ll take it.
D. Customizability. I want it to scream “FUN”, like me.
The latest design, so I’m not behind of the trend.
F. Price. I’ll buy the cheapest phone. They all work, anyway.

It’s payday and you just got your salary. What do you do? *

A. I buy treats/surprises for my parents and/or family.
B. I immediately take note of it in my budget planner.
C. I let my whims and cravings guide me on what to do.
D. I call up my friends and invite them to go bar-hopping.
E. I treat my friends to dinner at a fancy restaurant.
F. I head to the bank and deposit half of it to my savings account.

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