Pinoy Financial Tips

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 mabubuh...

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. Kapa...

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...

What are stocks? Stocks are shares of ownership in a corporation. The stock market is a place where stocks are bought and sold. The Philippine Stock Exchange (PSE) is the corporation that governs our local stock market. People buy or invest in stocks to benefit from a company's tremendous value potential over time. Once you buy or invest into a stock you now become part owner or a shareholder of that particular corporation. How to make money in stocks? As a  Shareholder , you can now participate in the company's growth and success through stock  Price Appreciation  and by earnings  Dividends . Capital  or  price appreciation  is an increase in the market price of your stock over time brought about by an increase in its potential value and the demand to buy its shares. The faster a company can grow, the faster its price can appreciate. Profitable corporations can also issue  dividends , whether in cash or in additional shares of sto...

What does 'Pay Yourself First' mean "Pay yourself first" is a phrase popular in  personal finance  and  retirement planning  literature that means automatically routing your specified  savings  contribution from each paycheck at the time it is received. Because the savings contributions are automatically routed from each paycheck to your investment account, this process is considered to be paying yourself first; in other words, paying yourself before you begin paying your monthly living expenses and making discretionary purchases. BREAKING DOWN 'Pay Yourself First' Many personal finance professionals and  retirement planners  tout this idea as a very effective way to ensure that you continue to make your chosen savings  contributions month  after month. It removes the temptation to skip a contribution and spend the funds on expenses other than savings. Regular, consistent savings contributions go a long way toward building a long...