Monday, August 13, 2012

10 most common money mistakes

By Ma. Salve Duplito
First Posted 01:10:00 12/01/2008

Filed Under: Personal Finance

Mistake #1: Living beyond your means

Filipinos are consumed with "wanting to live a better life."
Are you trying to live "that kind of life" with income that cannot sustain that lifestyle and ending up spending more than your monthly paycheck? Yes, you can fund that lifestyle with debt. Don't. Spending more than you earn is the surest way to keep that "better life" further away from reach.
Ralph Liew, chairman of the International Association of Regional Financial Consultants (IARFC) for the Philippines, Thailand, Malaysia and India, points out that the millionaires next door are the ones who save so much more than they spend.

"They are the ones who are saving a lot of money," he says.

The fix: Put off expenses if the income for the month will put you in debt or cause you not to save money for that period. Thinking twice about small things like the cost of lunch, a frapuccino or dinner at a restaurant will instill discipline and the habit of living within your means, which is most valuable in fixing money mistakes.

Mistake #2: Not saving enough

You've heard of the expression "It's not what you make that matters, it's what you keep." Saving monthly is the fundamental habit that makes any person-- whether a Jollibee crew or a professional working in a posh office in Makati--wealthy. Starting your first job and earning minimum wage may not make it easy for you to save regularly, but P50 savings per week in a simple jar near your bed is not a bad start.

As you mature, it will be easier to set aside a bigger chunk of money because you've been used to the habit.

"I save half of my salary automatically and try not to think about it," says Anna, a professional working in Ortigas.

The fix: Find a way to automate your savings to make it easier for you to save. There are some banks that provide this service. Make it a goal to save monthly, even if it's just a small part of your income--say 10 percent. Then increase this regularly when finances allow you to squirrel away more of your income.

Mistake #3: Being materialistic

It is common to see families in the provinces living simply with chickens running around in the yard, pigs being raised in the backyard, malunggay and other vegetables growing near the home. IARFC's Liew says when he saw Filipinos living this way, he realized that living simply and not measuring your worth by looking at what you have and what you can buy makes a person's life more meaningful.

"Don't try to keep up with the Joneses and don't just keep looking at the material part of life. Be frugal; don't overspend. Some of the people I see in the provinces live simply and they are okay," says Liew.

The fix: Keep your attention focused on the things that matter most: health, family, friends, and community. While money may make your children happy because of the things that it buys, there are other things that will make them equally happy, like loving attention, quality time and playing together, among others. Sometimes, the returns from non-monetary gifts are even higher.

Mistake #4: Giving in to greed

Billions of pesos every year are sucked into get-rich-quick schemes and scams that easily separates a Filipino from his hard-earned money. Liew says the reason for this is greed. Running after very high returns is a sure way of getting scammed.

The fix: Don't be wowed by quick wealth. Lightning may strike for some people, but the more stable and sure way to wealth is a slow accumulation of savings and investments. How about that hot stock tip or "new investment strategy" earning four percent in a day that made someone a millionaire? Just walk away from it. They will never tell you just how quickly they lost their money.

Mistake #5: Not knowing what you want

"People don't know what they want and then they end up wanting everything they see," says Liew. One of the building blocks of wealth is to know yourself and your limitations as well as your strengths. Husbands, wives and children should take time to talk about financial goals (i.e. our own home in three years, our own car in two years, studies in the United States for Junior in 10 years, etc.).

The fix: New Year or this coming Christmas holiday is a good time to create a financial road map for yourself or your family. Talk about what you want and how you intend to get there. Think about how long you want to attain your goals. Make a pact to revisit your goals every year to see how you are doing.

Mistake #6: Failing to pay off debts
The Philippines owes P122 billion in credit card debt, P14.2 billion of which have already fallen overdue as of June. Unfortunately, that's only a small part of consumer debt, as loan sharks still abound. Debt is like a Damocles sword that hangs over your head and makes you afraid to wake up in the morning.

Interest from debt never sleeps; it doesn't take days off or holidays. They are worms that eat voraciously at your financial dreams.

The fix: If you are thinking of borrowing money with no plan on how to repay it, don't.
If you have debt or several debts that need to be paid, create a plan now.
Start paying the ones with the highest interest while paying off the others with as much money as you can spare.Then work on through that list until you have paid everything.

Mistake #7: Getting killed by advertisements
Glossy magazine inserts come in through the mail at a frenzied pace when the holiday season draws near. There are flat-screen LCD televisions to buy and new mobile phone models. Resist them if you don't need them or can't afford them yet.

The fix: If you are vulnerable to advertisements, make the remote your best friend and speed up your channel surfing. Don't even start flipping that glossy magazine insert. Avoiding advertisements or keeping yourself disciplined enough to enjoy them from a distance should help you keep your finances secure this holiday season.

Mistake #8: Not having a plan
"One of our most common mistakes is not having a financial plan, not following up on the plan and not implementing the plan," says Liew. He notes that many people have New Year's resolutions--for example, to quit smoking--but find themselves still doing so when the next New Year's eve arrives.
The fix: Give yourself the gift of your very own financial plan this Christmas season. You can talk to a financial planner to help you out or do it yourself.

There are many resources on the Internet to help you create a plan that will save you from money mistakes and point you to the right direction when it comes to understanding your money personality, how to save and invest, how to prepare to retire wealthy and prepare to be pampered in your golden years. One of these is MoneySmarts, the personal finance blog of the

Mistake #9: Not having financial education
People think financial education is only for those working in banks, mutual funds or in the financial services industry.
Granted, mathematics or statistics are not easy subjects for all, but knowing financial principles is useful to everyone. Liew says that even children should have subjects on financial management.

The fix: Don't be shy. Ask among your friends if they know something about taking care of finances. Invest in books and take classes. Personal finance is a growing topic in local media.

Mistake #10: Procrastinating
Time doesn't stand still, not even for the Pope.
The best time to start making money moves that will save you from a life of want and need is now, not tomorrow or next week. The best time to start a budget is now. The best time to save for retirement is now.
The fix: Stop reading and start doing.

(For more personal finance articles, visit MoneySmarts.)

Thursday, August 9, 2012

What is your Money Profile?

Challenged  - You don't have enough money for what you need to spend on.

Normal - You have enough money for every expese that you have but you don't have
anything saved.

Stable - Sets aside an emergency fund.

Wealthy - You have at least 24 months worth of expense money in savings.

Permenantly Wealthy - The total amount of what this person has is much greater than
his expenses.

ANC On The Money: Teach Yourself How To Save Now!

Thursday, December 15, 2011

P2B Daang Hari-SLEx link

By: ,

The Ayala Corp. has bagged the first public-private partnership project auctioned by the Aquino administration—the P2-billion Daang Hari-South Luzon Expressway link road.
The Ayala group has bagged the P2-billion Daang Hari-South Luzon Expressway link road, the very first infrastructure-building project auctioned by the Aquino administration under the much-awaited public-private partnership (PPP) framework.

After this project, conglomerate Ayala Corp. will study whether to bid for two other toll road projects in the government’s PPP pipeline—the NAIA Expressway and the North Luzon Expressway-South Luzon Expressway connector projects, according to Ayala Corp. managing director Eric Francia.

Through property unit Ayala Land Inc., the conglomerate is also interested in the privatization of the operation and maintenance of the Laguindingan Airport in Cagayan de Oro, Francia said.
“Part of our strategy is venturing into new business areas and we’ve identified power, transport and infrastructure in line with the government’s [plan] to develop infrastructure and push PPP.

 This is really our first step, our foray in transport infrastructure. It’s modest in size but it’s a good entry platform,” Francia said.

Public Works and Highways Secretary Rogelio Singson announced shortly after opening the bids Thursday that Ayala had submitted the winning bid of P902 million for the 4-kilometer toll road, beating the P608-million bid submitted by a rival consortium led by San Miguel Corp.

“We are delighted to have submitted a competitive proposal for the first project under the government’s public-private partnership program.

This is a good initial foray in the transport infrastructure space and we believe this successful experience working within a public-private partnership framework would be helpful in pursuing future projects under the PPP program,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said.

“This road project provides significant opportunities for synergies within the Ayala group, especially our real estate group, Ayala Land, as it cuts travel time to our residential and commercial projects in this rapidly growing part of the metropolis,” he added.

The floor price for the project was set at P371 million, representing the amount already spent by the government on the initial work on the toll road covering 2.3 kilometers.

Daang Hari is a major arterial road connecting rapidly growing towns of Imus, DasmariƱas and Bacoor in Cavite to Metro Manila via the SLEx. It will be a new road that will exit South Luzon Expressway near the Susana Heights Interchange and pass through government properties in Muntinlupa, ending at Daang Hari near Verdana Homes in Imus, Cavite.

 This road provides strategic access to Cavite, much-needed relief to traffic in the congested Alabang-Zapote Road and Commerce Avenue.

Singson said the Daang Hari-SLEx Link Road Project was a “strategic component” of the Metro Manila Urban Expressway Network Master Plan, which intends to provide a high-standard highway within a 200-kilometer radius of Metro Manila.

He expected the Daang Hari construction to start by February 2012 for segment 1 and September 2012 for segment 2. The project will be implemented following the Build-Transfer-Operate (BTO) arrangement for a period of 30 years.
The starting toll rate for the project at the opening year is P17 for class 1 vehicles, P34 for class 2 vehicles and P51 for class 3 vehicles, all inclusive of the value-added tax.

The DPHW is expected to formally award the concession to Ayala on December 22. It is also expected to complete all right-of-way requirements within six months of signing of the concession agreement.
The Ayala conglomerate is getting into this project in partnership with Getinsa, a Spanish engineering company with deep expertise in infrastructure project globally. It expects to begin the detailed design stage, which will be completed in four months.


Sunday, November 27, 2011

Kerygma Conference 2011



    This is the best time for you to serve God! Speaker: Raoul Roncal, master storyteller evangelist, servants of the word


    Finding your life partner.
    Speaker: Rissa Singson-Kawpeng, editor in chief, Shepherd’s Voice Publications author, confessions of an impatient bride Speaker: George Gabriel, Kerygma preacher and author, love life feast builder, Bonifacio Global City


    Purity in dating.Speaker:Maribel & Allan Dionisio, relationship expert founders of the LOVE institute


    Glorifying God in your profession.Speaker:Randy Borromeo, Operations Head and Vice President, Shepherd’s Voice Radio & TV Foundation, senior feast builder, Makati

        KCON PHOTOS: Photo credits to Jastine Reyes
        Ryzzla, Jastine, and Me

        Jam. Me, Jastine and Ryzzla


        Kerygma Feast Builders

        Sunday, November 20, 2011

        Managing Christmas Expenses

        Today was exactly 34 days before christmas and I saw this very timeley video of one of my favorite personal finance blogger Ms. Salve Duplito of in ANC Shop Talk.  The episode tacles about how to manage your chistmas expenses.

        I'm an avid follower of  her blog Moneysmart in until it was signed off.

        What to do with your christmas bonus?


        It's good for the economy buy on if:
        • You are not in debt
        • Your emergency fund is sufficient or fat enough
        • Your savings is in good Health
        • Your investments are not losing
        • You're fully covered against risk
        2. Use it to give yourself a unique gift, a debt-free chrismtmas

        3. Fatten up your emergency fund

        4. Buy some mutual fund /UITF Share
        5. Get your feet we in the stock market

        6. Set up an "Antartica Fund"

        7. Start an Education Fund

        8.Support an advocacy

        Tips on Managing Chrismas Bonus

        1.Shop Early - But know how to manage inventory and store the items well. and be sure not to
        "Dip your hands in the cookie jar"
        2. Know where to shop

        3.Keep track of the hidden cost of Christmas like packaging.gas, time etc.

        4. Evaluate yourself after the christmas holidays. Take a pen and paperand write down how much you have overspent (or how good you are at keeping within the budge and why. Analyze!)
        4.Trim the gift list. Don't let the commercialism win!

        5.Do not Buy Happiness, Make Happiness!

        Enjoy watching the video!