You Become What You Think About

Restarting

noreply@blogger.com (akosiiao) — Sat, 03 Jul 2021 14:52:00 +0000

Random thoughts

I want to go back to writing.

I feel like writing will help unpack the myriad of thoughts running in my mind and convert them into something tangible.

Do you have that experience or situation where you have so many ideas. You have so many goals but then you spend so much time thinking about planning and about that grand big idea or goal but never had the time to execute it.

Worst. Being very clueless when to start.

I am at that situation.

I want to review my blog

Big idea.

Post one article per week.

One post to share my thoughts.

I will start with this. Stay tuned.

Bubble or No Bubble

noreply@blogger.com (akosiiao) — Wed, 04 Dec 2013 04:42:00 +0000

I have been reading a lot of articles debating on whether we have a "bubble" or not. After reading the articles, I ignored it and moved on minding my own business. But then I realized, I would not be a good investor if I don't take an opinion on this issue. If I am to be a good investor then I should read the articles, read through the opinion and then decide for my own about what I should do with my hard-earned money.

credit: Denisp12

Here are the articles if you want to read them

Here's Why The Philippines Economic Miracle is Really A Bubble in Disguise
It is not a Miracle, It is not a bubble

First, let us understand what an "economic bubble" is. As I understand it, economic bubble is used to describe a situation where an economy is growing rapidly and hits a point where everything collapses because the growth was not real but air. You know how a bubble forms in a water then rises rapidly only to pop-out. Same with economics, they coin the term bubble for growth that is not real.

When an analyst predicts a real property bubble, that particular analysts believe that growth is fueled by speculation rather by true demand. Let me try to explain it based on what I know. Real Property developers (those who build offices, condominiums etc), it is assumed, build on a market forecast backed on good research. It means that there is a real demand for offices and houses backed up by purchasing power.

Don't confuse demand with wishes. If you go ask your friends, all will say affirmative if you ask them if they want to have a house of their own. Not surprising because, shelter is one of the basic needs as per Maslow's hierarchy of needs. While all of us dreams of having our own house, not all of us, unfortunately and realistically speaking, can afford it. This is the reason why real estate developers build houses and offices based on real demand and not based on wishes and dreams.

Now, if you look at the prices of offices and condominiums, it would seem that nobody can buy one except for the few rich citizens of our country. And that's the role of banks. Banks offer loans to people who want to buy their own house based on the future potential earning of the individuals. Obtaining a loan is getting money now for the money that you will earn in the future. Again, we don't know what will happen in the future and it is a risk. But banks are in the business of managing risk thus they do credit investigation etc. etc.

With the inclusion of banks in the real estate process, the responsibility of credit check now falls into their hands. Sure, real estate developers still perform market research to estimate how many offices and houses to build. But with the bank's role, these companies now rely on the credit investigation done by banks to see who can really buy one and those who cannot.

The author then shares that according to the World Bank, lending standards have been relaxed, with some local banks raising loan to value ratio of 80 or even 90% in addition to waiving requirements such as proof of income. The proof of income requirement has been waived for many overseas Filipino workers or OFWs who are unable to provide proof of income, yet are able to pay the 20% down payment. There is also evidence that easy-pay mortgages are being offered to home buyers, such as those with zero down payment or low payments in the first few years of loan amortization.

Now, the explanation given for growing middle class and consumer spending boom are the rise of the business process outsourcing sector (read: employment - source of income for Filipinos) and remittances from Overseas Filipino Workers). The author then says that BPO only accounts 4.4% of the country's $250 billion economy. As for the remittances, it accounts for 10.4%. Therefore, the BPO and OFW remittances only accounts for 14.4% of the economy. He further adds that 53% of OFW remittances comes from the US of which majority is from nurses. He adds that these Filipino nurses benefits from the healthcare bubble in the US. If you are reading the news, you know that healthcare is a big ticket item discussed by the US Government. Remember that legal is one of the factors that affects an industry. A negative outcome of the healthcare law may mean losses of jobs for these Filipino nurses. Lost of jobs means lost of remittances. Lost of remittances mean inability to pay back loans.

My Thoughts

It is actually too much information to digest for me. To be honest, I have not changed my stock investments. So I guess, while I have not verbally decided on this issue, my action of not changing my investments mean I am taking the side that there is no property bubble. As my professor said, we are always making decisions whether we make one or not. Not making a decision is also a decision.

One thing bothers me though. Ayala Land and BPI are part of Ayala Group. SMPH/SMDC and BDO are under the same group. These companies posted positive earnings in the past few years. These companies both earn in the property value chain process. I just hope credit checks are really done as they should for new property loans.

Also, who should I believe in. The 28 year old Jesse Colombo or John Mangun who has 25 year experience in the Philippine Market. Again, age should not matter. Then i recall certain CNN Journalist who goes by the name Anderson Cooper criticized by a local news anchor by saying he (Anderson) does not know what he is saying while she is confined in the air conditioned room far away from the devastation area.

The Four Hour Workweek

noreply@blogger.com (akosiiao) — Wed, 04 Dec 2013 01:39:00 +0000

I was going thru my twitter feed and saw this

via @hecklerforever

LOL. She must be a 30 year old mother. :)

My Twelfth Book

If you have been following my blog, you know that one of my goals for 2013 is to read at least twelve books. I love reading books. However, I realized I have not been reading and learning as much as I can so I decided to put a number for two reasons

To set a goal
What gets measured gets done

The 17 Ways Rich People Think and Act

noreply@blogger.com (akosiiao) — Thu, 28 Nov 2013 01:22:00 +0000

image credit: Mufidah Kassalias

Hey!

How is it going? I have been busy in the past few weeks working on a new blog that my wife asked me to put up. It is about parenting and more of personal blog. It is a tandem blog and whenever I feel the itch to write, I focused my energy to that blog so I can schedule posts.

It is always easier doing that. Scheduling posts. I know some does not like the idea but I am one of those who only gets the spark to write once in awhile. So whenever that moments comes, I try to write as many article that I can and schedule them ahead of time.

Appeal for Help for Victims of Typhoon Haiyan/Yolanda

noreply@blogger.com (akosiiao) — Tue, 12 Nov 2013 23:20:00 +0000

source: rappler

I personally recommend donating to Unicef. Redcross is also a great organization.

Links

Habitat for Humanity

Thinking About Retirement Again

noreply@blogger.com (akosiiao) — Tue, 05 Nov 2013 00:00:00 +0000

I shared previously that I have started planning and thinking about retirement. @ralph11ph commented shared his reason why he is not thinking retirement - what to do with too much idle time. I can't help but agree. Retirement is premised on the assumption that we do not like what we are currently doing. It is not always the case. I know people who love their jobs and love doing it until their physical body will no longer allow them to do it.

Perfect example is my mom. She works in a bank. Some six years ago in her 60th birthday, she had a grand birthday celebration.

Quick Win of the Week: Learn to Eye Gaze

noreply@blogger.com (akosiiao) — Wed, 30 Oct 2013 03:12:00 +0000

via left hand

It is a tendency especially for us Asians, to avoid staring in the eye. It is interpreted as being rude.

However, for this week, I am encouraging you to do this exercise. Learn how to look people in the eye.

As you go through your day, try to catch people's eye and hold it for two minutes. Do this with strangers or with people you are not really close with. Hold it until the other person looks away.

Short Term or Long Term: Where to Place Your Money

noreply@blogger.com (akosiiao) — Tue, 29 Oct 2013 00:00:00 +0000

I have always mentioned that goal-setting is important in personal finance. And part of having a goal is being specific about it. You must be specific and set timelines on the time when you plan to realize your goals.

Depending on your timelines, below are the investment vehicles you should consider.

Short Term vs Long Term

My Namesake in the NBI Records

noreply@blogger.com (akosiiao) — Sat, 26 Oct 2013 11:00:00 +0000

For those who subscribed to my blog for personal finance and personal development posts, you may skip this post. I just had a funny story to share and can't help but make an entry on this site. You will get your posts next Tuesday and I know you will like it.

NBI person: Sir, hindi po kayo maaasikaso ng satellite office. Kailangan nyo hong magpunta sa main office sa carriedo. (Sa quiapo pa dati ang NBI)

Guy: Bakit po sir?

NBI person: Main lang po kc nagpoprocess nung sa inyo. Me kapangalan po kc kayo.

Quick Win of the Week: Clean Up

noreply@blogger.com (akosiiao) — Thu, 24 Oct 2013 04:00:00 +0000

via hstoutzenberger

A cluttered space clutters the mind so clean up.

Clean all the piles in your desk. Remove all the unnecessary things. Throw all the stuff you don't need or place them in a box away from your gaze.

Thinking About Retirement

noreply@blogger.com (akosiiao) — Tue, 22 Oct 2013 03:54:00 +0000

Have you given thought about retirement?

via Ota_Photos

In all honesty, I have not given this topic a lot of thought. Why? because of two things

Quick Win of The Week: Smile

noreply@blogger.com (akosiiao) — Wed, 16 Oct 2013 23:00:00 +0000

via orsocurioso

Stupid Smile.

Smile Like You are in Love.

You know what I am talking about. That smile you often see in people.

Sinigang na Hipon and Taking Action

noreply@blogger.com (akosiiao) — Tue, 15 Oct 2013 11:30:00 +0000

"Daddy, what is the taste of tamarind?" my son asks me.

"Sour" I responded "Why?"

"How about candy," he continues ignoring my question.

"Sweet", I replied.

"Ok. Thank You. We studied about different kinds of taste in school " he proudly tells me.

True enough. He has memorized by heart the different kinds of food and their corresponding taste as they appeared in his textbook. Ask him about a food and he can tell the taste. He even answered his quiz without making a single mistake on this topic.

Knowing Where You Want To Go And Going There

noreply@blogger.com (akosiiao) — Thu, 10 Oct 2013 08:26:00 +0000

I have shared this in facebook and sharing it here in my blog.

The other day, while we are in 7-11 and drinking water, my son blurted out of nowhere "Daddy, I want to become like you!"

Upon hearing that, a smile broke in my face. I swear blood rushed to my cheeks and I was proud and ecstatic. Who wouldnt? I think all parents will feel proud if they hear their kid saying that they want to grow up just like them. I was about to ask my son why we want to become like me but he continued without me asking.

"Daddy, I want to be fat like you. How do I become fat like you!"

Quick Win of the Week: Get a Mentor

noreply@blogger.com (akosiiao) — Thu, 10 Oct 2013 03:05:00 +0000

If there is something you want to learn then go get a mentor.

This is the fastest and quickest way to do it. Never do it alone because it might take up a lot of time. Find someone who knows that thing you wanted to learn and ask him/her to help you.

For now, your only concern is to get the skills or experience. Once you have mastered it, then tweak it, improve it and put your signature on what you do. But for now, find that person and model after him/her.

This tip shows up in different wordings and different forms but it is also about the same thing.

Stock Investing - Where to Start

noreply@blogger.com (akosiiao) — Tue, 08 Oct 2013 00:00:00 +0000

via teegardin

It has been awhile since I posted about Stock Market and I thought this post will be a good rejoinder for people who might be interested but have not started yet.

Similar with all other things, taking the first step is the hardest. I have heard about stories of people able to buy house and lot just by trading in the stock market. Then I hear stories about how the stock of PLDT was just P10 before and now it is more than a thousand pesos. Or people sharing about Globe's stock only worth P916 and now trading at P1,600. It all look as an easy money making scheme that my first thought "If there is money in the stock market, then why not all are in it?"

Day 5: Personal Finance Course - Pit Stop

noreply@blogger.com (akosiiao) — Fri, 04 Oct 2013 03:25:00 +0000

This is the fifth of the series financial planning posts to help readers get started in managing their personal finance. Sharing the links for the earlier posts for those who have missed it
Day 1: Setting Up Your Financial Goals
Day 2: Knowing Your Net Worth
Day 3: Understanding Your Income Flow
Day 4: Budgeting

This is the last post of the series and will be a short one.

Reminder

Thinking and reading will not help you achieve what you want. You have to take action. You have to move.

Day 4: Personal Finance Course: Budgeting

noreply@blogger.com (akosiiao) — Wed, 02 Oct 2013 23:00:00 +0000

This is the fourth of the series financial planning posts to help readers get started in managing their personal finance. Sharing the links for the earlier posts for those who have missed it

Day 1: Setting Up Your Financial Goals
Day 2: Knowing Your Net Worth
Day 3: Understanding Your Income Flow

This step is critical and very important in achieving financial goals.

Budgeting!

via Tax Credit

What is budgeting? Budgeting is planning where your money will go.

This reminds me of the statement “Failing to plan is planning to fail.” You don’t want that. I don’t want that. We don’t want that. We want to achieve our dreams so we are going to do this exercise even this might bore us to death.

(Nope. I haven’t heard or read any news about someone dying out of boredom)

Budgeting is difficult especially to those who does not have the discipline to do the activity. For this reason, I will be sharing two strategies how to do your budgeting. One is suited for those who has less time to do the nitty-gritty of budgeting. The other is best for those who has keen eyes on details.

Strategy 1: Use of Percentages

I picked this up from Secrets of the Millionaire’s Mind. This strategy is very doable and I was able to stick to it. Honestly, I am still using it due to ease but I will soon transition to the other method I picked from Registered Financial Planners of the Philippines.

What is the strategy? The rule is every time you receive an income, you are to divide it among the following:

10% Financial Freedom
10% Long Term Spending
10% Education Account
10% Play Account
10% Charity
50% Necessity

This action is very doable. The good thing about this strategy is that you can follow the same formula whether you get an increase in your income or decrease in your income.

We all know that when people receives additional income or receives a salary increase, more often than not, the lifestyle changes as well. We reward ourselves with finer things in life. It is not wrong actually. It is your money so it is your decision where to spend it. By following the percentage formula, somehow you also increase your savings and investment in other areas of your life.

Below are the description of the categories. Remember, you can change the percentages as you see fit.

Financial Freedom – this is money never to be touched. You put the money in investments that will give you returns.
Long-Term Spending – this is for future foreseeable expenses. College education fund for kids, or that dream vacation. These kind of expenses fall under this category
Education Account – the idea is that we should not stop learning. The money under this category should be used for new lessons or reinforcing those skills and knowledge that we already know
Play Account – you will love this category because this deals with splurging. Saving is a difficult thing to do for most of us and the idea for this account is to use this on things that will reward ourselves for sticking with the planned budget. You can use this to buy new clothes, new gadgets etc.
Charity - for giving back to society.
Necessities – no need to explain. Use the money for expense you need to live

Strategy 2: Line Budgeting

If you have done the Day 1 task, you should know now how much you need to reach the financial goals that you have listed.

For example, if you will need P10M in ten years time and using the present value calculator, we will know how much we need to save regularly so that we will have the amount on the time we need it.

Line Budgeting is setting aside specific portion of your income to its designated goal.
Example, a person who is earning P50,000 per month might set aside P25,000 for his living expenses, P5,000 for his dream car, P10,000 for his dream house and another P5,000 for his dream vacation.

Clear?

Line budgeting is difficult but makes perfect sense because of it being very specific.

Most likely, you might find yourself not having enough current income to save for all of your financial goals. If that happens then you should prioritize which among your financial goals will take priority.

Or you also have the option of finding additional source of income so that you will have enough for all of your dreams.

The Good and The Bad

The first strategy is doable and easier to follow. The only downside is that you might not have enough money to fulfill all of your dreams. Even if you are sticking with the percentages, if you do not have that big income in the first place, you might find yourself not having enough money by the time you reach your financial goals timeline.

The second strategy, while difficult to do, is more realistic and very specific. It ties up with the financial goals. Through monitoring, we will know whether we are on track in achieving our goals or not.

Overall, the best strategy is the one that will help you achieve your dream. Do not put too much thought on which one to use. It is important that you take action and do the budgeting.

Action may not always bring happiness, but there is no happiness without action – Benjamin Disraeli

Day 3: Personal Finance Course - Understand Your Income Flow

noreply@blogger.com (akosiiao) — Tue, 01 Oct 2013 21:00:00 +0000

This is part three of Personal Finance series where I share guides to get you started on personal finance. If you haven't, read Day 1: Setting Financial Goals and Day 2: Knowing Your Net Worth before proceeding with the post below

Welcome Back!

I am glad you are still with me in this five day personal finance course.

We are done setting financial goals and knowing our net worth. The next step is dive deeper in our cash or income flow

But first, allow me to step back a little bit. How did it feel knowing your net worth?

When I first did this exercise, I was shocked and surprised! I never knew before that I only have that much. I thought it will be higher because I was earning this much on an annual basis. However, my annual income is totally far from my net worth. Where could all those money have gone? I think my wife had the same surprise when did computed for her net worth.

Shocking may it be for some us, at least we have made progress. Knowing where we stand will enable us to move forward.

Understand Your Income Flow

List down your day to day expenses so we get an estimate of how much you spend and how much you really need. The objective of this exercise is to know if you are operating in a net loss or profit.

Your typical expense will include the following

Home/Rent – includes mortgage, lease, rent
Utilities – Includes payment for your electricity, gas/heating, telephone, cellphone, internet, cable, water and garbage
Groceries – your expenses for groceries, dine-outs for breakfast, lunch and/or dinner. If you spend for coffee include it here.
Entertainment – Will include your purchases for movie tickets, mp3s (if you pay and not download illegally. Please stop music piracy J )
Car/Auto – include here your expenses for transportation. Taxi fare, jeepney fare, MRT, Gasoline for your car, parking fees, car wash
Insurance Medical – If you pay for your insurance on an annual or quarterly basis, compute for the monthly amount. Say if you pay P24,000 for your insurance, then dividing it by 12 will give you a monthly cost of P2,000.
Departmental – This is where I group expenses for clothes, personal items, books, magazines, appliances
Miscellaneous – are those out of the blue expenses and one time expenses that is not part of the first categories. One time purchases like that one night spent paying for a hotel.

Then same with the exercise we did with the assets and liabilities, add up your expenses.

Next step is to do the income part. List down all your sources of income. If you are an employee like me, you are receiving salary from your employer. Write it down. Add all other source of income if any.

Now, deduct your assets from your liabilities. The goal is we should be earning more than we are spending. The excess earnings are then to be added in our assets to increase our net worth.

So there, you will now know if you are living within, above or below your means.

Ideally, you should be generating positive income and not occurring losses.

If you are, I suggest you find ways to increase your income. If you can’t then time to review those expense and cut those unnecessary ones. We haven’t reach the third day but it is critical that you aim for a positive net worth and positive cash flow.

Tomorrow is tying it up together: Preparing a Budget

Day 2: Personal Finance Course - Know Your Net Worth

noreply@blogger.com (akosiiao) — Mon, 30 Sep 2013 21:00:00 +0000

This is part two of Personal Finance series where I share guides to get you started on personal finance. If you haven't, read Day 1: Setting Financial Goals and do the task in that post before proceeding with the post below.

Taking Stock

One time, I got a call from a friend who was visiting Makati for the first time.

He called with a panic tone on his voice “Ton, I am lost. I need to be at this building by 11am for an important meeting and I don’t know if I will reach it in time”

“Where are you?” I responded

"I don't know" he replies. "That's why I called you. I am lost. I don't know where I am. You have to help me. You are familiar with this place than I am"

On my mind I was thinking, this guy is being smarty pants. Why should I help him with that sarcastic response?

Anyway, I kept my cool and answered “I cannot help me if you don’t tell me where exactly you are now. What do you see? What are the stores, buildings or any landmark around you?

He responded and with the descriptions he told me, I was able to guide him from Point A to Point B.

The same concept goes for personal finance. If we have identified where we want to go after setting our financial goals, we also need to know where we stand. If you have goals and plans, know where you are currently and plan how to reach that goal and plan based on where you stand.

How to know your Net Worth

Task: List down all your assets and liabilities to know your net worth.

List all your assets
List all your liabilities
Compute your networth = (Assets minus Liabilities)

Grab your pen and paper or open an excel or word document. Here is a copy of a workbook you can print and download if needed.

List down all your savings account, your cash, and all the investment that you have. Those are what you call assets. Asset are future sources of income or money.

No. Please don’t include that mighty iphone 5 that you are holding. Or that expensive bags that you own.

Just limit that assets to your cash, savings account, current account, mutual fund and investments. I do not want to include your gadgets or those expensive bags because they are rarely source of income.

If you insists including them, then tell me that you don’t really need it on a day to day basis and if I ask you to sell it now you can and you will. If you cannot say yes, do not include them.

Next are liabilities,

Grab your credit card statement and include it under the liabiliies. If you own someone money, you should include it too. If you have PAG-IBIG loans, company loans, SSS loans and all loans, you should include them under the liabilities.

Now that you have both assets and liabilities, add them up. Add the value of your assets separately and then add up the value of your liabilities separately. Do you like what you are seeing?

For the final step, do this “Assets – Liabilities = Net Worth”.

Say if you assets totaled to P100,000 and your liabilities added up to P20,000 then your net worth is P80,000.

Purpose of Knowing Your Net Worth

So why do we need to know the net worth? We need it because it represents our financial value as of now. If you see a positive number it is a good sign. If is a large amount, then I say you have a good net worth. Is there an ideal number? I have not seen anything published but I will like to share what I got from “The Millionaire Next Door”.

What's the ideal net worth?

The book offered the below formula for calculating what your net worth should be

Target Net Worth = Age X Annual PreTax Income / 10

Now, if pretax income is confusing to you, then just use your annual salary or your annual net income. I don’t want to discuss on this post what’s a pre tax income is but to simplify it just you your annual income whatever it is.

Example? For a 23 year old single guy who earns P240,000 a year, his target net worth should be

Target Net Worth = 23 X P240,000 / 10 = P552,000

Do I use this formula? Actually no. Why? Because I am not interested in a dictated formula from a book but I rather have a networth that matches my financial goals.

And setting financial goals is the third topic for this five day personal finance.

So that’s it. Very easy right?

Image from www.seniorliving.org

Tasks Summary

1. List down your assets

2. List down your liabilities

3. Compute for your net worth (Formula: Assets – Liabilities = Net Worth)

Bonus Task

Now that you know your net worth, how does that make you feel? Are you happy about it? Are you glad? Did it make you sad? Whatever your reactions are write them down.

Topic for tomorrow is your Income and Expenses

If it's important to you, you will find a way. If it's not important to you, you will find an excuse

Day 1: Personal Finance Course - Setting Your Financial Goals

noreply@blogger.com (akosiiao) — Sun, 29 Sep 2013 21:00:00 +0000

Five Day Personal Finance Course FREE

I have been thinking of writing a series and I am glad I was finally able to set aside some time to do this.

The reason I wanted to do this is that in my search for personal finance knowledge, I seldom come across a step by step guide. Most of the time, what I read are advice and tips to follows. Advice like be frugal, don’t buy this and that. While helpful, these advice were not able to help me out.

After pouring myself reading books and blogs, I decided to write about the steps that I have taken based on the learning I picked up.

Why five days? Because personal finance bores most people (even me at times). I thought if you read five posts in my blog everyday and do the tasks for the day, somehow, you will be able to learn and apply it .

So if you know anyone who might find the series of posts useful, let them know by sharing the link to mysite. Also, if you haven’t subscribed to my posts yet, I suggest you do so you do not miss out posts.

Alright, after so much introduction, I welcome you to Day 1 of Personal Finance Course. Over the next five days, I will be posting topics that will help you get started managing your finances.

Before we start some key rules
1. Do the tasks!
2. Do the tasks!
3. Do the tasks!

Yes. Three simple rules.

Just don’t go reading the posts but I expect you to grab some pen and paper or use Microsoft Excel, or Microsoft Word. If you want, you can even blog it. If you have a planner or a notebook, use that so you can always go back to your answers to the tasks and review them. You can also print the financial goals worksheet available here.

First Step: Goal Setting

Do you want to be rich? Really? How much do you need for you to say you are already rich? P10M, P20M or P30M or more than that?

Tell me a ballpark figure.

And when you have that money, what are you going to do? You are going to buy a house? What house? Where? How much? How many bedrooms? How many garage?

Oh you also want a car? How many? What make? What color? How much do you need to get them?

You see, it is not enough to say you want to be rich. Rich is a word that has different meaning to everyone. One will define it as owning this and that and another will define it differently. So if you want to be rich, please define it by setting specific and doable goals.

How to Set Goals

Identify your financial goals
Estimate the cost and Set a Target Date
Determine how much you need to save

Setting goals is the first step in turning the invisible into the visible - Tony Robbins, author of Awaken the Giant Within

Identify your financial goals

For this particular step, let your imagination run wild.
If you say you want to be rich, then this is the time to create your own and specific definition of what rich is. If owning two cars is being rich with you then write it down. Own two cars. If having a house in Forbes Park is your dream, then write it down. Own a house in Forbes.

Whatever it is you want to have, write it down.

If you are hindered by the thought at the back of your head saying these goals will never be accomplished, ignore that voice for now. Really. Ignore that voice and dream big.

Estimate the cost and set a target date

Now, go back to your list and put some monetary value to that dream.

An example, for me, one of my dream is to visit Paris in 2025. A trip today will cost me around P100,000 per person. I am planning to bring my wife so that is roughly P200,000.

Determine how much you need to save

In 2012, the published average inflation rate was 3.2%. Well, this is really low but using this number as basis, then by 2025 I will need the amount of P200,000 inflation rate adjusted.

Present Amount: P200,000

Interest Rate: 3.2% (I am assuming this as the required rate based on the assumption that prices of tickets, hotel will increase by 3.2%)

Number of Periods = 12 years. (Estimate)

Then I computed for the future value using this website

Future Value I will need would be P291,867.92.

So why do we have to go the trouble of estimating the cost and setting the target date? Because this will help us identify how much to save and where to put our money.

In my example, since my plan is to visit Paris in 2025 and not now, then my goal should be to save money regularly so that I will have the amount of P291,867 by 2025.

If I already have P200,000 now, do I still need to place my money somewhere? Yes. Because if I just leave my money in a savings account or just hold the money, by the time I need it in 2025, I only have P200,000 and will still have to shell out additional P91,867.

Can I just go now? In theory I can because I have the budget but spending that amount is something I considered luxurious with the current income that I have and the current expenses that I pay. I have set a longer timeline because I know by that time, I am earning more and my kids are grown up by that time that I and my wife can leave them with my parents without really worrying that much.

The key thing here is know your goals then set aside money and place it in an instrument that will give you the expected amount by the time you need it.

If you need the money five years from now, then go save your money in a five year instrument.

If you need the money three months from now, then do not put in instruments such as bonds and stocks. Put them in short term instrument such as savings deposit or time deposit.

Quick Summary

Identify your financial goals
Estimate the cost and Set a Target Date
Determine how much you need to save

That's it for today.

Tomorrow, will talk about net worth.

If you have not subscribed yet, do sign-up above or bookmark this page. Also, if you know someone who might need to do this, send him/her the link. Better yet, make him a partner as you do the tasks. This way you will be accountable to someone. You can help each other.

Till then

One Minute Entrepreneur

noreply@blogger.com (akosiiao) — Wed, 25 Sep 2013 21:30:00 +0000

You can get what you want in life if you help others get what they want.

If nobody will pay you to do what you love, you have a hobby, not a career.

Too many people dream too small. Remember, you’ll never achieve more than you think you can. So create a big dream.

via Leticia Bertin

Today’s post is about five lessons I learned from the book The One Minute Entrepreneur: The Secret to Creating and Sustaining a Successful Business authored by Ken Blanchard and Don Hutson. I got the book for P100 in one of National’s booksale. It is originally priced at P845 so I really got a bargain.

The book is an easy read. True to its title, it will really take a few or more minutes to complete a chapter. The learnings are presented thru the story of a couple who started their own business.

Takeaways

Associate with people you admire and can learn from

If you learn something, learn it from someone who already did it. One with experience doing what it is you wanted to do. That is the quickest way to learn.

Don’t stress yourself trying to learn things on your own. Ask someone who knows about it.

You can get what you want in life if you help others get what they want

This is the same lesson I got reading the book “How to Win Friends and Influence People” which I have written here. Two different books with the same message. Coincidence? I don’t know but it must be working.

If nobody will pay you to do what you love, you have a hobby, not a career

This is the second time I encountered this phrase. I heard it first from one of the podcasts my wife was listening to and I absolutely agree to this statement.

Mentors will always tell me “do what you love and you never have to work for the rest of your life”. Well, that is not entirely true. These mentors missed the part that people should pay you for doing that thing that you love to do.

If people won’t then it is time to look and reassess the things you love to do and do whatever it is the people will pay you. You will lead yourself to bankruptcy if you do not earn doing that thing you love to do.

Keep a notebook of the wisdom you read, hear and learn and distill that learning into One Minute Insights

This I am now doing. I don’t do this before and I realized that having a journal where I write all the learnings help me remember them and go back whenever necessary.

Same thing with quotes. There are quotes that really helped me turn my emotional state of mind from being pessimistic to optimistic just by rereading the quotes. I also took a further step and printed those that really motivates me. I have some in my bedroom and work station. Whenever occasion calls for it, I read them aloud just to remind myself what I need to do.

Too many people dream too small. Remember, you’ll never achieve more than you think you can. So create a big dream.

This is a never ending goal for me.

When I was a kid, it is so easy for me to do pretend play. Let my imagination run wild and think of things that might not physically exist yet. However, as I grow older, that skill disappeared.

So now, every once in a while, I do what I have read from the Personal Excellence blog. If I can do anything (no ifs, no buts) what will I do?

Success lives in the effort, in the experience, in the learning, in the growing, not in the rewards

P.S. One of my goals for 2013 is to complete reading twelve books. Minimum. If you haven't read the other posts, sharing the links below

The Happiness Project
The Secrets of the Millionaire Mind
The Winning Attitude
How to Work a Room
The Coffee House Investor
Eat That Frog!
Awaken the Giant Within
Fish! Omnibus
How to Win Friends and Influence People
The Milionaire Next Door

Summary

Associated with people you admire and can learn from
You can get what you want if you help others get what they want
If nobody will pay you to do what you love, you have a hobby, not a career
Keep a notebook of wisdom you hear, read and learn
Dream Big

Ten Rules Rich Parents Should Follow for their Kids' Sake

noreply@blogger.com (akosiiao) — Mon, 23 Sep 2013 23:00:00 +0000

Quick Summary

Never tell children that their parents are wealthy
No matter how wealthy you are, teach your children discipline and frugality
Assure that your children won't realize you're rich until after they have established a mature, disciplined and adult lifestyle and profession
Minimize discussions of the items that each child and grandchild will inherit or receive as gifts
Never give cash or other significant gifts to your adult children as part of a negotiation strategy
Stay out of your adult children's family matters
Don't try to compete with your children
Always remember that your children are individuals
Emphasize your children's achievements, no matter how small, not their or your symbol of success.
Tell your children that there are a lot of things more valuable than money

Hey, what's up?

A few more months before the end of the year. How are you with your goals? Almost done with it or barely there? Well, whatever it is you are aspiring for, I know you can do it. As for me, i am done with my tenth book!

If this is your first time here, one of my goals for 2013 is to read twelve books. The books that i have completed so far

The Millionaire Next Door

And that my friends is my tenth book. This book was recommended by Mr. Randell during the Personal Finance for the Self-Employed seminar that I and my wife attended.

The Millionaire Next Door book has a section on what parents should do and should not do. That is the summary you see above. That section got me interested because I wear two hats. I am the third son of my parents and I myself is a father to two young boys.

Key Points

Never tell children that their parents are wealthy

Why? Because if you are rich, you know that getting rich is a result of hard work and a lot of self-discipline. Rich people live a frugal live. You will not be there if hard work was absent or discipline is not there. The downside, however, is the mindset that "I will never let my children experience what I have experienced".

That my friend is setting your kid for failure. Why do you think you are successful right now? Discipline and character isn't it? Then be a good parent and make sure you don't let your children grow up without learning the same values and principles that your parents successfully implanted in you.

No matter how wealthy you are, teach your children discipline and frugality

Don't try to compete with your children (or compete with your parents)

Each to his own. Never go expect your kid to have the same achievements that you had. Don't go "when I was at your age..." Let your children discover and create their own success stories. Just be supportive.

Also, if you are better off than with your parents, don't be boastful as well. Never disrespect your parents. If you feel that your parents has lesser dreams than yours, you are exactly one of their dreams. If you have hang-ups that your parents were not able to buy you nice things or send you to a better school... that you will never let your kids experience that... Please do it in such a way that will not disrespect your parents.

Remember, if you are able to let your kids experience things your parents failed to let you experience, it is only because your parents did their best so that you will be able to exactly do that. Give your kids what they failed to give you.

Emphasize your children's achievements, no matter how small, not their or your symbol of success.

Tell your children that there are a lot of things more valuable than money

Lastly, while money is important to buy the things we need and want in life, there is more to life than money. There is friendship, being loved, helping others and making the world a better place to live in.

Thoughts

What do you think? If you are to write important rules to live by for a parent, what would they be? Let me know.

Also, if you like this post, share away and don't forget to subscribe so you don't miss any post.

Cheers!

The Book That You Should Be Reading

noreply@blogger.com (akosiiao) — Wed, 18 Sep 2013 23:00:00 +0000

Hi There!

I hope you are doing well!

Today's post is the ninth post and completes the book for the month of September. This month's book is a book published in 1936 titled "How to Win Friends and Influence People". If you are new here, sharing the links below for this series

1. The Happiness Project
2. The Secrets of the Millionaire Mind
3. The Winning Attitude
4. How to Work a Room
5. The Coffee House Investor
6. Eat That Frog!
7. Awaken the Giant Within
8. Fish! Omnibus

How to Win Friends and Influence People

This is the best book i have read so far for the year and I highly recommend it.

Back when I was ten or eleven and started being engrossed reading back issues of "Reader's Digest" that my mom keeps, i recall seeing this book. I never bothered reading it and never saw the copy of the book again. Who would have thought that I will be reading it years later.

So who should read the book? I recommend it to people who want others get the things done. Those who work with other department and frustrated how other people "seem so stupid" and take days to do something that can be done in an hour.

I would not be posting my take and key points I picked up from the book. Instead, i am sharing summaries from the book itself.

* Eight Things that the Book Will Help You
* Three Fundamental Techniques in Handling People
* Six Ways to Make People Like You
* Twelve Ways to Win People To Your Way of Thinking
* Nine Ways How to Change People Without Giving Offense or Arousing Resentment

Eight Things This Book Will Help You

1. Get out of a mental rut, think new thoughts, acquire new visions, discover new ambitions
2. Make friends quickly and easily
3. Increase your popularity
4. Win people to your way of thinking
5. Increase your influence, your prestige, your ability to get things done
6. Handle complaints, avoid arguments, keep your human contacts smooth and pleasant
7. Become a better speaker, a more entertaining conversationalist
8. Arouse enthusiasm among your associates

Three Fundamental Techniques in Handling People

If you want to gather honey, don't kick over the beehive.

1. Don't criticize, condemn or complain
2. Give honest and sincere appreciation
3. Arouse in the other person an eager want

Six Ways to Make People Like You

1. Become genuinely interested in other people
2. Smile
3. Remember that a person's name is to that person the sweetest and most important sound in any language
4. Be a good listener. Encourage others to talk about themselves
5. Talk in terms of the other person's interests
6. Make the other person feel important and do it sincerely

How to win People to Your Way of Thinking

1. The only way to get the best of an argument is to avoid it
2. Show respect for the other person's opinions. Never say "you're wrong"
3. If you are wrong, admit it quickly and emphatically
4. Begin in a friendly way
5. Get the other person saying "yes, yes" immediately
6. Let the other person do a great deal of the talking
7. Let the other person feel that the idea is his or hers
8. Try honestly to see things from the other person's point of view
9. Be sympathetic with the other person's ideas and desires
10. Appeal to the nobler motives
11. Dramatize your ideas
12. Throw down a challenge

Be a Leader: How to Change People Without Giving Offense or Arousing Resentment

1. Begin with praise and honest appreciation
2. Call attention to people's mistake indirectly
3. Talk about your own mistakes before criticizing the other person
4. Ask questions instead of giving direct orders
5. Let the other person save face
6. Praise the slightest improvement and praise every improvement. Be "hearty" in your approbation and lavish in your praise.
7. Give the other person a fine reputation to live up to
8. Use encouragement. Make the fault seem easy to correct
9. Make the other person happy about doing the thing you suggest

Round-Up

I am getting a lot of topics to write about reading the book but it seems unfair if I post a series just for one book. It is really worth reading. Read it and let me know your thoughts. Ok. Till the next post.

By the way, if you like this post, why not try subscribing in the button above. You like receiving FREE Articles don't you?

Thinking About Others

noreply@blogger.com (akosiiao) — Tue, 17 Sep 2013 02:23:00 +0000

September is the annual National Book Store sale and my wife bought some books for the kiddo. I was reading it yesterday and wanted to share a very interesting story from Korea.

The Story of Ru Shou

The story is about Ru Shou. He’s an average guy living and supporting his mom. Day in day out, he works hard. One day, he took a pause and asked himself “I work hard everyday but why am I still poor?” (This is the same question I asked myself from time to time).
With that question, he decided to leave his home and ask the god of west why he remains poor despite his consistent effort to work hard.

On his way, he passed by a house. In it lived a daughter and mother. The mother invited Ru Shou inside the house for a meal. Ru Shou told her his plan of asking the god of west. The mother said “I also want to ask him a question but too busy to go there myself. Can you ask when will my daughter speak? She’s already 18 years of age but has not spoken a single worth since birth.

Ru Shou went on in his journey and he passed another house. The man invited him to take a break. Ru Shou told him about his plan of meeting the god of west and asking him why he remains poor in spite of all the hard work that he puts in. The man said “I also want to ask him a question but too busy to go there myself. Can you ask him why the huge orange tree in my backyard does not bear fruit?” Ru Shou said yes to the man and continued on his journey.

Ru Shou reached the mountain where the god of west resides but there’s a river in front of him that he needs to cross. Out of nowhere a dragon appeared and approached him. “Do not be afraid. I will not harm you”, the dragon said. Ru Shou told the dragon that he wants to meet the god of the west and ask him some questions. The dragon replied “I also want to ask him a question but too busy guarding the river to ask him myself. Can you ask him what I should do to reach the heavens?” Ru Shou said yes to the dragon and the dragon helped him cross the river.

Finally, Ru Shou met the god of the west. Weird as it may seem, the god of west told Ru Shou “I can only answer odd number of questions. You can ask three but not four. You may ask five but not six? Ru Shou was surprised by this request especially that he have fours questions to ask. He then decided to ask the god about the questions by the mother, the man and the dragon. He thought that since he is young, he can always go back and ask the god his question. The god answered the three questions and Ru Shou proceeded to go home.
He first met the dragon and told the dragon the answer to his question. “The god says you must help me cross the river back and you have to let go of the pearl you have in your head in order for you to reach the heavens. The dragon helped him cross the river and threw the pearl to Ru Shou’s arms. True enough, the dragon was able to fly high and reach the heavens.

On his way back. Ru Shou met the man and told him “The god of west says you need to dig around the tree and remove the 7 jars of gold”. The man did as he was told and like magic, the big orange tree was filled with fruits. The man was ecstatic and happy he gave one of the jars of gold to Ru Shou.

Ru Shou continued his journey way back and told the mother “The god of west says your daughter will speak once she sees the man that he will marry”. The daughter then went out of the room and saw Ru Shou. She finally was able to speak. The mother was happy and she agreed giving her daughter’s hand to Ru Shou.

Ru Shou went back to his home with a huge pearl, a jar of gold and a new wife. With all the riches he got from his journey, he does not need to go back and ask why he is poor because he is no longer a poor man.

My thoughts

I wanted to share the story because this is the same message I am getting from my September book “How to Win Friends and Influence People”. If you want to get whatever you aspire for, you must help others first to get what they aspire for. It is always about helping others before helping oneself. And it also reminds me about the quote in the bible saying about those who put themselves first will be the last and the last will be the first.

I am also amazed because my marketing professor always shares the quote “it is the customer stupid! Or the customer is king!” He wanted to emphasize that in all business or activity that we do, we should always think of the need of the customer rather than what we want to provide or deliver. We might be clouded on what we want to provide forgetting what the customer really needed.

So there, I was just so amazed that the idea is in a folk story, in a book written at the start of the 19th century, in the bible and same concept taught by my professor. Maybe this is the perfect time to consider this in all that I do.

Hey, i know this is out of the regular posts that I do but if you liked this, do subscribe above so you get updates from me. Don't worry. No spam.

Matthew 20:16
"So the last will be first, and the first will be last."