MONEY TALK

Ran Online (GS) 2017 Game Play - AUTO SKILL Tutorial

noreply@blogger.com (Anonymous) — Tue, 29 Aug 2017 20:50:00 +0000

Ran Online (GS) 2017 Game Play - AUTO SKILL Tutorial will show you the step-by-step way of downloading, installing and using M.C.A or AUTO SKILL app. Enjoy!

100% Safe download: http://www.mediafire.com/file/0sdjiqf5zmad4j2/M.A.C.exe

Watch YouTube video tutorial:

Money is the root of all evil, or is it?

noreply@blogger.com (Anonymous) — Wed, 16 Aug 2017 02:44:00 +0000

We have heard it all one Sunday morning; a preacher delivers a very compelling sermon about the negative influence of money to anyone who runs after it. According to the preacher: money is the root of all evil and bad things happen when a person is controlled by it. Well in some degree, the preacher is somewhat right, but not entirely right.

The idea of money being the root of all evil is not correct and taken out of context, but it has been what people believed and passed on to people with less interest in studying or even researching where the idea came from.

In the song "Buy me a boat" which Chris Janson popularized, one line says, and I quote, "I keep hearing that money is the root of all evil And you can’t fit a camel through the eye of a needle

I’m sure that’s probably true, But it still sounds pretty cool", is one of the many examples how the saying was mistakenly being quoted time and time again.

So where did the saying "money is the root of all evil" come from? Well, it's found in an ancient text in the bible that is called the book of 1Timothy 6:10 "For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows." Taken from the KJV.

Even looking up in different authorized translations of the bible you'll notice that it doesn't say "Money is the root of all evil", but instead you'll read, "The LOVE of money is the root of all evil...". This is where a whole new different meaning of the text emerges.

Money itself is not evil, but rather the LOVE of money is. So the next time someone says money is evil, ask that person how much money he has in his bank account, and tell him that is the amount of evil he has accumulated.

If you're a Christian and you're worried that God will punish you for not giving more to your church and you don't want to reduce the percentage you save in the bank, or even for your self, don't be guilty. The leaders in your church don't have to be the dictators of how much you should give, but instead, it's your willingness and a cheerful heart that will dictate the amount of money you should give.

In ending, money is a good source for us to be more effective in our family, relatives, church and the community we're in. If we only know how to be a good steward of money, we don't have to worry about running after it, but money will come as a result of our generosity to others.

Gout, ouch!

noreply@blogger.com (Anonymous) — Mon, 07 Aug 2017 17:33:00 +0000

Things haven't been going as planned. Right at this point I'm 36 and still taking the long detour towards becoming financially independent as I have pointed out in Financial Lifestyle Status. And to make things worse, I have been suffering from gout for like three months in a row. All a long I thought gout (and other similar symptoms) would usually occur by the age of forty; as what old people used to say. But because of lifestyle and eating habit, the age got lowered and people I know nowadays got gout even in their early 20s which is not a surprise because of unhealthy choices of food and of course "fast food". With that being said, I feel sorry for myself. I can no longer enjoy food at its best.

I have to limit my intake on certain fish that have a high level of purines. I can't enjoy stakes, pork (Lechon), and deep-fried food etc. To top it all up I have to lose weight because I'm like 30lbs more than my preferred weight. Yes, it's hard to admit but I'm over weight and if I don't change my lifestyle and eating habit I would soon cross the border of being obese. Can anyone tell me how to enjoy a hard-earned money when you're facing the reality of life? 10 to 20 years ago I couldn't buy the things that I want and the food that I crave. Now that I have the money I can't enjoy what I eat. This is so sad. I feel like heaven is depriving me of the pleasure of indulging, gorging, digging, gluttoning, and whatever words I forgot, to enjoy food and food to its fullest. I have been a very good and modest person and attending church, although not frequently, and read my bible occasionally, I strongly feel deep in my bones "I don't deserve this gout at all!". Seriously, no one would enjoy a lifestyle of sickness and being under medication for the rest of our life. So, we have to do a paradigm shift in regards to how we live our lives if we still want to achieve our goal because once we get there we don't want to lose the happiness and the moment because we feel sorry for ourselves for having to live with a debilitating sickness that we incur along the way.

As a friendly reminder, have a check-up once in a while. Go visit your doctor regularly. Maybe you're too busy building up wealth and forgetting the most important thing in life: your health. Avoid the habit of over working, over stressing your self, and of course, over eating, for you will reap what you sow in the end. Good luck and stay healthy.

Online Teaching Career For Filipinos - A guide for aspiring online teachers

noreply@blogger.com (Anonymous) — Mon, 01 Jun 2015 07:09:00 +0000

Online teaching in the Philippines has been around for more than a decade. It has helped many Filipinos to get a decent job despite the alarming number of jobless newly grads in the country. One of the reasons why online teaching is a good way to start your career, is that, you don’t need to be an AB English or an English major grad to apply for this job—though it’s an advantage, but not necessary—as long as you have a good command of the language and have a neutral accent, you have a high chance of qualifying to be an ESL tutor.

What do you mean having “a good command of the language”?

Well, based on my experience, as long as you can express your thoughts and put up a good conversation in English, you’ll qualify. When I started to teach Koreans way back in 2007 the only thing I knew about grammar (that I was confident about) were noun and pronoun. I didn’t have a wide grasp of subject and verb agreement, preposition, conditionals, etc… and I only knew little about verb tenses. I was a computer graduate with no background in teaching English but I was able to pull it off. Of course there is no magic formula to master English so I had to work hard and study hard to learn the basics. When teaching an ESL student, especially Koreans, what matters most is the way you communicate effectively. No matter how much knowledge you have, but you’re not connecting with your students, it’s useless. Grammar, on the other hand, will serve as your indispensable tool for providing quality lessons to your students, but your character will play a big role when you start to teach English to foreigners.

Do I need to be a grammarian to qualify?

Not necessary. As what is stated above, what the employers are looking for an online teacher is a person with a passion for teaching and is able to have a connection with his or her student. There are trainings provided once you passed the initial interview (some companies will require you to take an exam to test your knowledge in English but do not get disappointed with your score—it’s the least of your concern). The training usually last for a week or so, and sometimes just days, and may vary depending on each company’s policy. The bottom line is that you’ll get refreshed on basic grammar, the materials you’ll be using, and other stuff, but the main focus is to train you on how to effectively handle different levels of students; gender, age, and professions.

What happens during the training?

To give you a heads-up, I worked in 4 different online teaching companies. And I noticed they all have something in common: The mock call. A mock call (or whatever you call it) is where the trainer observes your ability on how you handle a class. A class may run for 10 to 20 minutes and sometimes to an hour, or even more, depending on the type of account (I’ll be discussing different accounts in a bit) you handle. You’ll be graded based on your performance and the flow of your class. You might be wondering who will be your student, well, it may be the manager (hopefully a Filipino) or a regular tutor, and if you’re lucky enough, the owner of the company might pretend to be a student. In any case, the class is recorder and the head department will be monitoring your class to assess your potential. And once you meet their standard, you’re hired.

The key secret here is to be confident all throughout the training and mock calls. Always pay attention to each lesson and have your pen and notepad ready to write down some notes. The trainer will take note of how you behave during the lesson so don’t be a passive listener but get involve, interact, and ask questions. These are the qualities a trainer is looking for a potential tutor.

Is the training paid?

As far as I know, yes. Although there are times during your initial interview the training allowance won’t be discussed in details but it won’t hurt to ask your interviewer about this. Always ask things you don’t know or you’re not sure. If you get a call from an online teaching company to show up for the training, that’s your cue of passing the initial interview. You may want to clarify the training allowance to the trainer for your peace of mind. Usually, you’ll get the training allowance once you passed the training and get hired. That is why you have to make sure you’re 100% interested in taking this job because you’ll be wasting your time and effort (even money) if you fail to pass.

In one of your training sessions you’ll be exposed on the nature of work, company’s background, grammar, accent, culture, accounts, materials, and lastly the contract.

Nature of work

Office hours

If the company that you are applying for caters students coming from Asia, most likely you’ll have two shifts: Morning and afternoon. I’ll not be focusing on the morning shift because it’s not my cup of tea and I’m not a morning person. The afternoon shift on the other hand has many advantages. I can think of 3:

1. If you’re not a morning person like me, it lessens the hassle of getting up early.

2. You’ll have time to do another part-time job in the morning

3. Afternoon shifts may begin at 1 pm and ends at 11 pm. If the company’s location is along EDSA it saves you from rush hour and heavy traffic.

Environment

The office set up is similar to any BPO set up. You have your own cube, comfortable chair, a PC equipped with headset, and a dialer or phone (if not using Skype).

The office provides a pantry where you can eat your “baon” or just chat with your co-teachers during breaks. In some offices free coffee and some snacks are provided.

About the Company

It’s always a good practice on your end to know something about the company you are working for. Know its vision and mission and its goals as a company. Ask your trainer about the company’s stability and its future plans. This will help you get a clear picture of what your role will be as an online teacher to contribute to the company’s growth.

Grammar

It’s a given fact that we are all non-native speakers of English but as Filipinos we are fortunate enough to adapt to it easily, and unlike any other countries in Asia, we have an edge to work in an English-speaking environment. Although English is a second language we use in schools, government, documents, etc… we have our own way of using it in our day to day communications—we have developed taglish or tagalog-English and Filipinism that are widely accepted in our culture but unknown to native speakers of English. This is where fine-tuning is necessary during your training.

Accent

When I first started teaching online English I was comfortable using my pinoy accent and it didn’t matter at all. My students were Koreans between 8-50 years of age. Some companies don’t require the tutors to have American or British accent when talking to their students and this is okay. But if you want to get a better range of salary, you’ll have to level up your skills, right? I was fortunate enough to be part of a company that aims its tutors not only to be good at what we do, but improve the quality of our accent. Accent has many parts; rhythm, melody, pronunciation, intonation, and how close to a native speaker you sound like affect your quality as a tutor. If you think your accent is nowhere close to a native speaker, don’t be discouraged. Your accent will soon develop and you’ll be sounding better. All you need is practice!

Culture

To communicate more effectively with your students you have to understand where they are coming from. Knowing a little about their culture will give you insights on how to handle each one of them more effectively and will give you less headache in the long run. Talking about events and special occasions in their country is an effective way to build rapport. It gives your students the impression that you’re interested in knowing more about their culture and they’ll appreciate you for that. Another important thing why you need to know something about their culture is that, you’ll be saving yourself from embarrassment on asking silly questions that we Filipinos are very fond of. Remember: Your students are not Filipinos and we don’t share the same culture!

Accounts

This varies per company. In the second company I worked for they have multiple accounts which mean they offer different departments where a student can enroll. Let’s say a student wants to learn conversational English, he or she has to enroll in that department. Another department/account could be IELTS or TOEFL or anything that is related in studying abroad and a student is aiming to get a required score (band score) for a specific country. This is another account. But you don’t have to be overwhelmed with these accounts. Since this is your first exposure, most likely, you’ll be assigned to handle beginners where all you have to do is do some correction on how they speak English. This is the easiest account you’ll be happy to be. Most of the students here are—cute, adorable, funny—kids with easy correction to make such as correcting their usage of tenses, subject and verb agreement, and the likes. This is where you don’t sweat a lot!

Materials

Most companies have developed their own copyrighted materials. But there are still some that use shared educational materials found on the internet. Regardless of where the materials come from, you have to master these materials if you want to be an effective online teacher. At first, you may get overloaded with lots and lots of information but don’t worry. You’ll get comfortable as you go along. It may be hard, especially if you have no background in teaching like when I first started, but your hard work pays off when you start to notice some improvements on your students and, of course, you as their teacher.

Contract

If you manage to get to this point that means you will be signing a contract for probationary status. This is where you get the chance to work with regular tutors and sit side by side with them to learn the ropes before you finally get your own students. Before signing the contract, make sure everything is clear and well explained. Ask about incentives and other benefits that they offer for your current status. Personally, sometimes the pay is not as big as what other companies offer but what makes the pay attractive is the incentives that come along with it. So make sure you know how incentives work. Some companies offer: perfect attendance incentive, birthday incentive, number of student incentive, top performer incentive, and whatever makes the teachers more productive they’ll use incentives.

Additional Tips

Resume

Whichever companies you want to submit your application, make your resume is concise and easy to read. It’s not necessary to use photo ID because they don’t return it back when you don’t qualify. What I do is use my scanned photo ID and attach it to my resume. Doing this will save you money in the long run. You also don’t have to submit 3 to 5 pages of paper. A two page resume is enough (I usually submit one). List the most current and relevant information that will highlight your strengths. Leave out unnecessary seminars you’ve attended if they are not relevant to the nature of job you’re applying for (I’m referring to nursing grads). But highlight the exams you passed such as, IELTS, CGFNS, NCLEX, etc… This will boost your value as an applicant. The interviewer is much more interested to hear you talk while scanning your resume so make sure the info that you provided are accurate and you know it by heart.

Be friendly to co-applicants

Start a conversation or join a conversation that has started. Exchange contact numbers or even Facebook account. They have the same reason why they are there and some of them may recommend another online teaching company that is near the vicinity or within the same building.

Never give up

If one company doesn’t hire you, try again. Don’t get discourage but use what you have learned and improve on your weaknesses. When you get rejected it doesn’t mean that you did not try your best, maybe the company is just looking for a specific applicant for the position. It happened to me several times, luckily, it didn’t stop me. Think of it as finding the right company for you. And once you’ve found it love it, love the people in it, and grow together as one big family.

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10 Facebook Status You Wish You Never Posted

noreply@blogger.com (Anonymous) — Tue, 26 May 2015 16:46:00 +0000

Here are the 10 Facebook Status You Wish You Never Posted on your wall or even on your enemy's wall.

#1 All Caps

Never post a status in all caps or all capitalized. Some people who can read your post may perceive you as a rude person. All caps go against email etiquette, and therefore; should not be applied when posting on your wall—unless you want to piss off everyone.

#2 Grammar and Spelling

It may seem funny the first time you read it, but when you see it often, it becomes quite annoying. Always double check what you typed before posting. And when it's posted, check it again for correction. You can always check on Google if you're not sure how to spell something or you don't know how to express it in English. Don't let people laugh at your stupidity.

#3 Sharing Video Hoaxes

Do you remember the Escherian stairwell? This video became viral on YouTube, and guess what, Facebook.We Pinoys love to share what we watch or read over the internet. And without further investigation we share it in an instant. And believe it or not, 6 months to almost a year after the truth came out, this video was still being shared on Facebook and a lot of gullible pinoys were still falling for it.

#4 Bashing On Religion

Tsk.Tsk.Tsk. Never ever do this if you still want to walk around daylight. Religious Fanatics or even Faith Defenders might do something you wouldn't like.

Still under #4

Life lesson: Never ever take what is sacred for others to be an object of self-indulgence.

#5 Bullying

Cyber bullying is a crime (I haven't heard anyone was put in jail, though). But it's something to be avoided. Don't even try to post on someone's wall just to bully them. Karma is Real!

#6 Sexy Photos

Always keep in mind whatever photos you upload, you have to choose the people you share it with. Once it's there, friends of your friends and their friends (and the list goes on...) could see your precious sexy body once they put a comment on it. Don't be stupid enough not to know who are in your list of friends. Someone can grab your photo and play around with your body, worse, you're attracting cyber stalkers that will exploit you.

#7 Selfie Video

I don't understand why these faggots are bashing her with abusive remarks. Anyway, if it's okay for you to receive comments—however insulting they may be—then go ahead and upload your selfie videos. But if not, don't even start to think your video will be flooded with "likes". Again, choose the people that can have access to your videos!

#8 Racist Rant

For crying out loud! However you think this post is funny, people will eat you alive! Don't comment on other nationalities' color, language, culture, gender, especially, post a threat! We pilipinos love to tell jokes on other culture, region, and dialect, but this is not a good practice over the internet.

#9 Animal Cruelty

This says it all. Once a pet enthusiast sees any form of abuse on pets (animals) you're in deep sh*t my friend.

#10 Child Abuse

This got my attention. Kids are not animals to be leashed. However you slice it, a picture tells a thousand words. Never attempt to post anything similar to this. You'll be begging to live on the moon.

These are the 10 Facebook Status that you should avoid posting on your wall by all means. Hope you enjoy this post. Leave your comment and please share. Thanks.

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His Parents Planned to Surprise Him On His 18th Birthday. But What's Inside The Aventador Took Him By Surprise!

noreply@blogger.com (Anonymous) — Fri, 22 May 2015 13:17:00 +0000

Nathan's excitement to see an Aventador Lamborghini

Nathan and his dad have a common bond when it comes to cars—they both love cars. In fact, since Nathan was little, all they ever talked about were cars. They love going to car shows, local car meets and everything that has to do with cars, they would come.

When Nathan became a teenager with a license, his eyes were set on Lamborghinis. And since they both love cars, dad planned a trip to Florida to visit an auto auction show the day before his 18th birthday. He thought that this would be a lifetime memory for his son and he wasn't wrong about that. All of them had a great time together. But the biggest surprise for his son was yet to be revealed.

Before the auction, Nathan's mom and dad had decided to surprise him by inviting Nathalie, Nathan's girlfriend, to be with them on the weekend.

The first plan was to let Nathalie sit in one of the cars in the showroom while Nathan was checking out different Lamborghinis. But it was one of the staff at the dealership who devised the perfect birthday plan: To let Nathalie sit on the passenger seat of an Aventador.

Nathalie laughs at Nathan's facial reaction

When Nathan stepped in he was speechless to see his girlfriend sitting in the passenger seat. This was the best surprise his parents had ever planned for him—to test drive a Lamborghini with his girlfriend over the weekend.
source: natmad.kinja.com

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This Man Is Making A Lot Of People Multi-Millionaires By Playing Minecraft

noreply@blogger.com (Anonymous) — Thu, 21 May 2015 15:09:00 +0000

This man is Markus Alexej Persson or better known as "Notch" creator of a highly renown game called Minecraft. The game has close similarity to playing Lego but you, basically, build everything that your imagination can think of by using virtual blocks and pixelated tools. The game received multiple awards from 2011 and 2012 and by November 6, 2014 Microsoft bought Minecraft intellectual property for US$2.5 billion.

According to Bloomberg Billionaires Index, Notch net worth is aroung US$1.5 billion making him one of the world's youngest billionaire. But what makes this guy so appealing to a lot of his Minecraft fans, is that a large number of them syphon hundreds of millions of dollars by creating a gaming channel and uploading Minecraft videos on YouTube.

One of these guys is Samuel De Luke, a popular YouTuber who runs a gaming channel called VEGETTA777. He has over 9 million subscribers with over 2 billion views. His channel generates around US$2.2 million a year. He does voice over on various games but the most popular is Minecraft.

Another gaming channel on YouTube that became a multi-millionaire is owned by, a 24-year-old, Daniel Tayaurus which earns around US$2.8 million a year. His channel is called TheDiamondMinecart with over 6 million subscribers and over 3 billion views. His main feature is Minecraft.

And yet another gaming channel that features Minecraft is called PopularMMOs. With over 4 million subscribers and over 4 billion view, his channel generates over US$3.3 million a year.

These are only 3 out of several Minecraft fans who became multi-millionaires by playing Minecraft and uploading it on YouTube.

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This Former OFW Quit His Job To Sell Rice In The Philippines. What Happened Next Was Unbelievable!

noreply@blogger.com (Anonymous) — Thu, 21 May 2015 05:37:00 +0000

Ramilton James Alenton is the Managing Director or BigasanKo.com, which won the 2011 Consumers Choice Award for being the most outstanding retailer store and the only rice franchise in the Philippine.

Ramilton James Alenton worked as an OFW in the Cayman Islands for over six years reaching the position of being a sales and marketing supervisor of a major retailer company. He worked hard and saved to fulfill his dream of having his own business. He knew that the business he had in mind would bloom because the Philippines is a rice eating country, and thus, this would be his targeted niche. He was not wrong about it, in fact, within three years of putting up the business, he already had over 50 franchised shops nationwide: Las Pinas, Pasay, Bulacan, Laguna, Marikina, Bagong Silang Caloocan, Pateros, to name a few.

Ramilton opened the opportunity for other people, especially the OFW, to have their own rice retailing business as well. As a former OFW he knows the pain and hardship that come with it: leaving your love ones behind just to earn money, so he decided to franchise his business which is a very strategic way of expanding it even more and helping his fellow OFWs at the same time.

He has his own rice dispenser, which is the only commercial rice dispenser in the Philippines that uses digital weighing scale to accurately measure the right amount of rice. He has also designed his own computerized sales inventory system to conveniently monitor the sales transaction of rice even without the physical presence of the owner. His head office and warehouse is located in Maligay park Caloon City.

Here is a video of Ramilton James Alenton. He was featured in Go Negosyo Kaya Mo.

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3 Tips On How To Enjoy Your Date Without Spending

noreply@blogger.com (Anonymous) — Wed, 20 May 2015 11:06:00 +0000

Have you ever wondered how you can cut cost when going out with someone without her noticing it at all? It’s really hard to make a lasting impression to the other person on how generous you are when it comes to dating, especially when your resources are limited. Don’t worry this article will equip you with 3 tips that will surely make your dating fun, sweet, and most importantly memorable to your significant one.

Tip no. 1

Instead of thinking about cheap restaurants and checking out which restaurants gives promos and discounts, why not think outside the box? Dating is not limited to fancy restaurants just to make an impression to a girl. Dating can be fun even without candles, table, and desserts. You can take your girl to a decent park and enjoy stargazing. This is romantic for your date. Being with her and listening to her dreams, wishes, fears, etc… would make her feel that you’re a person who listens and care about the things she likes. You’re building a deeper level of trust when you start to listen and this will open a new door of opportunity for you to go out with her more often.

Tip no. 2

When inviting her over for dinner, preparation can be costly but this will make a great impression to her that could lead in a higher level of sex. This is so true but in order for you to make the preparation less costly, but still intense, don’t prepare food that you like or what you see on food channels! Ask her in advance what are the things she likes to eat— That’s why it is very important to spend time “listening” to her rather than “talking” to her. However silly it may be, that’s the food that you have to prepare. Of course you’re not preparing the most expensive one she mentioned but the more down to earth food—street-food. Now this is something unique for a date to have and this will lead to a better intimacy. Showing her that you remember silly things she likes would translate that she means a lot to you.

Tip no. 3

To make a very lasting impression to her even more, ask her what outdoor activities she enjoys the most. Now, you might not be an outgoing person but this is not a problem. You’ll still enjoy doing outdoor activities without you looking stupid, and best of all, spending. With the outdoor activities she mentions pick the most exciting one you think she likes then compliment her how she’s brave enough to do it. Then use this phrase “I wonder if we could do it together…” The point is, unconsciously, you are asking her to imagine “how fun it would be if you and I could do it together”. This in turn would send images to her brain doing the outdoor activity with you. The rest is up to you, so you have to make her explore her imagination even more. By doing this, both of you are virtually doing her favorite outdoor activity.

These tips are very effective if done properly. Remember that dating is all about knowing the person’s inner wants, and deep desire. By tapping into these wants and desire can make a very lasting impression to a woman and at the same time it saves your wallet.

Work at Home and Earn Money using the Internet

noreply@blogger.com (Anonymous) — Sat, 16 May 2015 10:34:00 +0000

Here’s a famous quote from my tito Bill Gates, Founder of Microsoft and currently on the top list of being the richest man in the world by Forbes Magazine's Annual list of the world's Billionaires, "If your business is not on the Internet, then your business will be out of business." Here is a quote we can all ponder from time to time. A lot of wisdom can be learned from this quote, but unfortunately only few have the guts to apply this wisdom. Buti nalang you’re not one of those people who are like Juan Tamad, nakahiga sa duyan under a mango tree waiting for the fruit to drop. I know because you won’t be reading this blog if you’re not interested in having extra income or at least may pagkakakitaan ka while you’re at home, right? Whatever your reasons are, I’m so happy for you because you are doing something that will not only benefit you, but those important people who surround you. Kagaya mo ako rin ay isang tambay sa bahay. But unlike a regular tambay na nakikita mo sa labas ng bahay nyo, I have a different “tambay perspective” in life, which is, gamitin ko ang oras ko sa isang prodaktibong pamamaraan sa pamamagitan ng internet. Teka, may internet connection ka sa bahay diba? So kung meron, WHAT A FREAKING COINCIDENCE! It’s not an accident you stumbled upon this blog. You were led by your desire to prosper and to be lucrative while you’re at home.

Is it really possible to earn money at home using the internet? Ang sagot, Syempre! Gagawa ba ako ng article nato kung wala akong napapala sa pag susulat? Although, I can’t show you how much I earn through blogging, what I can say is, the pay is good and it keeps getting better to a point na mas compensated pa ako ngayon kumpara sa nag tratrabaho pa ako dati. It’s true. So that means, may mga blogger na katulad ko ang kumikita sa pag blo-blog. And this is one way to earn money—through blogging. Kung may talent ka sa pagsusulat, then you have something to begin with. Luckily when I was younger, I started writing. Kahit ano, kahit mali-mali grammar, it didn’t stop me from writing almost about anything that got my interest. Syempre dapat reader Karin, kasi ano isusulat mo if you don’t have anything to write, diba? So paano ba kumikita ang isang blogger? Well, through ads. Yes. If you look at this page, you’ll see some advertisements being shown either on the side or within the article and even at the bottom of the page. These advertisements are our bread and butter! Kapag may mag click sa kahit alin dyan (disclaimer: I’m not encouraging you to do so! It’s a grave offense and my account might get banned. Do it with your own discretion) we get paid by the advertisers. Kukuha lang ng percent si google and the rest or net ay kay blogger. That’s how we get paid.

What if di mo talent ang magsulat? Blogging is only one of the many ways on how to earn money on the internet. Kung ikaw ay bantay sa internet café, pwede karing magkaroon ng extra income habang nangbabantay ng mga customers! Yes, you heard it right. So imbes na magdota-dota ka gamitin mo ang opportunity na isishare ko sayo.

Here is another way to earn money on the internet through Paid-To-Click sites or what is commonly known as PTC sites. Ang PTC sites ay mga agent ng advertisers to gain traffic to their websites. In layman’s term, pag sa Edsa nag-ngingitngit sa galit ang mga motorista. Pag website ang pinaguusapan, tuwang-tuwa ang mga website owners! Traffic means people coming into their sites. And the more people come, the more money it generates. Kaya si website owner babayaran si PTC para ang mga members nito ay mag-visit sa website nila. And if you sign up for a PTC account this will be your primary job: To browse websites. Ganyan lang ka simple and you’ll earn $ instantly. Yes, $$$! Ano di ka parin kombinsido? Panoorin mo to Money Making Tutorial and take time to see what PTC site is more appealing for you.

If you thinking Paid-To-Click sites are a little boring or di ka nacha-challenge then try YouTube. YouTube is a video platform where you can show off your skills, hidden talents, or even craziness to the world. And what’s good about this is you can monetize you videos! I like the word monetize, in fact, it’s my favorite word since I got educated on how to earn money on the internet. Monetization simply means you get to make your videos available for advertisers to show their ads. And by monetization you’ll earn money. So kung sa tingin mo may tsura ka, maganda shape ng body mo, may boses ka, magaling ka magpatawa, may kakayahan ka na di kaya ng iba, e aba, I showtime mo na yan sa world! This has a similar concept of having ads on a blog. Katulad ng sabi ko sa taas, pag may reader or viewer ka na interesado sa content ng ad at nakipag interact sya, you’ll get credited.

I am currently experimenting on these avenues to increase my revenue. Kaya kung ako sayo, simulan mo naring i-educate ang sarili mo sa mga bagay nato. Nandito ang blog nato para suportahan ang mga taong katulad mo na may interes kung paano kumita sa pamamagitan ng internet. And this is the sole purpose of this blog: To help people get educated about how the internet can boost their income!

I hope you find this article worth reading. Thanks for taking time reading all the way through. If you have any comments, please write them below and help me bring this message across. Let’s help those people who are struggling on how to make ends meet by sharing this blog to your friends.

Thank you,

Ednan Orallo.

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Finally AdSense Happened to Me!

noreply@blogger.com (Anonymous) — Fri, 15 May 2015 07:31:00 +0000

Finally the long wait is over! After waiting for almost 5 years I finally got my AdSense PIN delivered to where I am currently residing.

Yes you heard it right. 4 and a half freaking years of waiting! I applied for an AdSense account way back in 2011 when I started to do this blog. Back then, applying for an AdSense account was not as easy as how it is today. You have to make good content and wait for a few months before AdSense would grant you your Publisher’s ID. I was darn lucky because I was able to work around getting an AdSense account for my blog in less than a week. I did some research that lead me to docstoc.com. I submitted 5 articles and BOOM! I got my AdSense account instantly.

The joy of getting a Publishers ID inspired me to write few more articles, thinking that my blog would be on top of Google search engine, but it wasn’t that easy. Day after day I would check on my AdSense account to see how much I earn. I ended up being frustrated. No one was interested on what I write. After a year, I stopped blogging and focus on other things, such as online gaming, programming, and other things NOT related to blogging.

Two years past, I was busy being an online teacher. The pay sucks like hell but I have to save. My ex-girlfriend (now wife) and I were planning to get married in a couple of months. I checked my AdSense account and the earning I had was $6 not even close to the $10 threshold. I was still a hopeless blogger.

My wife and I had our first baby in 2014. This was the best thing that had ever happened to us. The joy of seeing my baby was incomparable. It got me inspired to work harder and eventually get a higher paycheck. I was still an online ESL teacher in a small thriving company (I left my previous work a year before my son got born). The pay was good and getting better compared to the last company I had, but unfortunately, I had to give it up. I had to give way for my wife to practice her profession as a nurse in order for us to apply for an immigrant visa—which until now we’re still hoping the process would be quick. To cut the story short, I was stuck at home and played the role of a full-time househusband. This was a blessing in disguise, as they say, because it got my attention to focus on working at home using the internet. There was a point in time where I visited my blog and log in to my AdSense account. I got this message that my ads were not displaying properly because I haven’t entered the PIN they sent through snail mail. What!? They sent me a mail? Google AdSense sent me a freaking mail!? And a veil started to descend in front of me when I saw that the address I provided was the company where I worked 4 years ago.

I was completely clueless on what to do. It had never strike me that I’ll be able to reach the AdSense threshold or even more than $10. I did some research and what I found out shocked me. AdSense stopped showing ads on my blog for a year because I hadn’t entered the PIN within the 6 months period. To make it simple, it means “I STOPPED EARNING MONEY FOR 1 YEAR!” Fortunately, I just stayed calm and did what I have to: I changed my address and requested for another PIN to be sent. Easy? No! I had to wait, which is something I hate doing. Anyway, the pain of waiting is gone, alas, and I didn’t have to wait longer. Unlike so many people who have had problems not receiving their AdSense PIN, I’m blessed and I thank God he convicted the postman not to scrounge what belongs to someone.

Thank you for taking time reading this post. I appreciate your comment and I hope you’ll support me in any way you can.

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Time Management

noreply@blogger.com (Anonymous) — Mon, 06 Feb 2012 16:48:00 +0000

Hello, guys! I'm finally back again. Well, after a few months of resting from writing, I decided to write again and share with you some lessons I have learned while trying to shake off the writer's block (Wew!). Anyway, I just want to tell you that I got addicted to an online game. And it's not just something that I want to channel all my frustrations, but I got addicted hard. I know it's so embarrassing to admit this--considering that I should be encouraging you guys on how to use your time in a productive way--but I have to do this. One of the things that I want to point out is that, when you get addicted to something (when I say something, I mean things that hurt you rather than help you) you not only spend your money but you also spend your precious time that you'll not be able

to bring back. Yes. That hurt me more than the money I should have allocated in a wiser way, like business etc...

Time is something that you can not afford to waste. So whatever you are doing now, you should ask yourself, "is this thing helping me or not?". Because if not, then your are missing better opportunity for you to get to the next level of your life. If you are not aware, let me tell you that there are thousands of opportunity for you to get one step educated than a university student--who burns a lot of money only to find out that the kind of education they are getting are all available on the net. And it just takes your finger and the mouse to access wider and better shared-knowledge.

Let me get this straight. I'm not against going to college but, like me, there are thousands or even million of people who cannot afford better education because its price is not cheap. That's why I'm very thankful to some people who do not hold back on sharing what they've learn and not asking for anything in return. That's what you call free knowledge. Knowledge should be shared and not

marketed. I believe.

Right now, I finally learn how to manage my schedule and not be focus on just one hobby of mine (this is my problem sometimes that's why I get frustrated) but to experiment and try out different facet that I know will contribute to my well being as I continue to learn more.

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Assets and Liabilities

noreply@blogger.com (Anonymous) — Mon, 28 Mar 2011 16:13:00 +0000

WRITTEN BY: Ednan Orallo

In this post I’m going to show you why it is important to understand what‘s the difference between an asset and a liability. This will help you see that not everything you buy should be called an “investments for your future”. Whether buying a simple gadget, or deciding to buy a car, and even buying your dream house. These are good investments for some, but is it really the “right” investments to go for?

What is SAL?

SAL stands for Statement of Assets and Liabilities which simply means: Your net worth. You can determine your net worth by preparing a balance sheet where you will put everything that you own in the asset column and all your obligations (debts) in the liability column. Next is to put the corresponding amount of each entry and get the total of the asset column and the liability column. Computing the difference between the two will result your net worth.

I will not go into the details of what you should list in your assets column and liability column, but basically, everything that you have/own; bank account, receivables, house, car, appliances, etc. go to your asset column and your debts, mortgage, credit card bills, insurance, payables, go to your liability column.

You see, the definition of asset here is EVERYTHING that you have that belongs to you. This has been programmed in our mind that whatever we buy in the market becomes an asset to us and goes directly to our asset column. But if we really look closely, some of the things that we considered an asset are really a liability in nature.

What makes an asset a liability?

Let’s take the example of buying a high-end gadget. You considered this helpful for the kind of work you have. It helps you in many ways. In fact, you even upgrade its memory card, or buy apps, you spend 20% more dollars just to maximize its potential. And because of that, you list this as part of your asset. But after a couple of years, the gadget you bought is not in its optimal performance, and the external features are not of the same as it used to be. When you prepare your SAL it’s more likely you’ll not put the same value to it as when it was newly purchased. Its value depreciates through time, thus, it becomes a liability in the long run.

How can you call something an asset when, in fact, it cost you more rather that benefit from it? Anything that needs high maintenance and depreciates in value is a liability in nature. Appliances, cars, or even your house could be a liability instead of being an asset to you. If you prepare your SAL now and you just happened to moved to your new dream house with a brand new car, your net worth may be high in value. But after a year or two, your car's value depreciates, worse the location of your property is not good, and you have unsettled mortgage and bills to pay. You’ll be shocked to see that your net worth relatively dropped and marked negative. What’s worse, if you don’t do something about your “assets”, they will pull down your net worth even more.

What makes an asset an asset?

It is very important to study first, before buying something, whether it will be an asset or a liability in the long run.

Our mind should be conditioned that if what we are to purchase some thing that is not an income-producing asset, then it falls under the category of being a liability. Having this in mind, it will not only help us to be wise on where to spend our money, but also make the correct decision where to rightly make an investment.

The reason why we don’t want to invest in assets, which are a liability in nature, is that it will reverse the growth of our net worth. If we want our net worth to increase, the asset column should contain income-generating assets.

What is an income-generating asset?

Income-generating assets are assets that build a person’s wealth. Example of this is owning an apartment. This type of asset produces income on a monthly basis through rentals. Unlike having your own house where maintenance is costly, having an apartment rented will not burdened the owner with maintenance cost because of the income it produces.

That’s why it is advisable to own only one comfortable house to live with your family. And if you plan to buy another, make sure it will generate income to rid yourself off with maintenance cost.

It also applies to having a car. The value of a car does not appreciate through time so you have to be wise enough that instead of buying more than one car, why not invest your money into something more that will help increase your net worth.

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Financial Lifestyle Status

Financial Lifestyle Status

noreply@blogger.com (Anonymous) — Tue, 22 Mar 2011 16:29:00 +0000

WRITTEN BY: Ednan Orallo

It’s interesting to know what separates the poor from the middle class, and the middle class from the rich. I have been reading this book, Be an Entrepreneur by Manuel A. Tiongco, and this inspired me to write this article. From the vantage point of a person coming from a poor family, I still work hard to elevate my (family’s) status in life from my current status to middle class and eventually to join the bandwagon of the rich. This is not a punch-on-the-moon endeavor, but has become an integral part of my being that causes me to focus on my vision.

I hope that as you read this article, you will be able to see your reflection as to where your status in life is and how far are you willing to strive for a better living for you and your family and the people that you can influence.

Lifestyle of The Poor, The Middle class, and The Rich

I presumed that most of you who are reading this are in the middle class status or on your road to richness. But if you had undergone lifestyle metamorphosis from poverty to financial independence, then you’ll get my point.

The rich have far different mindset compared to us mere mortals

As a person who grew up in a property that belongs to others, I (or should I say we) am not offended to be labelled as “squatters”—which has been re-labelled as informal settlers, but this less aggravating term, like the former, does not post any immediate insult especially to some [squatters] who doesn't even know how to spell it—for the fact that our parents have long accepted our pathetic state. Our conversation with each other are less interesting for middle class people: we talk about traditions, myth, gambling schemes, feast on other people’s private lives, celebrities, telenovelas, Willie Revillame, the list just goes on. Whatever can make our lives less sad or less boring or less irritating, we succumb into.

I was fortunate enough to have a chance to peek on what middle class people spend most of their time and the kind of conversations they have and how they live their lives. According to Tiongco, “The middle class people are predisposed to talk about events”. They talk about social events, politics, and celebrities, too. But what separates the middle class from the poor is that they don’t just settle for the kind of employment they have; “They would resign and look for a job that pays, better...” In order for them to have higher position in a corporation, Tiongco writes, “...others pursue graduate course, even doctorate degrees, to prove that they are the best in their profession.”

It seems like this is the kind of trend that few of my kind were able to do. After graduating from school, most of them were fortunate enough to be hired in call centers or other booming businesses in the business center in Metro Manila, and because of that they managed to elevate their status in life. But why there seems to be a plateau that both the poor and the middle class have hit. And the gap between the rich are ever wide? Tiongco reveals, “The road to riches is via the entrepreneurial route.”

The road map to riches

“Nena and Nene graduated from a same college and course. Nena applied as an office staff while Nene put up a small business.10yrs. later...Nena, with good experience, applied as manager in a well-known company who exports embroidered fabric. Guess what? Nene was its owner”

While the poor and the middle class hone whatever skill they may have, the sad part is, they will soon find out that it’s not the right road map to attain riches. Contrary to popular belief that rich people grew up with a golden spoon on their mouth, their wealth did not come in an instant (with the exception of kings and royal families, of course), but these people started small, “They had humble beginnings. They were children of poor families. They have overcome their financial handicap because of a mindset, which is characterized by discipline, hard work, entrepreneurial attitude towards money, and vision.” Tiongco writes.

The conventional belief of “going to a prestigious school and graduating with honors will surely land a person a secured well-paying job” has been challenged in the book, Rich dad, poor dad, by Robert Kiyosaki: “The concept of getting good grade and finding a good job is simply an old idea.” says Sharon L. Lecher, CPA, co-author of The said book. In a nutshell, no matter what degree in school a person gets, he/she is still have to be employed. This is a different story with the rich: They don’t need to get employed. In fact they are the ones who hire people to work for them. The poor and middle class shell-out large amount of capital to attain a better education only to find out they’re stuck in the Rat Race. Like in the fictitious character in the story above, this is the reality that we have to accept: it’s not the highly educated who are at the top when it comes to wealth, but those who are engaged in entrepreneurial activities.

Developing a business-minded attitude

According to Tiongco, “People who become rich discuss ideas, business ideas. They talk and talk ideas all hours of the day...They relish doing this mental exercise and by doing it, eventually, they become rich. This is so because wealth is the product of a business idea put into action.”

This kind of mindset is not common to a non-business minded person. It’s a total overhaul to the mind if a person decides to adopt a mindset of the rich—should he/she decided to be rich.

Spending habit

“TAMBAY: Oi! 5piso!Tamang-tama me pambili nako yosi at candy!hehehe...

NEGOSYANTE: Oi! 5piso! Tamang-tama me pang dagdag nako sa paninda kong yosi at candy!”

Another intriguing thought to ponder is that how rich people treat their money compared to the poor and the middle class.

I used to imagine when I was little that it’s cool to be rich because rich people can buy everything they want; the cool stuff that’s out there in the market, and not worry about their expenses because there’s a lot of it where it came from. On the contrary, rich people are thrift and choose to live a frugal life. Unlike us, they don’t see their money as something to spend but rather a tool to increase more their wealth. They are economical and patrons of good bargain. Of course they can buy branded clothes or even dine at expensive restaurants, but because they know the value of money and respect it, they don’t spend as much as what we would do if we were in their shoes. Rich people have total control over their money.

Long-term financial security

A person who has gained wealth by taking the entrepreneurial route has long-term financial security that does not only secure his/her retirement but his/her family as well. The poor and the middle class can only depend on the kind of work they have but once the ability to work is not an option anymore, the pension, health care, or whatever external help they have, will barely sustain them. This is not true with the rich. Since they had established their business, even while they’re confined in the four corners of the hospital, it’s their business that will sustain them.

Humanitarian works

Recently, Warren Buffet, one of the world richest person, made an announcement that a large percentage of his wealth will go to Bill and Melinda Gates Foundation for humanitarian purposes. He is only one of the many billionaires who donated their wealth to help the society, the nation, and the people to have a better world. It goes with the saying, “With greater power comes greater responsibility”. The poor and the middle class also help in their own little ways, but the help they provide are limited and sometimes within the boundaries of their relatives. But the rich have wider scope of opportunity to extent help. I believe that true rich people are those people who use their money as an instrument of blessing for the good of others. Whatever your current status in life maybe, and you feel deep inside that you have a calling to make a difference to the world around you, wouldn't you be more effective if you have the means to help not only a handful of people but the world out there?

Again as I have stated before, God favors the people who use His resources for the betterment of his fellowmen. It’s not actually the riches we are aiming here, but that we—as a channel of hope to this striving world—be agents, a trustworthy agents, that will bring change starting from within us and influencing others as we go along this journey of life.

The gates to riches are widely open for every one to enter, but sadly, not every one are aware of this. And those who are, are stubborn enough not to even bother. Even though, there are people who are concern enough to leave a trail; a road map that they took successfully. And These people choose to share these secrets by writing them down. If you feel the same I as do, or even in the same situation where financial problem is a big issue in your life, financial literacy is the only answer that will solve a person’s financial crisis. If I were you, I’ll take the same advice that we should educate ourselves how to handle our finances because all of these were not taught to us in school. Schools tell us to study hard and have good grades to have better employment. But the rich tell us, use the knowledge you have gained from institutions to establish your own corporation and give better employment. Entrepreneurial route is the only chance we have to achieve financial independence.

Thank you for taking time reading this article, and if you think this has helped you in some ways, why don't you return the favor by sharing this to your friends and love ones via social networking sites such as, Facebook and Twitter.

Ednan Orallo

Money lending Exposed

noreply@blogger.com (Anonymous) — Thu, 17 Mar 2011 15:48:00 +0000

WRITTEN BY: Ednan Orallo

An insiders look on money lending

As promised on my previous post, Understanding lending or pautang in pinoy context, I’ll do a little exposé on the “underground” practice of lending. I say it’s underground for the fact that most private lenders don’t declare the accumulated interest in their Income Tax Return (ITR). Yes, interest tax is subjected to income tax. Because a lender generates income from lending his/her money, he/she is obliged by the Bureau of Internal Revenue (BIR) to pay the appropriate taxes. But how can this be? When there are a bunch of lenders prowling around for potential clients, and BIR agents are being lenient. This is the same story as the “pirata” vendors in Quipo have in common. That’s why “maraming malalakas ang loob na pumasok sa negosyo ng pagpapautang.” (Take a few moment to digest this idea before reading on).

The art of lending

Many of you might not shallow this, but as far as lending is concern, it’s an art that needs to be mastered. And those that have, are now enjoying the lifestyle they once thought impossible to happen. Some of the people I know, was able to purchase their dream car through lending. Others acquired properties mortgaged to them. Still, others repossess pawned cell phone, laptop, flat TV, anything a lender would like to have as collateral. And get this, “this is all legal”. But in lending business, not all stories have good endings.

There are tragic incidents that had happened in connection to lending. Because the identity of a lender in a community is not hidden (Lender’s name is like an irresistible gossip that spreads out quickly throughout the whole “barangay” or village), a lender puts his/her life as an easy target. Nowadays, lenders are more discrete and ambiguous. As much as possible they hide their identity by hiring agents/collectors to do most of the work—which is spotting for possible clients and collections. By having trustworthy agents a lender reduces his/her direct contact with a client and therefore, puts his/her life out of danger.

Qualifications of would-be agent/collector

Agents or collectors are not hard to look for because, essentially, everyone could be your agent. Even your clients are qualified to be agents by referring their friends to you. In return you promise to give a referral fee or stretching their credit limit (I will discuss more on the client’s credit limit as you read along). There are, however, some simple guidelines that you should follow, though. And one of the basic is to use your intuition.

Here are some tips on how to spot a good agent:

-Had an experience in referring clients to a lender. This will save you time and effort because the agent already knows who are the regular patrons.

-Your clients or previous clients. Once a person has formed a habit of borrowing, he/she is not alone. They flock together and talk about where to get money. And news of a considerate lender is good news to them.

-Avoid relatives. As much as possible, avoid them. Lending gurus talk about bad experiences from their relatives when the subject comes to money. So please be warned.

Collateral

Here are lists of some possible collateral that you could ask from a borrower.

Office employee:

-ATM, government valid I.Ds (SSS, PRC, Voter’s, Postal, TIN )

For business capital:

- Post dated Check (PDC), vehicle, title (property).

Personal Loan:

-ATM (for pensioners), appliances (laptop, smart phone, iPhone), valid I.Ds

Credit Investigation

Before granting a loan, you should make sure that the client has undergone C.I thoroughly. It’s better to be skeptical than be scrounged.

Things to consider first:

-What will the client use the money for?

-Assess the client’s capability to pay the amount base on his/her income.

-Try to befriend some of the neighbors and ask about the client’s character. (You’ll be surprise on what they’re gonna say).

-Ask if he/she has any credit history (whether in bank, credit cards, or another private lender) and how he/she was able to settle it.

If you’re not convince with the answers, it’s better to be frank and say, I cannot grant your loan. Here are some popular spiels a lender says: “I’ll send you a massage if there’s an available fund” or “I’ll give you a call within this day”. You can think of other polite ways to break it to the person, but be sure it doesn't sound disappointing—he/she can still be a potential client in the future.

Promissory Note

Unlike the Bombay, some private lenders make documentation on the transactions they had. If the amount is big, say five to six digits, they notarized the document for the security of both parties, especially the lender’s.

In the promissory note, a lender has to stipulate the agreement that happened between him/her and the borrower. It may contain something like this:

Mr./Ms. Etc.., has borrow an amount of, etc..., and promised to pay on this date, etc...

Both the lender and the borrower should be clear about the content of their agreement because this will be the basis of the fiscal, if ever the transaction will turn out sour.

Method of collection/payment

There are various ways of collecting. As I mentioned earlier: it’s for the sake of a lender to hire an agent/collector.

Here are some advantages of different types of collecting:

Daily

If your clients are FX drivers, jeepney drivers, taxi drivers, or even sometimes tricycle drivers, daily collection is highly recommendable. It would be easy for a driver to pay on a daily installment basis because of the nature of their job. You just have to be patiently waiting at the terminal post and wear your cordial smile.

Weekly

Daily and weekly types of collection are best for small businesses. Since businessmen get their income daily, it’ll not be hard for them to set aside your share.

Bi monthly

This type of collection is usually practice in offices where the salary is release every fifteenth day of the month.

Online transaction

This is the most convenient way of collecting. If the client’s collateral is ATM, you can directly make the transaction online. Go to bancnetonline. Balance inquiry and intra-bank transactions are free of charge. You have to disclose this to your clients and be transparent to them. If possible, ask them to change their PIN after they have settled their loans. In this way you’ll not only gain your client’s trust, but you’ll keep him/her loyal to you.

Credit limit

A first time lender should set a credit limit for each client he/she has. If the lenders capital is 10,000 or even 100,000, he/she has to “diversify” to different approved clients to avoid major problems. Example: The lender has 100,000 he/she should better opt not to lend this to two persons only but rather to five upto ten persons. In this way the lender is not putting all the eggs in one basket. If one client got delinquent, it will not debilitate the lending business much compared to having two clients only.

For a first time client, its better to limit the credit to 5,000 upto 10,000 only. But once that the client has proven to be a good payer, then the lender could increase more.

Lender and borrower’s relationship

A lender should always aim to have a healthy relationship with the clients. By achieving this will not only build confidence with each other, but also will establish network of clients. Give referral fee or commission to a client that referred another client. Or stretching your client’s credit limit would be a good option. On the twelve month, if business is going smoothly, you could consider giving some of your good clients gift-checks or small tokens. This auspicious gesture is commendable, though not necessary, by established lenders. It makes the lender and borrower’s relationship sail smoothly.

Common problems a lender encounters

In every kind of business, problems are impossible not to exist. I have listed some common issues a lender experiences, and the contingencies he/she has.

Late payment and avoidance issue. Every clients has his/her own problems to battle. There are times a client could not possibly pay and sometimes tries to avoid his/her creditors. One advice I have learned from an established lender was that, “never take off the smile you wear in your face.” As much as possible the lender should be the one to avoid not to be thought of another burden to the borrower. If you feel the excuse is, somewhat, valid, you have to add more consideration, and take it as a lesson to blacklist the client from your list.

Paying an unpaid debt by making another debt. Beware of this type of scheme. At first the borrower would get the lenders trust by paying on time. But after half of the payment is settled, the borrower will ask for another loan—this time double the amount of the first—and re-discount the first unpaid debt. Don’t fall on this kind of trick! It is advisable that a borrower should be given 2-3 weeks gap before he/she can ask for a follow up loan.

Changed address/ AWOL/ went out of town. During your C.I if the borrower made you no other option but to grant the loan, and your gut is telling you, “you need more security for your money”, a guarantor or co-maker should be involved in the promissory note. The purpose of this is to make sure that if the borrower failed to do his/her part, the co-maker will be the one to fulfill the obligation of the borrower. Worse comes to worst, the client dies, the co-maker shoulders the payment.

CREDITS:

Most of the ideas that are shared in this article came from this thread: PinoyMoneyTalk/Forum. If you want to know more about the business of lending you can visit the forum and interact with the community. You will hear a lot of stories and experiences and actual conversations of lending gurus there. There are other informative ideas that are not written in this article for conciseness. If you have comments or questions, please do use the comment section of this blog. Thank you.

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Understanding lending or pautang in Pinoy context

noreply@blogger.com (Anonymous) — Tue, 15 Mar 2011 15:53:00 +0000

Lending or “pautang” has been one of the major business producing income of the Indian community here in the Philippines. The term “5-6” has been tagged to a person who lends money, which is also commonly called “Bombay”—An Indian national, typically wearing a pagri or turban wrapped around the head, and riding on a motorbike, or sometimes walking with umbrella.

The practice of “5-6” has been around since the early 70s; but it was not quite popular—not until the usury law was made legally inexistent. The underground practice of 5-6 seemed like gossip that only busybodies carry like disease to their immediate neighbors. But when the fangs of the usury law was minified [1], 5-6 became nationally popularized not only to rural areas but to the urban places as well. The practice of 5-6 lending was accepted to the extent of being part of “pinoy culture”.

The nature of 5-6

5-6 simply means, the amount you borrowed must be returned with 20% interest added. Example: I borrowed 1,000, then I should pay it back with 20% interest: 1,000 x .20 = 200. I have to pay 1,200 in return. Some moralist argue that 20% interest is usurious because it will worsen the situation of the borrower’s capability to pay. Whatever your stand is, we cannot blame those poor people who succumb to this kind of transactions. It’s up to the lender if he or she has conscience to listen to.

Various types of lending

Aside from the “usurious” 20% interest, there are other modes of payment a lender has to choose from.

Fix interest

Fix interest is the interest a lender puts on the amount borrowed. This is the most common form of method that many private lenders practice. Depending on the amount to be borrowed, the lender and the borrower usually make verbal agreement on how long would it take for the loan to be paid. As an example, the borrower borrows 1,000 and promise to pay it within a period of 45 days. The lender can give an option of daily, weekly, or full-payment method scheme—Bombays always opt to collect daily, for whatever reason, it’s more convenient for them.

Diminishing interest

Unlike fix interest, this kind of scheme is more considerable, sometimes, favorable for the borrower. The concept is that the borrower, who chooses to pay on a monthly installment basis, will pay the capital but the interest will reflect based on the outstanding balance.

Example:

The borrower borrowed 1,000 with 20% depreciating interest. The borrower has to pay a minimum of amount of 300 per month.

This payment method is similar to a credit card payment scheme where the outstanding balance will accrue interest until the balance is not fully paid. It will take seven months for the borrower to settle his/her debt should he/she choose to stick with 300 per month. The lender will be accumulating 808.41 interest in seven months. This can be avoided if, however, the borrower with settle the debt not more than two months.

Incremental interest

This kind of payment scheme forces the borrower to settle his/her debt as soon as possible to avoid paying double the amount of what he/she borrowed. This will secure the lender continuous profit while the principal (money) is in the borrowers possession. The lender could start with 3% interest and increments 1% every month.

Recurring interest

Recurring interest are often practiced in both public and private offices where the lender will collect the agreed interest until the lender has not paid his/her debt in outright payment. Outright payment means the lender will not accept installment payment but rather chooses to receive the lent money in full. This is similar to a pawnshop method of pawning.

Pooled money scheme (or locally termed as: “Paluwagan”)

Paluwagan is the local concept of mutual fund. But this “fund” doesn’t go directly to a broker. In Fact, this system has been so popular in the Philippines especially in the rural region. Informal settlers are also fond of this kind of practice because this is where they can get the fund to buy the appliances they wanted.
The concept of Paluwagan is to pool the participants money, by means of daily, weekly, or even monthly collections to be collected by a leader (sometimes called Aling or Manong). The participants will be having a “bunutan” (casting lots) to know who will receive the total pooled money. And believe me, this is a “fiesta” if one gets to be the first! Others would prefer to choose not to be the first and not to be the last, but rather somewhere in the middle.
There are other ways on how paluwagan system works. It’s up to the participants on how they should plan on what kind of rotation they will implement. But the bottom line is that they don’t have to hunt for a Bombay to borrow money because they can borrow the fund in the paluwagan. This is one advantage of being in this local practice.

Private lenders over banks

There are a lot of small businessman who are opting for private lenders over reputable banks because private lenders do not ask for legal documents—small time entrepreneurs don’t want the hassles of filling out applications, only to find out they are not eligible to have a bank loan. Various documents requisites serve as stumbling blocks for our less educated kababayans not to borrow money from lending institutions and rather approach the most approachable but strict looking, savior-of-the-day, Bombay. Their scent have become a palatable delight in the borrowers’ sense of smell. Oh, let me rephrase my statement, it’s the Bombay who will approach you, for your convenience, and will give an irresistible offer: “Utang ka? Bente lang, arawan hulog.” (Want to borrow money? Daily installment is 20 pesos only).

The down side of lending

It is very clear in The Constitution of the Philippines:

section 2. No person shall be imprisoned for debt or non-payment of a poll tax.

Because of this prevailing law, many lenders don’t have security over the money they lent. In fact, the lender himself might be the one to go to jail by committing Light Coercion that is stated in the Revised Penal Code. Art. 287 [2]. The only way a lender can legally claim something from a delinquent borrower is if he has a Court Order that is called Writ of Execution. But this is a tedious process, and sometimes to the disadvantage of the complaining party.
What a lender can do to avoid this kind of scenario is to get collaterals from the borrower as a security for his/her money. Sometimes agreement between the lender and the borrower are put down in paper for legal purposes. There are now small court claims which a lender can file against the offending party and documents or proof are highly needed.

Starting up a lending business

In my own opinion, starting up a lending business is a noble gesture to help small time business owners to expand their business by the use of the lender’s money. If the motive of the lender is to profit, he/she could opt for adding high interest. But if his/her purpose is to help the businessman, he/she can agree on a charitable amount. A lender should also consider that lending is a way to help poor people step out of poverty like what Muhammad Yunus did. Yunus was the first Bangladeshi to win the 2006 Nobel peace price together with Grameen bank for their efforts to create economic and social development [3].
Who would imagine that a lender could make a difference to the lives of many, and even one day could win a Nobel prize? What made Yunus stand out from the rest of the lending institutions, was that he provided his fellowman small “unsecured”loans—that this people could not possibly get from banks—as start-up capital for a small business. Yunus did not think of the profit that he would gain but how he could make these people’s lives better.

Having this in mind, one should consider that lending is a form of business. And as I have established on my previous post, “Profit should not be the main motive of a would-be businessman”. If in every business the goal is just to profit, the business will not last.

On my next post I’ll try my best to detail how private lenders operate their business and what are the precautionary measures and contingencies they have in worse case scenario.
FOOT NOTE:
1.“Central bank circular no.905,series of 1982, made usury legally inexistent, because the borrower and lender can agree on any amount of interest.

Source: Credits&business transaction by Judge Jose T. Apolo
2. Revised Penal Code. Art. 287. Light coercions. –Any person, who by means of violence, shall seize anything belonging to his debtor for the purpose of applying the same to the payment of the debt, shall suffer the penalty of arresto mayor in its minimum period and a fine equivalent to the value of the thing, but in no case less than 75 pesos.

Source: http://panyero.net/nakulong-sa-utang/
3. Muhammad Yunus founder of Grameen bank that provides small loans for the poor.

Source: http://en.wikipedia.org/wiki/Muhammad_Yunus

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Understanding the concept of profit in a business

noreply@blogger.com (Anonymous) — Thu, 10 Mar 2011 16:12:00 +0000

WRITTEN BY: Ednan Orallo

In this post I’m going to show you how profit is gain when a business is in a prospering phase. My goal is to give you an idea why there are people who venture into business despite the risk of failure and not guaranteed success.

What is profit?

The definition of profit according to Dictionary.com: “the income or reward accruing to a successful entrepreneur and held to be the motivating factor of all economic activity in a capitalist economy”. In short, it is the reward of an entrepreneur for using his capital and rendering good, quality service to the people.

Here’s how it works: A would-be businessman will make a capital outlay for a kind of business he has in mind.

Capital: This is the start-up capital. It may be an outright investment (coming from personal savings) or borrowed money from a lending agency or thru a bank loan.

NOTE: Based on the capital of a would-be businessman has, he needs to plan the materials that he would be needing. If he finds that the capital will not cover all the expenses, he has an option to borrow more, or cost-cut his expenses during material acquisition.

~~Let’s have a look how a businessman gains profit on the actual operation of a business.~~

As you can see here, labor and surcharges are passed on to the customer. The businessman’s capital of 1,000 gained 430 (43% profit) in just one transaction. His capital is returned safely, plus it has gained profit, and he doesn’t have to pay for his employee because it is charged to the customer. Imagine if his employee had made ten successful transactions in a day. He’s going to gain 14,300 without a sweat! Here’s more, if he has several employees, and one bought the product himself, his not only gonna get profit but the employee will pay for his own labor! This may sound advantageous, but this is the concept of an unbalance cash inflow. The profit is the reward of a businessman because of using his own capital, with the risk of losing it, and rendering quality service to his customer. This is a win win situation for a businessman. Unlike a regular employee that struggles to make ends-meet, a businessman enjoys all the benefits of his business. This is the main reason why every one is encourage to enter into business.

The “mark up” price can become higher if the businessman thinks the product he is producing is of good quality. It is in the businessman discretion to dictate his product pricing according to what he sees the best competitive price in the market.

UPDATED: The above statement was crossed out and the image was extracted due to some technicalities. But the content is still relevant in this article

Is profit evil?

One of the things that hinders a person to enter into business, is the guilt of making profit. For a person who did not come from a business clan, the concept of making profit is, somewhat, hard to swallow. It is somehow believed by few that profit is evil in nature because it takes advantage of other people—which is a common practice of opportunist. Although, profit is subject to moral argument, one should consider that profit is beneficial not only for some, but in a general perspective, it benefits many.

The importance of profit in a business

Profit is the fuel that makes a business runs smoothly. If profit is not realized in a business, the business is bound to fall. But if profit is starting to grow naturally, the business will flourish. Profit may not be visible within the first three quarter of the year—sometimes, even in its first year (depending on the kind of business). However, if the business is in a series of break-even period (Where the sales can cover the monthly expenses), profit will soon be realized.

Think of profit as a fruit of your labor. You toiled hard and nurtured your budding business; you made sacrifices and dedication, some might not believe in your business but you did not get discourage. And after months and months of patiently waiting, you’ll be the first one to taste the result of your effort. This is quite rewarding, although profit gain is small (this is common to a new establish business), but the impact of producing a profit per se, how small it may be, gives a clear sign that a business has potentials. It gives you hope.

Profit is not the main motive

“The concept of profit in a business must be the main reason why a person goes into business” WRONG! Even though that’s the common definition of profit, It should not be the main motive of an aspiring businessman. For the sake of argument, gaining a substantial amount of profit is the desire of every entrepreneurs. But a successful entrepreneur never centers his attention to profit itself. Given that a business would be alive and will run smoothly because of profit; but that’s not entirely the main reason why a businessman has been successfully running his business throughout his business career. Entrepreneurs love their business—and because of their passion in running the business, the customers are somewhat intoxicated by the services an entrepreneur gives. I’m a customer, you are a customer. Everyone of us is a customer, and we can feel if a businessman’s motive is only to take our money. But we can also feel if the businessman is sincere and dedicated through the kind of service that he renders. This is the big difference between a seasonal-half-hearted-so-called businessman to a genuine businessman. A true entrepreneur by heart offers excellent service first, then profit naturally becomes his enduring reward.

I hope in this article I have stressed out some of the significant role of profit in a business. I’m not claiming to be a business guru. Nor did I climb the summit of success in business undertaking, yet. Like you, I’m still in the learning process of learning the art of business by heart. As I have stated up there, profit should not be the main reason for entering into business—I myself am guilty of this. The real deal in business, is to give excellent service to people. Excellent here does not necessarily mean “perfect” but it means best. We give the best service to anyone that ask of it. In return, profit is an enduring reward that will naturally come in to our business’ door.

I appreciate you took time reading this article and if it helped you in any ways, please return the favor by sharing this to your Facebook friends and Twitter followers.

Thank you,

Ednan Orallo

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Practical ways to spend your money

noreply@blogger.com (Anonymous) — Tue, 08 Mar 2011 16:18:00 +0000

WRITTEN BY: Ednan Orallo

After writing Simple ways on to how manage your to income, I decided to make a follow up article that will give you practical ways on how you should spend your money. Let me be clear about this, I’m not saying that this is the “right” way you should spend—because only you have the right to decide what is right—, but these are practical tips that can make an impact in your decision on how you should spend your money—wisely.

In Simple ways on how to manage your to income, I have shown you the breakdown of your income and where it should be properly allocated: We lessen our expenses on clothes/hygiene, budget for groceries, and some extracurricular activities that cost us so the excess can go to savings. This doesn't mean to deprive you of your freedom to buy what you want. On the contrary, you can actually buy not only what is needed but also what are labelled as wants.

This is what I call “The art of buying/spending”. Yes, buying (or spending, can be used interchangeably) is an art. It should be an art, otherwise, you’re spending on something which has no meaning. According to Wiki’s definition of art, “[Art] is the product or process of deliberately arranging items (often with symbolic significance) in a way that influences and affects one or more of the senses, emotions, and intellect...”

Since art affects ones senses, one should consider, how does he/she feel when about to buy something. More often than not, the feeling of elation a person feels when he/she buys a preconceived material, is beyond rational explanation. This simply means, no matter how costly the item is, it gives temporal satisfaction and a transient sense of achievement upon acquisition—Of course, it’s only transient because of the insatiable appetite to want more. This is where a marketing strategist hit the mark: show something that is fad today, and after few months regard it as cheap and label it “second class”. When you want to buy something what you really want, you will not settle for a second class/low quality pirated item that are usually mass patronized. You’ll not be satisfied and later regret your purchase, otherwise. You may not be aware of it but your ego is longing for social acceptance, and your branded apparels (maybe jewelries, type of perfume, etc.) will serve as a ticket for admission. These are some of the reasons why you may be in the habit of spending rather than doing the art.

Enough with the rant, what is the art of spending?

The art of buying/spending is synonymous to bargaining; something that is not costly but is worth the buy. Don’t be confuse, bargaining is different from the catchy slogan ON SALE! SALE is the kryptonite of shopaholics; the opposite pole of window-shoppers. This is one of the greatest inventions of advertisers that has been so effective since the conception of the word. Bargaining on the other hand, is a skill that few have mastered. It’s an effective way to reduce the value of an item up to 25% percent or even higher. But sadly, not all stores succumb to this kind of transaction strategy especially when you’re purchasing inside a first class mall. It’s an embarrassing attempt to even think of it.

Here’s the thing, before buying the “thing” that fancy you, you have to look at it not in the perspective of other people, but should be based on the urgency, the usefulness, and your capability to buy the product. Compare it to other brands that cost less. Ask your self first: are you buying for the quality or the endorser? Remember that what gives value and a sense of awe to a product is the opinion of the rich, celebrities, and product endorsers. That’s what makes a product radiantly so attracting to the eye.

You have to ask your self again: Is it urgent? Is it useful for your day to day regimen? Will it add convenience to the kind of job you have? Don’t be drown by the external voices that seduce you to forget about frugality, and indulge on your whims while you can. Now, if your answers are all YES to the questions above, and that you’re honest to your self, then you have a green light telling you it’s safe to go ahead and buy.

Determining the right moment to buy

While you’re learning the art of buying/spending, you may also want to consider the right time to buy. Again, this is different from the seducing slogan: ON SALE! Determining the right time to buy is your shield against being outsmarted by sellers. With the fast-paced upgrade of technology, you should be observant about the price fluctuation in the market. High-end gadgets when come to their debut seem worth the money, but when outpaced by new ones, their value drops substantially. You don’t have to pay an-arm-and-leg for something that will eventually drops its popularity within a couple of months. You have to be patient. Never buy a product if its newly introduced in the market and its being swarmed by endorsers to reinforce its popularity. Their are products that are less popular but are leveled with same quality and performance as their competitors.

Flea markets vs. Shopping Malls

For some reason, eventhough there are a number of flea markets all over a town, yet some people still find it more convenient to shop in malls. For entrepreneurs, flea markets are a haven that they can't afford not to visit. But for a non-business-minded person, convenience should be the utmost priority when buying. This is a case to case basis, because not all have access to flea markets and it would be practical to head for the malls when buying groceries. Compared to malls, flea markets are crowded, inconvenient, and there is a fear of being randomly rob. Flea markets cannot promise security if you’re looking for one, but they can guarantee reasonable prize—sometimes half of the mall price. This is where bargainers hone their “art of buying/spending”. Just visit once, and you’ll be applying the trick on your next visit.

This is where you have to make a choice between malls and flea markets. If you opted for “security” and convenience, then you are gonna get charge for that whenever you make a purchase inside the mall (you don’t have to look for it on the receipt, but it’s there not visible to the eye). But if you’re looking for adventure, and you want to learn more about the art of buying/spending, the flea market is the best school for you to enroll.

Closing remark

These are simple tips that I hope you can learn something. My only intention for writing this is to remind you that when it comes to spending, you should not be too impulsive to buy whatever latest display you see when you go malling. You have to really ask your self if what you intent to buy will be beneficial for you not only now but in the days to come. Wants will always be there. It will always put a challenge to you whether to give in or say pass. It’s not easy to have a total control over your spending habits. It may be hard at first, but once you start to develop a pace, you’ll soon be able to master your spending wisely.

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Poverty and You

noreply@blogger.com (Anonymous) — Thu, 03 Mar 2011 10:17:00 +0000

WRITTEN BY: Ednan Orallo

The fight against poverty is like a David and Goliath battle that happened thousands of years ago. David, equipped with just his slingshot, brought down a Goliath, double his size. This probably is one of the inspiring stories written to tell people that impossibilities have limitations, too. But with the ever growing number of poor people, the story of the Goliath slayer became no more than a favorite bedtime story.

There are Davids in our time that have successfully fought against the debilitating effect of poverty and managed to lift the financial status of their lives. You many not believe some of these successful people started with nothing but their dreams and ambitions to make their lives better. Some have started small but have made it big. Let’s take the example of Anunciacion Santillan, one of the top winners of the 2008 Citi Microentrepreneur of the Year Awards. Santillan used to be a fly-by-night sidewalk vendor, but when she was granted a loan of 15,000 Php from a bank that gives opportunity to small-time entrepreneurs, she used the money to reinforce her small business and was determined to grow it well. Equipped with nothing but her vision and faith, she tore down the walls of poverty—something that is not common for an ordinary person to do. Now her retail business is registered under DTI with a growing number of employees.

She has proven that an ordinary person can change his or her fate by changing the attitude of the mind.

Poverty is a mental battle

Like inheritance, you can pass poverty over to your children by inculcating in their malleable minds: “we are born poor, we will grow poor, and eventually, we’ll die poor.” This has been my struggle whenever I see less fortunate families embraced their predicament and do nothing about it. As much as the government wants to alleviate poverty, if majority of the poor are not guided, taught, and encourage to change their mindset, the government’s efforts will come to waste.

I was raised in a poor family. I lived in a community where people around me were contented with what little they had, as long as there was food on the table. There was no problem with this at first, but as time went by—where cost of living catapulted each year—whatever little a family had was not sufficient to subsist. The pinoy hospitality of sharing your ulam (dish) to your kapit-bahay (immediate neighbor) became less practiced to the point of abandonment. I noticed some of our neighbors became frustrated and engaged on doing illegal transactions: selling drugs like pancakes, stealing fences from private properties, tampering electrical wiring and water connections, and other things just to survive.

I firmly believe that these are the overwhelming effects of mental poverty which are prevalent in our society that we are all aware about but have little—if none at all—interest in addressing this issue. Mental poverty is a strong force that pulls down the will of an individual to have a positive outlook in life but it reinforces a perpetual mediocre lifestyle that is being accepted by the growing number of poor children.

It is almost impossible to give an effective solution to ending poverty (even if billionaires combine their wealth and give it all to them), when the internal root of poverty in the mindset of the poor are not uprooted. The poor have to be financially educated first. There’s a saying that, “don’t throw your pearls before pigs, lest they trample them underfoot and turn to attack you.” The poor don’t appreciate what little money they have so they spend it instead of seeing the opportunity to grow it.

It is not how big you need to start your life with but rather, what little you have and then you can begin building up your future. Some of the people I talked with can’t start a business because of the notion, “I don’t have a capital to start with”. If you’re one of these people, I’ll be honest with you: You’re wrong! You don’t need to have a large amount of money to put up a business. In fact, you can start with water from your faucet! I know of a businessman that started with water and ice as his capital. Some people want it big so they think by dropping a huge rock in the water will make a big splash. This is where an aspiring businessman gets drown in bankruptcy immediately. No matter how small you start with, as long as you’re building up a tempo, taking one step at a time, then you have no other direction but to go up.

Your battle against poverty is a personal choice you have to make. No one will make this choice but you. Many have decided to fight but few acted upon their decision. The ball is in your court. What are you going to do about it?

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How to use time to grow your money

noreply@blogger.com (Anonymous) — Tue, 01 Mar 2011 10:35:00 +0000

WRITTEN BY: Ednan Orallo

In this post I’ll do my best to explain how time plays a major role in making your money grow.

We already have heard it often that time is the scarcest commodity we have in the 21th century. If we don’t know how valuable time is or should I say, how can we profit from the value of time, then we haven’t realized that we’re losing more than what we could ever know.

Time is gold
This is a reality that billionaires are feasting upon as I write this post—every tick of a second means a dollar goes to their bottomless coffer. Billionaires did not reach this level because of sheer luck or guessing the right combination to win the lottery. They managed to elevate the status of their life by discovering the unfathomable reaches of time.

As I mentioned on my previous post: The power of investments. That if money is invested in an instrument that gives good yield, then your money will be compounded by “time”. Let’s take the example of John D. Rockefeller, a billionaire and philanthropist:

"When he was 12, he saved over $ 50 from working for his neighbors. His mother urged him to loan his money to a local farmer with 7% interest payable in one year. When the farmer paid him back with interest the next year, Rockefeller was impressed that his money grew and he could grow it more." And the rest was history.

Every time counts and should not be wasted. Money should not be spent without thinking and planning; but it should be invested, and reinvested, in an instrument that will give good yield.

Time and Inflation

What is inflation? According to wiki: “Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When general price level rises, each unit of currency buys fewer goods and services…Inflation also reflects the erosion in the purchasing power of money…”

To make it simple:

The cost of basic commodities increases yearly because of inflation rate. For example: The price of a value meal today is around 100 Php ($2). But on the next year (assuming that inflation increases at 10%), the cost of a value meal would be 110 Php ($3). That means, if you have a savings of 10,000 Php now, by next year, the value of your money would be 9,000 Php. Your money has depreciated its value.

Imagine if you haven’t invested your money in instrument that gives good return—or if it’s invested but gains 2% interest per year—it will lose its purchasing power.

Having this in mind, you should invest your money in an instrument that will beat inflation rate. Inflation should complement time so that your money will not lose its purchasing power. On my post: The power of investments. . I also stated there that investing in real property is a sure way to make your money grow. Land, like gold, appreciates its value as time goes by. If you happened to purchase a good property—in a desirable location—for, let say.200,000 Php. At 10% inflation rate, the value of your property next year would be 220,000 Php. Wait for another 5 years, do the math, and be amazed how your investment grows!

Time against your age

In the book “Making your money grow” by Francisco J. Colayco, let me paraphrase what he said: “The more you delay your savings [and failed to invest it in an instrument that beats inflation rate], the more you put your financial security at risk [at your retirement stage].”

Most of the senior citizens I know depend on the support of their family. Although some have pension to rely on, but because of yearly inflation, what they receive monthly cannot continue to meet and support their personal needs alone. This pitiful scenario can be avoided if starting today, you will not take the value of time for granted. Using time as your agent to reinforce the value of your money is the key to having the kind of lifestyle you want at retirement stage.

In closing, it takes patience because, like it or not, time can be your greatest liability if you don’t use it as it should be. You can’t redeem the lost time, but you can start building up on it, now, and be your faithful alliance—should you decide to take it side.

Simple ways on how to manage your income

noreply@blogger.com (Anonymous) — Thu, 24 Feb 2011 13:07:00 +0000

WRITTEN BY: Ednan Orallo

Managing your income is your first step in financial literacy. Without knowing how your income come and go you will have hard time figuring out how your money is spent and how it disappear like bubbles.

In this article, I ‘m going to give you a simple income-management tip to help stitch the hole in your pocket.

The first thing that you have to do is to list down all your monthly expenses. Never mind the order. We’re going to arrange it later. On your list, make sure to include all the possible things where you spend your money at.

Example:

Electricity, water, credit card, house rent, groceries, food allowance, gas, transportation allowance, movies, recreation, books & magazine, telephone/cell phone bill, cable, charity, others.

By listing all the possible things on where your money is spent, you’ll have a general idea where your money goes to and the amount it goes with. This will help you a lot to see how your money is dissolving quickly from your wallet.

Now that you have a list on where your money goes, your second step is to put the corresponding amount of your expenses.

I will give an example base on a (single) person who has a monthly salary of 20,000 Php. Renting an apartment and has no car.

Note: You can adjust the figures base on your own salary.

Apartment = 6,000

Electricity = 800

Water = 200

Food/Groceries = 3,500

Clothes/hygiene = 4,000

Credit card = 2,000

Transportation allowance = 1,000

Cell phone load/plan = 500

Movies/recreation/books/magazine = 1,000

Total: 19,000

With 1,000 left in hand.

Hypothetically, you have 1,000 left in your hand. If you have this amount, what are you going to do with it? If you are a shopaholic by “nature”, this wouldn’t be a big problem, right? But if you’re in the start-up stage of financial management, you probably would put this in a bank. That would lead me to a conclusion that the least of your priority is savings.

This is how you do it:

INCOME – EXPENSES = SAVINGS

20,000 – 19,000 = 1,000

It is imperative for you to know how much goes to your savings. This will be the bedrock foundation where you will build upon a strong financial management principle. It will act as gear that will consolidate the allotment of your income to various expenditures and will help you see which expenses are necessary or not.

Let’s make your savings on top of your list.

SAVINGS =

Apartment =

Electricity =

Water =

Food/Groceries =

Clothes/hygiene =

Credit card = 2,000

Transportation allowance =

Cell phone load/plan =

Movies/recreation/books/magazine =

Except for the credit card, notice that I haven’t put the corresponding amount yet. Although the credit card should not be the no.1 priority on your list; but it shouldn’t be the last obligation that you have to settle. On my later post I will show you what are the disadvantages and advantages of having a credit card and how you can ease your life from credit card collectors.

YOUR NEW FORMULA

The formula that you have been using:

INCOME – EXPENSES = SAVINGS

Should be:

INCOME – SAVINGS = EXPENSES

Everything that’s on your list belongs to your EXPENSES. Now, I mention awhile ago that your savings will act as a gear because it will align the distribution of your income.

I have to do a simple math to illustrate further on how your income is distributed to your expenses. You can also do this step, with the help of a calculator and have fun learning basic calculation!

This is the result of dividing your expenses by your income:

EXPENSES/INCOME = %PERCENTAGE

After organizing your expenses, you will notice that the top priority on the list is your monthly rental. And your savings became your second to the last priority. Remember, our priority is to make your savings on top of the list. To put it into perspective, anything that belongs to the least of your expenses are most likely to be taken for granted. And the first top three you see compels you to prioritize them.

A lot of financial experts say, your savings should be 10-20% of your monthly income. This amount is good enough to be invested in an instrument that will give good yield. Applying this advice, our savings would reach the spot between CLOTHES/HYGIENE and CREDIT CARD.

As you can see, you added 15% more to your savings. But ,of course, you have to make an adjustment on your other expenses to counterbalance the allotment you have made.

At this point, you have to decide which of your expenses are unnecessary. Check your list again and mark the things, you think, that are less important but will not make major changes in your lifestyle. After thinking it over, deduct the 15% adjustment needed.

By making an adjustment on the three items on the list, I am able to extract the deficit amount the savings needed, thus, making it step up to 2nd rank. Let me explain why I opted to highlight the three:

From the 20% allotment on CLOTHES/HYGIENE, I bring it down to 10%. Good apparels, especially signature ones, are what make you stand-out from the rest. But it’s not worth it to exchange your long-term financial goal on clothes that fade through time. There are clothes that you can buy at a cheaper price but the quality is good. Nevermind if you’re not wearing branded things at the moment. Your concern is not to have good clothes but to be financially independent.

Your food allowance has been cut down from 17.5% to 15%. Some of you might asked why lessen it more and deprive yourself? For one, you have a credit card obligation to pay which most of your transactions, I presume, came from fancy restaurants. You have to cut down some of you “food addictions” in order for you to lessen your expenses. Make sure that you eat food that will give your body benefits and not added obligations. If you’re addicted to soft-drinks, maybe you have to lessen it a bit. As well as chips and chocolates.

This requires discipline. I cannot further elaborate the risk you are getting yourself at if you don’t have control over what you eat.

The last one I highlighted is MOVIES/RECREATION/BOOKS, which I cut it in half. Recreations are good way to divert our mind from office-related pressures. But there are alternative ways to avoid spending too much. Instead of going out of town on weekends (some preferred malling), why not spend your time with your nieces or nephews in the local park. There are a lot of good parks and public places you may have not discovered yet. By doing this, you’ll cut cost and allocate your money to your savings.

THE TURNING POINT

The current status of your savings is on second rank. It is because you have an obligation to your credit card. I know that it’s counterproductive to save while you’re paying debts. But let not this discourage you from your desire to be financially independent. If it’s impossible for your save 10-20% of your income, you can begin at 5%. And after you are free from debts, you can start building on your savings more. This is how it should look like:

If you’re planning to move to a cheaper apartment, that would be a good option for you so you can allocate a larger percentage to your savings. But I have to warn you, you don't have to rush. Do it one step at a time. This will require patience, determination, and discipline. Remember, achieving something is not an overnight task, but it is your willingness and humbleness that will get you there. I mention humbleness because without it, it will be hard for you to accept that you can’t have everything what rich people have—cars, condo, branded clothes, high-end gadgets—. You need to realize that you don’t have to keep up with them, for now. There is a time for that. You have to manage your finances first and have a dream that someday, with God’s favor, you’ll reach that level.

An obituary letter to God

noreply@blogger.com (Anonymous) — Tue, 22 Feb 2011 15:02:00 +0000

WRITTEN BY: Krazaz

Dear God,

I know that you are busy with all the avid prayers of your gazillion fans all over the word and this is the only way—I think—I can get your attention. Anyway, I would like to share you something that might worth your time reading. This is not a complain letter or a supplication letter that are a common bulk you see in your inbox. This is my way of expressing my deepest gratitude for your unconditional love and favor for me and my family.

I attended my lolo’s funeral last Saturday in San Quintin Pangasinan. I was able to meet my relatives and cousins for the third time. But the same feeling I felt on my first and second visit was the same: I felt alienated to them. I never know whose fault was it—that I don’t speak there language. I was never taught by my father how to speak ilocano and the only local dialect I’ve learned so far, is bisaya—which I remotely learned when I was in Davao for three years. I never had any childhood friends and made acquaintances either. I first landed my feet on their soil when—if my memory serves me right—I was twenty-two. That’s why I had to force myself to join in a cluster of nocturnal people playing tong-its just to make them feel I belong, even though I can’t understand their conversation. My nose acted like a vacuum cleaner on the fumes of their cigarettes and I had no choice but to laugh and nod with them and gawked at what they do.

You know God, I realized that I don’t have any lolos and lolas in both my father and mother’s side anymore. My lolo and lola, on my mother's side, died before they were able to get the chance to see my first breath-taking drooling act. They would have been proud of me, I think. My lola, on my father’s side, died because she forgot to breathe. Just kidding! But seriously, she had Alzheimer's disease that’s why I tell my friends, ‘The good lord took her away and gave her a decent death before anything tragic would have caused her demise’. Right God? I know You know better than I do. Her husband, my lolo, died by the age of eighty-five (not bad!). His scrawny body, because of age, eventually gave up even though he had the will to live but the soil was already attracting his body to be part of the earth and join nature’s cycle.

In this time of mourning, God, I still thank You for other than Alzheimer’s disease, You didn’t implant in our genes cancer cells or tumor or any kind of diseases that most people panic about. I just want you to know that You’re so good to us, or should I say, to our lineage. And one day, when I see you face to face, I’ll thank You personally for all the "non tragic" deaths we had—and we will have—in our family. I owe you a lot God! Please say hello to all my lolos and lolas up there. Tell them that papa and mama raised me well. I missed them a lot. Thanks!

P.S

Well if you do have the time to write back I would much appreciate to know if my lolo—You've recently accepted in your family—is in good condition. He had spent most of his time in doing church activities when he was still here. Just to let you know.

Thanks God,

It’s just Me!

Career transition; is it worth the risk?

noreply@blogger.com (Anonymous) — Mon, 21 Feb 2011 15:15:00 +0000

WRITTEN BY: Ednan Orallo

I asked one of my students if he wanted to be a soccer player when he grows up because he said he likes playing soccer. My student answered no, and instead he said politely, “I want to be a math teacher”. He’s only in middle school, but at his young age he already has something to look forward to.

I’m observing the people around me in the office and wondering if some of them think the same way as my student. Perhaps a handful of them have plans for their future but I guess only few are living it out. When I asked some of them how do they see their self ten to twenty years from now, no one gave a serious answer but instead, the conversation just segued into a banal chitchat—I seriously slipped out of the room. I was not being unsociable toward them—I was being careful of the people I associate myself with. Much like of a saying, “same-feather-flocks-together” thing. If you don’t belong in the flock, mind as well head the opposite direction were your same-kind-of-flock awaits for you.

It’s hard for a visionary to mingle with people that think the opposite. You can understand them but they will have hard time understanding you. The sad part is, they talk about you, laugh at you, and make fun of your idiosyncrasies—something you cannot disagree with. But you know it’s part of the never ending challenges you have to face as you walk your calling: to make a difference.

When I was a teenager, I used to envy my childhood friends for their dexterity in playing basketball. My peers said I should make use the full potential of my height—an advantage that would be very useful. But even possessing a height that some of my friends wish they had, my body was not built to be agile—I was clumsy. And because my friends expected so much of me, I became an introvert, and shrunk my world in the four corners of my room. Fifteen years later, I realised why I was not destined to be what others would have wanted me to be. I found meaning.

Let me ask you point-blank. What gives meaning to you? Something that you can’t afford to lose or can’t afford not to achieve? If you can’t give an explicit answer in three to five words, then you have not found the true meaning of happiness at all. If you argue that you’re happily contented in your life and yet you have not defined what really, deeply makes you happy, I’m afraid to say this to you, but you are like a bomb waiting to be triggered. What gives meaning to your life is something material things can not fill. Nor what a person can give—love. Your source of happiness does not come from these external factors but from within. Real happiness starts inside of you and reflects it outwardly. Happiness is the result of discovering your real joy—which is doing what you really want in life.

Shaira Luna, was called the junior anatomist at a young age. She was very popular during the early 90s because of her sharp memory to recite the human anatomy without even flinching her eyes. She was truly an exceptional child. When Shaira was eight, her I.Q was already advanced compared to other kids of her same age. As her mother had great expectations of her to become the youngest practicing doctor, Shaira have chosen another path: photography—something that her professors, promoters, people who believed in her and supported her, and even her own mother, was not expecting. In an on cam interview she said, “My mom was living her life through me...” She came to a point where she realised It was her mother she saw growing inside of her and not her.

Shaira may have inflicted so much pain to the people that surround her but if she did not sever on the larger-than-life expectations of people that coiled her for so long, she would become empty.

People that surround us have no power to dictate our own destiny unless we get carried by their own definition of success. Real success is not the things that other people want: recognition, wealth, high status in life, etc. Real success is the fulfilment of your passion—what you love doing most and what gives you satisfaction.

Lovesick

noreply@blogger.com (Anonymous) — Fri, 18 Feb 2011 16:57:00 +0000

WRITTEN BY: Ednan Orallo

Lovesick is actually a word that can be found in the dictionary. It usually functions as an adjective in a sentence. Well it can be a noun but I would go against the laws of grammar if I used this word as a verb (I hope it’s possible) to give more emphasis on what I wanted to point out. Well I’m not an expert in grammar but I hope I’m not obscuring things up—I hope.

How does a person experience this phenomenal word Lovesick? Personally, I myself had experienced this state of being lovesick with a person. I can’t sleep properly, I can’t finish my sumptuous meal, I can’t think rationally: All that is in my head is a scenario of happiness and unending memories being with the person I’m in loved (Infatuated) with. Of course, even eternity could not outweigh the feeling that you experience when you’re with someone who you love. No wonder how many people are willing to take the risk just to be with the person they love because being lovesick with someone is truly a wonderful experience. But there are dangers if this kind of feeling will be out of control. One is obsession. I know this word is laughable but in reality you’ll never know when or how you’ll be caught off-guard and find yourself unable to do normal things without seeing first the object of your happiness. Sometimes you may decide irrationally because you’re following the dictation of your emotion, and its selfish desire, making you a slave. So why do you voluntarily follow it? The answer is pleasure. Yes, it’s true. Because you feel great, wonderful and elated you make your decision based on what you feel—what is good for you. If it is bad, and against your personal satisfaction, you disregard it immediately without reassessing what would be the consequences. For us boys (men are always boys in action!) it’s an advantage, but for you girls you’re giving an opportunity for us.

So what should be the arrangement? It’s simple but without a proper understanding it would be useless. First, never make a rush decision when you’re in the state of being Lovesick. Don’t decide when you can’t think properly. Second, every man becomes a smooth-talker to a woman who is in the state of being Lovesick. This is very dangerous for a woman to be unconsciously persuaded by sweet words—sprinkled with eternal promises—coming out of the persuader. This classic technique is very effective that a woman have the least idea that she’s already infected by the lovesick syndrome covertly injected at her. Lastly, for your own safety, avoid making connection especially through text messaging, and chatting. Texting, as some have coined it, is a medium that has been abused by all kinds of people in scandal, robbery, and fraudulent acts. But texting in its most useful and simple way is used to reinforce dating and courtship. The more you text, the more you connect. And the more you connect, the more you both get involve. The more you get involve, the more you become open. And the more you become open is the time you fall indirectly in love, not to the person per se, but to the endearing words you read.

These pieces of advice may suck but even I myself haven’t applied these things. Why I’m sharing all of these? Well, for some good reason, these are the only way I know how I can avoid the sting of being lovesick. But in reality, the more dangerous it is, the more excitement it produce. I often hear this analogy in preachings: “Only the dead fish are washed away by the stream of water, but those that are alive come against the tide.” This is true, but wouldn't it be easier to let yourself be carried by the flow and stop exhausting your energy fighting against the tide? What do you think? Please send your comment and be free to express your thoughts. Your comments are precious.

A paradigm shift

noreply@blogger.com (Anonymous) — Thu, 17 Feb 2011 15:03:00 +0000

WRITTEN BY: Ednan Orallo

It’s Monday. The beginning day of another long laborious week. You wake up at the same bed; you smell the festooned saliva indented on your pillowcase. You smash the clattering alarm clock. You whisper your morning prayer, take a breath, and do your morning routine. You race to the shower room and turn the shower knob gently. You angle your chin as you wait expectantly for the fissures of water to refreshen your face.

You grope for the soap: the same soap you rub on your body. You squeeze the bottle of shampoo and gawk at the thick slimy substance as it ooze out gently, and you rub it to your hair. Then you look in the mirror: Nothing’s change, just bubbles on your head.

You amble to your closet; rummage the same set of clothes. You smell a familiar scent, savour it for a moment, and realise it’s your own perfume. You pull out a pair of shoes: signature but not too expensive. You look yourself in the mirror for the second time: It’s still the same you, but with clothes on.

You drive yourself to work. While caught in a traffic jam, you make a mental note on the important things that you need to do. You glance at the rear-view mirror while you pull out your smart phone: It’s still you with glasses on. You check your daily planner, suddenly you smash the break with your foot. Small drops of sweat surface on your forehead as you scroll down and read each line. You can’t believe what you’re seeing on the LCD screen. The words are blinking: Deja vu! Deja vu! Deja vu...

This is an ordinary scenario that happens to us on a regular basis: We do the same thing over and over again. It became part of a day to day ritual that some of us are not even aware of. The funny thing is that some of us had actually had a first-hand experienced on the same scenario of waking up one morning, and doing the same thing for the umpteenth time, and we can’t even distinguish whether it’s real or we’re just dreaming.

The day to day rituals that we do became an integral part of who we are and exhibits what constitutes our preconsciousness, but unaware of it. Preconsciousness are thoughts that we are unconscious about at the moment. But these thoughts can be recalled, and are available, at any given time. Let’s have the example of brushing your teeth. Since the time you have learned that cavities can do nasty things to you, you gave brushing your no.1 priority before bed. Even you’re unaware of it, you automatically brush your teeth after each meal. And you do it without even thinking of it anymore because you unconsciously programmed yourself doing it.

We became familiar with what a person does (e.g. our partner, our children, or the people that live in the same house with us) by seeing the usual things he or she performs on a regular basis. You know that your little girl needs something because she’s being sweet and charming. You can read your friend’s mind by the simple gestures he or she does. If you are a wife, you’re not surprised when your husband gently rubs his thigh against yours, and vice versa, because you know what will happen next and you have to respond according to what your partner is expecting. Otherwise, you will be misunderstood.

Familiarity is the umbilical chord that secures our intimacy with a person. It is also what makes us do things with confident and assurance against failure. But the problem with it, is that it limits the room for change and improvement. And because nothing is expected new, growth—in any aspect of life—is not achieve.

Let’s look at it in the aspect of relationship. There’s an advertisement about a cologne that you have to wear to secure you a good date because (according to the spiel) “[A] woman gets bored easily...” I don’t agree that this statement is conclusive, nor do I agree that it’s not. I just want to point out that when something or someone starts to get trite, boredom sets in. To keep the relationship burning, try to do something that you have not done before. Something your partner doesn’t see you often do. You have to be creative and original. And you must be prepared to accept negative reaction and sometimes rejection. But you shouldn’t stop there. Once your partner feels that you're sincere and you want to work things out or maybe improve your relationship more, he or she will cooperate too.

In the aspect of business, innovation and improvements are expected by the customers. It’s no wonder why fast-food chains are serving the same product they are famous of but they presented it in away that seems unique and quality assured. An example of this is burger. The only kind of burgers that exist during the late 70’s and early 80’s are beef burgers. But when customers got bored with the taste, fast-food owners started to substitute for chicken and fish. And up until now, fast-foods are still experimenting on how they can develop the taste even better. Because they know customers won’t continue to patronize a product if it does not have something new to offer, they did not settle on what is familiar to the customers’s taste. They improve their product but retained the distinct taste which established their name on the market.

In career, mastering what you already know but refusing to think out of the box can be counterproductive. It will hurt you more to remain routinary at what you do. You should climb another level of success. Success does not have a stopping point. Hence, you should not be complacent. If you reached a plateau at some point in your career, take it as a challenge to conquer yourself. Overcome your limitations. This is the secret of ordinary people who did extraordinary achievements in their life. Learning and growing is a perpetual process that should be enjoyed and shared to inspire others.

The next time you get out bed check if you happened to smash the alarm clock. If you did, maybe it’s the time to change it’s location. You just want to be sure that you're not seeing a familiar pattern—A paradigm. Make sure that you’re fully awake and taking account of every move you make. Are you dreaming? Or are you in another phenomenal experience? Check your phone. Maybe you have a message. =)