Invest in Your Future

Business Ideas for Overseas Filipino Workers (OFWs) in 2026: Practical, Low-Risk Options That Actually Work

noreply@blogger.com (Joel Olave) — Sun, 25 Jan 2026 06:33:00 +0000

Introduction: Why OFWs Are Thinking About Business More Than Ever

For many Overseas Filipino Workers, the idea of starting a business is not about getting rich overnight. It’s about security, options, and eventually coming home with dignity.

In 2026, the OFW reality is becoming clearer. Overseas jobs still pay better than most local opportunities, but they come with rising costs of living, contract uncertainty, and physical and emotional limits. At some point, almost every OFW asks the same question: What happens after this job ends?

This is where business enters the conversation—not as a dream, but as a bridge. A bridge from salary dependence to income diversification. A bridge from uncertainty to choice.

This article focuses on business ideas that make sense for OFWs who are still working abroad, not those who can manage a shop personally every day.

Key Principles Before Starting Any Business as an OFW

Before talking about specific ideas, a few principles matter more than the business itself.

First, you are an investor before you are an operator.

If you are abroad, your role is to fund, design, and monitor systems—not to solve daily problems on the ground. Businesses that rely on the owner’s physical presence usually struggle when the owner is thousands of kilometers away.

Second, capital protection matters more than high returns.

Many OFWs lose money not because the business was bad, but because they went all-in emotionally and financially. Business capital should never replace your emergency fund.

Third, remote visibility is non-negotiable in 2026.

CCTV, POS systems, cloud accounting, daily reporting—these are no longer optional. Trust is important, but verification keeps businesses alive.

Category A: Low-Touch, Manager-Run Businesses in the Philippines

These are traditional businesses, but they can still work if systemized properly.

Water Refilling Stations

Despite being common, water refilling stations remain viable in many areas. Demand is steady, margins are predictable, and operations are repetitive.

The biggest risk is not competition—it’s operator control. Sales reporting, delivery logs, and inventory must be tracked daily. For OFWs who treat this as a system, not a family favor, this can provide stable cash flow.

Boarding Houses and Rental Units

Rental income is boring—and that’s exactly why it works.

Boarding houses near schools, hospitals, and industrial zones offer predictable demand. Unlike trendy businesses, rentals do not depend on daily marketing or customer moods. The focus here is occupancy, maintenance, and cash flow, not appreciation or speculation.

Essential Service Franchises

Small logistics, cleaning, or basic service franchises can work well if the franchise offers real operational support. The key is to avoid flashy concepts and focus on essential services that people need regardless of economic cycles.

Category B: Digital and Cross-Border Businesses (An OFW Advantage)

This is where OFWs have a unique edge.

Online Service Businesses Using Philippine Talent

Virtual assistant services, bookkeeping, admin support, and design services continue to grow globally. An OFW’s role is not to do the work, but to find clients, build systems, and manage quality.

This model is scalable, location-independent, and does not require physical inventory. Compared to brick-and-mortar businesses, capital risk is lower and learning is faster.

Content-Based and Digital Asset Businesses

Blogs, niche websites, YouTube channels, stock photos, templates, and digital products are long-term plays. Income builds slowly, but once established, these assets can generate revenue without daily intervention.

This is not passive at the start—but it can become semi-passive over time.

Small, Focused E-commerce

E-commerce works best when focused on a narrow niche rather than a general store. OFWs should avoid managing inventory personally and instead partner with a local operations handler or third-party logistics provider.

Category C: Skill-Based Businesses from Overseas Experience

Many OFWs underestimate the value of their own experience.

Consulting, freelancing, and training services allow you to monetize what you already know. Engineers, technicians, caregivers, and specialists can offer advisory services, online training, or niche consulting without heavy capital investment.

This model is especially powerful because it converts time and experience into higher-value income.

Businesses OFWs Should Think Twice About

Some businesses look attractive but are risky for overseas owners.

Restaurants and cafés without daily oversight often fail due to thin margins and constant operational stress. Trend-driven franchises may boom briefly, then collapse once demand fades.

Starting a business primarily to employ relatives also requires caution. Mixing family obligations with business decisions often leads to blurred boundaries and financial leakage.

Capital, Returns, and Time Horizon: A Reality Check

Most small OFW businesses fall into three capital ranges:

₱300k–₱500k for micro-enterprises, ₱500k–₱1M for structured small businesses, and ₱1M+ for property or multi-unit operations.

Returns are rarely immediate. Year one is about survival and systems. Year two is about stability. Meaningful returns usually come after year three.

Breaking even early is already a success.

Final Thoughts: Business as a Bridge, Not a Gamble

For OFWs, business is not about proving anything. It’s about reducing risk and expanding options.

Sometimes, the smartest move is not starting a business at all—but when done carefully, with systems and realistic expectations, a business can become the bridge that allows an OFW to come home on their own terms.

Start small. Protect capital. Learn fast. And remember: success is not measured by how fast you quit your job abroad, but by how prepared you are when the time comes.

Pag-IBIG MP2: Still a Smart Investment Choice in 2025?

noreply@blogger.com (Joel Olave) — Sat, 19 Apr 2025 04:52:00 +0000

The Modified Pag-IBIG 2 (MP2) Savings Program has emerged as a popular investment vehicle for Filipinos seeking a secure and relatively high-yield savings option. As we move into 2025, it's natural to question whether it remains a good investment choice. Let's delve into its key features and recent performance to help you decide.

What is Pag-IBIG MP2?

The MP2 is a voluntary savings program offered by Pag-IBIG Fund to its active members, as well as former members who have had at least 24 monthly savings prior to retirement. It's designed as a supplement to the regular Pag-IBIG savings, offering higher dividend rates and a five-year maturity period. One of its key attractions is the government guarantee on the principal and the tax-free nature of the dividends earned. The minimum contribution per month is PHP 500, but members can save more if they wish.

Strong Performance in Recent Years

Pag-IBIG has consistently delivered attractive dividend rates for MP2 contributors. In 2024, the MP2 dividend rate reached a high of 7.1%, surpassing the 7.0% rate in 2023 and the 7.05% in 2022. This performance has consistently outperformed traditional bank savings accounts and even some fixed-income instruments, making it a compelling option for conservative investors.

Advantages of Investing in Pag-IBIG MP2 in 2025:

Competitive Returns: The historical performance of MP2 suggests that it will likely continue to offer dividend rates that are higher than regular savings accounts and potentially competitive with other low-risk investment options in 2025.
Government Guarantee: Your principal investment and the earnings are backed by the Philippine government, providing a high level of security and peace of mind.
Tax-Free Dividends: All dividends earned from your MP2 savings are exempt from taxes, allowing you to enjoy the full benefits of your investment.
Flexibility: While the program has a five-year maturity, you have the option to open multiple MP2 accounts, allowing for staggered maturity dates to meet different financial goals.
Accessibility: With a minimum contribution of just PHP 500, it's an accessible investment for a wide range of individuals.
Disciplined Savings: The five-year lock-in period can encourage disciplined saving habits, helping you work towards your medium-term financial objectives.

Factors to Consider:

Maturity Period: The five-year maturity period means your funds will not be readily accessible for immediate needs. Ensure that the money you invest in MP2 is funds you won't need for at least that long.
Not Entirely Risk-Free: While government-guaranteed, the dividend rates are not fixed and depend on Pag-IBIG Fund's financial performance. However, Pag-IBIG has a strong track record of profitability.
Inflation: While the returns have been good, it's essential to consider the potential impact of inflation on your real returns over the five-year period.

MP2 vs. Other Investments:

Compared to other investment options, MP2 offers a unique blend of relatively high returns and low risk. While the stock market or mutual funds might offer higher potential returns, they also come with greater volatility. Time deposits in banks generally offer lower interest rates than MP2. For those with a low-risk tolerance and a five-year investment horizon, MP2 stands out as an attractive option.

Conclusion:

Based on its consistent strong performance, government backing, and tax-free dividends, Pag-IBIG MP2 appears to remain a good investment choice in 2025 for individuals seeking a secure, medium-term savings option with competitive returns. It's particularly suitable for those who prefer lower-risk investments and have financial goals that align with the five-year maturity period.

However, as with any financial decision, it's crucial to consider your individual financial situation, risk tolerance, and investment goals before committing your funds. Diversifying your investment portfolio across different asset classes is also generally a sound financial strategy.

Complete List of REITs in the Philippines

noreply@blogger.com (Joel Olave) — Sun, 10 Dec 2023 02:36:00 +0000

It’s not easy to find a table showing the available REITs in the Philippines Stock Exchange and it’s associated stock code. For this reason, I created this table below as a reference for all of you, potential investors, who are just beginning to explore REITs in the Philippines. I added their website if you want to dig deeper and know more about their portfolio, management and performance so far.

What are REITs? It is short for Real Estate Investment Trusts. Here are important characteristics of what REITs are:

Real estate companies that pay dividends to investors.
Traded like stocks and invest in various types of properties.
Must follow certain rules, such as distributing 90% of income and investing 75% of assets in real estate.
Have benefits, such as diversification, income, appreciation, tax advantages, and professional management.
Have drawbacks, such as market risk, leverage risk, interest rate risk, liquidity risk, and tax implications.

In the Philippines, there are 8 REITs listed in the Philippine Stock Exchange to choose from if any investor is interested:

REIT	STOCK	WEBSITE	IPO Price (PHP)	As of Dec 10, 2023 (PHP)
Ayala Land REIT	AREIT	https://www.areit.com.ph/	27.00	30.65
DDMP REIT	DDMPR	https://www.ddmpreit.com/	2.25	1.19
Filinvest REIT	FILRT	https://www.filinvestreit.com/	7.00	2.78
RL Commercial REIT	RCR	https://rlcommercialreit.com.ph/	6.45	4.79
Megaworld REIT	MREIT	https://mreit.com.ph/	16.1	12.00
Citicore REIT	CREIT	https://creit.com.ph/	2.55	2.55
VistaREIT	VREIT	https://www.vistareit.com.ph/	1.75	1.69
PremiereREIT	PREIT	https://preit.com.ph/	1.50	1.54

This complete list should be a good reference for REIT's in the Philippines given there is no comprehensive list in existence that is easy to find as of yet.

SSS, PhilHealth and Pag-IBIG Contribution Schedule for 2021 for OFW’s

noreply@blogger.com (Joel Olave) — Sat, 03 Apr 2021 06:17:00 +0000

Photo by Fabio Achilli (Creative Commons)

As an Overseas Filipino Worker (OFW), I often ask this question at the beginning of the new year. “How much should I pay for SSS, PhilHealth and Pag-IBIG this year?”

2021 is no different. And so, I did some research to find out.

If only there’s a comprehensive post that will provide all this information, I wouldn’t need to spend so much time to figure this out. That is exactly what this post is all about.

To save others from all the trouble, I have all the contribution schedule below for 2021 for SSS, PhilHealth and Pag-IBIG that OFW's can use as reference.

SSS Contribution Schedule Effective January 2021

PhilHealth Contribution Schedule Effective January 2021

Pag-IBIG Contribution Schedule Effective January 2021

Pag-IBIG Fund will defer the January 2021 increase of its members’ monthly contributions – from P100 to P150 in 2021, and move the implementation by one year to January 2022.

In other words, Pag-IBIG contribution for 2021 will remain P100 per month.

PhilHealth Contribution Schedule for 2020 Changed with Universal Health Care Act

noreply@blogger.com (Joel Olave) — Sat, 07 Mar 2020 08:36:00 +0000

Photo by ILO Asia-Pacific (Creative Commons)

With the passage of the Universal Health Care Act of 2019, Filipinos should expect better health care coverage from PhilHealth. This law basically aims to provide health care services to all Filipinos at affordable costs.

It's a known fact that health problems are a burden to most Filipinos because of prohibitive costs. And although PhilHealth has been around for a while to alleviate some of that costs, not everyone is covered. The main reason for that is because the poor is not able to contribute especially when they are not employed or earn a meager income from their livelihoods to bother getting coverage.

Universal coverage is a laudable aspiration. Even the US with their Obamacare law has struggled to provide coverage for all Americans. The Philippine government, which is a poor country by comparison, should be commended for this goal. The main beneficiaries are the less fortunate. The rich can pay for hospitalizations but those with low income oftentimes had to beg politicians for help.

Getting all Filipinos covered is one thing, but the degree to which PhilHealth actually pays for expensive hospitalizations is another matter. If the amount covered is not going to be significant, poor Filipinos will still not be able to afford critical procedures and treatments.

To achieve the goal for universal coverage, many members of PhilHealth will not be happy to know that their contribution will be in an upward trend for the next 5 years until 2025. PhilHealth circular 2019-0009 is clear on why this is the case because according to it,

This social health insurance program serves as a means for the healthy to help pay for the care of the sick and for those who can afford medical care to subsidize those who cannot.

The table below shows how you can calculate your new PhilHealth monthly contribution amount. Employers in the Philippines will cover half of the amount with the employee paying for the other half. While direct contributors such as OFW's will need to shoulder the entire cost.

Take note that prior to this law, monthly contribution was just 200 pesos for a total annual premium of 2400 pesos. For those whose salary are over the ceiling prescribed in the table above, their contribution will go up to 1800 pesos per month this year 2020. That amount will continue to go up until it reaches 5% of 100K pesos or 5000 pesos per month by 2025.

Some has already expressed their frustration with this new law and vowed to punish the politicians who enacted it. Understandably this is an additional burden and would take disposable income away from working Filipinos.

However, I believe that the real test of whether it will be praised or denounced is whether it will be effective and helpful in ensuring universal coverage at affordable cost to Filipinos. When there are significantly less cases of financial ruin or poor Filipinos struggling to cope with medical bills, the sacrifices of working Filipinos would have been worth it.

What is MP2 (Modified Pag-IBIG 2) Savings and How to Profit from It

noreply@blogger.com (Joel Olave) — Sat, 01 Feb 2020 16:29:00 +0000

At this time, I really hope most people, especially Overseas Filipino Workers (OFW’s), have heard of MP2. Which is short for Modified Pag-IBIG 2, a saving program of Pag-IBIG fund members. I know OFW’s will be interested because they always want their hard-earned money to not stay idle and earn something. Of course, every Filipino worker has the same goal. But OFW’s tend to want to find these alternative investments if possible because they don’t want all the money they earned just be spent after they remit them.

In the interest of every Filipino who cares about their financial future, I am reposting relevant information about MP2 that can also be found in Pag-IBIG’s website here. I find MP2 as an attractive investment option for the following reasons:

It pays a respectable tax-free annual dividend rate of 7.5% on average
It's guaranteed by the Philippine government so risk is less
Maturity period of 5-years is reasonable
No upper limit to the amount you can save
Multiple accounts are allowed

Frequently Asked Questions

What is Pag-IBIG Fund MP2 Savings Program?

The MP2 Savings Program is a voluntary savings platform for Pag-IBIG Fund members who wish to save more and earn high dividends, in addition to their Pag-IBIG Fund Regular Savings.

Who can save under MP2?

• Active Pag-IBIG Fund Members; and
• Former Pag-IBIG Fund Members with other sources of monthly income and/or Pensioners, regardless of age, with at least 24 monthly savings prior to retirement.

Is there a minimum amount that I can save?

Yes. The minimum MP2 savings is PhP500 per remittance.

Is there a limit to the amount that I can save?

There is no limit. You can save as much as you want under MP2. Should you wish to save an amount exceeding PhP500,000.00, you would have to issue a personal or manager’s check.

How do I save under MP2?

You may regularly save a minimum amount of PhP500 every month in your MP2 Savings Account. You may also opt for a one-time savings of a higher amount.

How much dividends will my savings earn?

Your MP2 savings earn tax-free dividends, at a rate higher than the dividend rate of the Pag-IBIG Fund Regular Savings Program.

MP2 dividends are derived from no less than 70% of Pag-IBIG Fund’s annual net income.

For reference, the average MP2 dividend rate in the past three years (2016-2018) is at 7.65%.

When can I receive my MP2 Dividends?

You can choose to receive your MP2 Dividends through any of the following options:

Upon full withdrawal of your MP2 Savings after its 5-year maturity period with your MP2 Dividends compounded annually;
Through annual pay-out with your MP2 Dividends credited to your savings or checking account enrolled in any of Pag-IBIG Fund accredited banks, such as the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), or other banks that the Pag-IBIG Fund may accredit in the future. For members who opt for annual dividend payout but have no Philippine bank account, especially in the case of overseas members, MP2 Dividends shall be released to them in the form of checks.

Can I re-apply for a new MP2 Savings Account once my MP2 Savings matures?

Yes. Once your MP2 Savings reach the 5-year maturity period, you may re-apply for a new MP2 Savings Account.

You may claim your MP2 Savings anytime upon maturity. If unclaimed, your MP2 Savings shall continue to earn dividends for two more years based on the dividend rates of the Pag-IBIG Fund Regular Savings Program. After the said period, it shall no longer earn dividends, and must be withdrawn or claimed.

Can I open more than one (1) MP2 Savings Account?

Yes. You are allowed to open and maintain multiple MP2 Savings Accounts.

Are my MP2 Savings guaranteed?

Yes, MP2 Savings are government-guaranteed. However, the annual dividends, may vary depending on several factors, such as Pag-IBIG Fund’s financial performance.

Where does Pag-IBIG Fund invest my money?

Pag-IBIG Fund invests at least 70% of its investible funds in housing finance, as required by its Charter. It also invests in government securities and corporate bonds

How can I enroll?

Simply submit your duly accomplished MP2 Savings Application form at your nearest Pag-IBIG Fund Branch, along with the following:

Valid Identification Card; and
Passbook or ATM Card of your nominated bank account

You may download the MP2 Savings Application form here

How do I remit my MP2 Savings?

Salary deduction, upon agreement or arrangement with your employer;
At any Pag-IBIG Fund Branch; or
At any Pag-IBIG Fund-accredited collection partner.

Source: https://www.pagibigfund.gov.ph/

SSS Newly Updated Contribution Table for 2019

noreply@blogger.com (Joel Olave) — Sun, 21 Apr 2019 06:09:00 +0000

The Social Security Act of 2018 or the Republic Act No. 11199, which is “an act rationalizing and expanding the powers and duties of the Social Security Commission to ensure long-term viability of the Social Security System”, a new SSS contribution schedule will take effect starting April 2019.

Below is a quick rundown of the important changes brought about by this law:

Empowers the Social Security Commission to raise benefits, condone penalties, rationalize investments, among others
Ensures the compulsory SSS coverage in favor of overseas Filipino workers (OFWs)
Gradual increase of monthly contributions from the current 11 percent to an additional 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025
Gradual adjustment of the minimum and maximum monthly salary credit
Displaced workers will get financial assistance from SSS in the form of cash equivalent to half of their average monthly salary credit for two months
Lowered the penalty rate for late payment of contributions to 2 percent from the current 3 percent, and condonation of penalties will no longer require Malacañang’s approval

For reference, below are the new SSS contribution tables for 2019 which takes effect starting April 2019:

Source: SSS Website

How to Generate Passive Income this 2018

noreply@blogger.com (Joel Olave) — Sun, 27 May 2018 03:41:00 +0000

“Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand." -- Robert G. Allen

It’s fascinating how quickly some people dismiss the idea of getting a sideline or a small business on the side. Why? Go ahead, ask them. You’ll hear reasons like “I’m too tired”, “too busy”, “no extra time”, or they might argue that they don’t want to lose their much needed “me time”.

I get it. Doing a full shift at the office and then commuting back and forth on a daily basis is tiring. But on some days I wonder, Is that all there is? At the risk of sounding existential, I ask, “Is that all there is to life?”

What about your lifelong dream to travel the world? Your childhood fantasy to visit five Disneyland parks across the world? Owning a nice house and car? Having enough to live a comfortable life? Are these all really going to be just dreams and fantasies?

As people say these days, “Adulting is hard.” To do responsible, grown-up things really suck. Everybody seems too busy pedaling non-stop in this rat race that we forget about the stuff that will make us truly happy. And most people will tell you, that money, or rather the lack of it, is the main reason why we’re stuck.

But it doesn’t have to be this way. There are ways to fix the problem. Aside from the aforementioned side hustles and businesses, generating passive income through the following ways might just be our ticket towards our dreams.

#1 Rental Properties

#2 Cryptocurrency Mining & Masternodes

#3 Build or Buy Websites

#4 Peer-to-Peer Lending

#5 Dividend Investing: Buy Dividend Stocks

#6 Crowdfunded Real Estate & REIT

#7 Become a Silent Business Partner or Buy an Existing Business

#8 Sell Digital Products

#9 Royalties

#10 High-Yield Savings Accounts

#11 Low-Maintenance Business Ideas & Outsourcing

About the Author:

Amiel Pineda is a business and finance columnist at Grit PH, where he also co-authored this list of the best franchise business opportunities in the Philippines.

Cost-Effective Ways to Purchase Overseas Stocks

noreply@blogger.com (Joel Olave) — Sun, 07 Jan 2018 11:47:00 +0000

Successful investors, over time, have stressed on the importance of not putting all your eggs
in one basket. Have you ever looked at the American market, with its stocks, bonds, and currencies, as a single basket? While this might not seem like the case, especially when the market is going great guns, bear in mind that the American market witnesses downward spirals too.

If you ignore investment opportunities outside of the country, you are basically missing out on a significant chunk of the developed global investable stock market. It comes as no surprise that an increasing number of Americans are looking at investing in foreign shores, although not everyone know how to make their trades cost-effectively.

If you hoped to buy international stocks a decade or two ago, the process would have been cumbersome and anything but cost-effective. With technological advances, this is no longer the case. Now, you get to choose from different options that include American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and direct investing. Matters get a little tricky if you choose to go the direct investing way. What helps is that the competition has ensured high levels of service coupled with reduced costs.

Turn to Your Broker Account

If you have an existing account with a mainstream brokerage firm, there is a good chance you might be able to use it to trade in overseas stocks. The cost involved may be a factor, though, because you will pay fees for the deal as well as for conversion of currency. Depending on the account you have or plan to open, you may also have to deal with minimum balance requirements. Fidelity, for example, requires that you hold at least $2,500 in your account at all time.

Turning to the internet may be a good idea as there is no dearth of reliable online brokerage companies from which to choose. NerdWallet’s list of best online brokers for stock trading in 2017 includes TD Ameritrade, Charles Schwab, E-Trade, OptionsXpress, Merrill Edge, and Fidelity.

Another option is to open a broker account in the country where you plan to trade. Examples include OCBC Securities in Singapore and Boom’s offering in Hong Kong. When it comes to funding these accounts, you get to save money in fees and exchange rates by turning to overseas fund transfer specialists such as TransferWise and WorldFirst.

Open an Account in a Foreign Currency

Setting up an account in another currency is usually a more cost-effective way when compared to using your regular American trading account. TD Ameritrade and Charles Schwab provide this service in the United States.

If you live outside of the U.S. and wish to open a trading account in the country, doing so is possible through a number of institutions. In such a scenario, you may lose money when transferring funds to your U.S. dollar account, which you can avoid by using specialist fund transfer companies. These companies tend to come with lower fees and typically better exchange rates when compared to most banks.

The Trading

After you load funds into your trading account comes the time to buy stocks. While you will need to provide details of the stock you wish to buy as well as how many you wish to purchase, you may also need to choose between market orders and limit orders. The former comes with instructions to carry out your trade as quickly as possible, at existing market rates. With a limit order, you get to set the maximum you are willing to pay for a stock, and this ensures that you do not end up overpaying.

Conclusion

A number of factors may affect the cost-effectiveness of trading in international stocks. Pay attention to the brokerage account you open, how you fund your account, how you withdraw funds from an overseas account, and how you actually carry out trades.

*Photo Credit: GotCredit (Creative Commons)

How To Raise Financially-Savvy Children in the Philippines

noreply@blogger.com (Joel Olave) — Wed, 18 Oct 2017 12:16:00 +0000

Parenthood is a unique career. You don't get to resign. You're not entitled to retire. It's a role that you commit yourself into until the end. Your child may have attained the age of majority, started paying his taxes, and have settled down with a family of his own, but your guidance as a parent remains as important as ever. It's your task to ensure that the lessons you impart will serve them in the future.

In the Filipino culture, children tend to live under the protection of their parents even when they reach adulthood. The Filipino family, in consonance with Asian practices, is close-knit. While this strengthens kinship, the safety net offered by an ever-supportive family can be detrimental to a child's readiness to face the challenges of the “real world.”

Help your child make sound financial decisions when he enters college and embarks into adulthood. Here are invaluable tips for you.

There's no such thing as free lunch

Photo courtesy of MyStock.Photos via Pexels

Many baby boomers lament that millennials have a false sense of entitlement. They claim that the young have everything served to them on a silver platter. Are the children solely to be blamed for this so-called entitlement?

Teach your child a simple lesson: “There's no such thing as free lunch.” You have to compensate for everything you receive one way or another. Encourage your college-aged child to get a part-time job regardless of whether you can fully support him or not. This is the most effective way of teaching him the value of money and hard work. Plus, this can prepare him for when he joins the workforce.

Save 20 percent of your monthly funds

Photo courtesy of Skitterphoto via Pexels

The Philippines has an alarmingly low savings rate. According to recent figures by the Bangko Sentral ng Pilipinas (BSP), a staggering 86 percent of households don't have bank accounts. Interestingly, Filipinos are known to throw grand parties and long celebrations. The country celebrates the longest Christmas season, after all. The domestic consumption is good for the economy in the short-term, but the low savings rate can be problematic in the long-term. This can mean lower capital for investments.

Your college-aged child should have his /her own savings account. This may appear too basic, but the statistics say it all: a significant majority of Filipinos are not saving in banks. One of the reasons the BSP noted was the lack of funds to save. Teach your child to keep at least 20 percent of his monthly allowance in the bank. It's advisable to get a passbook to help him monitor his money – how much he's setting aside, and how often he's withdrawing funds. With consistency, saving a part of his salary can become a habit.

Roll up your sleeves and start investing

Photo courtesy of Pixabay via Pexels

Billionaire investor Warren Buffett once said in an interview: “I think parents need to start teaching kids about the importance of managing money at an early age. Sometimes parents wait until their kids are in their teens before they start talking about managing money when they could be starting when their kids are in preschool.” If you're just about to teach your college-aged kid about investment, you may need to work double-time.

There are various investment vehicles in the market today including stocks and bonds, property investment, and small businesses. With the Internet, you can buy stocks in stock exchanges in Hong Kong, New York, and London. You can venture into foreign exchange, commodities, and other sophisticated investment products available in other parts of the world.

For starters, you can open a mutual fund account for as low as Php5,000. This will allow you to invest in a basket of equity and debt securities managed by a team of portfolio managers. Once you get a little accustomed with the risk-yield trade-off and a bit of knowledge on stock investing, you can then try buying stocks via Philippine-owned trading platform COL Financial (formerly Citiseconline).

“Adulting” in the next level

Photo courtesy of Pixabay via Pexels

Part of “adulting” is making informed decisions. Sometimes, you just have to let your child make the wrong move. No teacher is more effective than mistakes. What's important is that he doesn't commit the same error twice. Just stay behind him as a silent protector. Let him make his own decisions, no matter how unsound, at a young age. But he should be aware that he'll be solely responsible for the impact of said decision. If he chooses to invest in beta stocks or highly volatile securities, despite advice, let him bear the impact of the risk. This can teach him invaluable lessons in investing.

Once he saves enough money with his first years in the labor force, he may consider investing in real estate. The Philippines' property market is a gold mine. A parcel of land bought in the 1990s has likely doubled in value over the years. You may be amazed at the current market value of land in the formerly idle Fort Bonifacio. You can advise your child to save up for his own condo unit. Condos are selling like hot potatoes, thanks to their accessibility and add-on lifestyle amenities. He can rent out the unit to help pay with the monthly mortgages. Any amount he may receive as bonus, incentive or gift may be paid in advance to the bank. In a few years, he'll have a fully-paid up condo unit of his own.

Raising a well-rounded adult is a challenge for every parent. This is why a comedienne once compared having a child to getting a face tattoo: you need to be totally committed to it. Teach your child how to make sound financial decisions by imparting lessons as early as possible. You can let them run a small neighborhood business during their summer vacation. Give them something to be responsible for. To prepare them for the “real world” after their college graduation, offer investment tips for newbie employees. Most importantly, let them make their own decisions despite your opposition on the matter. Mistakes can be life-changing lessons. Just be there ready to catch them whenever things get a little bit complicated.

What You Need to Know About The Benefits of Comprehensive Car Insurance (Infographic)

noreply@blogger.com (Joel Olave) — Sat, 16 Sep 2017 03:58:00 +0000

As a car owner, you’re bombarded with many decisions – oftentimes small ones – concerning your vehicle and its needs. What brand of gasoline will give me the best mileage for its cost? How dark should the window tints be? Should I keep the leather upholstery bare or cover it up? What kind of gadgets will make my driving experience better? Is my car tire still fine or do I need to have it replaced already? What should I do with the scratches and paint chips?

One of the important decisions for every car owner is the type of insurance that will cover their vehicle in case of accidents and other unforeseen troubles. One of your options is called a “comprehensive car insurance”, which you may have heard before. Truth be told, many drivers are intimidated by how it sounds – especially if they are first-time car owners or non-car enthusiasts – but experts will tell you that it’s a big deal for many car owners everywhere.

The Insurance Services Offices (ISO) – an insurance industry support, rating, and information organization – states that there are two main categories of covered physical damage losses, including collision damage losses and losses other than collision. These two categories are referred to as a “collision coverage” and a “comprehensive coverage”.

The comprehensive car insurances cover several perils, depending on what the insurer has indicated. The most common incorporations are third-party, fire, theft, and accidental damage, but again, the benefits vary between insurers, which makes it imperative that you find out what yours cover (or will cover).

In case your car is damaged for several situations that a comprehensive car insurance covers, you can claim from your insurer compensation for the repairs that your car will have to undergo to bring it back to its original condition. Without it, you’ll have to shell out money yourself, and depending on your status and the damages, may be quite expensive.

A surprising note about comprehensive car insurance is the fact that it can be cheaper, or just as cheap, as that of a third-party one. Confused.com says that this can be brought upon by a rise in third-party policies due to so many people availing of it that makes the overall cost of that cover to go up. In short, there comes a point that they may match or even overtake a comprehensive car insurance’s costs. Of course, this is a case-to-case basis and may be different for other third-party policies or comprehensive car insurances, so it pays to do extra research on what you’re getting.

As with all insurance policies, you should check with your insurance agent to make sure what perils are included under the comprehensive coverage of your auto insurance policy. This cover incorporates third-party, fire and theft cover and also includes accidental damage to your car. The benefits of comprehensive policies vary between insurers, so you need to always check with your insurer when you are taking out this cover.

More often than not, it covers the following unfortunate incidents and situations:

Theft and Vandalism
Weather and Natural Calamities
Animal Damage
Lower Deductible
Expense in Excess of CPTL

Learn more about the Comprehensive Car Insurance and what it covers with the infographic on the subject by iChoose.ph.

Everything you need to Know about Microinsurance in the Philippines

noreply@blogger.com (Joel Olave) — Sat, 09 Sep 2017 09:37:00 +0000

People with low income are highly vulnerable to health problems and the destruction of their assets, harvest or livestock and homes due to natural and man-made catastrophes. And there is, of course, the looming danger of a sudden accident or death that practically every human being are all at risk.Unfortunately, low income people often do not have insurance coverage to protect them. This does not have to be the case though, as many different types of affordable and accessible microinsurance policies are now available. You can even purchase a microinsurance policy for as low as P20 in a nearby Palawan Pawnshop! Read more to learn about microinsurance and your options.

Photo courtesy of Geralt via Pixabay

What is Microinsurance?

Microinsurance is much like the usual insurance that you know, except that it is designed to cater to low-income people. It is also the ideal option for those who do not have access to the financial markets. You may think of it as a tidbit-sized insurance with affordable premiums.
Under the law, premiums for microinsurance cannot go over 7 percent of the daily minimum wage. The law ensures that most people will be able to afford the policies. The rate and benefits will also not go over 500 times the daily minimum wage, which means that for a minimum wage of P500, the coverage will only go as high as P250,000. Unlike regular insurance options which come with a 30-day allowance, microinsurance requires a 45-day allowance.

Photo courtesy of 3dman_eu via Pixabay

The Industry

The microinsurance industry in the Philippines has grown in leaps and bounds over the past few years. The country currently has one of the world’s most advanced microinsurance markets. Several more individual insurance products have divulged plans to provide micro pre-need products, such as pension and education insurance.

As per the Insurance Commission, approximately one-third of Filipinos are covered by insurance as of 2015. The government expects an uptake of microinsurance, reaching 50 million people after two to three years. This will cover nearly half of the population in the country.

The Philippines is considered a champion of microinsurance, as it is one of the first countries to have determined a clear definition of microinsurance and come up with innovative distribution channels. One key innovation was to allow any establishment to sell microinsurance. The only strict requirement is that their business should be registered. Because of this initiative, microinsurance policies have become more accessible. The bulk of policies are now being sold in sari-sari stores and pawnshops situated all over the country, instead of just in banks or offices. Another innovative idea being considered is selling insurance policies via mobile phones.

Photo courtesy of Geralt via Pixabay

Its Benefits

Microinsurance is easy to access and to apply for, no wonder it has grown increasingly popular. It is undoubtedly a tool that fosters financial inclusion, as it provides tailored services that are designed to address clients’ specific needs.

Photo courtesy of CarinaChen via Pixabay

Its Importance

The low income and informal sector should make sure they get insurance coverage, especially now that is has become more accessible as ever. Just like any other person, they are exposed to risks, such as catastrophes, accident, loss of assets, and death. These unfortunate events lead to expenses they simply cannot afford. Having an insurance coverage will help them minimize the impact of these events, at least financially speaking. With microinsurance, those belonging to the low income sector will be better able to recover from the consequences of unfortunate events.

Photo courtesy of Geralt via Pixabay

Common Microinsurance Products

Here is a list of the most common microinsurance products in the market today. More products are expected to be introduced after the government has finalized the regulations.

Life insurance. Microlife insurance products often start with a coverage of P5,000, offered at a premium of around P40 pesos. This would usually cover a period of less than six months. The coverage under a microinsurance can go as much as P250,000.
Accident insurance. A typical assurance plan can start at a coverage of P20,000, offered at a premium of less than P100.
Property insurance. Coverage for losses and damage to your home due to disaster can go from P100,000 to P200,000, with premiums starting at about P100 for a coverage of one year.
Personal property insurance for small businesses. Personal property insurance can include protection against damage to property, as well as losses due to robbery and burglary. The typical coverage is P100,000, offered at premiums of about P1,500-P2,000.

Photo courtesy of Geralt via Pixabay

Accessibility

Microinsurance products are designed to be straightforward so it can be easy for plan holders to understand how to use them. The required documents are also minimal and easy to accomplish, plus restrictions are limited. The premiums are usually paid in cash, but can also be paid through mobile payments, salary deductions, and other ways.

Photo courtesy of Monam via Pixabay

Where to Avail of Microinsurance Products

Depending on what you need, you can purchase microinsurance products from pawnshops, schools, local government units, convenience shops, and banks. Most of these providers are easy to reach via various communication channels in case you need to file a claim. Often prepaid, microinsurance products are easy to manage and to pay. A convenient option for plan holders, microinsurance eliminates the need to come up with funds to keep up with payments that will keep the plan active.

If you have always been interested in getting an insurance but still do not have one, an affordable and simple-to-process microinsurance can introduce you to the practice. Choose a plan that is suitable for your needs and lifestyle. An accident insurance policy may be more ideal for you than a property insurance coverage. Note that microinsurance products are only effective for a short period of time. It is best to get regular insurance once you are able to pay for higher premiums. When it comes to investing in financial instruments like insurance products, the sooner you get started the better. You simply cannot tell when you will need it.

With the growing microinsurance industry in the Philippines, and a government that fully supports its growth, there is no reason why every Filipino should not have an insurance. Make sure you get one for yourself!

4 Tips for an Easier Credit Card Approval

noreply@blogger.com (Joel Olave) — Sun, 29 Jan 2017 02:05:00 +0000

Qualifying for a credit card doesn’t mean that your application is approved. It means that you have basic qualifications like job tenure and income in order to apply for the credit card you’ve been eyeing.

Banks that issue credit cards will usually look at your credit history, records that all banks have access to which show whether you’ve had debt, how much was your debt, and if you were able to pay them off on time.

If you want to get your credit card approval without hassle, here are things to keep in mind:

Pay bills on time

Image source: wonderwomanimnot.com

If this is your first time applying for a credit card, they may look into your banking records, especially if the issuing bank is the same bank that you use for your transactions. This also applies if you’ve enrolled nearly all of your monthly bills to your account to make your payments easier.

Having a handle on any debt payments you have should also be helpful when banks assess your application to calculate your card’s credit limit. It’s also important to remember that if you’ve got any ongoing loan payments, banks will take into consideration whether you’ve been late on payments or not.

A low debt-to-income ratio

Image source: incharge.org

Any debt payments you do make – whether it’s on other credit cards or loans – will be involved in the process of approval. The lower your debt-to-income ratio, the better your chances of getting a credit card.

An application for a credit card will go through an underwriting process to assess whether your application will be unsuitably risky both to you and the bank, as well as whether it’s profitable for both parties.

Maintain a savings account

Image source: pinterest.com

Banks will naturally want to look at your financial capabilities as far as paying for a credit card. If you already have an account with the bank that may potentially issue your credit card, then you should be good to go – especially if said savings account has an ample amount stored in it.

The same can be said if you have multiple savings accounts with nearly similar deposit amounts in them. The larger the amount in your savings account, as well as the regularity of your cash flow, can help your assessment immensely.

Your credit profile

Image source: telegraph.co.uk

Having zero debt can work against you just as much as having too much debt can. Without a credit profile, a bank cannot assess their risk in allowing you access to their loaning facilities. Having a credit profile provides a bank with information regarding your spending habits and payment ability.

Final thoughts

A credit card is a tool that provides a lot of benefits and convenience when used properly. It’s a responsibility that you cannot take lightly, as a lot of bad debt can spiral out of control easily. It’s also important to note that once you’ve submitted your requirements, it becomes a waiting game to know whether you’ve been approved.

About the Author:
Kyle Kam is from MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products. Follow him on twitter @undisputedkyle

7 Ways to Prepare Your Finances for 2017

noreply@blogger.com (Joel Olave) — Fri, 02 Dec 2016 13:23:00 +0000

In just a few weeks, 2016 is coming to an end. Now, it's time to prepare for 2017. The New Year brings with it a renewed sense of inspiration and aspiration to fulfill a list of resolutions that we would work on to improve our health, skills, and talents.

While it's great to invest in ourselves, we should also remember to invest in our future. Sometimes, in that long list of resolutions, we forget to include our financial milestones. In this article, we share with you how you can prepare financially for 2017.

1. Analyze

The first step to change any behavior is awareness. Analyze your spending habits vis-a-vis your monthly income.

Are you "short" on cash? Are your credit card debts too high? Are you earning enough but still have money shortage?

Ask yourself, how's my finances? If you find something that’s stopping you from being financially stable, then it’s high time to ditch that spending habit to be on your way to becoming wealthy.

2. Don't save to save, save to invest

A common mistake many of us make is saving just for the sake of saving. Who wouldn't want to see their bank accounts grow bigger and bigger in time, right?

Unfortunately, keeping your money stagnant in a savings account won't do much in the long run. If you want your money to grow prominently, save to invest. Whether in stocks, bonds, or mutual funds, these investments can help you achieve financial security.

But, like all things in life, keep in mind that high reward often entails high-risk investments. Don't jump into investments if you're not sure how it works. Here's a library of investment articles to help you learn more about the trade.

3. Cancel underutilized subscription plans

When analyzing your current financial situation, observe how much of your income goes to subscription plans. Look into your monthly bill and identify whether there are any that's underutilized.

You don't have to cancel all your plans at once, but at least make an effort to cancel any that's not giving you a good ROI.

Take for instance gym membership. When 2016 came in, it might have inspired you to commit to a weekly fitness routine. However, as the year progressed, social gatherings and responsibilities got in the way. So, if you're hitting the gym once a month or a year, maybe it's best to opt for walk-in sessions.

4. Cook at home

Dining out can be an expensive habit to have, especially if you do it very often. Eating out once or twice with the family can be considered recreational, but if you're doing it weekly or daily, the habit can easily break your bank account.

Restaurants are in the food business. This means, any dish you order has already taken into account the cost, profit margin, and inflation costs. The more you opt for home-cooked meals, the more you save.

5. Find other sources of income

Warren Buffet, an American business magnate, have always shared the principle of having multiple sources of income because depending on one can be a huge risk.

What happens if you get laid off? Or if the investment doesn't work out? What if you get sick or something unexpected occurs?

Having multiple sources of income creates a safety blanket to keep your finances secured. You can venture into putting up your own business or even as simple as online pawning.

6. Set a goal

Are you familiar with the 80/20 rule? This is where you should save 20% of your income while leaving conservatively 80% for expenses.

If you don't set a goal, you could end up lost in a pile of expenses and purchases. It could be as simple as saving P1,000 a month, which, in the long run, would yield a huge amount of savings you didn’t know was possible.

7. Don't be afraid to ask

Finances can be a sensitive topic to talk about with friends or family, but if you're unsure how to manage your savings, try talking to professional financial managers. They can help you evaluate your investment risk comfort level or which assets suit your current situation best.

As the New Year comes, don't just think about improving your fitness, skills, or talents. Take the time to appraise how you can keep your future secured. At the end of the day, your future self will surely thank you for it.

About the Author:

Carol Soriano is a consultant for PawnHero.ph, the very first online pawnshop in the Philippines. A writer at heart and a social media enthusiast, she finds personal finance, investment and money matters interesting topics to write about.

*Photo Credit: Miguel Angel Pintanel Bassets (Creative Commons)

Four Practical Tips for Real Estate Investors

noreply@blogger.com (Joel Olave) — Sun, 27 Nov 2016 05:55:00 +0000

Achieving success in the real estate industry does not necessarily mean relying solely on your capacity to produce capital

With the real estate industry continuously showing an upward trajectory and being one of the Philippines’ major sources of economic growth, many people understandably are venturing into the business, either as owners of rental properties, real estate speculators, or even small to mid-scale property developers.

Just like in any business, however, knowing where you stand in the market is useful as it can help you identify the value of the properties that you have. You’ll also be aware of your competitors and, thus, can create a plan or strategy on how you can make your properties stand out in the market.

To further help you on investing on real estate, best to keep in mind the following tips, put together by real estate website Lamudi Philippines.

1. Keep up with the news

It’s essential to keep an eye on what’s happening around you, and on the real estate market itself. Being in the know helps you plan your strategy in property investing in regards with the current events.

There are all sorts of things that you’ll hear in the news that may play a factor in your investments, such as natural calamities, accidents, crimes, price hikes, or power outages. These kinds of news can help you narrow down the areas of the properties that you want to invest in, saving you time, money, and trouble from learning all these yourself only after you’ve purchased them.

Furthermore, keeping up with the news gives you updates on new real estate laws, recognitions and rewards, property launches, stock market, and many more. Knowing the latest and what’s trending in the real estate market can help you decide on how you can make your properties’ prices competitive.

2. Be inquisitive

Have you heard of the saying “knowledge is power?” Since there’s truth to it, never hesitate in asking questions because you might just find answers that work in your favor. Liking that new duplex down the street? Ask if it’s for sale. And if it isn’t, then you might have just planted the idea of selling it to the owner’s head.

When investing in a new property, asking questions about it before making that big purchase will help you determine if you’ve chosen the right property for you. Knowing information about the developer or owner, its history, and environment could save you from any headaches in the future. Ask the neighbors or past tenants, or go online to see if there’s any additional information that you can get that could push you toward—or prevent you from—buying it.

Being armed with knowledge will most likely make you succeed in the business, especially if you know how to properly use the info you gained. You can avoid being duped by anybody if you know the ins and outs of the business you’re in.

3. Trust your instincts

In an experiment called Iowa Gambling Task, neuroscientist Antonio Damaso of the University of Southern California found out that our gut feelings play an important role in decision-making because we sense when something does or does not feel right—and in effect, our instincts often nudge us toward success when acknowledged.

Our instincts can be very helpful, especially when we are faced with the challenge of persuading someone to agree with our proposal and go with our plans for the property, or even when closing deals.

For example, instincts help us identify when somebody is already on his breaking point, and then we can choose the right words to say that can totally turn the situation into something positive. Instincts in real estate help us respond accordingly; they tell us whether to accept or turn down property offers, or push us to abandon a property that gives off negative vibes.

4. Expand your network

Keeping a substantial amount of friends and acquaintances is important when you’re in the industry of real estate. When you’re looking for properties to invest in for business, talking to different types of people brings you a step closer to your goal as it might lead you to the person who knows just the property you’re looking for, somebody who can tell you about that condo you’re eyeing recently, or a friend that’s ready to look for a place where they can settle down.

Connecting with people gives you opportunities, branding, and exposure, which are all highly beneficial to your investments. People in your network definitely contribute to your achievement, whether or not their role is pivotal.

*Photo Credit: Lawrence Craft (Creative Commons)

How OFWs Can Multiply Their Earnings and Save for the Future

noreply@blogger.com (Joel Olave) — Mon, 12 Sep 2016 12:17:00 +0000

For many OFWs, spending their money instead of saving it is a normal thing. Most of them primarily work abroad in order to earn money they can spend for their families. But what typically happens with earning just enough for spending is that OFWs end up constantly working with too little saved for future use.

None of us can work forever, and no matter how much you may be earning abroad the fact is sooner or later you will have to retire. You’ll have to depend on whatever you’ve saved in previous years. If you’ve spent more than you’ve saved, chances are, your golden years won’t be as golden as you wish they could be.

With this mind it’s important for OFWs like you to start making the most of your earnings while you still can. This doesn’t necessarily mean saving instead of spending everything earned, but it does mean putting away a portion of those earnings into smart investment outlets that will grow your money over time.

Investment Options

OFWs have several options when it comes to investing, though the most common would probably be real estate. Many OFWs prefer the tangible quality of real estate, and this type of investment can be very lucrative depending upon how the property is used.

Sold after some years and it could provide a cash reserve of millions. Investing in real estate however, requires a larger amount of money upfront compared to other investment options. It also has risks in that not all properties can be sold at a gain.

And unlike other investment options, real estate cannot be sold easily at a good price should you need money urgently. If however your plans for the property are more long-term, as in preparing a future home or business site, then real estate would prove to be a good investment.

Another investment strategy that OFWs can look into is stock investment. Stock investments allow individuals to become shareholders in publicly traded companies, and done right, can produce annual returns of up to 50%.

Investing in the stock market however, entails some risk and research in order to get the best returns. Fortunately, there are plenty of financial literacy seminars now available to help OFWs and others who are interested develop a solid strategy for investing in the stock market.

For OFWs who prefer a lower level of risk, a mutual fund or Unit Investment Trust Fund (UITF) is the most ideal option. These types of funds are the simplest among investment options, as a professional fund manager handles all the work of making your money grow for you.

It also requires as little a starting investment as Php 5,000. Though it produces relatively lower returns than most other investment options, it is much easier to achieve and manage than most.

If you’re looking for immediate returns and an additional source of income for your family, you could consider franchising. There are all sorts of businesses now available for franchising, with costs ranging from Php 35,000 for small food stalls to around Php 800,000 for larger, more established franchises.

If your purchasing power is limited at the moment, you could avail of a business loan or cash loan for OFW, and immediately pay it off once you start earning from the franchise. Franchising however has several prerequisites. You have to make sure that the business to be franchised is one with an established brand and solid base of customers.

You have to be sure that you situate your franchise in a good location, and that you have partners you can trust who can manage the franchise while you are abroad. For most OFWs who opt for franchising, the franchise becomes their family’s business.

These are just some of the ways that you can maximize your earnings from working abroad and save for the future. As you’ve seen, it can take as little or as much effort and money as you wish; can cater to different financial needs and plans; and done right will always produce good returns.

About the Author:
Kash has been with Loansolutions.ph in marketing and business development roles since 2014. Now based overseas, she is happy purveyor of financial literacy for OFWs and their families.

*Photo Credit: ILO in Asia and the Pacific (Creative Commons)

How do I know if I’m financially compatible with my partner?

noreply@blogger.com (Joel Olave) — Sun, 03 Jul 2016 03:25:00 +0000

Getting into relationships also entails getting into a financial commitment. Having dates, celebrating milestones together, and potentially being lifetime partners does not come cheap. Preparing financially for your relationship will help you relieve stress and make your relationship happier.

Another thing to consider aside from your financial state is how your financial habits match your partner’s. You may have different financial goals and practices, and most couples may not admit it but it will have a huge impact on your relationship’s well-being.

How do you know if you are financially compatible to your partner and know what to work out together in terms of money? Here are some ways to know how:

You complement each other’s approach to finances.

If one of you has endless spending habits and the other is very thrifty, then you will run in many financial arguments throughout the relationship. A couple cannot work out if both have different financial habits.

Your financial goals coincide with each other.

Are both of you planning buy a car? Are you aligned whether you’ll buy a house or just rent? You have to set the record straight if you plan to stay together for a long time. Talk about what are the financial goals that you have for each other and for the future.

Money talks aren’t awkward.

You have to feel comfortable on talking about money with your spouse. Is there a purchase that he made which you didn’t feel so great about? Is your girlfriend asking a lavish vacation you cannot afford? Both of you have to be very open about these things so that you will make better financial choices together.

Joint accounts don’t scare you.

Thinking that a joint account with your partner is a problem may reflect more than just your desire to control your finances but also the bad financial habits of your partner. You may think that having a joint account will drain your money in an instant.

Joint accounts can also signify that you are seriously bound in a relationship and can be a way to a couple visa.

Final Thoughts

Some people discount financial compatibility in their relationships because this will make them look “mukhang pera” and not basing their attraction to mutual liking. The reality is financial compatibility will help you and your partner get a solid foundation in your relationship. It is important to have this since money will allow you to do the things you want with your partner and for the future of your relationship.

About the Author:
Kyle Kam is a Digital Marketing Specialist of MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.

*Photo Credit: Wyatt Fisher (Creative Commons)

UK Prepaid Card From Bank4you

noreply@blogger.com (Joel Olave) — Fri, 10 Jun 2016 15:40:00 +0000

*This is a sponsored post.

The global market of financial and banking services is getting even more international. The financial services market in the Philippines is not an exception.

A fresh, but ambitious UK-based start-up Bank4You enters the Southeastern Asian prepaid cards market in general, and the Philippines in particular. This Company specializes in development of niche products for different groups of clients.

The Bank4You brings its new product – the B4U VISA Student Card – in the Philippine market. This card is developed for young people who plan to get an education in Europe or in UK.

The considerable assets of the B4U card are:

availability of online order;
no requirements to citizenship of the cardholder;
card is shipped to you from the United Kingdom within 10 days.

Europe and UK are the primary territories to use this card. The charges for use are lower compared to the average amount at the market, and this allows the holder to save about 30-40 EUR per month.

Considering all these facts, B4U Student Card is sure to be a very ripping product for the students and travelers.

CEO of the B4U Card Solution (start-up), Adam Lane remarked: “Youth in the Philippines is notable for their ambitions and sense of purpose, and the Bank4You solutions are developed for exactly such people. ”

Live Rich While Spending Like a Peasant

noreply@blogger.com (Joel Olave) — Sun, 22 May 2016 03:13:00 +0000

Ever dream of living lavishly like a king? Dream no more, because now you can live like one without paying the full price for it.

However, this article does not encourage you to spend all your hard earned money away to live a comfortable life. Instead, it is the exact opposite.

It gives you the opportunity to hold on to your Pesos while gaining luxurious benefits. With that being said, here are 4 ways to enrich your life with less than ₱5,000!

1. Crib

Home is the heart to the soul, thus, your home should be kept clean and neat at all times. The condition of your home can reflect your character and it can affect your mood as well.

To live like royalty, take care of your overall hygiene and surroundings. Design your space using real fresh flowers, plan a color theme and organize your clutter! You can place plants in the bedroom and your workplace to brighten up your space.

Check out Real Living Philippines for more creative ideas for home decoration.

2. Couture

Dressing to impress is the goal here. However, clothing are expensive nowadays. A simple black dress from your retail stores can cost up to ₱2,000!

The 2 ways to spend like a peasant in a shopping mall is to buy during sales & promotion seasons or pay using credit cards to earn cashbacks. With the former, you get branded clothes for less and for the latter, you get to keep track of your expenses while being rewarded at the same time.

Another option is to go for credit cards specialized for shopping. You can apply for BDO Forever 21 credit card to get the best discounts, and special privileges when you shop at Forever 21.

This is a win-win situation for consumers like me and you to dress like royalty while paying a mere amount for it.

3. Fancy Rides

In the Philippines, it is not worth buying a car unless you have to travel often. The normal mode of transportation is through jeepneys (elongated jeeps made locally), buses, MRT, or taxi.

But you should also consider that it might cost a fortune having to take public transport in the long run.

However if you decide to purchase a new vehicle, do consider getting an EastWest credit card application for Hyundai Mastercard as it offers up to 5% rebate on fuel purchases at any gasoline station nationwide.

Besides that, first-time cardholders for Hyundai Mastercard will get a free Welcome Gift Voucher worth ₱1,000.

4. Exotic Vacations

Is it possible to go on vacations with less than ₱5,000?

Totally! That is, if you decide to travel locally or countries with a much lower currency value. According to skyscanner.net, the 12 cheapest holiday destinations are Cambodia, Vietnam, India, Bolivia, Hungary, Honduras, Bulgaria, Sri Lanka, Argentina and Greece.

A one-day trip is sufficient with a budget like that. If you have more money to spend, visiting a country further away will give you more exposure and insight to other cultures.

There you have it, now you can enrich your life without parting ways with more than ₱5,000. Take a moment to ponder, are there any other ways to live lavishly without breaking the bank?

About the Author:
Studying Business & Commerce in Monash University Malaysia, Stephanie Tiow currently interns at iMoney and aspires to provide readers with a comprehensible perspective on finance and money-related decisions through the eye of a consumer.

Cheap Yet Creative Ways To Promote Your Startup Business

noreply@blogger.com (Joel Olave) — Thu, 28 Apr 2016 09:55:00 +0000

If you don't have the ideal financial situation to engage in a costly all-out marketing campaign for a new and exciting business, be creative. You may not have the same financial resources other more established companies have, but what you have and can gain a lot from is an inventive and resourceful mind.

Work with what you have and find creative and inexpensive ways to promote your products and services. It's a challenging feat, considering the limited resources, but think of the countless non-paid strategies you can leverage your business on.

Here are some creative and low cost ways to get you started.

Go hard on social media marketing

There's Facebook, Twitter, LinkedIn, Instagram, and Snapchat! Identify the platforms where your target audience is, sign up for free accounts, and reach your target market online with engaging content. Establish your brand the way you want it.

Attract and hold interest by providing reliable and authentic content by sharing relevant blogs and articles, videos, and infographics. Convey your messages, whether promotional or simply informative, in true story-telling fashion accompanied with visually appealing images.

You can even lease staff to handle your digital marketing campaigns, post regular updates, and monitor your social performance.

Even if you don't have the budget for paid ads or boosted posts yet, you can increase brand awareness and grow your fan base organically with content that speaks about your brand.

Set-up and optimize your website

A website can be a great many things to your business. It is where you build your brand, promote and sell your products, and build readership. Read up on web design and development and look for free SEO-tools online to enhance your website's visibility.

Be mindful of the user experience on your site. Do the call-to-action buttons stand out? Is the website easy to navigate? Does the content answer your user's queries? If you only get to have one business card, a website is that one card to have in your pocket.

Make sure people get a clear idea of who you are as a brand and remember you even after they log off.

Dabble with guerilla marketing

A utilitarian approach to promoting your brand is guerilla marketing. With this kind of marketing, what you need here is some courage and a network of willing people to help serve your purpose. Social phenomena is the objective of your campaign.

What's that one special thing that really stands out about your product? Think of a way on how to best present it to your audience in public. Be different, stand out, and take them by surprise.

Build brand awareness with urban art, reverse-graffiti, and other forms of street propaganda. Organize a flash mob and/or crowd sourcing. Arrange in-store events and other special events and invite your existing customers.

Use the most unconventional methods in promoting your startup. Invest energy and ideas in your guerilla marketing tactics instead of money. You'll be surprised with how high the return of investment can be when you think outside the box.

About the Author:
This article is exclusively written for Pera Ko To: Invest In Your Future Everyday by Booth and Partners, a trusted outsourcing company in the Philippines that offers Business and Customer Support, Lead Generation and Virtual Assistance from small to medium enterprise markets

*Photo Credit: Bill Alldredge (Creative Commons)

7 Things We Can Do Every Day to Help Out the Philippine Economy

noreply@blogger.com (Joel Olave) — Fri, 01 Apr 2016 03:56:00 +0000

Financial management as it relates to Philippine economy is too much for me really, especially in aspects that involve stock market, inflation, currency rates and GDP. These concepts are way too complicated to understand.

Instead, I’m more into personal financial management because it’s something I can relate to as I go about my daily life. It’s something very practical, I can say. However just recently, I happened to read a blog by Valeriano Avila published by The Freeman. In a nutshell, Avila says:

We can change our government if we Filipinos change ourselves first. Right now we are a very tolerant people, even if our political leaders are stealing the nation’s coffers blind.

And as a personal finance advocate, I can’t help but agree. These words got me thinking that it’s weird to separate Philippine economy and personal finance, considering that our everyday spending habits affect the country’s economic performance.

That being said, I’d like to share these 7 everyday habits I’ve been doing for many years now, which you might like to pick up – these are based on research, experience and expert tips:

Put your money in a good investment vehicle. You can sign up for an insurance plan, invest in low-cost mutual funds or put it in a bank. The first two options are highly recommended because these are proven to yield higher returns than the last option.
Ask help from authorized loan consultants and use loan comparison tools every time you apply for any type of loan. Many people often attribute their debt on their loans. However, the main cause of debt is being unable to manage one’s credit effectively.
Don’t be afraid to take out a loan. Contrary to the long-standing belief, loans aren’t that bad as they seem to be. They’re just not created equal. So be wise. Opt for those that will help you acquire assets, such as a home loan or a business loan. Just make sure to ask help from experts to find a good offer.
Buy Philippine-made products. This is one way to help local merchants grow, which in turn can help increase our GDP.
Maintain a low-cost, eco-friendly lifestyle. Excessive use of plastic ruins the environment. And the government has no choice but to use a portion of the people’s money on forest rehabilitation and other pro-environment initiatives.
Plan and monitor your expenses. There’s nothing more rewarding and motivating than knowing that you’re in control of your life and finances.
Be organized and timely with your payments. This best applies to those with loans and other credit card dues. Late payments can cost you extra charges so it’s best to be vigilant about your pay out schedules.

The Philippines certainly has a long way to go in terms of economic improvement and governance. But it’s something we can all participate in, especially as we live our day to day life. As much as we aim to elect the right people to govern us, it’s also our responsibility to strive for personal improvement, especially in terms of our finances.
References:

About the Author:

Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on

finance. Also, she's fond of 9GAG, so you might read some random stuff over here.

*Photo Credit: GotCredit (Creative Commons)

7 Tips for Getting Your Personal Loan Approved

noreply@blogger.com (Joel Olave) — Tue, 26 Jan 2016 01:49:00 +0000

Personal loans are people’s go-to fix if there’s a major expense that has to be paid such as bills and high-interest credit card debt. However, others may also choose to use it even for basic expenses.

Getting a loan approved is easier said than done, considering the process included in it, as well as having solid proof that you’re capable of paying for it.

So, if you’re planning to get a personal loan from a lending company, make sure to follow these tips to ensure that you’ll have your personal loan approved.

1. Determine the Type of Personal Loan You're Getting

While personal loans may be thought to refer to unsecured and closed-end installment loans, secured loans (such as credit cards, mortgages, auto loans, and payday loans - those requiring a collateral) are also considered personal loans.

Usually, secured loans use your collateral as the lender’s guarantee that you’ll be paying for the loan. On the other hand, unsecured loans don’t require collateral but has a higher interest rate.

Therefore, it’s important to know what type of personal loan you’re applying for, so you can find out if you’re qualified for the said loan.

2. Verify Your Credit History

Your credit history plays a huge role when applying for loans, as it determines your repayment conduct (e.g. if you’re paying on time), as well as shows the loans you have applied for.

If an application was rejected, your credit score takes a big hit, and this will not do well for you on your next loan application. This is why it’s important to avoid applying for loans you know you’re not qualified for.

Also, avoid things such as unpaid loans, bounced checks, dishonest loan purpose, and credit card delinquency, as these would hurt your loan application.

3. Find the Right Lending Company

Before applying for a loan, make sure to go through several potential lenders—the reputable ones. Usually, you would need to base this off of your credit score. So, find lenders you would qualify with depending on this.

However, even if this would narrow down the field, make sure to look into the lenders that you can apply for. It’s important to know all the details from the fine print to the interest rate, up until the terms of the loans you’re considering getting.

From there, you can proceed with discussing all relevant documents, as well as their suggested timeline for approving your loan.

4. Be Honest with Your Provided Information

During your application process, the lending company would verify all the information that you have given them and may call you to confirm some personal data.

Should they fail in reaching you, expect that your application would not push through.

Make sure to list down correct information regarding your finances, mortgages, and employment, among others, as discrepancies can delay your loan approval and may potentially lead to a rejection.

5. Know Your Limits and Aim for a Realistic Loan Principal

Be sure to apply for an amount that is realistic according to your income, because after all, you’re the one that will be making the payments.

One possible scenario is that the lending company may grant you a lower loan than what you’ve applied for upon realizing that you may not be able to repay it. This can still be a good thing rather than being completely rejected.

6. Create a Checklist

Once you’re done surveying the potential lenders, it would help to make a checklist of all the requirements for the loan application.

This may involve talking with your employer, creditors, and other financial resources to complete your application, as incomplete submissions may result in a quick denial.

7. Patience is Key

Waiting for your loan approval can be frustrating, such that you may consider applying for multiple loans simultaneously. However, never be tempted to apply for a number of loans at once.

If the lender finds out about this, they might think that you’re certainly in a financial pitfall. Remember, these would reflect on your credit history and may hurt your chances of getting approved for other loans down the line.

In a nutshell, all loan applications have its corresponding issues. But, if applying for one is the only option you have, and then do it accordingly to save yourself from all the troubles.

About the Author:

Dwight Santos is the Head of Marketing for YesCredit, an online loan application platform that provides fast & easy personal loans at competitive & reasonable rates.

*Photo Credit: Chris Goldberg (Creative Commons)

EntrepZone Helping SMEs Move Forward

noreply@blogger.com (Joel Olave) — Mon, 25 Jan 2016 00:00:00 +0000

*This is a Sponsored Post
Empowering entrepreneurs during the critical stages of their business, EntrepZone.com is a marketplace for those who want to sell their businesses and for startups looking for investors.

MANILA, January 25 – No one wants to read about failed businesses. Everyone wants to read about the next Henry Sy or Injap Sia, but most of the time, things don't work out as planned for the SME business owner.

Enter EntrepZone.com, an online marketplace for business owners looking for loans, investors, or other businesses to buy. It is mainly targeted at SME owners who want to sell their business and those who want to reach out to banks and financial institutions.

EntrepZone.com allows entrepreneurs to list their business and provides a venue for potential investors to discover them. For SME business owners looking for loans, the site will soon allow them to create a portfolio or “Pitchbook” for their business to be sent to the owner’s preferred bank or financing company, instead of making numerous trips to the bank and speaking to a lot of bank managers. Creating a Pitchbook cuts time and cost for the owners because they simply have to do it once via the easy-to-use Pitchbook Generator in the website.

According to founder and CEO Greg Ballesteros Rivera, he created EntrepZone.com when he realized there was a big gap between the supply of service providers and the demand for the services they provide.

“A large proportion of business owners facing various prospects and challenges don’t have access to advisors or investment banks to help them sell or raise funds for their businesses,” Rivera said.

Only a handful of SMEs gain access to the services of the big four accounting firms such as Ernst & Young, PWC, KPMG, Deloitte, advisors, and investment banks. This leaves out a majority of SME players, especially those outside the big cities. EntrepZone.com can help bridge this gap because they simply need to sign up and list their business on the website, Rivera said.

Aside from offering an online business for sale marketplace, EntrepZone.com also offers advisory services for entrepreneurs who might need them. Their team of dedicated experts has more than 15 years of experience in financial advisory, consulting, and private equity.

Their services include financial due diligence, commercial due diligence, valuation, financial modeling, business consulting, mergers and acquisitions, tax advisory, fund raising and investor sourcing, and accounting and bookkeeping services.

For more information, visit EntrepZone.com.

A Visual Roadmap for Your Finances This 2016

noreply@blogger.com (Joel Olave) — Wed, 20 Jan 2016 05:33:00 +0000

We’re almost a month down to 2016, and I'm sure many of us are both excited and nervous of the coming months. For most, a new year means a blank slate. 2016 gives us twelve new months to take on new challenges and new risks. This includes the financial aspect of our lives.

When it comes to money matters, the new year is twelve new months to help us reach our financial goals. According to Digimind, an online monitoring and competitive intelligence agency, one of the top 5 New Year’s resolutions (across the world) for 2016 is to ‘save money’.

In an infographic created by MoneyMax.ph, the visual guide below serves as a monthly roadmap for your finances – from when to rebalance your investment portfolio to revising your budget with the season (e.g. summer, school year, Christmas).

For every month of 2016, there are concrete steps you can follow to skyrocket your finances. Soon enough you’re not only saving more, but paying down debt, investing in various vehicles, and becoming a discount shopping expert.

Here is your financial roadmap for 2016:

About the Author:
Bea Bongat is a writer at MoneyMax.ph, a comparison portal for financial products in the Philippines. She writes about personal finance, money management, and investing (tidbit: stocks are her favorite investment). She believes money is not the end goal, but a means to achieve one's goals, and so, she continuously builds up her travel fund to explore the world.

10 Tax Facts in the Philippines Every Business-Minded Employee Needs to Know

noreply@blogger.com (Joel Olave) — Sat, 05 Dec 2015 03:22:00 +0000

It’s not uncommon to find salary earners taking on other sources of income to supplement their take-home pay. Regardless of how you make your extra cash, whether as a freelancer, small business owner, or consultant—the government classifies you as a mixed income earner.

If you belong to this category, then that means that you have additional tax requirements to abide by. Do you know what your tax obligations are? Here are a few things you need to be aware of if you aren’t yet.

1. Freelancers and small business owners must file an Income Tax Return (ITR) declaring mixed income.

Let’s start with the basics. When filing your ITR, you must declare that you are a Mixed Income Earner (MIE), which is how you tell the Bureau of Internal Revenue (BIR) that you have several income sources aside from the compensation income you receive from your employer as a salaried worker.

2. Freelancers are considered as sole proprietors, and as such, need to pay business tax.

This means that aside from registering the official receipts you issue to customers, you need to keep a book of accounts and pay businesses taxes, whether you’re earning or not. Take note that business tax is based on the gross receipts or sales, and not on your net income.

Other things to remember if you’re a freelancer paying income tax:

You are subject to 12% VAT if your business gross receipts and sales exceed Php1,919,500, but gross receipts below that amount are liable to a 3% percentage tax.
You need to file BIR Form 2550M (VAT) and BIR Form 2551M (percentage tax) on the 20th and 25th month following the applicable month respectively. VAT-registered businesses must also provide a summary list of sales and purchases.
Expanded withholding tax is applied for certain expenses incurred such as rent, hiring an outsource person, commission, or those listed in Revenue Regulations No. 2 to 98. This must be remitted to BIR monthly.

3. Request for BIR Form 2307 from your employer when filing taxes as an MIE.

Form 2307, also called the Certificate of Creditable Tax Withheld At Source, should be submitted together with the Quarterly/Annual Income Tax Return. Through this, the amount of withholding tax shall be allowed as a tax credit against the income tax liability of the income recipient in the taxable quarter or year, in which the income was earned or received.

Ask for this form from every company that has withheld tax on their payments to you, including one from your day job, and then consolidate the income you made from your business or businesses into one form 1701.

4. You need to file one Income Tax Return Form (BIR Form 1701) for all your businesses or freelancing jobs.

BIR Form 1701 is the income tax filing form used for self-employed individuals, estates and trusts, including MIEs. As previously mentioned, this is where you consolidate all your income sources and fill out the form completely.

5. Itemize all income sources when filing taxes.

Business owners must itemize all companies and include all the income received from different sources. Just follow all the instructions on Form 1701 to the letter and be as specific as possible. Every single detail must be included and accounted for as much as possible.

6. Your total taxable income can be reduced if you’re qualified for exemptions.

When filling out Form 1701, you need to include all of the gross income you received from various sources. This means that you must note down the income you received from your business/freelancing work, as well as income from compensation as an employee.

The total income can be qualified for exemptions, which are composed of Personal Exemptions and Business Expenses, and your taxable income will be the basis of your income tax.

This is to avoid double taxation in your case when your employer has already paid and filed taxes on your behalf as a salaried employee.

7. Entrepreneurs cannot offset their taxable income with their business loss.

This is because business tax must be differentiated from income taxes. Business taxes are composed of a percentage tax on sales/receipts and value added tax (VAT) while income tax is derived from your annual income as an employee or your personal income.

8. See to it that business permits are up-to-date and current.

Make sure that you keep track of the administrative, behind the scenes duties related to paying taxes and staying in business. Never forget to be on track when it’s time for the renewal of business permit.

Another basic but often neglected requirement is ensuring that receipts are issued properly. Without receipts, you can’t support the claims on your income, and this can lead to issues during filing.

9. Be mindful of the deadlines for submission to avoid penalties.

Remember that you’ll need to file your ITR on or before April 15. The rate of taxes is 5-32% for individuals. If the tax due exceeds PHP2,000, taxpayers may elect to pay in two installments, the first when the return is filed, and the second on or before July 15 of the same year.

Penalties include failure to file returns, late payments, wrong documents, and anything else that might delay the process and cause you to miss deadlines. Surcharges can range from 25% to 50%. Avoid these by filling out your papers ahead of time and filing within the prescribed period.

10. See to it that you attach all requirements to the ITR, as needed.

Make sure that the required attachments such as a summary of taxes, duties, and licenses are included when filing your taxes to avoid delay and penalties.

For example, the BIR Form 2316 (Certificate of Compensation Payment or Income Tax Withheld) must be attached to the Annual Income Tax Return or BIR Form 1701, which is used for individuals with mixed income.

Form 2316 is accomplished and issued yearly by the employer and given to employees whose income is subjected to final tax declaration. The form must indicate the total amount that was paid to the employee, as well as the corresponding taxes withheld during the calendar year.

Keeping track and filing your taxes correctly can be a tedious, time-consuming process. But, it is your basic obligation as a citizen.

To save time and effort, consider hiring an accountant to help you properly fill out your paperwork. You can also opt to outsource these administrative tasks and have experts handle business related concerns like the renewal of business permits. This way, you can focus on being an excellent employee in your day job while making a great business for your sideline rackets as well.

About the Author:

Danella Yaptinchay is the managing director of Full Suite, a service company providing back end support to small businesses. She is also a cofounder of Co.lab, a coworking space, and of the media company Homegrown. In constant pursuit of balance and self-development, she tries to apply the practices of yoga to her daily life.