Financial Lessons From Game of Thrones

Image from Mastercard

Maybe I just miss Game of Thrones hence the said post for today. Since the last episode can’t help but wonder what would happen next. To those who read the book, I am certain you already know but for individuals like me who didn’t we will have to wait.

Game of Thrones is one of the hottest series to date. Ok I know you have different connotation with the “hottest” word in there since the series after all involves sex and violence. However, let us see the series in another perspective and that is the financial side of it. I know George RR Martin is racking millions because of the series but undoubtedly there are hidden and not so hidden lessons about money and finances. Here are a few:

Winter is coming, be prepared

This has always been the warning by inhabitants of Westeros in the series. Well in our lives we also need to prepare for our personal financial winter. This involves unforeseen expenses and even emergencies. Anticipate circumstances like losing a job and what not. That is why, it is always best to build up your emergency fund. Allot a portion of your salary to that. You may also create a rainy day fund.

A Lannister always pays his debts

They might be one of the most hated families in the series however there is always something good with the Lannisters. And that is being able to pay their debts. To be financially stable and wealthy, debts must be eliminated. If you are starting in this path, it is always suggested to pay off your debts. Debts are after all chains that can drag us down. Not to mention the horrifying interest rates, penalty charges and the collection agencies. Hence better pay off your debts fast.

If another house can seize one of our own and hold him captive with impunity, we are no longer a house to be feared.

Tywin Lannister’s hunger for power and control is evident in the series. That is why; he manipulates things and even individuals to his favour. He wants control. And this is something we can learn from him. We must be able to control our money. Start by writing your expenses so you will know where your money goes. Keep track of your investments and your portfolio. Make sure you know how to handle your money or your money will control you. Use it as a tool to better yourself so you will not be a slave of debt and poor financial management.

There’s more to violence and power that revolves around Game of Thrones. There are financial tidbits that we can learn from every character and their experience. Hence, when you watch Game of Thrones next week, look for new lessons that can financially help you. I for one can’t wait for the next episode.

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 21 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

Take A Detour

A friend of mine shared this very interesting idea of having a detour. In fact, this is so accurate not only in my life but everyone as well. And with his permission, this is indeed worth sharing. This is what he called as “Detour”.

As an employee, we are so dependent with our income or salary. Well that is not bad considering that we toiled and laboured for it for how many days. We go to college and earn a degree in order to get a job. We improve our skills in order to land the job we want. While there is nothing wrong with that yet there are other ways that we can earn an income without the need to physically do it. You see, being dependent to our income or salary might not sound bad. However, what will happen to you if you no longer have a job? What will you do if you are forced to resign because of age or health conditions? What if your company will close down? What will you do?

Hence he suggested “Detour”!

Detour may involve a few other steps or destinations but trust me it is worth it. Even more, this can be your safety net should something bad happen to you or your company. Take a look at the diagram.

Detour simply states that a part of our income must be directed to investments. These investments can create another source of money pool for us. So that should we no longer have a job, it is these investments that will generate us the money. No wonder there are some individuals who are eager to retire because they already have investments that can sustain their lifestyle. There is no need for them to work anymore since they have been gaining profits all along.

Perhaps you might ask, what investments should I pick?

To date, there are already a lot of investments. There are two types of such namely solid assets and liquid assets. Solid assets are the tangible ones like real estate, apartments, farm, groceries and the like. Liquid assets are the intangible ones like insurance, mutual funds, stock market and more.

For new investors, it is best as early as today to invest in liquid assets. As starters, you can get an insurance that can yield to VUL or variable universal life that combines insurance protection with investment opportunity. You may also proceed with mutual funds via your preferred banks. Such investments don’t eat a large portion of your salary. You can invest as little as 1,000.

There are many benefits of doing the detour. For one, it can be good for your retirement, it can also be an income replacement, can help you preserve your wealth and expand it. For the breadwinners this could help in financing your family’s needs and other varied financial purchases.

If you want to be ready whatever the worst case scenario is, it is best to take a detour now. Remember “The Rich are getting Richer not because of the Things that they Buy and Possesses but rather on the Investment that they have that keeps on Generating a Profit”.

Thanks to Roderick Giga for sharing his knowledge and wisdom!

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 21 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

CEO SUITE: Suit Your Business Needs

When I had my MBA class years before, we were taught that in order for a business to flourish, you need to have the 4 P’s. The P’s are your Product, Promotion, Price and Place. Each must be meticulously considered. With that said, there is no denying that even if you have one good product but your business location is pretty much not good enough, expect that your business will fail in the long run.

Let me present a scenario.

You are starting out a very good service oriented business. Yet you are situated somewhere in a place that is so ordinary. Since you are trying to cut cost, you tend to put your business in your house. With that said, would customers even believe that your business exists. Would they be interested to go to your house then? 

Will that add credibility to you and your product?

The answer is a big NO!

Customers and those who would be interested would be keen in dealing with businesses with a reputable location. Remember, location, location, location. And the place is part of the 4 P’s in any business. It is always way better that your office or your business would be situated somewhere good, in a reputable tower in the heart of a city. With that said, it is imperative therefore that one should have a good location in the first place.

But the question is, it is pretty expensive to get a business place, how much more one that is in the heart of the business district?

There is no denying that indeed a good location is pretty much expensive. It can drain one’s capital and even revenues. However let me share a little secret. You don’t need to rent out a space in a central business district. You don’t even need to have a business space at all. You only need a business address. And how is this even possible?

The answer is to have a virtual office.

A virtual office is like having an office in a prime location without the need to be there. However, your business is registered to that address yet you will not occupy there. It is like having an office somewhere with a feasible location though you are not staying there.

To date, having a virtual office proves convenient than having a real one. There are many benefits of having this instead of renting one.

• ·         Prestigious business address
• ·         Professional personalized bilingual answering service
• ·         Voicemail
• ·         Fax number
• ·         Fax handling and forwarding service
• ·         Price

One key determinant why a virtual office is feasible today is because of its price. Compared to having a physical location, this is way cheaper than the latter. Hence, if you are a budding businessman, this would be ideal especially if you are just testing the water of your business or your product. In order to put emphasis on your business rather than on the place, having a good virtual office provider would be ideal. CEO SUITE is just that!

CEO SUITE is considered the region’s finest serviced office. And let me just tell you why. You see CEO SUITE provides premium executive office suites and a good virtual office. They have the most efficient as well as the prestigious means to establish your business. Not only are they situated in the Philippines but key locations in Asia as well such as Bangkok, Beijing, Jakarta, Seoul, Singapore and more. They are in charge in selecting quality buildings that prove helpful to your business establishment.

Aside from that, you would surely appreciate how strategic the locations are of their offices. They will surely be able to place your business in prestigious Grade A Buildings. They also carefully planned the accessibility of the offices as well as the ease with traveling to and fro the office for instance their serviced office.

With these and more, there is no denying that CEO SUITE is one virtual office to consider should you like to improve your business facilities and your business in general. Do not settle for mediocre counterparts and trust your business to one that full understands you. Trust only CEO SUITE.

Here’s a quick tour of their lavish office in photos:

Get to know more about CEO SUITE via their Facebook Page, Twitter Page and LinkedIn Page.

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 21 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

Rap and Mutual Funds

Image from tommedvedich

Some individuals might find Rap really annoying. Some can’t seem to connect with their sound, their tune and more so the way they deliver the words and their lines. Truth be told, I’m not really a fan. There are some Rap music out there that I strongly disagree in terms of message and lyrics. However, there are but a few that are deemed goldmines. There are still great Raps out there that we can relate with personal finance.

A good example of which is Busta Rhymes’ Dangerous. Now don’t get fooled with the title. There is that line that really strike me and timely as well to investors like us.

Floss a lil', invest up in a mutual fund

See even Busta Rhymes agree that investing in a mutual fund is appropriate nowadays. After all, mutual fund is one key investment to make us financially dangerous in a good way.

So what is a mutual fund?

According to Investopedia

“An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.”

In here, your money is collected alongside with the other money of varied investors. And the fund manager would then be the one responsible to identify where to invest your money. Most of the time, they are investing it in the stock market, treasury bills and other related investments.

If you are relatively new to investing, it would be wise that you get to try mutual fund first. You see you will have confidence with your money especially when someone responsible and intelligent would be the one taking care of your hard earned cash. Plus, you don’t need to do the trading. Everything is done by the fund manager. Though there is that certain percentage that you need to give to them however it is very minimal as compared to your possible gains.

Different banks provide varied mutual funds that would be dependent on your need and also your risk appetite. To get you started, it would be best to go to your preferred bank and ask their wide array of mutual fund investments. Even more, opening a mutual fund account is relatively low. You can open as small as 1,000. Plus, you will be able to see how your money grows and keep track of your investment.

See, even a Rap song is suggesting you open a mutual fund. The best time to invest is now. With that said, if you want to invest with greater returns for your money, try opening up a mutual fund Yo!

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 20 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

Ako Ay May Lobo

Image from prettyfeetpoptoe

A few days back my parents were playing the song “Ako ay may Lobo” on TV in order to entertain my little brother so he will stay put. I am pretty much acquainted with the song since this can be heard in the TV series Doraemon which is a personal favourite of mine. That is why, I tend to sang along and then it hit me. This is a pretty short song however the meaning can be related to personal finance.

Here’s the lyrics:

Ako ay may lobo

Lumipad sa langit

Di ko na nakita

Pumutok na pala

Sayang ang pera ko

Pinambili ng lobo

Sa pagkain sana

Nabusog pa ako

Simply imagine this means something big with regards to money and personal finance in general. Let us dissect this catchy jingle.

Ako ay may lobo

Lumipad sa langit

Di ko na nakita

Pumutok na pala

This is a cry of a child who had lost his or her balloon. The balloon eventually flew and popped. I can still remember when I was a kid I had to begged my parents to buy me a balloon after church. Well, we cannot deny that balloons are indeed lovely especially with those colors and pictures.

Sayang ang pera ko

Pinambili ng lobo

Sa pagkain sana

Nabusog pa ako

Here the kid regretted the decision of buying the balloon. Should the child use it to buy food, it would have been a better option since he or she will get full. In here, money has been wasted.

So how does this correlate to personal finance?

It takes no rocket science in order to understand the connection of the jingle to finance. The balloon can be a representation of the things that we want. You see, there are many things in life that we really want to have. The food on the other hand would be the things that we need. It still boils down to needs versus wants.

However, it can be read in the jingle that the kid chose to satisfy the want which is the balloon rather than the need which is the food. True enough, we can be overwhelmed with the things we want to the point that we prioritize it whenever we had the chance. Worst at the expense of the items we need. That is why most of the time; we can no longer save because all of our money is devoted in that aspect. Saving alone is a need however we tend to digress the idea because of the notion that satisfying our wants can make us happy. Little did we know that our wants are but temporary. It can satisfy us for a short period of time. I am certain you felt this too before when you buy something then after that you don’t feel happy at all with the purchase. Then we regret. Then we have tons of what ifs and should have been. What if we use the money to save? That money should have been used to invest. But, what’s done is done. It is too late and we regret.

That is why it is imperative that we know in the first place our needs and our wants. Then prioritize every single time our needs over the latter. Let us not be like the kid in the jingle.

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 20 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

From Walking Barefoot To Driving Luxury Cars

Image from phildev

Who would have thought that this veteran entrepreneur and capitalist in no less than Silicon Valley is also very similar in terms of life story. His life is something we can relate. I am referring to Dado Banatao entrepreneur, master investor and philanthropist. Surely he comes a long way. And he surely is an inspiration.

Dado was born to a rice farmer and a housekeeper in Iguig in Cagayan Valley Province. He remembers walking barefoot when he was a kid to school. He went to Mapua Institute of Technology and took up Electrical Engineering where he graduated cum laude. He then applied as a pilot trainee at Philippine Airlines. From there, he was pirated as a design engineer and was brought to the US. While in the said country, he pursued Masters in Electrical Engineering and Computer Science at Stanford University.

After graduating, he then works at the National Semiconductor, Intersil, and Commodore International. There he designed the first single chip. After which he was then tasked to look for an efficient way of linking computers. That led to one great discovery. From there, he decided to start his own company. With an initial capital of $500,000 from friends, he established Mostron I 1985. The company develop chip sets. His company developed the first system logic chip set for PC-XT and PC-AT that aided in lowering the cost of building up personal computers and making it more powerful.

Then Dado created his second company which is Chips and Technologies (C&T). The company is dedicated to improve graphics adapter chip sets. Their sales in the first quarter rose to $12 million. Less than a year, the company went public. It was tagged as the fastest IPO listing in the US stock market. In 1996, Intel bought C&T making Dado richer by $430 million.

Now, Dado is a multimillionaire investor. He currently has many investments and other joint ventures. Aside from that, he also manages several businesses. He got Cielo Communications. He also has the SIRF Technology and also Marvell Technology.

Presently he has more than three homes in the US with resort properties in Lake Tahoe and San Francisco. When he used to walk barefoot when he was a kid, he now drives high performance luxury cars and even got his own jets. In spite of his success, he remains grounded. He contributes a lot to the society and to the country. He built a computer center back in his hometown and has varied students who he helps to finish a degree in engineering.

Dado is a manifestation that indeed nothing is impossible. With the right attitude and the right amount of hard work, farfetched dreams can be realized. Indeed Dado is an inspiration to every Filipino. 

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 20 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

3 C’s To Reach Your Big Goal

Image from actioncoach

Do you have that big goal in mind? Have you been eyeing to get like a new car, perhaps a new house or that much coveted vacation with your family? Or perhaps for our OFW readers out there, are you eyeing to go back home? Should that be the case, what you will need is a substantial amount of money. After all, you need to save for the down payment or you need to pay cash for the tickets and the other expenses.

Imagining the amount of money you would be shelling out in the process can literally drain the blood in our faces. Now I don’t want to imagine that at all but I think you know what I mean. This can be pretty intimidating. Yet, before you set aside that goal and halt it, might as well check out these effective methods to attain it.

Method 1: Complement

In order to beef up the much needed money, it would be best to find other sources of income. This can be pretty simple especially to those who are currently working. Rendering overtimes can do the trick. You may work for longer hours and take advantage of it. If your company doesn’t allow it, look for a possible second job. A part time job will do. You can work online and do some tasks on a project basis.  If you have a skill or a hobby, you can monetize it. There are many home based jobs or businesses that you can start. Just define what you are good at and learn how you can be able to generate additional money or income for that. You may also put up your money for investment so that it will generate huge interest in the process.

Method 2: Compromise

When you are saving up for a big goal, there is the need to compromise. This means spending less in the process. You might cringe on a few items like trimming down your groceries, staying away from malls, dine in inexpensive places, downsizing a few expenses and more. You may need to be frugal. Aside from that, you may need to be creative in order to take advantage of cheaper or no cost alternatives.

Method 3: Commit

Regardless of goal be it big or small, it still boils to commitment. True enough the entire process of accumulating such sum would take a while, years even. However, if you are just patient and positive that it will be worth your while then you can be able to attain it. Hence, don’t despair if you think it is taking forever to get the amount. Remember, the bigger your dream the longer it will take you the more efforts it require. However, I can guarantee that if you will reach it, it would definitely be worth it.

So what big goals do you want to achieve? Simply recall the 3 C’s in order to attain it. Remember, if you can dream it, you can reach it. 

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 19 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

From Houseboy To Businessman

Image from pvpixels

Story from philippines.vaughn-go

Simply imagine how a houseboy can become a businessman. Even more, what could they have done in order to attain that status? Marino T. Apa is exactly that. He was a former houseboy and became businessman.

His story opens with a love story where he met his wife and business partner Antonia. They were phone pals during that time. When that moment opened where they could finally meet, Marino was having doubts. After all, he is just a houseboy. However he introduced himself as such and Antonia was friendly and approachable. They became sweethearts and married after four years. After that, they lived and raised their family in Tipolo in Mandaue City.

Marino’s employer sent him to two year automotive vocational school. However, this was not enough for him. Hence, he enrolled in high school even if he already has kids. Because of his automotive degree, he was able to land a job in San Miguel. He seized the company’s Education program where he went to college. However he eventually had to quit because his kids got sick.

His wife supported his husband dearly. She was working at a factory and sold various items. When their eldest will go to college that is when they realize they need to work more. Hence, Antonia sold clothes and Marino tried selling beer.

On September 15, 1989 they became San Miguel wholesalers with a capital of 4,200. He took a loan in order to buy a bicycle cart. He remembered it was hard and the most difficult time of their life. He is a full time driver at that time and he would come home at 2:00 AM or 4:00 AM. Yet he need to pick up beers and deliver. Once, I crashed into an excavation in front of San Miguel and broke two cases worth about P200 each," he said, "I don’t know how long I sat on the pavement, moping over the loss." Back then they couldn’t afford any loss from breakages.

Antonia is helping his husband in any way she can. In fact she didn’t spend a single cent from the beer sales. They would use it to increase their orders. Then their sales rose. Their bicycle cart turned jeep. Then their Tamaraw. And now they have three elf trucks, the Tamaraw and a pick up to deliver beers to over 100 outlets.

Marino and Antonio attributed their success to devoted service, hardwork and perseverance. They were kind to their loyal consumers and they continue to build rapport to new ones. No wonder many flock to them because of their credibility and reliability. Indeed miracles happen because these couple made it happen. 

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 19 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

Practical Tips For Today’s Breadwinner

Image from womenofhr

So we have been talking about savings and investment for the longest time yet there is a sector in the society that believes they cannot pull it off. Their reason is that they are the family’s breadwinner. Considering our society today, there is no denying that there is that certain family member who works for the benefit of the family. That my friend is one noble post to begin with and I cannot begin to imagine the kind of labor you put for the sake of your family.

However, being the breadwinner has its limits as well. You cannot go on forever with this while sacrificing your personal and even your financial life. I’ve heard and read some breadwinners who really wanted to save up and invest but they can’t because they prioritize their money for their family. As early as now let me stress that there’s nothing wrong with that. As a matter of fact, I applaud that level of dedication. Yet sooner or later you must also think about yourself. How are you supposed to take care of your family when you are not secured in the first place? How will you support them financially when your financial structure crumbles or when you no longer have a job? As such, here are some tips that can ensure that you remain strong and productive even if you work alone.

Limits

Most breadwinners work really hard. Some even maintain multiple jobs while others would do overtime every single day. Please do not work yourself to death. True the more jobs you have the greater your source of income. However, don’t push yourself to your limits that in the long time you would experience stress and fatigue. Know that your body can only do so much. And remember in the event you get sick, it is your family who will bear the expenses.

Ask Help

Do not be afraid to ask help from your family members. You see every year the cost of our basic necessities increases while our salary take a lot of years before it does. Being the sole financial provider is a pretty tough spot. And asking for help doesn’t mean bailing out from it. It’s just that you need to have a partner in order to bring more in the table. Communication is key here. Your dependents must know your situation and they must be aiding you out in any way they can. There are always home based incomes or home based businesses that they can do to help you out.

Pay Yourself First

Since you are the breadwinner might as well secure your spot in order to secure your family members. Make sure you get to pay yourself first every payday. Save up even a minimal amount and invest. It may not be in the stock market but there are also UITF’s and others offered and managed by banks. Get insurance in order to protect yourself and also your family. Be prepared for any circumstance.

Should you be a breadwinner remember these tips. Again, know your limits, ask for help and always pay yourself first. By following such can serve as weapons again tough times and breadwinner can emerge as winners rather than victims in the long run. 

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 18 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

Things I Did Before I Invested

Image from concordhomebuilders

It took me a long five years before I fully appreciate the value of investment. I was also like everyone else who thinks that putting my money in a savings account is already a good one. I notch it a little higher by opening up a time deposit account. And it was good for me back then.

Then reality hit me. I knew nothing about inflation and even the value of my money in the long run. I even opened up a cooperative members account in order to yield greater rewards but failed miserably in the end. That is when I realized that I need to do something. This can’t go on forever. Then I was introduced with the world of investment.

Let me tell you it was not easy. Since this is relatively new to me there are things that I did before I say that hey I am ready. With that, let me share those things.

Save

Before I jump into investment, I already had a hefty amount of savings. I then identify my emergency fund amount and how much I can allocate for my investment. I then assess the amount that I think I won’t be using for the longest time. I did not touch my emergency fund and even have another savings dedicated for my buffer needs or what not.

Goal

The next thing I did was to identify my financial goal. I don’t really intend on retiring early since I love teaching however I want to reach this much amount before I retire. Identifying that inspired me to save up and invest. Not to mention it persuaded me to save more in the process.

Learn

The next thing I did before I invested is to study it. I don’t have a financial background or an investment background in the first place. That is why I read books, blogs and even ask my local bank on what they can offer and provide me. From there, I identified which would suit my personality and risk appetite. I also identified how much would be its yield on my money and if this can meet my future goal.

I know my current investment state is still in its infancy and I still have a lot of things to learn. However, I am just happy I did. I see my money grow in the process. And it made me realize that indeed you can be able to achieve whatever financial goal you may have without the need to toil and labor much. And I want you to experience just that.

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 18 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.