Personality Check

Did you know that, how you keep your loose coins has a say about you? How do you go about with your loose coins defines your personality. I came across with an article by Dr. Johnny Noet Ravalo, he told a story about a person named Al and explains what kind of personality Al has by simply knowing how he keep his loose coins. The story talks about an ordinary employee who is assured that his salary will be at his ATM every 15th and 30th of the month, just passive. He doesn’t seem to bother counting his change. I usually find myself on this situation too, no doubt. The story goes; this driver doesn’t have savings at all. His personality speaks that he is a slipshod, philosophical and is prone to discharge circumstances in times of complex situation. Thus, other “non-counters” so to speak has tendency that they often take into account their cash flows.
They less likely treat coins as money at all. The 100-peso bill is different from 20 pieces 5-peso coin. They would less like left the coins elsewhere. These kinds of people were treated likewise as investors, as Dr. Ravalo puts it. Instead of putting their money on a time deposit that can generate a guaranteed income on interest, they will gamble on investing into a higher yield, higher balance-longer tenor instruments. When their investment will reach to its peak, they will all the more avoid counting off the coins.
On the other hand, the opposite are those who have savings habit. Thus, it started with a simple piggy bank. These types of person have great pleasure in binding the increasing weight their piggy banks had become. These people were tending to be more patient and they are mindless doing the tiny details to achieve success. These were the people who have high emotional quotient.
All these were habits, in whatever situation we are right now, neither we experience abundance or our income is just sufficient to value savings greatly, reflect on the value of a coin and it will make a difference. Though savings may not a guarantee, that when in time of dire needs, we will have enough, nobody has and no body will be, and same is true with having life insurance, nobody profits from life insurance, but the fact still remains, at least have prepared for it. It gives you security than not having at all.
This is like the classic tale of the ant. I’m sure everyone knows it. We should learn the values the ants possess. They save what we scattered around. When rainy season comes, they have enough stock to feed the whole army.
Look around; see if you have loose coins, when you count them, you’re a peso richer.

Learning from the Experts

The new today talks about crisis. It had become an overused term. We can hear it in the news, when we are on a gathering, etc. The economic crises are an often effective topic to strike a conversation. The Conversation will start on running even when you just sit beside a complete Stanger. Because of these crises, we cannot blame people when they became cynical, glum, pessimistic on investing their money into managed funds, stock markets, life insurance and etc… Even in banks, others felt that it is no longer safe and secure. (Most cases of the rural banks here in the Philippines). Well, I disagree. It is still important to have savings. Make a way to create your own investment portfolio. If it has become your habit to set aide a portion of your income every month, by all means, continue to do so. Segregate your savings. As financial experts would say, segregate your eggs into different baskets. Don’t concentrate on 1 particular avenue. Put a portion to a bank and open multiple accounts and limit only within the coverage of the insurance could cover. Another venue is in money market. But if you don’t know your way around, there are financial managers who can help you manage your funds. Thirdly, Insurance Companies can be a good venue to invest your money too. Make some research first if the insurance company is duly regulated by the government (Here in the Philippines, The Insurance Commission). If these insurance company is stable, and the most important factor to consider is if they can pay in case there are claims. The added factor when you invest in insurance is the protection side. It protects not only the investment, but the investor as well. For example, if you have P100, 000 in your pocket, if you put it in the insurance company, your protection is most likely around P1, 000,000.00. In case of a fortuitous event, you walked away from the picture earlier than expected; your family will get not only the P100, 000.00 but the P1, 000,000.00 coverage. But be smart in investing your money. Do some research first if the company is stable, and is duly governed by the proper regulating body. Learn from what happen to our society today. Avoid company who gives false promises, like those who gives high interest rates or a short Return of Investment (ROI). Try to consider also the claims. How fast are their services? My point is, if you put your P100 under your pillow, the next morning, it is still P100 pesos. But if you put it in these institutions, your money will earn for you even in your sleep.

Knowing your spending habit

Every month or even every weekend, when you open our cupboards, cabinet and refrigerator, checking the supplies for the week, or just going to the mall and check whats new. Buying groceries or new stuff even if you say that you need those, how will you know that your spending way over your head? well, here are something to check on to evaluate if your overspending and if you really are based on the indicators here's how some guide on how you send and work on improving your situation.
Were you able to save five percent of your gross income? A saving rate of five percent or below means that you will have real difficulty when an there's emergency. It is advised that saving 10% of your gross income to ensure you will have enough cash and had enough when emergency crops up.
Are your credit card balances continues increase? If your paying the minimum amount of your credit card balance, then you are most likely spending more than you should. Think hard if what you are likely to buy is what you really need. If you can have a day or two to think it over and if you will live without it, then you don't need it. Don't charge it to your account.
Are you spending 28% of your income on your house? If you are paying your mortgage, insurance and property taxes that is 28% higher in your gross income, historically, 28% is considered that rate at which the average person can get by with making mortgage payments and still enjoy a reasonable standard of living.
Are your bills are spiraling out of control? If your paying several installment bills, whether necessary or unnecessary, installment purchases, you are most likely spending beyond your means. Go through each bill and ask yourself whether each product or service is really necessary and make that change.

Six Habits of Highly Successful Investor

I came across an article published in out local magazine, MIRROR. I just want to share this. The Six habits of A highly Successful Investor.

1. Save and invest regularly. The one-two punch of regular savings and continuous investment is the primary driver of wealth around. And if you invest regularly even with modest sums-you can earn your fortune over time.

2. Spread your money around. It is still true that diversification will reduce the volatility in your portfolio, smooth out your investment gains, help you sleep at night, and keep you in the game through good periods and bad.

3. Keep track of your performance. It's the only way to go so you can make adjustments whenever necessary.

4.Put down your thinking on paper. Record the rationale behind your investments, reviewing your results regularly, and modifying your approach intelligently overtime, that's the best and safest way to build lasting wealth.

5. Find and follow great investing mentors. One can "borrow" time-tested principles the great investors have used for their own purposes, and be the better for it.

6. Have fun. One should thoroughly enjoy business and investing. Enjoyment brings with it, and superior, as well.

sources: from www.moneyinstructor.com