Friday, June 27, 2014

BEWARE OF SCAM: MIDYEAR BONUS

BEWARE OF SCAM: MIDYEAR BONUS


          BEWARE OF SCAMS AND AVOID IT! HOW?

This is the time of the year when most of the employed Pinoys receive their salary bonuses. You can call it Mid-year bonus, 13th month pay, Extra Salary Bonus, and some employee also receive up to 16th month pay up to 20th month pay to exaggerate! Many wildly wait for the wonderful blessing of this extra paycheck. “Yehey! Bonus na!” (Yehey! We got the bonus!”) , the next line is “Ano kaya bibilhin ko?”  (What will I buy?), “ Saan ko kaya gagamitin?” (Where will I use it?). Then Pinoy will go to the mall, search the internet, and BOOOM! He finally found the “cool” item he wants to buy or want to do. But the sad part of this is some our friend Pinoys fell into the “DECEPTION and SCAM” of the Mid-year bonus.



          
 Due to lack of financial intelligence and discipline many Pinoys fell into debt traps of this BIG TIME SCAM scheme. We will discuss the following reasons why MIDYEAR BONUS is a scam.

SCAM #1: They use their midyear bonus for a BINGE, UNPLANNED PARTY. Friend Pinoy spends his money to bar hopping, house party, etc. Because he is not used to having the extra money, he spend it right away and back to his normal state of living paycheck to paycheck. (Groan!)


SCAM #2: They use it for BUYING UNNECESSARY STUFFS; they buy house appliances and apparel, blender, microwave, shoes, jacket, rah rah rah! And they convince themselves that they really need that stuffs which they will only use for 3-5 times. Worst they did not use it at all! (Palm in the face!)

SCAM #3: They buy another gadget that they don’t really need at all because they just want to “SHOW OFF” to their colleagues that they “GOT IT”. They want to impress other people for the sake of their financial liabilities. STATUS QUO?

SCAM #4: And one of the GRANDEST SCAM that we will mention is our friend Pinoy use his precious mid-year bonus as a down payment for installment deals to buy some perks such as gadgets (cellphone, tablet, etc.) , cars, even houses and condo units. They have been hyped-up and emotionally pushed that they believe they really need it. Some even borrow money just to chip in for the down payment. Some of our fellow Pinoy without the proper mindset and conditioning as well as discipline fell into debt trap because they can no longer pay the monthly amortizations and fees of the “ASSET”.

SCAM #5: Another great scam is they think they know how to invest or risk their money in some quick-rich schemes, invest their money and in the blink of an eye. Or invest in investment vehicles without studying first the know-hows. BOOOOOM! Hard work money earned In, Fast Cash disappeared. I think you know what I mean.

The SCAMS that were listed above are just few of the many. Friend, my tips that I can give to you is invest in yourself. Yes! You, yourself is your greatest investment. And what may you have learned, apply it! “Education without execution is extinction” – Bo Sanchez
You should read books, read self-help articles to increase your financial IQ before you start venturing with investments.  You can also attend our attend our FREE Financial Coaching Seminar: Register for the FREE FINANCIAL COACHING




BEWARE OF SCAMS AND AVOID IT! EDUCATE YOURSELF! EXPERIENCE ABUNDANCE!

Experience Abundance: 

Friday, June 20, 2014

4 Things You Need to Have Before You Start Investing in the Stock Market

Life is always unpredictable. People never really know what will happen to them the next day. They do not know when exactly they will go, or until when they can work on their job. Those were the reasons why you need to save and invest – for future preparation.

People are planning to invest in the stock market, mutual funds and other investment vehicles.

Photo (c) philstar.com

But before entering the world of investing, it is good to educate yourself first, and learn the important must-have’s so you can build your solid financial foundation.

Solid financial investment requires certain steps so you can achieve your financial freedom.

· Financial goals and financial blueprint

Financial goals are often your dreams that you want to achieve. Financial blueprint is your plan on how to achieve your financial goals. I believe that there is a right path to achieve your financial goal, your destination. And to reach that destination, you need to be guided by your financial blueprint, which serves as your road map.

Sometimes, Financial Goals are also your financial dreams.
You can create your financial blueprint in a piece of paper (as draft) and later on, create it in a more artistic way like journal and scrapbooks, which you can read often.

Common financial goals answer the following questions:

When are you planning to retire? Age 40? Age 50? Age 60?
How much money do you want to have before you quit your job?
After quitting your job, what are your plans? Have a vacation? Where? How much do you think you need?

Before starting to invest, realize first your financial goals, and set up your financial blueprint.

·  Healthcare

Having sickness is always part of our lives. No matter how much we take care of ourselves to prevent any diseases, we still have occasionally. Even Manny Pacquiao sometimes got sick. No one is excused for any sickness! And that is the reason why healthcare insurance.

Nobody knows when you are going to be sick. So your health card will be of great help for you whenever you got sick and needs to be admitted in the hospital. Medical expense is hard to be shouldered alone if you do not have your health card.

"Your health must be your first investment, because that will be your greatest wealth."
Photo (c) stylecraze.com

·  Life protection and insurance

This is very important especially if you are the breadwinner of the family. No one ever knows your date of appointment with the Lord. And if that time comes, how can your family survive without you?



This unexpected, sad yet realistic event could happen to all of us. And it depends on us how we prepare for that. By having Life Protection and Insurance, your family can somehow survive when you go. With the amount of money your family can get from your Life Insurance, their burden of losing you will somehow get lessen, because at least they still have something left to move on with their lives.

This is better, than leaving your loved ones with nothing.

Photo (c) sva.edu

·  Emergency fund

Yes, life is unpredictable, and will always be. You never know what will happen tomorrow.

Maybe you are on the great job position today, but what if tomorrow you get fired?
Or what if your roof needed to be replaced? What if your child needs extra payment for his extra curricular activity in school?Photo (c) economic.indiatimes.com


Those are some of emergencies that may ruin your budget for your regular expenses. Those are all unexpected.

Can you survive a month or two without your pay slip?

That is why you need an emergency fund. So that when emergency situation occur, you are prepared.

Healthcare, Life Insurance and Emergency Fund are all pre-requisite for every individual who are planning to invest in the stock market or mutual fund.


Why?

Simply because the market is unstable. Some time your money invested could gain, some time you could also loose when the market is down.

If any of those pre-requisite happen to you while the market is down, you loss big amount of your money.

Say, you invested Php50,000. Then the market goes down.

Along with this, you lost your job. You do not have any other investments, so you withdraw your money from the stock market, which lose some amount.

Worst of these three is when you pass away. Whether the market goes up or down, what can your Php50,000 do to support your family?

Most insurance coverage is about a million peso. So in case this will happen, a million peso from the insurance company is a lot better than the Php50,000 you invested in the stock market.

Friend, do you get the point before investing in the stock market?


PS. We are providing Free Financial Coaching Seminars conducted by the Bo Sanchez Truly Rich Makers Team - IMG in Makati. Click this to register: Truly Rich Makers Financial Coaching

Sunday, June 15, 2014

Setting your Blueprint to Financial Freedom

   It is impossible for an engineer to build a house without a blueprint. So is with financial and investment. It is impossible to achieve your financial freedom if you do not have your goals and financial plans. Financial goal is like the design of your dream house that you want to achieve. You need to create the blueprint so you can have that! The good thing in financial blueprint is that you do not need an engineer or anyone to do that for you. You can do your own financial blueprint, but you can ask guidance from people who already achieve their financial goals.


Photo (c) fifighter.com



Financial goals often change.

The best structures and buildings in the world were first created in papers called blueprints, which have been revised many, many times, before they turn into reality. Just like your financial goals, it may change from time to time depending on your status and life preferences. So you need to revise your blueprint as well so you can fully build your solid financial foundation!

Maybe this time, you are still young and single, and your financial goals might be:

Barkada trip
Treat mom and dad in Boracay
Buy new bag for little sister

Those are just simple financial goal, and yet you still make up your financial blueprint on your mind so you can achieve these goals. You might plan to avoid unnecessary snacks so you can save money to join your barkada trip and treat your family.

As time grows, your way of thinking will mature. You are now thinking for your future. You have now higher financial goals such as:

Buy a new house for future family
Buy a car for family travel and vacations
Save for wedding and marriage expenses

After getting married, your financial goals will change again.

Children's Birthday celebrations
Education for children
Family trip and vacations
Retirement savings


Those are examples of the changes of your financial goals. Along with these, your financial blueprints should improve as well.

So how do you create your Financial Blueprint?

Every structural blueprint started from the imagination of the engineer. Your financial blueprint will also come from your financial goals, or your desires.

First, you need to realize your Short term and Long term Financial Goals.

Short term financial goals are those you can achieve within few months or few years, like barkada trip, or family party.

Long term financial goals are those you need to prepare for. These are goals that require more serious blueprints and plans so you can achieve them. Long term financial goals include your retirement plan. You need to prepare for your retirement now while you still have your income from your job, and that is a challenging part.

If you want to achieve your financial freedom, you need to focus more on your long term goals. I did not mean to forget about vacations and other short term goals. I just want to emphasize that you must be more serious with your long term goals.

Most people do not realize their long term goals. So most of their life, they are broke, and retire penniless. They often focus on their short term goals. They often save only for their trips, gadgets and other happiness they want. Mostly, they save nothing for their future.

In setting up your Long-term Financial Goals, ask yourself:

When do I want to retire? Age 40? Why do I want to retire early?
What age do I want to marry my girlfriend? How much money do I need?
Where will my children study? How much do I need for their college degree?

Once you have the Financial Goals, you can do your Financial Blueprint.


Example, you are planning to save for your child’s college degree, you may invest your money in Mutual Funds. For 10 years or more, your money invested in the mutual fund will surely grow.

Aside from Mutual Fund, there are many other Financial Vehicles you can use to achieve your Financial Goals. Make sure you educate yourself first before riding into that vehicle!

Act now, and don't delay



P.S. We are providing Free Financial Coaching Seminars conducted by the Bo Sanchez Truly Rich Makers Team - IMG in Makati. Click this to register: Truly Rich Makers Financial Coaching 101







Wednesday, June 11, 2014

Why Newly Graduates Need Financial Management Education

The reality

“Hello world! Here I am, ready to face you! Ready to become an independent young professional!” the newly graduate exclaimed after getting his diploma.

Now the newly graduate is “ready” to face the big world (or he thinks he is). He landed on a good job with enough compensation. He is happy because he is now earning. He can now go to the places he has not visited yet during school days. He can now eat on the fine dining restaurants his allowance cannot afford before.

A year has passed; he got his first credit card. He can now shop in a more convenient way. He can get all the latest gadgets he want in just one swipe of his credit card.

Few years passed, he was promoted. He now has more than one credit card. He keeps on spending thinking that he could always pay his credit card bills because he has a good paycheck.
More years passed, he got married and got children. He has never changed his bad spending habits. He was always tired from work, and when he came home, he doesn’t have the energy to play with his kids anymore. Sometime he wanted to resign, but he know he cannot. Because he has lots of bills to pay.

The cycle keeps going.
He works hard. He receives his salary. He pays the bill. He spends for his family. He saves nothing.

That was the sad story of most highly paid, hard-working professionals.
They are good. They are industrious. They have a good salary. But why most of them are broke?
That’s because…
They lack financial education.


Do you get the picture why you need to learn more about financial management?

Well, here are 2 big reasons why you need to continue studying about financial management after graduation.

·         Because Financial Management was NEVER taught in schools.

Well, maybe you are wondering what I am really talking about. Yeah, because I believe that most students never heard the term “financial literacy” during their school days.

Schools train us to become professionals. Schools shape our skills to become good employees. During the past generations, completing a bachelor’s degree will give you a great fortune. But in this new generation, being an employee cannot guarantee you to become financially independent. The world is getting tougher especially when it comes to global economic crisis, and you need to be ready for any changes.

Sadly, school doesn’t teach or train you to prepare for economic crisis. Schools just give you theories and academics. But schools never teach you how to manage your money, or how to save and invest. Schools do not make you see the reality – the bigger competition in life. School never teaches one of the very essential subject in life – financial literacy. And that is a big reason for you to educate yourself about this important matter!

Most people think that college diploma means success. Most employees have stopped learning after graduation. Even people who have their post-graduate diplomas and certificate never learn the financial education. They became employees for all their lives, because that was the old school way taught us – to study hard and find a secure job.


·         Because your spending habit is a great factor to your future

Another big factor for your financial independence is your habit on how you spend your money.
Try to remember your school days. You receive enough allowance from your parents. You have your money for your basic school needs. Sometimes when there is excess from your allowance, you have your money to buy your wants. You buy extra foods such as ice cream, or eat on fast foods with your best friends. You buy extra clothes for your fashion desires, or go to a movie with your classmates.

After graduation, you now have your job. The money you get from your salary is much better than your allowance you receive during school days. You started to buy more things that you want like latest gadgets. You started to eat often on elegant restaurants. You buy unnecessary clothes and shoes that you stuck up in your closets and racks. You started to travel more often.

Your money has increased, but your expenses increased too. You might have some savings in the bank but I bet it will not be enough.

Years will pass; your salary will increase, along with your expenses. If you will not learn how to manage your money, you will be suffering in the future.

When a person lacks financial intelligence, he will become happy-go-luck in his life. His habit will just be spending all his salary, without preparation for his future.


You don’t want this to happen to you, do you?

P.S. We are providing Free Financial Coaching Seminars conducted by the Bo Sanchez Truly Rich Makers Team - IMG in Makati. Click this to register: Truly Rich Makers Financial Coaching 101