Monday, September 29, 2014

Receiving Dividends from Big Companies!

Yesterday, after attending my cousin's wedding, I checked my email and got a message from my online stock broker telling me that I got dividend from ALI (Ayala Land Inc.), one of the big companies which I bought shares from.


So what is a dividend anyway?

An investor can earn from stock market in two ways: through price or capital appreciation, and through dividends

You earn through price or capital appreciation when the value of the stocks you bought increase. 

Dividends are "extra incentive" or "bonus" given by the companies to their shareholders when the profit is good. In the world of stock market, not all publicly listed companies are giving dividends. There are some generous companies that give this kind of reward to their shareholders. The dividend also attracts investor to invest in their company, and buy more shares. The dividends depend on the number of shares you own. The more shares you have simply means greater dividend you will receive!


How do you compute your dividend?

In the Philippines, there are three types of dividends: cash dividends, stock dividends, and property dividends.

Cash dividends (which I received from ALI) is the most common type, in which the company gives extra cash to its owners. You just multiply the cash dividend announced by the company to the number of shares you have. Let's say the company declared Php 0.10 dividend per share, and you own 200 shares of that company. That means, you get Php20.00 (less the withholding tax).

Stock dividends are those additional shares given to the owners. If the company give you 10% stock dividend and you own 200 shares, that means you will get additional 20 more shares. Your total shares will now be 220.

Property dividends are the rarest form given by companies. These are other assets such as share from subsidiary companies, or other tangible products.

I'm happy that I started investing in the stock market few months ago! With the help of my mentors, I can see that my investments are getting better :)

I wrote this blog in hope of encouraging Filipinos to start investing in the stock market NOW! Do you want to make millions in stock market and retire a happy millionaire? Watch how Bo Sanchez guides many Pinoys in investing in stock market. Click here to learn more✔✔

Stock market is just one of the best sources of your passive income (through investments). There are lot more vehicles that you can ride on to your financial freedom journey. If you are a new investor in the stock market, or planning to start investing, I encourage you all to attend the Free Financial Seminar conducted by the Truly Rich Makers Team! Our team, Truly Rich Makers - IMG is conducting a Free Financial Management Seminar and Workshop in Makati.This is a limited slot only. Register now for FREE! :)
 Click here to register--> Financial Literacy 101

Happy Investing! :)

Wednesday, September 24, 2014

6 Filipino Beliefs that Hinder you from Investing (Part I)

The Philippines are rich in cultures. There are many Filipino beliefs about anything under the sun, which even until today are still being believed by many folks. Sometimes, beliefs are becoming part of Filipino lives. Some beliefs do not give much impact to anyone, but some can give a big impact to someone who believes it - like Filipino beliefs about having lots of money.

Let me share with you the 6 most common beliefs of Filipinos when it comes to money and investing.

These first three are somewhat religious beliefs, and the other three (which I will share on my next blog) are beliefs that based on their experience or from other people’s experience.

“Being rich means taking the side of the devil.”

We can’t deny the fact that many Filipinos believe that richness can make them evil. This mindset arose during our early history when rich people enslave poor people, not only here in the country, but also every part of the world. Every country had their histories which rich people are always powerful, and the ones who control and torture poor people for their entire lives.

That is the main reason why Filipinos never invest. They “do not” want to be rich because they do not want to be “bad”. They are afraid that they may become bad, or their friends will think they’re bad.

So instead of investing their money, they simply enjoy life.

But if you open your eyes, there are many rich people who are helping poor people to be blessed by sharing their richness.

These are the Truly Rich people. They are rich in all the aspect of their lives.

Don’t think that money evilMake money as an instrument to help other people!

“Let God handle your future.”

Yes, it is very true that God is always there for us – yesterday, today and tomorrow! So does it mean we just have to relax, live and wait for tomorrow?


God will take care of us, but we are also responsible for ourselves too. God gives us His blessings today, and He makes us His steward. It is our duty to take care of the gifts He had given us.

I remembered during college days, I heard a talk about treasure. The speaker preached that if we really trust God, we will not need insurance or any other life plans. Then the audience applause, as if they all agree to what the man preached us. I wasn’t convinced on that, but somewhat confused.

Then I found an article from Bro. Bo, where he compared investment to a spare tire. Very well said. If you are going to travel, won’t you have an extra tire? Will you say, God will make a way when your tire get deflated? Maybe He will send someone to help you out. But would it be better if you can help yourself, instead of waiting for the help of others?

Also, investment is like a fire exit. Every establishment should have at least one fire exit. This fire exit is just designed so people could be saved during the unexpected event.

Of course nobody wishes to get flat tire while traveling, or break a fire on a certain establishment. But at least, when that happens, you got the protection.

I believe that investment and insurance are God’s gifts for people. God wants you to manage your wealth today and prepare for your future by means of investing.

“Whenever I have saved some money, one of my family members got ill.”

This is a funny belief of many Filipinos. They don’t want to save because when they had savings, one family member will get sick. They think that it is a “curse” for having such extra funds that you really don’t need.

Especially when talking about HMOs, they think that they are inviting sickness to come to them when they have health card.

Do you think God will “curse” or “punish” you when you save something good for your future?

Probably NOT.

Instead of having this silly thought, why not think it the other way around?

Think of it as a blessing from God. It is normal to be sick sometimes, and you must have the feeling of gratitude because you have savings or health card for your health needs, instead of cursing those God-given money that will save you!

God loves us. He gives us wealth so we can give love to other people too. Never think money is evil, instead use money to help more people!


Be a good steward of God's treasures! :)

Learn how to invest and grow your money the right way! We are providing Free Financial Coaching conducted by Bro. Bo Sanchez' Truly Rich Makers Team!

Monday, September 15, 2014

Would you buy the new iPhone 6?

Recently, Apple Inc. has released its latest smartphone, iPhone 6. The topic has been on a hot spot for couple of days, and has nearly dominated my Facebook newsfeed!

If I were to ask you, would you buy an iPhone 6?

Why would you? Why wouldn't you?

Personally, I believe there is nothing wrong in buying iPhone 6 for my own pleasure. 

I think I would buy an iPhone 6 because...

   I think I deserve it. 
   It would be my "gift" for working so hard.
   I can use its features for my pleasure.

BUT I think if I buy an iPhone just for my own pleasure, I am just being selfish.

   Do I really need this?
   Is this the only gift I can give for myself?
   Is this the only smartphone or gadget I can use?

Based on most online gadget stores I have visited, iPhone 6 will be sold for about Php 30, 000 to Php 45, 000 in the Philippines.

If you buy this cool gadget, it would only last for about a year. Next year, Apple Inc. might release iPhone 7. So your iPhone 6 and other lower versions of iPhones will become outdated and obsolete. 

You should not buy an iPhone 6 right now if... are a practical and smart buyer

In this time around, the prices of iPhone 5 and other lower versions have become cheaper compared to their launching prices. But definitely, their qualities and features are still the same.

If you badly want (or you think you need) that iPhone, why would you buy it while it's hot? Let the burning meat cool down before chewing it ;) I believe that will be more practical. do not have an IPON (savings) yet

iPhone 6 is expensive, but people buy it even if they don't have savings. Credit cards swiped aggressively for this new gadget, then later regret it when an emergency happens, and you don't have enough penny in your pocket.

If you have that Php 45, 000 for the iPhone 6, why not save it and invest it. If you put your 45k in an investment vehicle that earns 12% per year, after 6 years, it will doubled to Php 90, 000! That principle is called "the rule of 72" by Albert Einstein.

If you want to learn more about basic principles about investments, attend Truly Rich Makers Free Financial Seminar.

P.S. I am not against buying iPhone 6 or any latest gadgets. I just want to encourage everyone to learn how to manage your money well, and learn to prioritize savings and investments before buying your wants. :)