How to Worry-Free Invest in the Philippines

Most of Filipinos learn the value of investing too late. Based on my observation, financial literacy isn’t taught in public elementary and high school. I graduated in college without any formal knowledge about saving, budget, investment and other terms that I only come to know now that I am working and managing my events business.

This factor is why a lot of Filipinos are afraid of the word “Investment”. It sounds so foreign for someone who really have zero knowledge about what investing truly means. The worry too much for the term at some point creates the possibility of losing your money. Are you afraid to invest? Then here’ a great post you can reflect that will teach you how to worry-free invest here in the Philippines.

Be Informed. Reading this post is only the first step to many. Continue gaining knowledge from other blogs and even financial books available in bookstores near you. Gaining details and secrets to financial literature will help you become braver and worry-free as you start investing.

Have an Emergency Fund.  An emergency fund is said to be equal to 3 months of your daily expenses. This means when your monthly expenses is 10,000 a month, your emergency fund should have 30,000 pesos. An emergency fund is a secure way for you not to be fearsome even if you lose some amount. Remember that investing is a risk. This Emergency Fund will be your fall back if and then anything happens beyond your control.

Photo via Flickr.com

 Study your Investment venture. Investing is not an overnight decision. You should think a lot no matter what. Review the investment company and know whether they have bad records. In the Philippines FAMI and COL are top of the line when it comes to investing in stocks. (Read here for a comparison between the two. FAMI vs. COL)

    Learn from the Expert and Experienced. Of course reading blogs and financial books are great tools of knowledge but there’s something about personal appearance and communication that makes you want to learn more. Attend financial seminars or you can invite me to join YOU with your friends in FREE Financial Seminar. I will even prepare slides, laptop and hand-outs for this. Just make sure you’ll be there (and hopefully you are not alone!J)

Know that God wants you to be financially blessed. God’s plan is for us to prosper not to put us in harm. Know that God wants us to be successful with the talents and gift He had gave us. The past article on How to be Financially Blessed will help you understand better why I included this as part on how to start investing worry-free here in the Philippines. Click HERE.

Remember to take time before you decide to start investing. It is your money first and foremost and whatever happens to it may affect you and your family greatly. Make sure that you understand very well the consequences of the investment vehicle you chose to ride. Always include a escape plan in your actions for as always, investing is a risk.

Hope you found this post helpful. If you do then make sure to SUBSCRIBE via RSS and include SavingsPinay in your Twitter following!

PS. Yes, what I mentioned in Item Number 4 is TRUE! I conduct FREE FINANCIAL SEMINAR. My only condition is for YOU to come with someone else or with a group. This is because I wouldn’t want to waste the moment and I of course would like to speak with a lot rather than with few. But if you are just ALONE, we can do the 1 on 1 coaching that will tackle not just the area of finances but also about Life in general and even BEAUTY!!! Yes, yes, yes… Just email me at izzaglinofull@gmail.com.

IzzaGlinoGroupofBlogs is composed of a Beauty blog, a Finance Blog and a Life Blog. It is a portal that empowers you take ADVANTAGE of your age and ASPIRE to be a Testament of God’s love.

For more info about the FREE Seminar and the 1 on 1 Coaching then message me at my Contact Form or email me at izzaglinofull@gmail.com

UITF vs. Mutual Fund (Beginner's ALERT!)

As I mentioned on my previous blog, there’s this other form of investment that can give you surprising results. For beginners who are still in a confused situation whether to invest in Mutual Fund (FAMI) or Direct Stock (COL) then I am giving you another lee way, UITF!

For complete meaning of UITF kindly read HERE.

So let’s start comparing the two.

UITF is handled by the bank. But they only have limited banks that support this type of investment.

Mutual Fund on the other hand is handled by a trusted financial advisor. Famous for this are FAMI and Sun Life.

Each share in UITF is called a Unit whereas a share in Mutual is simply called a Share.

UITF depends on the NAVPU or the Net Asset Value Per Share while in Mutual Fund it is NAVPS.

UITF investment is for long term meaning the longer you let the number of shares stay the better.

One trusted UITF investment is the BDO UITF. Find out more on how you can apply this faster in my next blog post. J

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READER's QUESTION: "Which is better Savings Account, Mutual Fund or UITF?"

Yesterday I received this reader question through my contact form. To the letter sender, that you first and foremost for the time in reading my blog! And congratulations for this eagerness towards financial freedom! I am glad that SavingsPinay is helping you in a way.

To answer your question let me first clarify an important note.

• Remember that Mutual Fund is NOT offered by banks but rather offered by trusted financial institutions like FAMI and SunLife. To enroll you may need 5,000pesos but for the monthly investment you may pay as low as 1,000pesos a month. 

• Savings Account are the easiest type of investment for almost ALL BANKS here in the Philippines offer it. Also opening a Savings Account may require as low as 250pesos only to open. 

• UITF on the other hand is an underground type of investment similar to mutual funds BUT is offered by banks. You may read more of this through my future post where I will elaborate the differences between UITF and Mutual Fund.

As to which is better, I personally believe that it depends on what type of investor are you. Do you want to invest on a short term or long term period? Are you risky when it comes to your investments? Do you favor high investment, high return but long -time waiting or you needed to see and feel the yields in an instant?!

There are a lot of Investments that will soon be talked about here in this blog but I hope the above information helps you to assess your investor's risk factor. Take time in choosing what investment vehicle you will ride and always inquire with those who have experience and expertise.

As of now, my main tip is for you to SAVE, SAVE and SAVE! That way you will lessen the risk of your investing.

Have a good day dear reader!

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Contact form for immediate message or direct to izzaglinofull@gmail.com

What is UITF Investment?

UITF stands for Unit Investment Trust Fund. It is another form of investment in the Philippine market that shows great potential nowadays.

UITF, unlike Mutual Fund that is handled by trusted financial company, is handled and made possible by banks. It is an open-ended pooled trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity and made available by participation. - See more at: http://www.uitf.com.ph/faqs.php#gsc.tab=0

Open-ended pooled means that a client is allowed to invest or redeem their investment at any time subject to the declared information in the bank’s Declaration of Trust.

The idea of UITF investment is that Funds from various clients with similar investment objectives are pooled together into one fund, which the trustee invests in various types of securities with the aim of maximizing returns within reasonable risk levels. - See more at: http://www.uitf.com.ph/faqs.php#gsc.tab=0

In UITF, each share is called a Unit. The minimum investment here is 10,000pesos a lot pricier than FAMI Mutual Fund and COL Start-up. The price of each unit you own differs per day.

Example: Say the value of 1000 shares you own in your UITF in 2010 is 150pesos per share. By the end of 2014, your 1000 shares values for 300pesos per share. This means your cash flow if you didn’t sell your shares by 2013 will be 300,000pesos NOW. That’s a lot of gain for just four years of investment.

Another good thing about UITF is that your money is managed by your bank. You can apply for this one and yes there’s additional fee for the bank but no worries it is too little compared to the yields you’ll earn afterwards. Standard fee ranges from 0.5% to 2%. Example of banks that offers UITF Investments are BDO, BPI, EastWest Bank, Security Bank Corporation and so much more.

Also note that UITF investments are regulated by Bangko Sentral ng Pilipinas so you’ll sure that your money is being taken care of.

In accordance to the bank where you invested, you can easily monitor your UITF investment online. BDO and BPI offers online portal for this one. Also in accordance to the chosen bank, there are different types of UITF investment you can choose from.

As part of your Diversification, why not try UITF? It’s higher pre-investment price but seeing the performance of the investment portfolio you’ll surely smile at the end of the day J

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How to Stop living from Sweldo to Sweldo

Picture from HERE

Sweldo is a Filipino term for paycheck. Filipinos commonly receives their monthly payment every 15^th and 30^th of the month. An average employee is being paid 10-13,000 a month which constitutes a minimum wage earner. I am part of that scheme but thanks to my hosting and events, I was able to finance for my needs pretty well.

Living Sweldo to Sweldo or Paycheck to Paycheck means you are living in an unbalance financial life and all you depend on is your salary- 110%.

I had this officemate who came to a term that a lot may relate to “Araw ng Kasaganahan” every 16^th and after that day will be “Araw ng Kagipitan” Have you ever had that moment in your life wherein Kakasuweldo mo pa lang, Simot na, Nagkautang ka pa?” (Your paycheck just arrived and you are already out of money and worst of all, in debt?!”

I had experienced this life before back when I have zero knowledge about financial literacy. I will have my salary for the first half of the month and will live like one day millionaire. I will spend mostly of makeups and movie hangouts. Then I will strive to survive for the rest of the week. It is a hard and tough life and to be honest I don’t want to go back to that system.

I knew all I need is a changed money principle and to have enough knowledge on becoming a better financial steward. I thank God that before 2013 ends I decided to create my Financial Goals (Read this article to help you jumpstart your Goal Setting) and was able to widen my financial literacy.

Know Your Money Mistake. Of course there will be a reason why you live paycheck to paycheck every month of your life. Now you have to list down what Money Mistakes have become part of your life. Is it the every night clubbing? How about the Starbuck coffee that you can’t start your day without? And that credit cards of yours that is either past the due date or surpasses the credit limit. Once you have a complete list on your money mistakes you can now start evaluating your finances.

Treat the Wound while it’s still Fresh and Bleeding. Just as how a fresh would will be easily healed once treated quick and efficient, the missing link for your ultimate financial goal treatment is to STOP where the problem is coming from. Cut that credit card of yours to stop yourself from using or do the freezer thing wherein you let your credit card literally froze to death. What I’m saying is stop getting into more debts now that you know how much you owe. Don’t let yourself become more miserable.

Slowly build the 3 Envelopes of your New Life. I have Three Funds that I’d like to share to you. This idea came in my mind through the course of my walk towards better financial habits.

1. I own an Emergency Fund where I save 500pesos every cut-off automatically. Click here to know what and how.
2. I own a Financial Goal Fund where I reserve all the money I get from events. This fund is reserved for my passive income generating necessities. Example, when I bought a new laptop because I wanted to blog more. (If you are in a huge debt then I suggest describing this second envelop as your Debt Payment Fund where you can save a portion of your salary to pay your debts slowly)
3. I own a Retirement Fund (My FAMI account) that I reserve for long term financial needs. I use the Peso-Cost Averaging method for this one and I am very happy with the result. (Click here for my FAMI update).

The reason for doing these 3 Envelopes of your New Life is to give you a better perspective on how you should spend your 15^th and 30^th payment. This way you know how to allocate what you are receiving

Look how Blessed you are. At some point we forget how blessed we are especially on the area of finances. Once I share to you my Money Principles you will relate to this one more. But for a quick hint I suggest you take a moment to see and to ponder how blessed you are. Do this activities or even one of these activities once a month and share to me your results!

•       Write on a piece of paper what your thankful for today
•      List down the expensive items you own. From bags to jewelries or if you own a car and house and lot---List it down. Make sure to paste it on an area where you can see it every time.
•       Do your inspiration board. This way you will easily visualize how you’re doing in your life.

I can’t express how much the tips above had made my financial life better. I look forward hearing the results from you. There will be a lot more posts concentrating to this subject so please do keep track SavinsgPinay via RSS and Twitter.

Comment below or send an Email via Contact Form to unlock a FREE Financial PDF.

SavingsPinay's SIX NEW FEATURES!!!

I created SavingsPinay as part of what I call as IzzaGlinoGroupofBlogs before 2013 ends and I am very amazed by how this blog had even beat the record of my very first blog. , izzaglino.blogspot.com

Like what I said on the past in  MY TIPS ON FINANCIAL MANAGEMENT, My journey towards financial success and financial freedom started when I had my first experience of earning from scratch. And I'd like to thank YOU for joining this journey of mine and reading from the very first post HERE up to the most RECENT. :)

As you may notice this blog had a major makeover. Thanks to the beauty and brains behind Charm Creatives. As my mission to provide more financial lessons for you guys, I believe that it is also my duty to make this blog better for User Interface. And Charm Creatives did a good work in providing this to SavingsPinay. If you are in the hunt of a cheap but effective revamper do email the head of Charm Creatives at charmcreatives@gmail.com. :)

Anyhow here's some of the important changes that occurred over the weekend in this humble blog!!! I am so excited to share to all of you!!!

1. Stand-alone Pages

Now you can toggle to a different page on SavingsPinay even if you are browsing on the end part of the web page. :) This gives you an easier navigation my blog!!! Yahoo!!!

2. Bigger Title, Smaller fonts and Justified Alignment

Now it is better for you to read each my post because the Titles are bigger but the post font are smaller making it much of a professional website. Its also justified now in alignment so the whole width of the page is utilized! Hurray!

3. Pinterest

If you love Pinterest then you might want to follow IzzaGlinoGroupofBlogs for I release photos from my blogs as well as Infographics on a regular basis. This are all for free to grab and pin!!!

4. Side-dish and footer Social Media

For I want to be closer to you through Social Media, its now easier for you to Follow, Share, Like and even Tweet my posts. Thanks again for this Charm Creatives!!!

5. FREE PDF for just a simple "Hi"!!!

If you follow me in twitter I will be sure to FOLLOW YOU BACK!!! Also just a simple "Hi" or message or even a question on my Contact Form will give a FREE PDF of my 50-20-30 Budget Template. More FREE PDFs in the future and even Ebook will also be sent straight to YOUR INBOX!!!

6. Pop-up Subscription Box

As I said in the beginning, I would really love to make it easier for you to connect with SavingsPinay so here's a very quick Subscribe via Email pop up box that will won't waste your time. This is RSS ready and all you have to do is Enter your valid email and hit Subscribe then follow the simple steps below!!!

On the pop Email Subscription Request type the verification message :)

Check your Inbox!!!

Open FeedBurner's message :)

Now here's the trick. A lot of those who subscribed on my blog via RSS forget to click the link sent by Feed Burner. PLEASE, PLEASE, PLEASE... Don't forget to Click this to confirm your subscription!!! :)

Complete Confirmation message!!!

I hope that with these new changes I was able to encourage to subscribe and read more of my blogs. More than the physical change I'll make sure to write better posts for you. Again email charmcreatives@gmail.com if you wanted a BLOG MAKEOVER too :) Her lowest price is 499pesos only!!! :) Budget friendly blog revamper i know!!!

Thank you everyone! Hope you enjoy your Tuesday.

MORE THINGS THAT RUIN MY SAVINGS... and again MAYBE YOURS TOO.

Just last week I created this post HERE that I didn’t know would impact a lot. I guess we’re on the same page when it comes to those which ruin our budget. (wink*wink*) But today’s post will be MORE THINGS THAT RUIN MY SAVINGS... and again MAYBE YOURS TOO.

Don’t forget to Comment below or Message me in my Contact Form if you happen to be guilty too with this budget boos. Together let’s stash these money mannerisms AWAY TO OUR SYSTEM!

KAILANGAN KO TO!

Have you said this phrase to yourself? That you needed that red dress or that black stilettos. Or that makeup even if you still have a lot of spare and even more makeup that you still haven’t opened. This money boo is very common especially for us girls (ehem*ehem*) because we have low tolerance for satisfaction and in our blood runs this 8-letter word S-H-O-P-P-I-N-G!!!

MAY PERA PA KO SA ATM!

Those words seem like song in my ears. I felt like it was just last week since I told this very line to myself. Sometimes the thought that you still have money in your bank account gives you so much freedom to spend. I guess that’s why I opted to the BPI Save Up plus Insurance for my other account because in that case I can’t withdraw my savings and only transfer it to my other account. Also it is powered by life insurance too.

PAKIKISAMA GONE WRONG!

As the saying goes, Tell me who your friends and I tell you who you are. Sometimes we get pressured of what others will say unto us that it at some point affects our lifestyle. For example, all your friends does Starbucks thing every day because they feel like it is the cozy place to drink and chat. Of course since you belong to that circle of friends you will also have to spend for that frappucino or coffee Americano. No, I am not telling you to stop being friends with them... all I’m saying is if it can be avoided then do so. Share to your circle of friends how addicting saving will be or just it once a week and find other cozy places wherein you can just sit and relax and talk more without ripping all your allowance.

Thank you for reading my post. COMMENT BELOW if you can relate :)

What is Peso-Cost Averaging Method?

Peso-Cost Averaging or PCA is short is an investing method wherein you will invest a fixed amount of money at a regular duration over a long period of time. It is actually one common way of investment that is proven to give higher return of investment.

As a beginner in the investing field, this PCA is what I actually do. Every month I pay a fixed amount to my FAMI SALEF account through Metrobank Direct. Read here. And  I plan to do this for the first year of my investment. For the next year I am aiming to top up my investment double my monthly payment thus, resulting to higher yields.

Peso Cost Averaging is actually dubbed as the safest way of investing by financial scholars.

Here's an example of how you can do the Peso-Cost Averaging investment:

For COL or direct stock investor:

Set aside 5,000pesos a month and invest it in a company that you believe will still be around in the next 5 years. Examples here are Jolibee, PLDT and DMCI.

For FAMI or Mutual Fund investor:

 Set aside 5,000pesos a month for your investment and never miss a month for this one. Do it for the next couple of years in investing.

Tip: Choose the right company where you will buy stocks or will invest your money.

Based on experience, the Peso Cost Averaging Method is a secured way for you to have an ROI. This method is highly applicable for those who are willing to invest long-time. No matter what do not skip a month for it will highly impact your returns.

Thank you for reading. Make sure to email me at izzaglinofull@gmail.com or through the contact form above for further details and FREE updates.



Read More:

ALL ABOUT METROBANK
FAMI UPDATE
WHAT IS NAVPS?