Money & Investment


In one of the financial stewardship class I’ve attended a few years ago, the speaker mentioned that it’s important to get a life insurance.  This will enable you to leave a legacy to your loved one when you move on to the next great adventure.

For some people, however, they said that life insurance or any type of insurance is not for them.  A friend of the family said that she could put the money into good use in their business.  Others shy away from insurance because of the additional cost that won’t benefit them.

So.. what is life insurance?  Do we really need it or not?  While scouting the web, google pointed me to a website where it explained to me what life insurance is.  In short, it explained that life insurance is a financial instrument that is based on caring and love. (Sounds cheesy!)  However, it goes beyond that as the website provide educational video to assist you in understanding more about life insurance.

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subprime_mortgages If you’re like an average joe with little to no background in finance, news about recession and bankruptcy will scare and make you panic. My friend, Lala Rimando, business editor of Newsbreak Magazine, came out with this dummies guide to help you understand the credit crisis lingo.

Article from http://www.abs-cbnnews.com/business/09/26/08/what-subprime-dummies-guide-credit-crisis-lingo; Photo from http://politicalhumor.about.com

With financial jargons leaping from business pages to front page headlines, here’s a guide to understanding the current US financial crisis better.

SUBPRIME or SUBPRIME MORTGAGES

Simply put, they are called subprime since they are below prime status. These are loans lent to borrowers who, as some put it, are considered “NINJA” (no income, no job, no assets). In other words, high risk borrowers: they have tainted credit history or cannot prove their incomes.

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I just arrived this morning from Rome via Moscow and I still lack sleep.  Two weeks ago, my dad was insisting I shouldn’t push through with my trip and just save my money.  However, I turned the blind eye and went through with it when I got my visa.  The trip was educational, enlightening and an eye-opener.  It’s true that you learn more of the world when you travel.

When I logged on to my PC this morning, my friend who’s a business journalist in the Philippines was also online.  So, I asked her what advice can she give me during this time of crisis?  She said, save save save!  Hold on to your cash.  It seems like the forecast in the near future is gloomy.  Prices are going up but our salary can’t match its pace.

If I want to achieve my goal in 3 years time, I better start to plan how to do it.  If I need to learn a hobby and make money out of it, I probably should do so.  But.. does our life really revolve around money?  Shouldn’t we trust in God to provide for our needs?  I’d probably need to contemplate some more.  Right now, I can’t wait for the clock to hit 6pm and go home.

I’ve been reading some news on inquirer.net when I happen to glance an article in their money smarts blog entitled “How much to invest for the long haul?” It says there that according to the rule of thumb in the Asian Wall Street Journal’s “Lifetime Guide to Money”, we should subtract our age from 100 and add a percentage sign.

When I read it, I had to exclaim “WHAT?!” I thought I was doing great already but it seems like in order for me to retire comfortably I have to do more. What shall I do?? I’ve been saving money but I guess it’s not enough. 😦

To top it all, my travel buddy Marco and I are planning our European Tour. We will be submitting our visa application this Wednesday and hopefully we will get our visa. If it pushes through, I will have to scrimp in the next couple of months in order to recuperate the cost of this trip. Oh well.. I’m willing to do that as I’ve already bought some Christmas gifts already. That means I won’t be able to go home for my cousin’s wedding. 😦

71014_MoneyHappiness_vl-verticalWho doesn’t want to have a million bucks? I do and with the rate I’m going right now, I’m not exactly sure when will I reach my first million. It got me thinking, where does all my money go? Would I ever have one million at least in my life?

A month or two ago, Inquirer’s Finance Blog “Money Smarts” featured an article about “What does it take to be a millionaire?” It listed down 7 tips to help this goal and let’s see what have I been doing to achieve this goal.

1. Treat money as something to save and invest. The minute you receive your paycheck or a windfall (example, an inheritance or a bonus), think of how much you can put away as savings. Then look for venues where you can invest your money. If you think this way, you won’t be tempted to splurge money. (more…)

personal-budgeting In difficult and bleak times, people tend to hound the internet on ways to trim down their expenses. One method which may work for one person, may not work for others. I’d like to share you some thoughts that I’ve noticed a long the way in this circle of life.

1. Annualize your expenses – my former colleague take the cab everywhere she goes. That’s like RMB 10, one way at least for 30 days which is RMB 300/month or RMB 3600/year. When I told her about it, she was shocked to know how much she’s spending on cab fares alone. Trying to get the big picture makes you realize if something is worth it or not.

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“Life is Hard” .. A phrase which is in the lips of most people nowadays as prices of everything is increasing and our incomes doesn’t increase as much. Then, how can we cope and weather through this difficult times? I’m no expert but here are some of the tips I’ve read from different websites.

1. Turn your hobby into income – If you’re good at cooking or baking, you can probably sell your goodies to your friends/colleagues/relatives. If you have a passion to teach, tutor people! If you are visually creative, try to create something that’s useful and unique. Sell your stuff in Ebay or Multiply.

2. Recycle – Bottles, newspapers, boxes.. they’re trash which you can sell. You may not earn much but each cent counts. In China, they don’t like bottles unless it’s beer bottles. The old lady in the street usually carries a bag and search for empty plastic bottles in the trash bin. As for me, I collect the free magazines which comes out every month and sell it when I have a lot along with my empty plastic bottles.

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