Getting Too Focused On Secondary Income Streams

Getting Too Focused On Secondary Income Streams
For today's article, I'd like to share some experiences and observations. I can't say that I have something profound to say, but I think it's important to share them anyway.

Merry Christmas Everyone!






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Re-conceptualizing The Idea Of Hidden Wealth

An emergency fund is one of the most useful things we can have. It might not be something we get to use everyday, but when the time comes that we do need it, it's the most wonderful thing in the world.

But there are a lot of "small emergencies" that pop up from time to time.

How Stocks Can Be A Second Source of Income

How Stocks Can Be A Second Source of Income. Dividend investing is probably the least exciting way to invest in stocks. But what people sometimes don't consider, is that it's also a way to generate income.
I've been looking to start a second stream of income for a while now. I have already invested in mutual funds, but they are more for combating inflation and growing my savings, not really for generating income (or at least that is how I intend it to be).

Ideally I want to start my own business. But not having spotted a good business opportunity yet, I decided to practice dividend investing. I'm hoping this can help me get some income while looking for a business that I can get into.

So what's dividend investing?

Make Millions In Just Ten Years

Hi Everyone! I've been posting regularly for the last couple of months and decided to mix things up and give a "surprise" post for today.

You were most probably drawn in by the title. After all, who wouldn't want to make millions in just ten years? And if you're reading this blog, that's probably one of your goals too (or will be soon).

So how can we make millions in such a relatively short amount of time? Don't worry, I'm not selling you some magic beans here.

Taking Advantage of Low Inflation Rates

Taking Advantage of Low Inflation Rates. In a previous article, we looked at what the inflation rate is, why it's not so bad and why a low inflation rate is considered as "good news". However, most of us won't feel it directly. So in this article, we'll explore some ways we might benefit from it.
In a previous article, we looked at what the inflation rate is, why it's not so bad and why a low inflation rate is considered as "good news". However, most of us won't feel it directly. So in this article, we'll explore some ways we might benefit from it.

Explaining Inflation; And Why Small Price Increases Are Better Than Price Decreases

Explaining Inflation; And Why Small Price Increases Are Better Than Price Decreases.
Since a common objective when investing is to beat the inflation rate, it's become a topic that I've been quite curious about. So I've decided to do some research on this.

And for a year now, the inflation rate has either gone down or stayed relatively low. Since 2012 started, it hasn't hit 4% and has stayed around 3%.

And not surprisingly, it's been touted by the government and by the Bangko Sentral as good news. However, when people hear the news the common response goes something like this: "So why can't we feel it?"

And the simple answer is: because we're not supposed to.

What Does The GDP Really Mean To Us?

What Does The GDP Really Mean To Us?
Recently, we've been hearing good news about the GDP. At first, it's been higher than initially expected. And more recently, it's reached the ~7% range that some say means we are in a growth trajectory, and headed for better times.

And just like low inflation rates, it's being trumpeted as good news. But we can only scratch our heads and wonder why we don't seem to feel it.

So in this article, we'll try to figure out just what the GDP means to us and if it really is good news - and if so, how we can take advantage of it.

Things I Learned To Avoid When Investing In Stocks

Things I Learned To Avoid When Investing In Stocks
I've been investing in the stock market for over a year now. I am by no means an expert. And, indeed, in that time I have made quite a few mistakes. Today, I would like to share them here so that others can learn from them without having to make the mistakes themselves.

How To Start Investing In The Philippine Stock Market

How To Start Investing In The Philippine Stock Market. Investing in stocks (equity) can be one of the most profitable investments any investor can make. However if we're not careful, we can also lose a lot of money instead of making any.  In this article, we'll cover basic steps in how to invest in the stock market.

Investing in stocks (equity) can be one of the most profitable investments any investor can make. However if we're not careful, we can also lose a lot of money instead of making any.

In this article, we'll cover basic steps in how to invest in the stock market.

To Succeed In Life, We Must Prepapre For It

Sports teams have game plans. Teachers have lesson plans. Businesses have business plans, risk mitigation and contingency plans. And yet it seems a lot of people aren't preparing for their future. We must recognize that our life is playing out right now, and if we want to succeed in life we must prepare for it.
A while back, I watched the movie "The Mechanic" and enjoyed it a lot. One thing that really resonated with me was the Latin proverb amat victoria curam which loosely translates to "victory loves preparation".

It got me thinking. Preparation is indeed an important step if we want to succeed. Sports teams have game plans. Teachers have lesson plans. Businesses have business plans, risk mitigation and contingency plans. And yet it seems a lot of people aren't preparing for their future.

Investing in Mutual Funds and UITFs

Investing in Mutual Funds and UITFs
For this article I would like to point out the benefits of investing in a mutual fund or a Unit Investment Trust Fund (UITF).

Learning From The Past And Starting Over

For some time now, I've been thinking of the Aman Futures ponzi scheme that has rocked Pagadian City. And I've wanted to write about it, but hesitated because I might inadvertently add insult to injury.

I don't blame the people who were taken in by the scam. Ponzi schemes have been around for decades, perhaps centuries. People have been fooled and most probably will continue to be fooled. Although some participate knowing it's a scam but hoping to get in and profit before the end comes.

But what's been fascinating to me is the 12 billion pesos. An amount that huge will surely change lives, for better or worse. And what that amount represents to me is potential. And when I think how this amount came mostly from ordinary folk, what that tells me is that the potential to change lives is in their hands.

What if, bonded by their shared misfortune, they decided to unite together and use that potential to change their lives? What could they accomplish?

Optimizing a Time Deposit Investment

Optimizing a Time Deposit Investment. In this post, we'll tackle how you can invest in Time Deposits without loosing liquidity and avoid locking in your money to low interest rates.
In my previous post, I mentioned that Time Deposits are one of the safest investments we can make. You are guaranteed that you will not lose your money, and you are also guaranteed a profit upfront (the interest rate offered).

And having our money locked in is usually a good thing, since we won't be able to spend it impulsively. In this case, "forced savings" is our friend.

But what if higher interest rates became available next week? Or conversely, what if we took too long to decide, and interest rates fell while we were deciding? And regardless of interest rates, what if an emergency occurred and we needed access to some of our savings?

Give yourself the gift that keeps on giving

Christmas is just around the corner! And around this time, employees like myself will be receiving their 13th month pay (and Christmas bonuses, for the more fortunate ones).  And isn't it also timely how stores - as you've probably noticed - go on sale around this time too?
Christmas is just around the corner! And around this time, employees like myself will be receiving their 13th month pay (and Christmas bonuses, for the more fortunate ones).

Which is quite timely, since we are better served having our money now so that we can use it to prepare for the holiday festivities. Even if we've already decorated our homes, there are still gifts to be bought. And food to be prepared for Noche Buena.

And isn't it also timely how stores - as you've probably noticed - go on sale around this time too?

Investing in Time Deposits

Investing in Time Deposits
In my previous posts, I've focused almost exclusively on saving. This was by design. Although Personal Finance is more than just saving, saving is undeniably the first step. The second is preparing your emergency fund. But since preparing an emergency fund has already been much discussed elsewhere. I will proceed directly with this blog's main mission - helping people with investment options. Which brings us to Time Deposits.

Lessons from a lost ATM card

Lessons from a lost ATM card: redundancy and diversification, prior knowledge and past performance, prevention and due diligence.
Some time ago, I looked at my wallet and noticed my ATM card was missing. Everything else was there (including my payroll ATM), so I thought nothing of it. When I looked through my stuff, I realized it really was missing.

Smart Shopping: Buying Small and Buying in Bulk

Smart shopping is one of the best ways to save money or stick to our budget. And there are two good ways to do so: buying small, and buying in bulk.

Both are great strategies but only when properly applied to our situation. And finding the strategy that best applies to us is the topic we'll tackle in this article.

10 Practical Shopping Tips To Help You Save Money

10 Practical Shopping Tips To Help You Save Money  A good portion - if not most - of our expenses usually don't come from pricey gadgets or other huge purchases. Usually our income is spent on everyday items like food and household items.   And because of this, efficient or smart shopping is one of the best ways to reign in our budget and save money. So in this article, I've compiled a list of shopping tips that can be useful for saving money.
A good portion - if not most - of our expenses usually don't come from pricey gadgets or other huge purchases. Usually our income is spent on everyday items like food and household items. 

And because of this, efficient or smart shopping is one of the best ways to reign in our budget and save money. So in this article, I've compiled a list of shopping tips that can be useful for saving money.

Learn How To Choose The Best Savings Account For You

Not all savings accounts are created equal. Learn how to choose the best one for you.   How do we choose the right bank to open a savings account with? There are several factors to consider: Interest Rate, Maintaining Balance, Initial Deposit, Balance to Earn Interest, Account Type, and Proximity & Ease of Access.
Not all savings accounts are created equal.
While the most important thing is to save, there are some added benefits that depend on where we put our savings.And there are several places where we can put our savings in.

The simplest and most common way is a piggy bank. It's a fun way of saving, and it can give us a sense of accomplishment to see our piggy bank fill up.It's also a great tool for teaching kids the concept of saving.

Another popular way is the paluwagan system. Saving along with our friends can be a great experience.

But in my opinion, the best place to put our savings is still in a bank - in a savings account. For one, our money earns interest and can grow faster. Second, the money is more secure. Our deposit is guaranteed by the PDIC for up to Php 500,000 (much lower than the 9m in Australia). So no matter what happens to the bank, we can get our money back. (If you're fortunate enough to have more than 500K, simply open an account with a different bank.) What's more, regularly going to the bank to deposit our savings can possibly expose us to other savings or investment opportunities later on.

However, how do we choose the right bank to open a savings account with? There are several factors to consider:

The Importance of Saving

The Importance of Saving. For anyone starting their journey towards financial freedom, the first step is actually very simple - save. It provides a real-world test. If you find that you are unable to save, then it's pretty much a sure thing that you are not ready to invest yet. But the test isn't how much you save, but how regularly you can save.
For anyone starting their journey towards financial freedom, the first step is actually very simple - save. 

Committing yourself to save part of your income has numerous benefits - aside from just the money you saved.