Tuesday, October 22, 2013

Benefits of SSS Member

According to Wikipedia, Social Security System or SSS is a social insurance program for workers in the Philippines. Every month a portion of employee's salary is taken up for SSS (it's a mandatory). I admit I know that there's a deduction but I didn't pay attention to what SSS is for.

Because I'm working overseas, I cannot pay continuous payment. I found it not convenient because I need to pay extra remittance fee every month, though there are some remittance center here in Singapore that offers a promo bundles like Metrobank Remittance Center you still need to bring your past remittance receipts in order to have discountable remittance fee. But keep on neglecting SSS and finding ways why I shouldn't pay my monthly contribution is not healthy, actually there's many options that OFW's can do. We can pay SSS contributions quarterly (3 months payment), semi-annual (6 months payment), or annual (1 year) to prevent monthly service charges.

If you're wondering how much should be your monthly cContribution, please take a look at the table below.

1 4,750 - 5,249.99 5,000 520
2 5,250 - 5,749.99 5,500 572
3 5,750 - 6,249.99 6,000 624
4 6,750 - 7,249.99 6,500 676
5 7,250 - 7,749.99 7,000 728
6 7,750 - 8,249.99 7,500 780
7 8,250 - 8,749.99 8,000 832
8 8,750 - 8,749.99 8,500 884
9 9,250 - 9,249.99 9,000 936
10 9,750 - 9,749.99 9,500 988
11 10,250 - 10,249.99 10,000 1,040
12 10,750 - 10,749.99 10,500 1,092
13 11,250 - 11,249.99 11,000 1,144
14 11,750 - 11,749.99 11,500 1,196
15 11,750 - 12,249.99 12,000 1,248
16 12,250 - 12,749.99 12,500 1,300
17 12,750 - 13,749.99 13,000 1,352
18 13,250 - 13,749.99 13,500 1,404
19 13,750 - 14,249.99 14,000 1,456
20 14,250 -14,749.99 14,500 1,508
21 14,750 - OVER 15,000 1,560

I thought I can only benefit for SSS when I get old but there's other aspect that we can benefit from. So here's a short summary of the SSS benefits that we should be aware of.

Social Security System Benefits

A member who is 60 years old or 65 years old (mandatory) and has paid atleast 120 months or 10 years can claim the benefit of the SSS retirement.

The retiree who has paid atleast 120 months will receive monthly pension or a lifetime cash benefit  while lump sum amount for a retiree that has not paid the required 120 monthly contributions.

A member who suffers partial or total disability with at least one monthly contribution paid to the SSS prior to the semester of contingency is qualified.

The monthly pension is a cash benefit paid to a disabled member who has paid at least 36 monthly contributions while the lump sum amount is given to those who have not paid the required 36 monthly contributions.

The sickness benefit is a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

A member can be granted sickness benefit for a maximum of 120 days in one calendar year. Any unused portion of the allowable 120 days sickness benefit cannot be carried forward and added to the total number of allowed compensable days for the following year.

The sickness benefit shall not be paid for more than 240 days on account of the same illness. If the sickness or injury still persists after 240 days, his claim will be considered a disability claim.

The maternity benefit is a daily cash allowance granted to a female member who was unable to work due to childbirth or miscarriage paid at least three monthly contributions within the 12-month period immediately preceding the semester of her childbirth or miscarriage.

Death and Funeral
Death benefit is cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member.

A funeral grant of P20,000 (effective September 1, 2000) is given to whoever pays the burial expenses of the deceased member or pensioner.

You can have complete information at SSS website.

The monthly contribution is achievable. Let us budget and give time to government program like SSS. We should take advantage of understanding what are the basic benefits whether we are self-employed, non-working spouse, overseas contract worker, etc. at the end of the day it's for our benefit.

Please note that the minimum contribution is only P104 per month while the maximum contribution is P1,560 per month. One good thing if you are employed in the Philippines, employers pay 70.7% and employees pay 33.3% of the monthly contribution.

Wednesday, October 16, 2013

Use Separate Bank Accounts For Savings

Previously, I only have one savings account (my salary, my savings and my expenses). I used to put all my money in one bank and would withdraw from it from time to time when I needed something to pay. I thought that it would be easy and convenient to have only one account. Whenever, I have some extra money in my savings account my mind keeps on thinking what else to do, what things to buy, etc.  I know savings is important but I'm not helping myself to save.

One year passed, having one savings account didn't benefit me. I can't save more money and it's hard for me to limit my spending habit.

As a solution, I decide to save money in a different savings account with purpose.

Months passed and I am so happy to see little by little my money piles up. By having a separate bank account I can clearly see how much I already have (thanks for Internet banking) and how much longer I need to wait to reached my goal.

When you receive your salary, pay yourself first add it to your savings account. Don't combine your expenses into one savings account because you’ll be tempted to spend the money instead of saving it. Plus, mixing in savings with expenses is confusing.

There's more options to save, you can set up automatic deposits or transfers into an account to accomplish your goals faster. By doing this, you are assured that part of you're income goes to you're savings. I'm using automatic deposits to pay my insurance monthly.

If you still have one savings account, I encourage you to open a separate bank account to reach your financial goals. It beats the worrying and constant calculations in mind. Don't estimate, do your budget and savings must be your priority. If it's too difficult for you to save more, take baby steps. The important thing is you are developing the habit of saving and there's many ways to do to help you achieve your goals.

Tuesday, October 15, 2013

11 Ways To Be Unremarkably Average

Here’s a little inspiration to change our mindset.
You can check out the better image of the comic at ZenPencils.

Sunday, October 13, 2013

Ano ba ang Asset and Liability?

Earlier today, me and EJ had a conversation about money. I asked him question, what is asset and liability. He answered me, "Ang asset ay mga bagay na pwede mong pagkakitaan at liabilities yung pwede mga bagay na pwede kang magka-utang".
Pretty simple, right?

According to Robert Kiyosaki, "An asset is anything that puts money into your pocket whether you work or not. A liability is anything that takes money out of your pocket".

You have job, that’s your asset. Anumang bagay na pinagkakakitaan mo ay iyong asset dahil nagbibigay ito ng income and profit. Anything you own that has value if you used it to generates additional income is your asset.

A house loan is a liability. Liabilities are debt, mortgage is a type of debt. If a house is not paid off still it's a liability. Pero kapag natapos mo ng bayaran ang utang mo sa bahay pwede mo na itong maging assets.

Naaalala ko tuloy yung Kurot Principle

Sa kwento pantay ang puhunan ni Pinoy at Chinoy na 100,000 pero si Pinoy napabayaan niyang palaguiin ito, kumuha siya ng mga bagay na walang maibabalik na additional income sa kanya samantalang si Chinoy ay nagpatuloy sa pagkuha ng mga assets.

Mahalagang marunong tayo sa decision making kapag kukuha na tayo ng mga bagay. Is it needs or wants? Isa ba itong asset o liability? Kung sakaling liability mo ito paano mo siya magiging assets?

Paano kung naging ganito ang story ni Pinoy.

Sa unang buwan, si Pinoy, kumita ng P10,000. Ano ang iniisip bilhin? Cellphone. 
Paano kung ginawa niyang puhunan ito for Cellphone loading business. Malakas pa rin naman ngayon ang mga loading business marami pa rin ang nag-loload sa mga tindahan.

After few months nung kumita si Pinoy ng 50,000 bumili siya ng home theater, DVD at LCD TV.
Paano kung ang binili niya ay mga Videoke machines na napaparentahan. Mahilig ang mga Pinoy sa kantahan, at hindi nawawala ang kantahan sa mga okasyon kaya pwede pa rin itong maging Videoke.

A few months later pa, si Pinoy kumita ng P150,000! Ang Pilipinong mayroong P150,000, ano ang balak bilhin? Second-hand na kotse o pang-downpayment sa bagong kotse. 
Paano kung nung bumili si Pinoy ng kotse ay ginawa niyang itong taxi? O pinarentahan din niya.

Hindi ba't mas magandang planuhin kung paanong ang mga liabilities ay pwede nating maging assets. Iwasan ang sobrang pagkuha ng mga bagay na walang maibabalik sa ating income or benefits. 

Hanggang sa muli, ciao!

Thursday, October 10, 2013

Believe In Yourself

My father was a taxi driver, he wasn't able to go to college hence he always advice us to study and finish our studies. He always used the word, "Igagapang ko kayo 'nak, makatapos lang kayo sa pag-aaral". 

Whenever we play Karaoke he will request his favorite song "Doon Lang" by Nonoy Zuniga. I can still remember how he sang the song with full of his emotions.

"Kung natapos ko ang aking pag-aaral", "If I finished my studies"...

As an eldest, I want to be an inspiration for my siblings. I want to finish college so I can be an example for them. I believe its possible despite of family financial problems. We motivate each other side. I'm confident, I have a complete and supporting family that gives me full inspiration. 

Year 2005, my father passed away. 

I don't know where will I begin. There's fear inside how to start. Should I continue my studies or should I stop and start working to help my family. At young age, I don't want to work the only thing in my mind is "to study and finish it". Like a good daughter, I want to fulfill my parents dream. I study well, I wish to get a good job and make an earning, enough to make a living and to support my family so that they may lead a good and comfortable life.

On my 16th birthday, I remember I wrote a wish letter. 
God, help me to keep strong. I heard that I should stop going to school so I can give way to my siblings but my desire is to continue. Give us wisdom, so we can overcome all these. I only have one wish on my birthday. I want to finish my studies.
Eight years have passed, me and my second sister are now working. We are both graduate from state university. Currently, we have two siblings still studying. My mom is going to marry her highschool sweetheart soon. I just love to see all them happy and growing. 

All the trials and errors we've been through one thing for sure we trust and we believe. They believe in me and I believe in myself. I believe in them and I trust them.

I have lots of dreams and hope for the future and I believe in God's right time I'll reap the fruits of my labor. I just want to share this personal experience of mine before I go to sleep to "believe in yourself". Whatever circumstances you are in right now. When you start believing you're mind will start to develop the "how-to-do-it" action. Always remember, if there's a will, there's a way. 

"Trust in the LORD with all your heart and lean not on your own understanding", Proverbs 3:5

"Very truly I tell you, whoever believes in me will do the works I have been doing, and they will do even greater things than these, because I am going to the Father. And I will do whatever you ask in my name, so that the Father may be glorified in the Son. You may ask me for anything in my name, and I will do it." John 14:12-14

Tuesday, October 8, 2013

Truly Rich

In 2011, I started working as an Overseas Filipino Worker. Working abroad is part of my childhood dream. I want to change our family tree and I thought being OFW will makes me rich.

Everyone has their own definition of being rich. According to most dictionaries, rich is defined as having abundantly supplied resources, means or funds.

After working for almost three years as an OFW, I don't feel rich at all.

I don't feel secured. I don't have enough savings. I was living paycheck to paycheck.

Until one afternoon while browsing my pictures on Facebook, I summarized what happens in the past years and I feel glad. I remember time full of blessings and happiness, that moment makes me feel that I'm rich. :)

I'm thankful that I started moving forward but what I left behind is the habit of saving for long term. Honestly, I save most of my income for short-term goals, material possessions and vacation expense only. I think that I'm too young to save and think about retirement.

I admit as an OFW I live like a one day millionaire everytime I went back home.

Expenses > Income = Bad
Expenses < Income = Good

The question "May ipon ka na ba?" is a regular start of conversation whenever we talked about work relating to money. Most of OFW I know don't have "enough savings" and the truth is some of them don't have "any savings" at all. So, I started asking myself, what's the problem being an OFW and how to become truly rich.

Rich are people with good money habits.
Rich are people doing what they love to do.
Rich are people that has a big heart to give.

Finally, I found out one of the answer by understanding how to become truly rich. Secure your future and protect you and your family from unexpected events. This leads me the dedication to save for the future.

I read blogs about finance and money. I watched videos of Pesos and Sense, Pisobilities. I joined some groups on Facebook that talks about investments. I meet new friends in Financial Peace Univeristy home-study. I started this blog to share and I learned many things that I'm not aware before.

"The rich rule over the poor, and the borrower is servant to the lender." Proverbs 22:7

Then, I become curious about mutual funds and UITF, stock investment, etc. I’m still learning about all of this, but the important thing is that I got started and soon enough I can change our family tree.

Maybe it’s not so important to become rich but truly rich. It’s more important to feel happy, content and secured. Live simply and don't give up achieving your goals.

Hopefully you've learned something useful.

Sunday, September 22, 2013

Nerds and Free Spirits Unite

Ej and I attended class 2 of Financial Peace University home-study lead by Kuya Jonathan and company. The group prepared yummy pancit canton and bihon for the dinner. :)

In this chapter, Dave Ramsey talked about people who are in a relationship, singles, married and have kids. He explained the differences between men and women spending practices. Men get good deals by negotiating while women get good deals by hunting. When it comes to money both have different attitudes, ideas and methods. I found this interesting and true, men and women are different - period.

Personally, I'm emotional while my partner EJ is logical. I spend more stuffs on sale, buy things based on the look. Design matters to me while EJ spend more of his money on technology. He don't look much on the outer he care about performance and what's inside that thing. Before buying he will sit down browse several videos on Youtube to review the gadgets he wants to. He didn't care if it will takes him days, weeks, months to review.

Continuation, Dave Ramsey discussed the two personality types of people in the handling money, the free spirited people and the nerd.

Free Spirited person are the people who act freely,  they are the "spender" and the people who doesn't want to be tied down to a budget while the nerd person are the people loves numbers, they are good in Math, they likes doing the budget and they are the "saver".

Both needs each other in handling money, the nerd should be the one who will make the budget after doing it give time for the free spirit to suggest. If the free spirit gives opinion agree to the changes and make them. This way, both people will involved in the financial decision making. when both partners are on the same page about goals and attitudes, both partners can go a long way.

Saturday, September 14, 2013

Baby Step 1: $1,000 in an Emergency Fund

Last Friday, we attended Financial Peace University home-study course at Redhill started by Kuya Jonathan, his wife Ate Nez and sponsored by their group of friends. I feel very lucky being part of the first class for a series of study highlighting the Dave Ramsey Baby Steps.

Dave Ramsey is an American financial author, radio host, television personality and motivational speaker. He formulated the Seven Baby Steps. Get out of debt the same way we learned to walk one step at a time.

Baby Step 1: $1,000 in an Emergency Fund

We all heard that we must save for a rainy day. It simply means that while we have money we must save for emergency fund.

The first step is establishing your initial emergency fund. Emergency fund is a fund used to cover any unplanned expenses (i.e. not budgeted). You can also call it God Only Knows fund. In this step, we are preparing ourselves to save in case of emergency.

Please note that if we can't save $1,000 quickly save what is more applicable for you. The initial fund is to avoid using debt in case unexpected events happen but to use your emergency cash instead.

Tip 1: Start saving as soon as you know it!
The bottomline is it really doesn't matter if it's $300, $500 or $1,00 just save an amount that you will feel comfortable. If the amount is too small, save more. If the amount is too big, save less.

Tip 2: Keep your emergency fund available when you need it.
Save your emergency fund in your savings account that can be access anywhere. In the Philippines, I choose BPI because I find it easy to make a fund transfer.

Putting up your initial emergency fund is a great way of changing our mindset about money. Start creating your budget and decide to save now. Think of an amount you can reasonably save each month and as time goes by double it. Focus on your goals and plan your action. All these requires effort, action and time.

My Top 5 Favorite Lines from Dave Ramsey
1. Savings must become a priority.
2. You must pay yourself first.
3. Unexpected events do occur - expect them!
4. Your emergency fund is not your investment; it is your insurance.
5. Discipline is a key ingredient.

This is the first time I attended group discussion that talks about financial management. It was a pleasure meeting them. Sharing financial experiences is the best part for me where in each of members share their own bad, sad and happy experiences dealing with money.

Tuesday, September 10, 2013

Are You An OFW Living Paycheck To Paycheck?

For a the past two years being an OFW, I live paycheck to paycheck. My monthly transition goes something like this - sending remittances, make a budget for current bills, save money (for next vacation, for material things, to fix our house, etc.) and the remainder I spend on whatever. Luckily, I don't have credit cards to fund a lifestyle that was beyond my means but I did spent my money quickly. I thought of material things equals wealth.

Until there was time when my paycheck arrived late, I need to pay monthly rent and need to send money back home. As a solution, I borrowed money off to my boyfriend to pay those things. It was stressful. I just felt tired of depending completely on my next paycheck.

Living paycheck to paycheck was like "Isang kahig, isang tuka". I cannot buy and pay anymore stuff until I receive my next paycheck. No investing, no savings, no emergency funds. But this is not good idea, you can maintain a paycheck to paycheck lifestyle if you’re not taking on new debt, you have fixed monthly income (and if emergency doesn’t strike) but we don't know what tomorrow can brings.

It took me awhile to step back and realize that in order for me to get different results I should do the things I've never done before.

Today, things have gotten better, although I’m nott fully funded yet. I have begun saving. I’m also planning for stocks investment, a little travel, and a simple house.

I started saving slowly and faithfully. Part of my income goes to insurance, emergency funds and now I started to lived within a budget.

Here are some ideas that worked for me.

Make a plan
A goal without a plan remains just a goal, plan to make it happen. When do you want to start saving for your own house?Until when can you stay working as an OFW? Think about what you want in life, and start planning to save for them.

Open a seperate savings account
This is a good way to go to consider. I have three accounts including an emergency savings, pesos savings and separate dollar savings account. It wasn’t much at first but in time, it made a difference.

Pay yourself first
Before you do anything else with your paycheck always remember, a part of what you earn is yours to keep. After receiving my paycheck I head for the seperate bank the moment I get it. I make a deposit in my savings account before I spend any of the money.

Create a budget and spend with purpose
Figure out how much you can afford, know what goes into your pockets and what goes out. At least you know where your money needs to go. I packed lunch at least 3 days a week. If I eat outside I have a budget on my wallet. Simply live within your budget.

Use Jar or Envelope system for main expenses
These budgeting methods works for us. I've been using it lately and it's fun thing to do. Our main variable expenses is Remittance, House Rent, Utilities and Food. We categorized and put them on separate envelopes and jars.

Grocery and Waldas Funds are on Jar while Remittances, Rent, Utilities, Everyday allowance are on envelopes. This is optional, but it’s a good tip.

Gently reminders:
If you spend about what you earn, you are living paycheck-to-paycheck.
If you spend more than you earn, you are acquiring debt.
If you spend less than you earn, you get more savings.

Now, I'm continuing my journey changing my mindset on how to handle money. How about you? Are you an OFW living paycheck to paycheck? Share your story.

Have a happy earning life!

Monday, September 9, 2013

"Rich Man, Poor Man - Who's The Beggar Man Or Thief?" (Part 5)

(Continued from Part 4, the first part of the story is at Part 1)

THIS IS THE LOGIC OF THE RICH, THAT THEY ARE ALWAYS BEING ROBBED BY THE POOR by wages or prices of the poor's services and goods while it is really the rich who have constantly been robbing the poor of their fair share, as small as it may be!

AFTER ALL, MR. RICHMAN FEELS HE DESERVES AND NEEDS IT ALL FOR HIMSELF, so why should this little upstart of a Mr. Poorman start demanding proper pay for his goods and services! Isn't Mr. Richman the one who is using them and turning them into pleasant products for the other rich to enjoy as well?

SO WHY SHOULD MR. POORMAN SUDDENLY START DEMANDING THINGS HE'S NEVER EVEN HAD BEFORE and wealth he's not accustomed to or a share of the benefits with which he has not formerly been blessed? After all, he's always been poor so why shouldn't he stay poor and go away and leave his oil alone so Mr. Richman can have it all and stay rich in the riches to which he has been so well accustomed?

WHAT RIGHT HAS MR. POORMAN TO START DEMANDING ENOUGH FOR HIS OIL to be even repaid a little of what the rich have robbed him in the past as well as its present values? But Mr. Richman says that this means we'll have to raise all our prices in order to stay rich, and the other poor people and labourers may not like this and may demand higher wages which we may have to pay them to keep them alive so they can remain our slaves.

THIS WILL ONLY SPEED UP THIS TERRIBLE INFLATIONARY MERRY-GO-ROUND OF HIGHER PRICES AND WAGES until everybody gets thrown off balance and goes flying through the air in one great crash!

BUT REALLY, MR. POORMAN COULDN'T CARE LESS ABOUT THE PLIGHT MR. RICHMAN HAS BROUGHT UPON HIMSELF by robbing Mr. Poorman for so long, so that Mr. Richman made the whole world think he could rob Mr. Poorman forever while the rich all enjoyed luxuriating in Mr. Poorman's oil which they were buying for almost nothing while making vast fat rich profits from it for their own pleasure and throwing away the rest which the poor of the world would have been happy to have if they could!

SO THE POOR NEIGHBOURS OF MR. POORMAN ARE GETTING TOGETHER, PLUS SOME POWERFUL FRIENDS OF THE POOR AND ENEMIES OF THE RICH, AND SAYING, "WE THINK YOU'RE RIGHT, MR. POORMAN, and you have a right to charge whatever you think your oil is worth and share its benefits and even get back some of your losses for being cheated so long by the rich! So we'll stand with you, and we just dare the rich to pounce on the poor! We'll help you fight back, and if the rich try any funny stuff, they're going to be the losers this time and not us poor!

"IT'S TIME FOR A CHANGE AND THIS TIME THE CHANGE IS GOING TO BE IN OUR FAVOUR and there's going to be a fair share of the world's wealth instead of nearly all of it going into the pockets of the rich and the semi-rich!

"IF NOT, WE'LL HAVE TO DESTROY THE RICH and take over the whole neighbourhood of the world ourselves for the benefit of the poor to save the earth from destruction by the rich!"

LISTEN, MY CHILDREN, AND YOU SHALL HEAR OF THE WORLD'S LAST RIDE OF THE RICH TO THE REAR! But there will be no escape for them as there'll be no place to go and nowhere to hide, as they can't stop the world and get off as they'll wish they could!

GOD IS ABOUT TO JUDGE THE RICH BY THE POOR, as He so often has throughout history, and the rich are about to reap the cruelties and poverties they themselves have sown amongst the poor, while the meek and the poor shall inherit the earth!

IF YOU WANT TO KNOW WHAT I MEAN, JUST TAKE A LOOK AT A WORLD MAP OR GLOBE AND LISTEN TO THE CRIES OF THE POOR THROUGHOUT THE EARTH to be soon answered by the thunderous judgments of God Himself upon the rich nations of the world!


IF YOU'LL JUST VIEW THE MAP OF SOUTHERN ASIA AND NORTHERN AFRICA YOU'LL SEE HOW VAST AND HOW LONG AND STRONG IS THIS COMBINED ARAB-ISLAMIC WALL between Eastern oil and Western greed!--And most of the rest of the poor world will sympathise and back these kings of the East as they lead the poor to power while Western paper empires burn out in overheated friction without Arab oil!


SO THAT, MY CHILDREN, IS THE HAPPY ENDING OF THE STORY OF "RICHMAN, POORMAN"!--Now do you know who's the Beggarman or Thief?--Who'd you rather be?--Mr. Richman or Mr. Poorman?--I thought so!--I would too! For Jesus said, "The meek (Poorman) shall inherit the Earth" and live happily ever after!--Will you? Amen!

(The End!)

Copyright (c) 1998 by The Family

"Rich Man, Poor Man - Who's The Beggar Man Or Thief?" (Part 4)

(Continued from part 3)

OF COURSE SOME SAY THAT THE VERY RICH AND POWERFUL AND INTELLIGENT UPPER CLASS AND THE SEMI-SO MIDDLE CLASS ARE NEEDED TO DIRECT AND MANAGE THE LABOUR OF THE POOR MAN who doesn't really know what's good for him or how to manage himself and his own affairs, so they must do it for him. So as long as he is fed, clothed and housed with the barest necessities and doesn't have to slave too hard to earn them the poor are usually content or made to be content and conditioned to be satisfied by the System of rich that rule them so there will be no strikes or riots or rebellions and everybody will be comfortable and peaceful and fairly happy--except for the rich!

THE RICH ARE NEVER COMFORTABLE ENOUGH, SELDOM PEACEFUL AND HARDLY EVER HAPPY! So since they got rich in the first place thinking that more things and more power would make them happier and yet they're still not happy, they are continually seeking even more things and even more power to try to be more happy. But this actually makes them even more unhappy because they have to break God's loving laws of equality and sharing to do it!

AND SINCE THEY DO NOT DARE TAKE MORE, OR AT LEAST NOT MUCH MORE, FROM THE MIDDLE CLASS whom they must try to keep happy lest they rebel against them, there's only one class left that they can both oppress and rob and cheat and even slaughter if necessary to keep themselves in power and make themselves richer than ever, and that's the poor man, the pitifully poor underdog who can never see any way to get out of his dilemma, and so is just thankful if he manages to stay alive!

BUT WHEN THE RICH AND SEMI-RICH BEGIN TO PASS THE BUCK OF MORE TAXES, HARDER LABOUR, HIGHER PRICES AND WORSE CONDITIONS ONTO HIM, MR. POORMAN, IT BEGINS TO BE ALMOST TOO MUCH FOR HIM TO BEAR! So he starts striking and rioting and demonstrating in protest to get a little more of what's coming to him, at least his poor little share of his actual needs!

AND IF THESE NEEDS ARE NOT MET AND HE AND HIS FAMILY ARE ACTUALLY HUNGRY OR STARVING OR FREEZING FROM THE COLD FROM LACK OF CLOTHING, FUEL OR SHELTER, MR. POORMAN WILL SOMETIMES GET SO DESPERATE JUST TO LIVE, HE AND HIS FELLOWS MAY RISE UP TOGETHER AND START A GREAT REBELLION CALLED A "REVOLUTION" to overthrow their rich and middle class oppressors and robbers of the poor and establish a new government with poor people in power to rule in favour of the poor instead of the rich.

THESE ARE SOMETIMES CALLED "SOCIALIST" OR "COMMUNIST" OR "REVOLUTIONARY" GOVERNMENTS, WHEN THE POOR HAVE HAD ENOUGH AND FEEL IT'S TIME FOR A CHANGE! The only trouble is this usually only creates a new class of the newly rich and powerful because of the greedy evil hearts of men, both rich and poor, so that none are ever satisfied no matter what they have without the real Love of God in their hearts for their fellowmen!

SO THE RICH, GOVERNMENTS, SOCIETIES, AND EMPIRES COME AND GO, BUT AS JESUS SAID, "THE POOR YE HAVE ALWAYS WITH YOU." Even under a new government intended to help the poor, some always get rich and powerful and become the new rich oppressing the new poor. And so it goes on and on and we're back to "square one" again, even when there is a change in some places with some peoples.

THE POOR LABOURING TOILERS OF THE WORLD OF THE POOR who through blood, sweat and tears have for years produced the raw materials from which these things are made by their richer neighbors are finally demanding a higher share in the enjoyment of these products by insisting on higher wages for their labours and higher prices for their goods.

THIS HAS HELPED CAUSE THE PRESENT WAVE OF WORLDWIDE INFLATION, WHICH SIMPLY MEANS A CLIMBING SPIRAL OF A VICIOUS CYCLE OF CONTINUOUSLY RISING PRICES AND WAGES. Since the rich and the powerful always control the governments and the prices, they keep raising these prices faster than the poor labourers can get their poor wages raised.

SO MR. POORMAN FINDS HE CAN NEVER MAKE ENOUGH MONEY TO GET AHEAD OF THE RAPIDLY RISING PRICES of the things he needs, and the poorer nations cannot even raise the prices of their raw materials as fast as the richer nations can raise the prices of the finished products which the rich process and market and sell back to them.

SO THAT IT CAUSES THE RICH TO GET RICHER AND THE POOR STILL POORER by comparison no matter how much more they get for their raw materials and labours, because the rich industrial nations buy these raw materials from the poor and make them into things wanted by the rich at prices the poor cannot afford.

THE RICH ARE ALWAYS CLEVER ENOUGH AND HAVE ENOUGH CONTROL OF THE GOVERNMENTS AND MARKETS AND MONEY TO ALWAYS SOMEHOW MANAGE TO GET THE LION'S SHARE. For example, no matter how much the farmer gets for his products and as little as it usually is, by the time the finished products reach the markets where the poor labourer has to buy them back in order to eat, the men in the middle, the rich manufacturers, wholesalers and retailers and the banks and governments and big money men who finance them, have made most of the money between the poor producer and the poor consumer who constitute the vast majority of the people.

THESE RICH MIDDLE-MEN ARE LIKE THE MONEY CHANGERS AND MAKERS AND BUYERS AND SELLERS OF GOODS AND WARES THAT JESUS DROVE OUT OF THE TEMPLE WITH A WHIP, overturning their tables and scattering their money because they were polluting His Temple and robbing the poor! And the money changers of today have still not changed, they're just the same, they are still polluting man's temple of the earth and robbing its poor of their sacrifices!

BUT THE WIND OF GOD'S WHIP OF JUDGMENTS IS BEGINNING TO CRACK AGAIN and His angry Voice is being heard again and the tables are once more being over turned as the rich are beginning to themselves be destroyed by their own riches and evil pollution of the earth!

THE WORLD'S WORST WASTERS LIKE THE NEWLY RICH UNITED STATES AND WESTERN EUROPE ARE BEGINNING TO BE BURIED IN THEIR OWN WASTE and suffocated by their own befouled air and poisoned by their own polluted waters from the wasteful byproducts of their wanton wastefulness!

THEIR MONEY SYSTEM IS ALSO COLLAPSING because they have built it on paper and now even mere electronic impulses instead of real valuables such as the gold and silver from whence it came! The paper empires of the paper tigers of paper money, paper stocks, paper bonds, paper cheques, paper securities, paper deeds and paper contracts are beginning to burn like a wick without the oil and raw goods that used to feed it!

MR. RICHMAN DISCOVERED OIL IN THE BACK YARD OF MR. POORMAN AND TRADED HIM PAPER MONEY FOR IT so Mr. Richman could burn it wastefully and luxuriously in his rich industries, rich homes, rich cars, trains and planes and create a massive mess of plastic luxury products from petrochemicals derived from Mr. Poorman's oil and upon which the rich world has become so dependent that it thinks it cannot survive without it!

BUT MR. POORMAN, AFTER MANY YEARS OF PUMPING HIS PRECIOUS OIL OUT OF HIS OWN BACK YARD FOR POVERTY-LEVEL PRICES TO TURN THE WHEELS OF MR. RICHMAN'S INDUSTRIES AND LIMOUSINES AND PLASTIC TOYS HAS SUDDENLY AWAKENED that he's been selling his precious commodity too cheap and has been losing his share of its benefits for many years while Mr. Richman has been getting ever richer on it as well as wasting it because Mr. Poorman was selling it too cheap!

SO IT HAS FINALLY DAWNED ON MR. POORMAN THAT HE SHOULD RAISE THE PRICE OF HIS OIL TO WHAT IT'S REALLY WORTH TO GET BACK SOME OF HIS SHARE OF THE VAST RICHES WHICH HIS OIL HAS CREATED FOR MR. RICHMAN. So Mr. Richman is now furious and screaming that he's being robbed by Mr. Poorman because he can't rob Mr. Poorman anymore of his just desserts for his oil.

THEREFORE, MR. RICHMAN IS NOW YELLING FOR THE HELP OF HIS RICH NEIGHBOURS, whom the oil has also helped to make rich, and is complaining to the rest of the world that Mr. Poorman is now the robber, so they should all help Mr. Richman rob it back again from Mr. Poorman to whom it really belongs! (Continued in Part 5)

"Rich Man, Poor Man - Who's The Beggar Man Or Thief?" (Part 3)

(Continued from part 2)


PRETTY SOON YOU WON'T EVEN HAVE TO CARRY MONEY OR CHEQUES AROUND TO BUY THINGS, BUT JUST A LITTLE NUMBER on a little card that the cashier at the store can stick in a new kind of "cash register." This is a machine they usually put your cash or money or cheques in, but instead of putting your money in it they'll just put your number in it and how much the goods you bought cost or the price. Then this will be automatically taken out of your money at the bank by the computer and transferred electronically on electric wires to the bank account of the store from whom you bought that thing or things and put in the store's bank account of money instead.

THIS WAY THEY DON'T EVEN HAVE TO MOVE THE CHEQUES OR ACTUAL MONEY FROM ONE BANK TO THE OTHER, but you'll just be billed by your bank for what you bought and the stores where you bought these things will be given credit for the money you will have paid out of your bank account.

THIS IS CALLED A "CREDIT SYSTEM" AND WILL BE THE NEW WAY OF TRADING or exchanging money and things from person to person by computer.

THE MONEY THE POOR ARE PAID IS CALLED "WAGES" for working and growing or making things, or moving and carrying them, or buying and selling them, or exchanging messages by means of communications like the telephone, or performing lots of other kinds of work called "services, because you are their servants doing these things for the rich, like building and painting or fixing their houses or cleaning them or cooking their food or driving their cars or trucks, trains or planes.

THE MONEY THE POOR GET FOR DOING THESE THINGS FOR THE RICH IS CALLED "WAGES" OR "SALARIES" OR "PAY" and the ones who do the hardest work with their feet and hands and backs are called "labourers." But the ones who do the head work with their brains to invent and operate these things for the rich are called technicians, engineers, clerks, military officers, managers, brokers, business experts, scientists, builders, etc.

ALSO, SINCE THE RICH ARE SO OFTEN SICK BECAUSE OF ALL THEIR MONEY WORRIES OVER THEIR RICHES AND STRUGGLES FOR POWER AND WARS, ETC., THEY NEED DOCTORS AND DRUGS to try to make them well and happy again, which they seldom are since God doesn't bless them for robbing, cheating and oppressing the poor and breaking His laws of love to do it.

THEY ALSO HAVE SO MANY FIGHTS AND ARGUMENTS AMONGST THEMSELVES THEY HAVE TO HAVE LAWYERS AND COURTS AND JUDGES TO TRY TO SETTLE THEM. They also need military leaders and officers to lead the poor soldiers to fight the wars of the rich with other rich.

THE RICH ALSO NEED TEACHERS TO TEACH THEIR OWN CHILDREN HOW TO GET RICH AND STAY RICH and oppress the poor, do business, fight wars, etc., and also they need teachers to train the poor to do their work, invent and operate their machines, perform their services as their servants and conduct their businesses, communications, transportation, governments, wars, etc.

THE RICH ALSO NEED RELIGION AND RICH RELIGIOUS ORGANISATIONS LIKE THE CHURCHES TO TRY TO COMFORT THEMSELVES FOR ALL THE EVIL THEY'VE BEEN DOING and the poor they've been robbing and the wars they've been fighting, and also to subdue the poor and keep them from complaining about their poverty with promises of future Heavenly happiness and to brainwash the poor of any anti-rich ideas and indoctrinate them with complacency and willingness to be peaceful servants to the rich and work hard for them and do all these things for them as the will of God, which to religion, is the will of the rich.

SO THE RICH ALSO NEED THE CLERGY OR PREACHERS AND PRIESTS AND CHURCHES TO KEEP THE POOR PEACEFUL AND WILLING WORKERS. all these smarter, better educated, better trained servants of the rich who do this head work more than hand work are called "white collar," workers, "professionals" or the "middle class" who make more money and are paid more than the poor hand-working, hard-working so-called "blue collar" ordinary labourers who do the manual, menial tasks and even work for the middle class too.

THIS "MIDDLE CLASS" OF PROFESSIONALS AND TECHNICIANS AND SMALLER BUSINESSMEN, DOCTORS, LAWYERS, TEACHERS, PREACHERS, BROKERS, CLERKS, ENGINEERS, ETC., are not only paid and allowed to make more money than the poor but are also allowed to own more things like finer houses, better cars, colour TVs, hi-fi's, nicer clothes and eat more and better food, etc., to try to keep them happy so they won't rebel against the rich whom they serve, even though they're smart enough to do so.

THIS PARTLY RICH MIDDLE CLASS OF WORKERS, scientists, technicians, professionals, etc., because they are so well paid and given so many things and allowed to live so comfortably, they help the rich to keep the poor in their place on the bottom so they won't rebel against being slaves of the rich, as they are also the slaves of the middle class who are a sort of semi-rich or half-rich known as the "bourgeoisie" or "intelligentsia," intellectuals, professionals, small businessmen, etc.

THIS HALF-RICH MIDDLE CLASS ARE ALL THE SAME AS THE VERY RICH TO MOST OF THE VERY POOR of the world, since the middle class is rich compared to the poor. So that the slightly richer middle class and the very rich upper class who govern them are all the same to the very poor who serve them as their servants and slaving labourers.

TO THE POOR MAN WHO IS TRYING TO EARN ENOUGH TO GET ENOUGH FOOD, CLOTHING AND SHELTER TOGETHER to keep the body and spirit of himself and his family together and alive, the rich and the middle class are all the same--they are all his masters and he their slave.

THE POLICE AND ARMY TOO LOOK TO HIM LIKE NOTHING BUT THE TOOLS OF THE RICH AND MIDDLE CLASS who make the laws and enforce them to protect themselves and keep him under and in subjection so he can't rebel or riot or revolt for his rights or strike for higher wages or demand better housing and living conditions or more food and better clothing.

SO THAT THE COURTS AND PRISONS ARE NATURALLY LOADED AND FILLED TO OVERFLOWING WITH MANY MORE OF THE POOR and very few of the middle class and almost none of the very rich who, after all, are themselves the government and the law and its enforcers and are always excused or buy their way out even if they do happen to run into trouble with the lower classes for robbing or cheating them or even killing them.

THE RICH SELDOM HAVE TROUBLE IN THE COURTS EXCEPT WITH OTHER RICH OR RICHER GOVERNMENTS, for the laws and courts and governments are made by the rich for the rich and to protect the rich so they can stay rich and powerful and continue to oppress the poor, their slaves and servants.
(Continued in Part 4)

"Rich Man, Poor Man - Who's The Beggar Man Or Thief?" (Part 2)

(Continued from part 1)

SO THEY PAID THESE SMARTER POOR PEOPLE MORE THINGS TO INVENT THESE quicker ways of getting messages, ideas and information back and forth, called "communications," like the telegraph, telephone, radio, television, etc.

THE RICH ALSO HAD TO HAVE QUICKER WAYS OF EXCHANGING THE EXTRA THINGS they didn't need for other things other rich had that they wanted to trade them for, as it was pretty hard to keep carrying them back and forth to each other even on these big new machines they made.

SO THE RICH INVENTED A NEW WAY OF TRADING these goods back and forth without even moving a lot of them so they could just keep them in their bigger and bigger barns and storage places called warehouses without even moving them around too much except when absolutely necessary.

THIS NEW WAY OF EXCHANGING GOODS WITHOUT ACTUALLY MOVING THEM VERY OFTEN WAS CALLED "MONEY." At first this money was something really valuable, like gold and silver and diamonds and jewels and pretty things like that that the rich always like to decorate themselves and their houses with and which they valued very much to show that they were very rich. But the rich also wanted other things like finer food and clothing and grander houses and fancier machines and bigger lands.

SO THEY WOULD AGREE AMONGST THEMSELVES TO TRADE SOME OF THESE VALUABLES LIKE GOLD AND SILVER AND JEWELS THAT THEY LIKED SO MUCH FOR THESE OTHER THINGS they needed and wanted, like houses and lands where they grew things and factories where they made things and the machines to make them and travel in and talk back and forth with. The rich man who paid this kind of valuable money for the valuable things he wanted was called the "buyer" and the man who traded him the things for the money was called the "seller."

THIS BECAME KNOWN AS BUYING AND SELLING FOR MONEY, A WHOLE NEW WAY OF TRADING things back and forth. It worked pretty good for a while, but pretty soon the rich became so rich and paid such big "prices" (the amount of money you pay for a thing you want) for such big things they wanted that it was even hard to carry the gold and silver and jewels back and forth as they became so heavy and hard to hide from robbers and other rich who might rob them while carrying them!

SO THEY HAD TO INVENT A WHOLE NEW KIND OF MONEY THAT WOULDN'T BE SO HARD TO HIDE AND CARRY AND TRADE, CALLED "PAPER MONEY" OR "CURRENCY." Each rich country run by its rich people would hide their gold and silver and jewels in strong thick-walled buildings called "treasuries," "vaults," "banks," etc. Then they'd print these little pieces of paper in a special way, each little piece showing that the rich of that country had that much gold or silver, etc., in the treasury or the bank, as much as was written on the piece of paper. Then they could take it to the bank or the treasury and trade the piece of paper for the real thing, the gold or the silver.

THEY COULD JUST TRADE THESE LITTLE PIECES OF PAPER FOR THE THINGS they needed or wanted so they wouldn't have to move the actual valuable gold and silver money around so much. The little pieces of paper money were supposed to show that they had that much real gold and silver money in the bank that they could trade it in for if they wanted to.

THIS MONEY ("MONKEY"?) BUSINESS WAS ALL CALLED THE "MONETARY SYSTEM," or a very easy way of trading things quickly without actually having to move anything but these little bits of paper money. But pretty soon the rich got so rich even with paper money that it would have taken a lot of trucks to carry it around while trading it from one rich man to another.

THEY GOT SO RICH THAT EVEN THE PAPER MONEY GOT TOO HEAVY TO CARRY! SO THE RICH INVENTED ANOTHER WHOLE NEW WAY OF TRADING CALLED "CHEQUES," a way of not only trading goods or gold but even trading paper money, so they wouldn't even have to move the paper money so much back and forth from bank to bank! They could leave the paper money in the bank and write these little notes to the bank called cheques telling the bank to pay so-and-so so much money out of their money at the bank called a "bank account."

THEN THEY COULD JUST WRITE CHEQUES FOR THEIR MONEY in their bank accounts to pay for the things they wanted to buy. This made the big business of big buying and selling of big things by the big rich much easier and faster in a new kind of market called the "stock market" where they could trade things back and forth without ever even seeing them or the money either!

THEY COULD EVEN TRADE WHOLE FACTORIES AND BUSINESSES and gold and silver and sugar and cotton and wheat and all kinds of things at the stock market with these little pieces of paper called "cheques." And the things or parts of things they wanted to trade were shown by papers called "stocks."

THE STOCK MARKETS EVEN TRADE PAPER MONEY THAT'S NOT EVEN PAID OR THERE YET, CALLED "BONDS." These are "loans" or amounts of money which people, businesses or governments have promised to pay later when they have it, because they don't have it right now but hope to have it later by selling goods or doing business or taxing the people some more so they can pay it later on.

THESE PROMISES TO PAY LATER ARE CALLED "BONDS" because that word is supposed to mean they're bound to pay it sooner or later because these bonds are also pieces of paper which say they promise to pay it back sometime together with even a little bit more called "interest" on these loans.

THE STOCKS ARE ALSO PIECES OF PAPER CALLED "SHARES," which means that if you own one of them, one of these little pieces of paper called a "share," you own a share in some kind of business, factory, gold mine or stocks of goods like gold, silver and other precious and useful metals, or foods like sugar and cocoa and coffee, or textiles like cotton or wool, etc.

THESE ACTUAL REAL GOODS OR THINGS ARE CALLED "COMMODITIES" and they are also bought and sold on the stock market for various amounts of money called "stock prices," paper money which is actually exchanged by these little pieces of paper called cheques. But the rich are always in such a hurry to get richer quicker, even these ways of trading money and things called goods, etc., have become too slow.

EVEN THE CHEQUES ARE SO MANY NOW THEY'RE BECOMING TOO HEAVY FOR THE BANKS TO HANDLE SO FAST because things are being bought and sold at such a rate and money exchanged so fast the banks are having a hard time keeping up with it all! (Continued in Part 3)

"Rich Man, Poor Man - Who's The Beggar Man Or Thief?" (Part 1)

Dear Children:

NOW IN THE BEGINNING, GOD, THEIR HEAVENLY FATHER, BEFORE ANYBODY WAS RICH OR POOR, HAD GIVEN EVERYBODY ABOUT THE SAME AMOUNT of land and food and things with which to build their houses and make their clothes and beasts to carry their burdens and help plow the land so they could grow their food and carry their things they made to market to trade for other things that other people made that they liked and needed and who liked and needed to trade their things for their things. See?

AND EVERYBODY WAS HAPPY AND HAD EVERYTHING THEY REALLY NEEDED AND HAD NO WARS. Everybody worked hard to grow their own food and make their own clothes and build their own houses so each had plenty of what he needed.

BUT SOME WORKED EVEN HARDER THAN OTHERS AND GREW AND MADE ENOUGH EXTRA THINGS TO TRADE for the extra things and food that other hard workers grew and made too. That way different people grew and made different things they could trade for other different things that other people grew and made.

SO PEOPLE GOT TO DOING WHAT THEY CALLED "TRADING," and this business of taking all these different things to market to trade for all these other different things made by other people was called "marketing" and "trade." Some people grew lots of food but not much cotton or wool to make their clothes with, so they would take their extra food to their market and trade it for the cotton and wool that other people had lots of but needed more food. Others had lots of trees and grew lots of timber for building houses, much more than they themselves really needed, but they too needed more food or clothing, so they'd take their wood to market to trade for the food and clothing they needed. See?

EVERYTHING MOVED RATHER SLOWLY because they only had horses and oxen and elephants and camels and animals like that to carry all these things. So life went rather slow and easy and nobody was in much of a hurry and they had lots of time to relax, ate good natural healthful food the way God made it, and had lots of good normal healthy exercise, working and walking and riding and trading and playing together.

THEY BREATHED NICE CLEAN FRESH AIR AND DRANK NICE CLEAN PURE WATER, and got lots of nice quiet restful sleep at night and lived in comfy warm little tents, cabins, huts or houses with little fires and the few things they needed and the few clothes they wore.

AND EVERYBODY WAS PRETTY HAPPY AND THERE WEREN'T MANY FUSSES OR FIGHTS OR WARS because everybody was healthy and happy and had what they needed and shared and helped each other. Because God taught them to love one another and to help each other and be happy with their happy healthy little lives and the very few things that they really needed.

NOBODY REALLY NEEDED VERY MUCH--just enough to eat and clothes to keep warm and tiny tents, caves or houses to live in for shelter, and a few animals to help them with their work.

SO EVERYBODY WAS HAPPY AND CONTENTED WITH THE LITTLE HE HAD because it was enough to satisfy all his needs and the needs of others.

BUT THE DEVIL, GOD'S AND MAN'S ENEMY, WAS NOT HAPPY ABOUT ALL THIS because he likes to make people unhappy and sad and mad, and he's very unhappy when everybody's glad because that makes him very mad!

SO HE DECIDED TO DO SOMETHING ABOUT IT TO TRY TO RUIN ALL THIS NICE PEACEFUL WORLD THAT GOD HAD CREATED and destroy as many of these happy people as he could and try to wreck the whole thing so he could be happy!--So he began causing all kinds of trouble!

HE BEGAN TEMPTING SOME OF THESE HAPPY CONTENTED PEOPLE WITH THE KNOWLEDGE OF EVIL called "higher education" 'or how to be unhappy by thinking you can be happier by knowing more than you really need to know and getting more things than you really need to have.

AND SOME PEOPLE BELIEVED HIM, SO THEY BEGAN LEARNING A LOT OF EVIL THINGS called man's wisdom and higher education, and they began stealing from each other the things that belonged to others or tricking them out of some of these things so they themselves could have more!

WHILE THE POOR PEOPLE THEY WERE OUTSMARTING and robbing and cheating and killing to get more than their share became known as the poor, dumb, uneducated, overworked labourers, the weak and the meek ones.

THE PEOPLE WHO BEGAN GETTING ALL THIS EVIL KNOWLEDGE of how to trick and rob others and lie and steal and cheat and even kill to get it began to be known as the rich and the powerful and the great ones, the smart ones!

THE GREAT AND POWERFUL RICH by their evil wisdom of the Devil were even so smart with their evil knowledge and lies called higher education, propaganda and advertising, that they even convinced lots of poor people that they were right and persuaded them to voluntarily give up some of the few things they had to make them even poorer and the rich even richer, so the rich could have more and more and the poor less and less. These are called "taxes" and "profits" and "interest."

THE RICH EVEN PERSUADED AND FORCED THE POOR TO MAKE THEM SOMETHING NEW CALLED "WAR" AND "WEAPONS," like swords and spears and guns and tanks and planes and bombs so the rich could fight these wars with other rich people to try to grab what they had too!

THEY EVEN MADE THE POOR PEOPLE FIGHT THESE WARS FOR THEM, when all the poor really wanted was peace and enough to eat and wear and a place to sleep!

BUT SOME OF THE POOR WERE NOT VERY HAPPY ABOUT THIS AND BEGAN TO COMPLAIN AND REFUSE to pay these taxes and fight these wars and rebelled against letting the rich rob and kill them this way and make them so unhappy. This is called "revolution."

SO THE RICH USED THEIR WEAPONS TO FORCE THE POOR TO FIGHT THEIR WARS AND PAY these taxes, profits and interests and continued to rob and kill them by force if they refused!

BUT THE RICH NEEDED A LOT OF SMART PEOPLE CALLED "TECHNICIANS" AND "ENGINEERS" AND "SCIENTISTS" TO MAKE THESE weapons and war machines for them and teach the poor how to build them and also how to make other fancy things they wanted but didn't really need, like machines to travel very fast in because the rich were always in a big hurry to make more riches and fight more wars and have more power to try to be happier than anybody else.

THE WEAPONS AND MACHINES OF WAR ARE CALLED "MUNITIONS" and the smart people whom the rich trained to teach the poor how to use them and lead them in these wars are called the "military," and these fast ways of getting around are called "modern transportation." The rich also needed smart people to build ways of getting messages to these war leaders faster so they could fight the wars better, and to their market places quicker so they could make more riches in a hurry.

Continued in part 2 )

Monday, September 2, 2013

50 Time Tested Classic Trading Rules

1. Plan your trades. Trade your plan.
2. Keep records of your trading results.
3. Keep a positive attitude, no matter how much you lose.
4. Don’t take the market home.
5. Continually set higher trading goals.
6. Successful traders buy into bad news and sell into good news.
7. Successful traders are not afraid to buy high and sell low.
8. Successful traders have a well-scheduled planned time for studying the markets.
9. Successful traders isolate themselves from the opinions of others.
10. Continually strive for patience, perseverance, determination, and rational action.
11. Limit your losses – use stops!
12. Never cancel a stop loss order after you have placed it!
13. Place the stop at the time you make your trade.
14. Never get into the market because you are anxious because of waiting.
15. Avoid getting in or out of the market too often.
16. Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.
17. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
18. Always discipline yourself by following a pre-determined set of rules.
19. Remember that a bear market will give back in one month what a bull market has taken three months to build.
20. Don’t ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
21. You must have a program, you must know your program, and you must follow your program.
22. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
23. Split your profits right down the middle and never risk more than 50% of them again in the market.
24. The key to successful trading is knowing yourself and your stress point.
25. The difference between winners and losers isn’t so much native ability as it is discipline exercised in avoiding mistakes.
26. In trading as in fencing there are the quick and the dead.
27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
28. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.
29. Accept failure as a step towards victory.
30. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don’t let ego and greed inhibit clear thinking and hard work.
31. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
33. It’s much easier to put on a trade than to take it off.
34. If a market doesn’t do what you think it should do, get out.
35. Beware of large positions that can control your emotions. Don’t be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.
36. Never add to a losing position.
37. Beware of trying to pick tops or bottoms.
38. You must believe in yourself and your judgement if you expect to make a living at this game.
39. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be – up or down.
40. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss – that is what does the damage to the pocket book and to the soul.
41. Never volunteer advice and never brag of your winnings.
42. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
43. Standing aside is a position.
44. It is better to be more interested in the market’s reaction to new information than in the piece of news itself.
45. If you don’t know who you are, the markets are an expensive place to find out.
46. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
47. Except in unusual circumstances, get in the habit of taking your profit too soon. Don’t torment yourself if a trade continues winning without you. Chances are it won’t continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.
48. When the ship starts to sink, don’t pray – jump!
49. Lose your opinion – not your money.
50. Assimilate into your very bones a set of trading rules that works for you.

Sunday, August 18, 2013

What is Emergency Fund and why it matters

It may seem to be uncommon to lot of Filipinos but we should start building emergency fund as early as we can. Emergency fund is your savings account set up to cover unexpected life emergencies.

For example, na-ospital ka, you need urgent money and you cannot sign. What would you do now? In the absence of money, it is possible that you would either borrow money for your families, relatives and friends or get more debt.

Why it is important?

It is important because we cannot tell what tomorrow brings. Portion of our money should be saved to pay for unexpected events or emergencies. Emergencies may include sudden loss of a job, medical emergency, natural calamity and accidents due to unexpected events. Without emergency fund unexpected events will be new financial burdens because taking on debt becomes the only way to pay for.

How much money should be saved for emergency fund?

Most of the financial planner’s advice, we need to save at least three to six months of our salary or living expenses. If currently you don’t have an emergency fund or medyo nahihirapan kang magsimula, start small and gradually increase it over time. Any emergency fund is also better than no emergency fund at all.

For example, kumikita ka ng 10,000 pesos per month magtabi ka ng atleast 30,000 pesos for your emergency fund (Php 10,000 x 3months). To reach this amount, it is recommended to save at least 10% of your net income hanggang maabot mo yung emergency fund. In case na mahospital ka and you need urgent money you can have near cash and you will have peace in mind to minimize the stress.

It may be sounds difficult to save for emergency fund but in the long run sacrifices pays off. Always remember that even a couple of piso a day can make a big difference over time. Practice delayed gratification. In the end, emergency fund will give you peace of mind.

Live simple, prioritize saving over spending and don’t leave nothing to your income. Sabi nga sa The Rich Man in Babylon, “A part of what you earn is yours to keep”.

Wednesday, August 14, 2013

How To Start Saving

8 in 10 Pinoy households do not have deposit accounts according to the first  Consumer Finance Survey (CFS) conducted by the Bangko Sentral ng Pilipinas.

Commonly, most of us Pinoys when asked why you don't have any savings will  answer "Sakto lang kasi ang sweldo ko" but overtime, when we received bonuses, 13th month pay and salary increase when asked the same question, again, we still say, "I don't have extra money, sakto lang ang pera ko".

We don't practice saving money because we think of the saying "Isang kahig, isang tuka". We act like one day millionaire. We don't often think about long term because we always think about short term.
We are comforted in the saying "Bahala Na". We don't have insurance because we are already insured sa taas.

Because we are well known as ma-diskarte we can always find ways and solution for our money problems. Luckily, we are very friendly and have lots of relatives na maaasahan in times of kagipitan. But are you sure you just want to stick with that routine?

You are on your mid-20's to 30's now, do you save? Are you sure you don't have any plans to save for your future? When you reach age of 40, 50 and 60. Do you still want the idea of "Isang kahig, isang tuka?". Buti sana kung at that time malalakas pa din tayo have a full-time job in the office, competent and good looking. :)

There are tons of ways to get a jump-start on saving. What ways work for you? Have you ever done anything drastic or silly to trick yourself into saving? Here's the list of top 5 advice I used to to start saving.

1. "A part of all you earn is yours to keep."
After receiving your salary, remember this line from The Richest Man in Babylon book.  Savings should be your priority. Every little bit counts. Most financial planners will ask you to save atleast 10% of your income but I advice to use the 70-20-10 rule.

70 Percent for Expenses
Living expenses should consume 70 percent of your budget. This includes housing, food, utilities and transportation.

20 Percent for Savings
Twenty percent should split in three ways, with the first 10 percent going towards retirement. 5 percent for emergency fund (which ideally covers your living expenses for three to six months) and the other 5 percent going towards a specific savings goal (like buying a house, investments).

10 Percent for Tithes
When we're generous to Him and to others, God blesses us. Giving serves as a constant reminder that God is our provider. God blesses the people who pay tithes, give food and share His blessings. When we pay tithing we show gratitude for all that God has given us and return to Him a portion of what we have received.

2. A budget doesn't limit you it gives you freedom.
Always write down your budget and check your cashflow. Create a written zero base budget, you should be aware where your money goes and trim unneeded expenses. Previously, I always use my notebooks and scratch paper to write down my weekly budget but now I started an excel sheet to track down my expenses. If you have smartphone/iPhone you can use it to help you stick to your budget. Once you've managed to write down your budget you can have more freedom to spend.

3. Pay your Debt first (except for mortgage)
Stop creating new debt think first before you buy. Put your credit cards away until you have completely paid off the outstanding balances. Make a complete list of all of your debts and prioritize them in order of importance. Mortgage payments and vehicle payments are typically at the top of most lists.

4. Make thy gold multiply
The above statement is from the Richest Man In Babylon again. This simply explained that once you started saving invest that money so that it will make more money for you. Visualize the kind of investment business you want to start. You can start a business in small capital, work from home or invest your money. Know your passion and strengths.  It is important to follow your passions first and the money will follow.

5. Practice delayed gratification
We might hear the word, great things come to those who wait. Spend now or save now? For example, you want to go for vacation in Singapore or outside the country. Estimated budget is about fifty thousand pesos and at this stage you only have ten thousand pesos in cash, so what do you do? Start saving! Delaying gratification can be hard-work but it will lead you to where you want to go.

Pay yourself first is a very popular saving strategy. Plan, save and start now. Keep in mind to set goals and help yourself to make savings a habit.

Related Posts Plugin for WordPress, Blogger...

Let's Connect!


Hey online friend,
welcome to our blog!

We're Glaiz and Jey
(Overseas Filipino Workers).
Work Save Invest is our
personal blog aims to share
any money matters and
inspire other people to
work, save and invest wisely.

If you're new to WSI,
try starting here. Thank you.

Like Us On Facebook!

Follow Us On Twitter!