Sunday, October 12, 2014

3 Simple Steps To Building Wealth

It is always good to have friends that will remind and advice you to continuously invest for your future however you must be willing to learn and do it for yourself. It's never too early to start saving and investing. The good news is if you are young and started early you have time on your side with a long time period for compounding to grow your investments.

Determine what you should be saving/investing for. First, you should make sure that you have an emergency fund in place. This safety net should cover basic expenses for several months and prepare you for unforeseen expenses such as loss of income, or anything else that can put a roadblock in the middle of your financial plan.

The best way to meet this target is to follow this simple equation of “Income – Saving = Spending”. First save, then spend of what remains. Look at investing toward retirement savings or invest toward other purposes like buying a house, education, etc.

Don't put all of your money into any one thing or any three things - diversify. Diversification is good. For steps in building wealth, please read below. A message shared by Edmund Lao.

Basically, building wealth boils down to this: To accumulate wealth over time, you need to do three things:
  1. You need to make it. This means that before you can begin to save or invest, you need to have a long-term source of income that's sufficient enough to have some left over after you've covered your necessities.
  2. You need to save it. Once you have an income that's enough to cover your basics, you need to develop a proactive savings plan.
  3. You need to invest it. Once you've set aside a monthly savings goal, you need to invest it prudently.
Building wealth is not a one-time process.. you need to do it regularly. 

All the best!

Monday, September 1, 2014

I'm working for almost 5 years now, worried about my savings. What can I do?

Work save invest

Stop worrying and start now!

I begin developing my financial literacy journey when I started worrying about my savings account. I'm working for almost 5 years and was living paycheck to paycheck. Yes, I'm an OFW but because my mindset is like "bata pa naman ako" I don't encourage myself to save and learn. I thought that it's okay to spend and give because "kikitain ko pa naman yan". It takes me more time to learn how to say "no" when I really don't have that amount of money to spend or give.

Below are some reasons why I don't have savings on my early 20's.
1. I don't know the difference between needs and wants, saving and investing, assets and liabilities.
2. I don't have clear savings 'goals'.

Every time I received my monthly salary sending money back to my family is the first thing on my list and "saving for vacation" back again in the Philippines is what I always think of. On my first three years working as an OFW my extra savings goes to our house fixing expenses, unnecessary expenses and sending money to help some of our relatives in need. In addition into it, I started buying things I want and things I want for my family. But thankfully, it's never too late to start. I changed my mindset, started this blog and read more about financial literacy. I practice "Pay Yourself First". I automate my savings. I have a written weekly spending budget. I used cash, no credit cards and I don't use debit card too much.

Emergency fund is important to me. You will notice I already blog about it previously, this helps me to understand why I should save and start. It gives me peace of mind (e.g. if I lose my job, sickness, etc.) and it helps me reduce stress and don't fall getting debt.

Ways I save

Buy now or buy later? Don't buy things when someone offer you usually in a mall, think twice before buying. Every time I want to buy something, I asked myself if I really, really need it. Most of the time, I don't. I would rather buy freedom than unneceessary stuff.

I write down all my purchases. It really makes me more aware of what I'm spending and where I need to cut things out to reach my savings goal faster.

I have weekday allowance of $20.00 (Php 600.00). I just have to stick to it! Luckily, my office is 10 minutes walk only from our house and we are very near to the market place.

Preparing a grocery list before going to market. This is weekly and my favorite. It helps me to focus on important goods we need to buy "only".

Eat food at home and leftovers. If I didn't cook at home I buy mixed vegetables for $2.00 at the hawker center.

Know what to buy in bulk and what not to. Buy groceries in bulk when it makes sense.

I don't buy softdrinks (soda). I drink more water and tea.

Keeping receipts. I did this to track my expenses in a day or week. I just love writing down.

Set-up automatic billing to avoid late fees. This is for income tax.

Work out and yoga (free activities). Now, I'm practicing yoga for exercise and I love it!

Share a room.

Stay at home, cleaning time during weekends. I always make sure to clean my space.

Give fund.

Reminding my goals as often as possible. My Goal 1, Goal 2 and it's timeline not only it keeps me motivated but it helps me to make better decisions today to reach those eventually.

Exact and clear amount (3-6 months). If you don't measure it you wouldn't know how much you really need it.

Above all budgeting really helps me to keep on track. Doing this regularly requires time and continuous effort but now I'm happy that it has become a part of our routine and a habit. I recently realized how much money I save without being aware of it. I used envelope system and jar system too depending on the fund type. For example our monthly rental and utility bills has fixed amount so we put it on the envelopes while our grocery fund is placed inside the jar. Here, we are doing zero-based budget. The concept is simple, income minus all the expenses including savings equals zero. If you earn Php 20,000 a month, you want every item that you spend, save, give, invest to all equal Php 20,000. So you know where every one of your hard earned money is going.

I'm glad to know that I'm near reaching my 6 months emergency fund. Financial literacy is one of the most important knowledge that everyone should be aware of. Best wishes to you and I believe that you can change to take control of your money too.

Friday, August 22, 2014

How to view your Save Up account transactions online

Monthly, I send money on my BPI Savings account for my family and set aside 2,000 pesos to deposit directly into my BPI Save-Up account. I set it every 15th kinsenas of the month. I find this feature very useful and so I give it a try. Automatic saving is one effective way on how we can reach our savings goal whether it is for short term, medium or long-term. It strongly enforces the idea of “paying yourself first” before doing other thing with your money.

Income - Savings = Expenses

After few months in automatic saving in BPI, I decided to check the account on my portfolio. I did it online and is very easy to do. I did it less than 5 minutes.

First, you need to enroll it as an additional account and prepare your Infocard with you. In my case, my sister sent a photo of my Infocard that's why even if  I don't have it physically I know what is my BPI Save-up account number.

If you have your Infocard with you, please follow simple steps below.

STEP 1 - Log in to your account.
STEP 2 - Go to: My Portfolio Menu -->> Enroll Additional Accounts.
STEP 3 - Choose the type of Account and click 'continue'.
STEP 4 - Fill-out the required fields your Account Number and JAI
STEP 5 - Submit the request.

I immediately saw my BPI Save-up account balance after completing the procedure abouve. I first thought that after this process it will takes additional days to confirm but after few clicks its fine already.

Once every few months, I’ll go and check my savings. I usually transfer most of it into emergency fund first and the rest goes to my investment fund, my brother's educational fund and help with some other short term savings goal.

Having online savings account is very convenient for me to track and stay within the budget.

I use BPI and I’m very happy with them, but you can choose a lot of bank options out there. Having an online savings account is a big advantage especially if you are an OFW saving a part of your income in the Philippines.

Hope it helps, talk soon.

Friday, August 15, 2014

Avoid cards and use cash

"Kapos na ko pero one week pa bago katapusan.:-<

Have you ever had this feeling before? Kumikita ka naman, ang saya kapag payday pero kapos pa rin at hindi nakakaipon. Akinse ngayon at Friday pa! It might be perfect time for you to sit down and check your spending habits. Ask yourself, once again. Do you have a written budget? May savings goal ka ba at the end of this month, year, after 3 years, 5, 10, retirement fund?

Today, just wanna share with you one effective simple trick na natutunan ko, this might not work for all people but for me it works.

Avoid cards and use cash.

If you are struggling to meet your budget or seem to overspend by having cards (credit cards or debit cards) on your wallet, it might be a good idea to go back and use cash instead.

But, cards offer a fast and convenient way to shop. You can also keep track of your spending by checking your monthly statement. Using cash may not always seem very convenient, but it is a great way to stop yourself from overspending. You can track down your spending by having an app or list your expenses on excel sheet/ notebook and paper. I used Google Spreadsheet so I have access anytime.
You can pay for expensive items safely and securely. We spend less when we spend in cash, however, for very big purchases we can use debit card
If your card is lost or stolen, you can put a hold on your account immediately It's not a good idea to carry huge amounts of cash around with you all of the time, plan ahead and know what you need to buy. For me whenever we go to the grocery store, I have a list and take $20.00 cash with me. This help us to cut impulse purchases.

Nowadays, most of us use several cards for our spending because of the convenience in purchasing it gives. Sometimes by having those cards we are tempted to swipe. Biruan nga namin minsan, "Ikaskas mo na yan!".

These cards sometimes offer great rewards, rebates or cash back that makes it more attractive. The problem with this convenience is that we forget the true value of money because we can't feel it at all. We can't count it, caress it, spend it or give it because it's a card. A debit card, though worth the same as the cash, doesn’t give the same response too. We know the money is there and ours to spend but there is a distance, a lack of emotion. By continuously using cards, hindi na natin napapansin na most of the time by using it we ended up overspend dramatically.

Now, I encourage you to take time and create your budget for a a week already. Have a clear idea what is the amount you need throughout the week. Know what you ned to buy. Once you have an idea of how much money you will spend, you should have that much cash only on your wallet at itabi mo na muna ang iba. For this case, I'm using envelope system for my allowance. This one savings trick helps me in changing my mindset little by little in basic budgeting.

Bottom line, do not use cards to avoid making big purchases. Stick to your budget and make sure to cover important things first like yung payment mo sa bahay (if you are renting), utilities bills, food, etc. necessities always come first. You are the one who makes the choices to spend money, to save money, to borrow money, etc. budget your money so you know what's going on and use it wisely.

Friday, July 25, 2014

Investing in Stock Market for OFW

Today, I'll write about some tips about stock market investing.


COL Financial (formerly CitisecOnline) is a stock brokerage firm. According to Wikipedia, a brokerage firm or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. There are lot of accredited brokerage firms in the Philippines (see below).

StockbrokerWebsiteMinimum InvestmentBroker's CommissionAffiliate Banks for Account Funding
AB CAPITAL SECURITIES, 50,0000.25%Metrobank
ABACUS SECURITIES 10,0000.25%Metrobank, BDO, RCBC
ACCORD CAPITAL EQUITIES CORP.www.philstocks.phPHP 5,0000.25%BDO and BPI
ANGPING & ASSOCIATES SECURITIES, INC.www.angpingonline.comPHP 5,000 (for students); PHP 15,000 (for professionals)0.25%Metrobank
BPI SECURITIES CORP.www.bpitrade.comNo minimum0.25%BPI
COL FINANCIAL GROUP INC.www.colfinancial.comPHP 5,000 (COL Starter); PHP 25,000 (COL Plus); PHP 1 million (COL Premium)0.25%BPI, BDO, Metrobank
DA MARKET SECURITIES, INC.www.itrade.phPHP 50,0000.25%BPI, BDO, Metrobank, RCBC
F. YAP SECURITIES, INC.www.2tradeasia.comPHP 25,0000.25%RCBC and BDO
RCBC SECURITIES, INC.www.rcbcsec.comPHP 10,0000.25%RCBC
UNICAPITAL SECURITIES, INC.www.utradeph.comPHP 10,0000.25%BDO, BPI, Chinabank, Malayan
WEALTH SECURITIES, INC.www.wealthsec.comPHP 10,0000.25%UnionBank, BDO, BPI, EastWest Bank, RCBC, Metrobank
Why invest in stock market?
  • Liquidity
    There are usually buyers and sellers in the market for most major companies. As a result, you can buy and sell at your convenience. Ito yung tinatawag na liquidity madali mo bang makuha ang ung investment mo.

  • Cost
    Another thing to take note of is that the cost. Mababa lang ang cost in investing into stock market. Please check your stock broker fees and charges. Halimbawa for COL Financial their commission fee has a minimum charge of Php20 per transaction.

  • Low capital requirements
    You can start investing with Php 5,000 minimum investment depende sa stock brokerage firm (check the table above). Pag bibili ka ng shares of stocks may board lot depende sa minimum required ng stocks, kung ilang un pasok na board lot sa available balance mo yun ang mabibili mo.

  • Simplicity
    Buy low, sell high. Yet another advantage is that information about shares you're holding is easy to obtain. Pwede mong ma-check ang stock prices mo thru newspaper and sa internet. Public companies are also required by law to produce an annual report (which is sent to shareholders), disclosing their financial track records for the previous year.
How to earn in stock market?
  • Sell when you hit your target price
    Good investors invest in the long term. There is one strategy where in you buy and hold good stocks using peso cost averaging so kahit anung presyo nito bibilhin mo siya. Good stocks pay out much more over the long run.

  • Cash Dividends
    Dividends are a benefit to owning shares in a company that is paid out depends on the company. Ito yung cut mo sa kinita ng company. Stable companies often pay out dividends to keep investors happy because their stock price does not often change. Dividends are a great way to reinvest your cash dividends.

Below are some of my personal advice to keep in mind before entering the stock market
  • Invest only if you have surplus money in the bank
    First, review your finances and ask yourself. Meron ba kong extrang perang pang-invest? May credit card debts ba akong binabayaran? Meron ba akong fund incase mawalan ako ng trabaho or emergency? If you don't have spare money to invest, currently carrying debts and still saving for emergency fund maybe what you can do is #aralmunabagoinvest. Practice creating a budget and a plan para pagpasok ng income mo ay maibabawas mo na agad ang para sa savings mo. Ideally, put 3-6 months of your monthly expenses sa emergency fund para incase something happens hindi mo mapupull-out un mga pinasok mong money sa stock market ng palugi.

    Income - Savings/Investments = Expenses

  • Invest with a plan.
    How long you want to stay invested? Are you investing for your retirement? Are you investing for a child's college education? Are you investing to provide extra income? Ito ay ilan lamang sa mga tanong na ikaw lamang ang makakasagot. Whether you are investing in stock market, mutual funds, bonds, etc. have a plan. The key is to make your plan visible para alam mo yung target mo. Mas masarap at mas gaganahan kang mag-trabaho kapag alam mo yung investing goals mo.

  • Educate yourself, reasearch companies
    Learning is a continous process. Learn some basic terminologies, watch helpful videos like Pesos and Sense. Don't invest solely in one company. An ideal investor will have a diversified portfolio. This means you'll have money in a variety of stocks with different goals. Take time to study so you'll learn how to recognize high-fee investments, best investment for you (avoid sweet salestalks) and move toward a purposeful investment strategy.
The bottomline: Remember, your hard-earned money is your money. Learn to appreciate it and make an effort to make it grow. Accept that no one gets rich in an instant unless you strike lotto. As an OFW, save your money, learn how to invest and keep it for rainy days.

Saturday, July 19, 2014

Ipon muna bago invest

Nong umpisa hindi ko akalaing magkakaroon ako ng interest alamin/aralin ang Financial literacy o ang mga bagay bagay na may kaugnayan sa aspetong pinansyal. Ang sabi nga nila, no one is born knowing how to save or invest.

Every successful investors start with the basic.

Ayon sa Investopedia, financial literacy is the possesion of knowledge and understanding of financial matters. It is only last year where saving and investing piqued my curiosity, so I began watching helpful videos, attending seminars and reading books.

Tonight, I would like to share two questions we need to consider before we start saving and investing. First, look where are you now today in terms of your finances. Do you have debts? Dito kame nag-simula. Iba't ibang tao ay may iba't ibang pangangailangan depende sa lifestyle at sa life stages.

1. Do you have debts? I mean bad debts - usually, credit card bills, unplanned travel,  gadgets or appliances.
If you do ay mas maiging bayaran mo muna ang lahat ng iyong mga kautangan (maliban sa mortgage or real-estate loan) bago ka magsimula.

Pwede mong gamitin ang Debt Snowball made popular by Dave Ramsey. Ilista ang lahat ng iyong mga utang. Unahin mong bayaran ang may pinakamaliit na halaga bago ang mga utang na may kalakihan. Pay your debts from lowest balance to the highest balance. For me, it's a great way to get out of debt.

The bottomline here why you need to start paying off all your debt first is because the interest on your debts is much higher than the interest you will earned if you start savings. This can apply to pay off all your credit cards and other loan debts.

Last week after lunch my colleague asked me if it's okay to take a loan and deposit into savings account. I say, "No no". Dahil ang loan ay siguradong may interest at higit na mas mataas ang interest nito kesa sa kikitain ng perang ilalagay sa savings account.

Second, have a plan and financial goal with timeframes. Know where you stand and how are you doing financially.

2. Gusto mo bang mag-ipon o mag-invest?

Para sakin mahalaga ang dalawa but it's more important to understand the difference between saving and investing to start.

Saving - This act as your emergency fund. You will put away part of your money in a bank where you can access  immediately. Pag nilagay natin ang pera natin sa savings account we are less concerned with return but it's safe.

Investing - The act of placing money in risk assets with the hope of higher returns than savings. The higher the risk the higher the returns.

But there is no right answer here again it may depends on your circumstances. Over the long term, the stock market usually outperforms savings accounts. Kaya mabuting malaman natin anu ang babagay sa atin. Hindi lamang sa stock market tayo pwedeng mag-invest. We can choose investing  in mutual funds, bonds, property or starting a business. These investment vehicles gives higher interest than savings accounts and time deposits but they all involve risk that you may lose cash. #aralmunabagoinvest

If you can't afford to take risk with your cash as of now I strongly advice to start saving for emergency fund 3 to 6 months worth of your expenses first. To get there, pay yourself first, have a budget and live below your means.

Once you have enough money saved then think of going into other forms of investment para anumang mangyari sayo hindi mo mapupull-out agad ung mga perang nilagay mo sa investment. Tandaan, investment needs time and the earlier you begin investing, the longer your investment has time to grow. These two will not happen overnight ito ay tatrabahuhin natin over time slowly but surely kaya ipon muna bago invest.

Tuesday, July 15, 2014

Double Your Money, Rule-of-72

"How long will it take to double my money?"

Have this question ever crossed your mind? May pag-asa ba ang ating perang naiimpok ay lumago ng doble sa ating naitabi for savings?  There is a powerful formula we can use to help us estimate what we need to save for milestones such as retirement, children's education, etc. 

The Rule of 72 
The Rule of 72 simply calculate how long your savings will take to double in value at any given rate of return.. It lets you approximate how your money will grow in an investment account. 

Here is how you can  calculate it:
Divide 72 by the current interest rate to determine the number of years that it will take to double your initial savings amount.

72 divided by interest rate = number of years needed for the amount to double.

For example, if you invest Php 100,000 in an investment fund at a 4 percent interest rate, it will take 18 years for your initial savings of Php 100,000 to double (This calculation assumes that the interest rate remains the same over time).

You can also use the rule of 72 to determine the rate of return needed to double your money over a specific period of time. For example, if you have Php 100,000 that you want to double for college tuition in 10 years. You’ll need 7.2% annually compounded investment vehicle to reach that goal.

Usually banks offered 0.25% interest in savings account but interest earnings are charged 20% creditable withholding tax, which even reduces the net yield even more. Kaya dito papasok ang ating due diligence upang alamin saan natin pwedeng iparada ang ating perang naitatabi upang ito ay lumago pa over TIME and to beat the inflation. Maging maingat din tayo dahil baka sa sobrang laki ng interest rate of return na maioffer sa atin ay scam na pala ito. Importanteng malaman natin ang simple formula of rule of 72 technique at maintindihan. There are no investments that will double your money without any risk short term.

Start saving today and take advantage of the time and compound interest. Get a quick illustration how time and good investment can help you reach your goal using the Rule of 72. Just 10% of your monthly income invested over time will make a huge difference in how and when you retire someday. 

Wednesday, July 9, 2014

Financial advice to my youngest sister

Yesterday, while having Viber with my youngest sister she told me that she just had employment contract signed. This is her first work,  first company and I'm very HAPPY for her. :) It feels good, ang sarap talaga sa pakiramdam kapag kausap ko ang mga kapatid ko at kapag nagkukwento sila sa akin ng mga happenings sa kanila, mga future plans and goals, etc.

Kaya kanina during lunch time I send a link I found online Financial advice to my 20-year-old self and I added some of my input for her to understand (medyo nagmamadali lang ako mag-explain because I'm running out of time hehe).

I want to introduced her basic finance na hindi ko naunawaan when I was in my early 20's or when I started working. 5 years na akong working and only last year when I started #aralmunabagoinvest. To my surprise after work, I saw this picture posted on her Instagram. My sister took down notes (yung mga payo ko kaninang lunch time sinulat pala ng kapatid ko) and it touched my heart a lot (super na-appreciate ko ito sis) and that's why I decided to put these on my blog. :)

Her handwritten note means more to me

I want to share here some of my added inputs from the blog I share to her.

Save more than you earn.

Habang nagkaka-edad mas lumalaki gastos kaya habang bata pa save more than you earn dahil mas konti pa ang gastos ng mas bata. Halimbawa, wala pang binabayarang bahay, bills, anak na pinapalaki, etc. take advantage to save more..

Write down your long-term money goals.
Halimbawa gusto mo bumili ng kotse i-write down mo how much ba un gusto mong kotse?

Kotse - 1 Million
House & Lot - 5 Million

Kailangan kasi maging visible at alam mo ang presyo ng long-term money goals mo :)

Pay yourself first before other expenses.
Ito ang bayad mo sa sarili mo. Gawin mo lang ang Pay yourself first formula Income - Savings = Expenses

Invest; don't just save.
Ito yung sinasabi ni Ate na un Savings ilalagay natin sa Mutual Fund. Ang mutual fund ay isang type ng investment mas malaki ang interest rate nito kumpara sa banko. Let your money work for you.

Invest in real estate.

We can go here on later on.. dahil kapag naginvest sa real-estate or un mga bahay naka tie-up usually ng 25 years to 30 years to pay. The earlier you start paying your home the better.

Invest in art but because you love art, not for money.
Ito pang mayaman to they buy art (paintings, artwork) and later on they sell.

Diversify investments.
Ang ibig sabihin ng Diversify ay ikalat (put money in more than one place). Halimbawa you have money in Mutual Funds, you have money in banks (emergency fund), you have VUL (ito yun Sunlife ni Ate Gadz), you have Stocks, Bonds, etc.

Buy life insurance for protection.
Life is full of uncertainties kaya we buy insurance as financial protection for our family. This is so important to bring peace in mind. We are transfering risk kaya bumibili tayo ng insurances.

Never lose money.
Rule No.1: Never lose money by Warren Buffet. Mahirap kitain ang pera don't lose money lalo na sa mga gambling.

Take care of liquidity.
Ang ibig sabihin niya dito ay kung madali ba makuha un perang pinasok mo sa investment. Kapag madali makuha liquid yun beh. Halimbawa, bumili ka ng bahay ang ganun investment ay hindi liquid dahil matagal ibenta yun bahay hahanap ka muna ng property agent, buyer etc. it would add extra cost such as valuation and agent fees.

Sit down and study basic finance.
Dito tayo kailangan bhe kailangan natin mag-aral kc once and for all para sa atin din ito at para mashare din natin sa iba.

Keep track of expenses.
Ilista mo lang kung saan napupunta un pera mo na pinaghirapan. Keep your receipts, and write on your budget tracking worksheet all your expenses until now ginagawa namin ito ni Jey nasanay nalang talaga kame.

Don't buy what you don't need and delay buying anything.
Dont buy things that you dont need meaning dont buy wants. If you need it go and buy it. :) Halimbawa, ang relo need natin yan pero pag ang gusto mo ay yung mga mamahaling relo halimbawa 10K un relo na type mo hindi na siya need wants na siya. Delay buying anything sometimes we just need to think twice or overnight if you really really need it (delaying gratification).

Always try to bargain and compare prices before buying.
Ito naman practice bargaining means don't buy agad-agad think first do I really need this? Can I get a good deal? Compare similar products, learn to negotiate for a lower price on anything. In short manghingi ng tawad.

Avoid unnecessary debt.
Kung hindi naman need un uutangin please avoid. Avoid getting credit cards dahil nagkakaroon un ng interest at pwedeng may mga nakatagong hidden fees and charges na hindi lang alam. Live below your means to avoid it.

Set aside cash for emergencies or hard times.
By right, your emergency fund should comes first before we invest but in your case unahin na natin ang mag-invest sabay na ang saving and investing.

Increase positive cash flow or have more income streams.
Habang tumatanda lumalaki ang gastusin kaya dapat lumalaki din ung kita. By owning assets and investments that actually create income you are then increasing your positive cash flow overtime.

When it comes to money, don't trust anyone.
Don't trust sales on networking if they guaranteed na agad-agad you will be rich. People who are successfull in networking worked overnight. Don't trust sales people when they tell you that their product have guaranteed results. If it sounds to good to be true baka scam yan. Look at the mirror yan ang una mong kakampi when it comes to money. Seek advice to right people with experience.

Invest in yourself.
Learn. Learn. Learn. Knowledge is power. Attend seminars and read online. Bago ka matulog kapag inisip mo un mga bago mong natututunan you will feel good.

Tithe or donate to charity regularly.
Tithing means mag-bigay sa church, or give portion of your money to people in need it will teach you to be unselfish.

This is all for you. Share what you learn.

Talk soon,

Monday, July 7, 2014

(OFW in Singapore) Understand your bank fees

It is really important to check your bank charges and fees posted in your statement of account. Through your online banking you are able to see your accounts and check where those fee's came from.

Be aware that your bank may apply charges to your account (see my screenshot) AWF (ATM Withdrawal Fee) charged me $2.00. Please check some of the fees below and be reminded.

DBS eSavings Plus and POSB eSavings Account
(S Pass and EP Holders) Fees

  • S$2 fall-below fee if the average daily balance falls below S$1,000
  • S$2 ATM withdrawal fee will apply if the customer makes more than 4 ATM cash withdrawals in the month
  • S$2 fee will apply for each cash withdrawal at any DBS/POSB branch for amount within your ATM cash withdrawal limit
  • S$20 early account closure fee if the account is closed within 6 months
For more information, go to DBS and POSB.

UOB Uniplus Account - Fees
  • Minimum balance fee S$2 if the average daily balance for the month falls below S$500
For more information, go to UOB: Uniplus Account.

OCBC Account - Fees
  • Minimum monthly balance S$1,000, S$2 fall below fee applies
For more information, go to OCBC.

Whatever your bank are it is important to take note and understand basic bank fees and charges to minimise your monthly banking fees.

Happy Saving!

Wednesday, June 25, 2014

Take Advantage of BPI Save-Up Automatic Savings + Insurance (for OFW too)

BPI Save-Up Important Advisory

Bank of the Philippine Islands is my choice in personal banking. They have good internet banking that is very useful for OFW like me. I sent money to my own account and tranfer the fund as my remittance to my sister's account. Anytime, I can use online fund transfer and they'll receive it real-time. From using online fund transfer  and other online banking facilities it gives me convenience at my own time.

Last March, while browsing online I saw BPI Save-Up  Automatic Savings plus Insurance. I read through and give it a consideration to add it on my portfolio. If you are thinking of adding this one to yours too please check below and take advantage of this product.

Advantages of BPI Save-Up Automatic Savings + Insurance

Start your Save-Up account with no initial deposit. 

Minimum amount you can set aside is Php 250.00. You also set the frequency of fund transfer from your source account to your Save-Up. The interest rate per annum is 0.250%. I think this is a good method for making automatic savings work for Filipinos who's savings is least priority. By using these method you strongly enforces the idea of "paying yourself first".

Decide how much you want to save every payday or every month . You can transfer funds anytime to your Save-Up account.

These forces us to learn how to budget with what we have. Track your expenses, know your income and needs and live below your means. You can decided how much money you want to set-aside and scheduled it at time you choose.

Save-Up account does not come with an ATM card.  

These will help us discipline ourselves to not withdraw our savings and save for long-term. If a person sticks with this automatic savings plan over the long time – no cheating and no dips into the emergency fund for non-emergencies – they can get ahead of good start financially.

FREE BPI-Philam Life Insurance
No medical check-ups or premium payments required. The amount of your coverage is  equal to as much as 10x your account balance* up to PhP 4 million!
  • Basic Life : 5x the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 regardless of the number of accounts opened by the insured individual.
  • Accidental Death : Additional 5x the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months up to P2,000,000 regardless of the number of accounts opened by the insured individual.
  • Accidental Dismemberment : 5x the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 independent of the number of accounts opened by the insured individual.
For more info, visit the BPI Direct Save-Up information page.

How to Open?

I was able to open BPI Direct Save Up because I am existing customer with  BPI Express Online banking. If you don't have an account you can easily open an account here.

For the existing customer just simply go to same link answer the question, fill up the required fields. Once you've done that wait for the confirmation email.

If you are OFW you can take advantage of trying this product if you have BPI account online.

It’s time to set up your savings plan. Now, you can save automatically every payday!

Here's my card! My sister took a picture, activate and sent this to me. I’m very happy with this product and there are a lot of options out there too.

So take advantage now and let me know what you think. :)


I cancelled my Fatcow account but they still charged me for renewal fee

Last year, I purchased domain and hosting account at Fatcow because they are having a good promotion but because of some personal reasons I didn't push myself to work on the site within a year.

This year is my renewal date. I cancelled my hosting a week before the renewal date. I did received some email reminder  so I take action to downgrade my account. But then last week I saw an email that they successfully renewed my account. Whoah! I felt like they are stealing my money because they charged me automatically >.< I already put down the site before the scheduled date of renewal why they are charging me. I talked to the support via livechat and complained about this. (At least I found livechat at Fatcow who were willing to assist.)

Now, I need to wait for the refund, the other amount they charged me will not be back because of their some Auto Policy reason. A reminder to all Fatcow subscribers don't just cancel your account online they wouldn't do it better to talk to the support via live chat and ask for help to turn down the site. And also always check and read your emails.


Sunday, May 11, 2014

How to open in COL Financial for OFW in Singapore (iRemit)

Last March 2, we attended iREMIT seminar about Financial Literacy at Bayanihan Center. The seminar wass limited to only 100 people, we are lucky that we are able to attend. There's free food and giveaways too.

We heard great tips from Chairman of COL Financial Mr. Edward Lee and other good speakers. The seminar was so informative, we learned a lot from them and we are looking forward to attend more seminars like this.

So, here's how to open COL Financial account for Overseas Filipino Workers in Singapore
  1. Check their website - Go to COL website

    Makikita mo dito lahat ng detalye about signing up COL account. You can choose your account type. The COL Starter minimum investment is 5,000 and the COL Premium minimum investment is 25,0000. First is to fill out COL application forms you have an option to choose their online application form or download forms. Please note that the signature fields and Tax Identification Number(TIN) is required.

    We choose to fill out online application form.
  2. Prepare the requirements - One valid ID and billing statement

    We submitted one recent billing statement from our Sunlife Insurance (note: the billing statement should be rencet and no later than 3 months past) and a photocopy of one (1) valid government issued ID.

    We submitted two ID's our Philippine passport ID and SSS ID.
  3. Go to Lucky Plaza and submit forms and requirements to iRemit Singapore

    Please double check your printed forms, signatures and documents before heading to Lucky Plaza.  Ms Meyshel refer Ms. Ailyn to us since naka leave siya para i-submit un mga requirements. She checked all the documents and inabisuhan kame to wait for the confirmation email.
  4. Wait for the email and fund your account at iRemit office
    In just after two weeks, we received an email confirmation. Please check below for more information about the next step.

    In order to activate your online account and begin investing, you will first need to fund your account through any of the following payment options:

    1. Online Banking through Bills Payment with our partner banks

    BPI (
    BDO (
    Metrobank (

    You can also make over-the-counter payments with the same banks above but please ensure that (1) Check payments must be made out to "COL Financial Group, Inc" (2) Please indicate your COL account holder's name and account number in the payment slip of the bank to ensure proper and timely credit to your account.

    2. Over-the-counter deposit at the COL Financial Business Center
    Please make checks payable to: COL FINANCIAL GROUP, INC.
    2403-B East Tower, Philippine Stock Exchange Centre,
    Exchange Road, Ortigas Center, Pasig City, 1605 Philippines
    Customer Helpdesk Hotline: +632 6-515-888
    Operating Hours: 9am to 5pm Monday to Fridays

     3. Overseas Remittance with our accredited facilities
    iRemit (

    Once we have confirmed receipt of you payment/deposit, we will send you an activation email with your password so you can access your account and start investing.
  5. After funding your account - wait for another email :)

    Please note: Your password will be sent to your email 2 –3 business days after funding.

Some of the pictures I have during the iRemit seminar
Happy investing, don't forget #aralmunabagoinvest

Monday, March 17, 2014

5 Things to Know About Mutual Funds in the Philippines

My interest about financial literacy started last year. I dedicated my spare time reading books (one of my favorite book is Pera Mo Palaguin Mo 1 and 2 by Francisco Colayco), watching informative videos (Dave Ramsey Baby Steps, Robery Kyosaki, Pesos and Sense, Pisobilities, etc.) and following blogs/forums about investing.  #aralmunabagoinvest

This year, we opened an account at FAMI (First Metro Asset Management Inc) to invest in mutual fund.

According to Investopedia, Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Mutual funds make saving and investing simple, accessible, and affordable. We are doing Peso Cost Averaging and whenever we want to top-up our SALEF we just simply log-on to Metrobank Direct.

Below I listed down 5 things we need to know about mutual funds.

1. Understand different funds, different features
In the Philippines, there are currently four types of Mutual Funds.
  • Equity Fund - Invest primarily in shares of stock issued by Philippine corporations
  • Balance Fund - Invest in both shares of stocks and bonds
  • Bond Fund - Invest in a portfolio of fixed income securities
  • Money Market Fund - Low risk conservative type of bonds primarily invested in fixed income funds and securities with short term investment period

2. You have at least Php 5,000 to invest
Buying mutual fund is easy and the minimum investment is affordable. For only P 5,000 pesos you can invest in mutual fund and additional minimum investment is 1,000.

3. Fees, loads and expenses
Mutual funds charges fees, sales load, investment management fee and exit fee. Different Mutual fund companies have different amount of fees better to examine first the fees and expenses of each mutual fund. Usually, the exit fees go away the longer you stay invested. So if you are in for the long term, you will likely not be charged the exit fees.

Are the gains from mutual fund investing subject to tax?
According to National Internal Revenue Code of 1997, capital gains realized from mutual fund investing are not subject to tax. This adds to the attractiveness of investing in a mutual fund.

For SALEF of FAMI, see below;

Investment Amount Sales Load Fee
P5,000 to less than P100,000 2.0%
P100,000 to less than P500,000 1.5%
P500,00 to less than P2,000,000 1.0%
P2,000,000 and above 0.5%

Exit Fee Rate
First 6 months 1.00%
180 days and beyond none
Management Fee
Annual Fee 1.875%

4. Diversification and liquidity
By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is being spread out. You can invest a few thousand pesos in one fund and obtain instant access to a diversified portfolio. This diversification allows investors to reduce the risk.

Liquidity is the term used to describe ability to use cash over short term. Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

5. Safety and potential higher returns
Mutual funds are highly regulated by the Securities and Exchange Commission under the Investment Company Act and its implementing rules. You can keep your money invested for al least more than 3 years. Mutual funds are a good investment option for long-term growth. Average annual returns for mutual funds are between 9-20% and are higher than bank savings account interest.

NAVPS Performance (as of 3/19/2014)
Fund Name NAV Per Share 1 yr. Return (%) 3 yr. Return (%) 5 yr. Return (%) YTD Return (%)
Stock Funds
Primarily invested in Peso securities
First Metro Save and Learn Equity Fund,Inc.* 5.0862  -3.55%  14.96%  28.32%  7.18% 
Philam Strategic Growth Fund, Inc.* 502.83  -10.05%  12.17%  24.69%  9.49% 
Philequity Fund, Inc.* 31.6838  -1.66%  18.23%  31.7%  9.63% 
Sun Life Prosperity Philippine Equity Fund, Inc.* 3.7251  -5.97%  14.27%  23.97%  7.31% 
United Fund, Inc.* 3.0682  -12.93%  4.06%  9.92%  5.96% 

* - NAVPS as of the previous banking day   ** - NAVPS as of two banking days ago
*** - Listed in the PSE.   (1)-YTD return generated from Inception Date of February 7, 2014..

Source: PIFA

Mutual funds are ideal investment instrument for growing money over time. It can be used as a savings medium for retirement, education for your child, or building up a long-term cash fund for some specific future financial objective.

So if you want to invest a small amount, be diversified, and have someone who will do the thinking and monitoring of your investments invest in mutual funds. As an OFW, while I don't have time/skills to managed my portfolio I choose mutual funds.

Below is a very short and informative video about Mutual Funds from Pesos and Sense.

The Parable of the Pipeline

I would like to share a video that motivates me to think of the future NOW, the title of the story is The Parable of the Pipeline by Burke Hedges.

The video is absolutely an eye opener for many of us, employed and is living paycheck to paycheck. If we will let time passed by without investing, saving for retirement or creating passive income we will lose our number one asset - "Time". Let us write down our goals and make a plan.

Goals takes time, hard work, dedication and persistence to achieve. Follow your plan to get there and don't let anyone steal your dreams.

Enjoy watching educational video!

Friday, January 24, 2014

Top 10 Tips to Successful Investing

Here’s 10 quick tips shared with me by an email, I think it's better to post it here.
1. Start Early
The only way you can make the most out of the limited time you have is to start early. The sooner you invest, the more time your money will have for growth. If you delay, you will almost certainly have to invest much more to achieve a similar result. Let the power of compounding work for you.
2. Keep Some Cash Aside
It is always a good idea to have some money set aside in case of emergencies. Maintaining six to nine months worth of living expenses will insulate you from a sure fire formula for investment loss – distress selling.
3. Know Your Risk Profile
What is the point of investing in the stock market if you are going to lose sleep, or a heart attack (whichever comes first) every time prices go through a rough patch. You need to be realistic about your risk appetite. An investment advisor can help you determine your tolerance for risk.
4. Never Forget About Inflation
Don’t fall into the false sense of security that very conservative investments might give you. The returns may look respectable at the start but not after you deduct the effects of inflation. Keep in mind that risk is not just about losing money. It is also about not having enough in the end.
5. Think Carefully About How Long You Can Stay Invested
If you plan to stay invested for a long period of time, say five years or more, then it is okay to get into the stock market and let your money work harder for you. But if you will need your funds very soon, you are going to be better off with low risk investments.
6. Spread Your Money Across Investments
Don’t put all your eggs in one basket. Depending on your goals and attitude to risk, you will probably want to spread your money across different types of investment – equities, bonds and cash. You may also want to diversify within each of these categories. An equity fund, for example, will invest your money in a variety of companies but you may want to ensure you have a range of industry sectors too.
7. Invest Regularly
Investing regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as cost averaging. In this way you hardly feel the pain caused by delayed gratification since you are saving small amounts that you can easily afford.
8. Choose Your Funds Carefully
You should select investments based on your personal circumstances and goals. Don’t assume all funds investing in equities are the same – look at what a fund invests in and check if you are comfortable with its investment style and objectives. Choosing the right fund manager is nearly as important as choosing the right fund.
9. Remember That Time and Not Timing Is The Key To Successful Investing
Even the most experienced fund managers fail when it comes to timing the markets. As an investor your concern should be to have as much time as possible to stay invested. Take the long-term view and stay in a fund that you are comfortable with for as long as necessary. Successful investing is not a matter of timing but rather a matter of TIME.
10. Review Your Investment Regularly
There are a number of reasons why you might need to change your investment portfolio. Your goals might have changed over time or your resources might have changed significantly. Whatever the reason may be, your life stage will play a vital role in determining the right investment mix for you. It is prudent to review your investment once or twice a year at the very least to determine if you are still on track to hitting your goals
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!