PESOS AND SENSE: HELPFUL FOR BEGGINERS!

An Article copied from pesosandsense.com! Thanks for making Filipino OFWs aware.

The Social Cost of Investing

One of the most common excuses we hear from people who never get started to invest is “Next time na lang, when I have extra money.”

This was also Pong’s excuse when Ping encouraged him to invest as well. (Read their story again here: How to Use Time to Make Millions)

Let us take a look at why Pong never got to invest early.

Pong is such a social person. He never missed lunch-outs with his officemates where they bond at different restaurants. He spent around P200 a day for this.

It may seem small, but that P200 when multiplied by 5 working days is P1000 a week. P1000 multiplied by 4 weeks is P4000 a month which he can already use to save and invest. This is a classic example of a ninja expense we discussed here: Ninja Expenses

Because Pong never made a deliberate decision to invest and adjust his lifestyle, he started investing really late. What happened was whenever his income increased, his spending followed too!

What is the social cost investing?

Even though Pong wanted to start investing like Ping, he cannot say no to the bonding time with his officemates. He also cannot afford not to have the latest Apple gadget in its first week of release.

The feeling of being left out and not having the latest gadgets are some of the examples of what we call the social cost of investing.

When you already know what to do, have all the time and money to invest, this will prevent you from investing regularly.

We Filipinos are very social people like Pong. We love doing things together! Our social calendar never runs out of things to do – Valentine’s, vacations, birthdays, family reunions, and weekly get-togethers. Because of this, we also never run out of things to spend money on.

Can you not join the summer vacation in order to save and invest? Ping did!

If Ping can do it, so can you!

Ever since Ping started investing, he has lived a totally different lifestyle from Pong.

To adjust to investing lifestyle, Ping brought packed lunch to the office instead of eating out.

While Pong was having fun at the beach during summer, Ping stayed at home and continued his financial education by reading books and articles regarding personal finance and investments.

Whenever the latest Apple gadget came out, Ping did not replace his old phone just to be “in” and buy something that depreciates in value.

We all know how this story ended – all of Ping’s sacrifices paid off. Take a look at Ping’s retirement fund.

Ping’s retirement fund is thrice the amount of Pong’s!

We are not saying that spending on “fun” things is bad and we should deprive ourselves just to save and invest. We just like to remind everyone to keep things in moderation, because unless we make a deliberate decision to invest, we will never get started.

Overseas Filipino Worker's Mindset

An Inspiring Article from Mr. Francis Salvador from maginvestkapinoy.com

There are people I disagree with, with some people come up and face me to tell me that they do. It is ok. I don’t mind. I am happy on who I am and I believe what is reasonable to maintain what I have now I will uphold it. I have big aspirations in life and never a day I stopped telling myself I will be one and never I stopped acting like one. I may be assertive, I may be a bully but people will agree that the longer they stay with me I change the way they walk their lives for the better.

Some things I will surely lie so we will not end up disagreeing. I know what society expects from an OFW. Pasensya po, hindi kami namumulot ng pera kung saan man kami naroroon.

1. Friend, pautang naman o!
I have been in the business of lending years back. I had gains and losses in the business and I am quite efficient running it. I stopped running the business for the reasons I hate asking people money when they don’t. So it would be a wrong Idea to ask anything from me now when I have stopped lending to people. If we are friends and not lending you anything will break up our relationship, I rather break our relationship now than lending you money if it would be difficult for you to pay me back. Same thing will still happen, friendship will still be broken if it does. So live with it. I don’t like lending people money. Period.

My advice, live your life according to your means and do not try spending into something thinking that other people will take care of your expenses in case you can’t pay.

Anyway, If you do live a life beyond your means, stop it. You will end up borrowing more from your friends, and the more you don’t pay you will unceremoniously lose them one by one. It is more costly to gain people’s trust than losing it. Like a rare commodity, so as your friends. Sooner or later when you run out of people to help, you'll surely be in deep s***.


2. Oi, Nasaan pasalubong ko?
I have a golden rule on my aircraft baggage. 7 kilos handcarry and 15 kilos for check-in. If your things can fit in. Good. If not, sorry. Anyway, I hate breaking promises to people that is why nobody has any idea when I will be back home except from my mom. If the stuff I would bring is available to the destination I will go. Likely I will leave it. I am not a fan of balikbayan boxes either. It costs $100 and at that amount can fly myself roundtrip when budget airlines go on sale. I give free hugs and kisses though. ^_^

I don’t like the way that neighbors are expecting something from you when you show up as if you owe them something, especially if they never were good neighbors anyway. You give something to one of them other people will be jealous.


3. Oi Libre naman dyan o!
There is nothing grand when I show up in my hometown. I don’t like spending for someone else’s booze. Sorry, it is not healthy. I have seen how society patronizes OFW’s that gives grand parties when they go back home and they should be good examples. Pista ba ito? Sorry I don’t subscribe to that. Most of the times I am already at my hometown it takes time for people to learn that I am actually there, and when they do, I already left.


4. Uy, nasa <insert your country here> ka pala. Yung <insert relation here> ko pala ay <insert their course or job here>, baka meron naman trabaho sa company mo?
Ok first things first. I work in an <inert your career here> field. If it is not related to my field, I really have no idea what to give you. I do give pointers on how to get a job abroad. Very detailed instructions, but I will leave your decision on how you will do it, yet, bear in mind that all life changing ventures does come with a cost and no one is privy to my wallet. I went abroad without anyone’s assistance. I gambled and I tried hard to find my way here both by sheer determination and relatively huge sum of money. I will show you the way if you are really determined to do it. I cannot help you in your finances and accommodation though.


5. Heart stabbing but very classic one-liners.
a. Ang damot mo naman!
b. Hindi mo madadala ang pera mo sa langit!
c. Masamang mahalin ang pera...




a. Heard this a couple of times especially if you won’t budge giving out something. Anyway, I do pay close attention to hygiene especially when I did have a long battle with athlete’s foot. You will never get to borrow my shoes, nippers or nail cutters. I will watch you screaming in pain while you’re having an ingrown nail. Tell me I am evil. I don’t care. Screw you, you will never get my nipper. Nah ah. Buy these yourself. You will climb a mountain to borrow my power tools, hammer, tape, pliers, screwdrivers, air pump, metal grinders, computer... oh well. too long to mention. I would rather say everything that I cannot watch over. These things never leave my side because most likely I would run a mile fetching these from the people who borrowed and when things get spoiled you’ll likely going to hear from me. Better not, buy these things yourself. Try investing these things for yourself. I hate borrowing that’s why I bought these for myself.

b. Sad reasoning, I don’t think I will die anytime soon, and neither you will, and in most case, you will repeat the same words to other people while you never spend time fixing your own life. I still got a long way to go to live on planet earth and whatever I have now will go to spend for a difficult time of retirement. Nobody can predict the future I agree, but whatever the future holds, you will still spend or others will have to spend for you. Mind you, even your coffin is not free and neither does your burial site. Truth to be told that, really, you cannot bring your wealth in heaven, but please, do not leave this world with the people you left behind getting nothing or rather, broke. Change the mindset. Even if you die, you will still need money.

c. Agreed! You should not love money. I had a couple of arguments and they shot this back at me. Oh please. I am not in love with my wallet. The moment I receive my salary I spend it right away. Within minutes my entire salary for the month is dissolved. I put it in the stock market or other investments and I don’t give a damn whether it will lose value or win. I don’t keep my money under the pillow nor let it sit on the bank. I spend it either for my experience or education and both are really expensive. If you think experience and education is expensive, try ignorance.

I strongly believe I don’t love money because if I do, I will be a slave of it. I am not enslaved by my assets because I own them, I am paid in full. I don’t have unpaid monthly credit on my card, no mortgage on my car, house and other properties. Debt free life is fun I tell you. Owning things is a lot more fun than things you have owning you instead.

If you are buried in credit, try to work hard to unshackle yourself from it. The harder the credit situation you have and yet you will be able to win it, you will surely reap the rewards. Masamang mahalin ang pera, hindi mo dapat mahalin ang pera. Pero hindi masamang mahalin ka ng pera at mahal ng pera ang taong marunong humawak.

Author: Francis Salvador (弗朗), Engineering Consultant, OFW, Investor