Wednesday, August 21, 2013

5 Mistakes You Make When Managing Your Debt

Good afternoon. Today, since we're all on holiday, and the typhoon Maring is bringing a lot of rain in Metro Manila, I thought of surfing the net. And I found this article from FoxBusiness by Allison Martin ( on managing our debt. I would like to post it here for us to study and hopefully apply some of it's recommendations so that debts can be erased soon.

Not all debt is created equal. With that being said, there is no one-size-fits-all approach to managing your debt and avoiding excessive interest, fees and other penalties that could result if not handled properly.
Here are five mistakes consumers commonly make with their debt (and ways to avoid them).

1. Depleting Your Emergency Fund
If you have a substantial amount of cash in your savings account, allocating a vast majority of it to get out of debt may seem like the wise thing to do. However, the problem with this approach is that it fails to get to the root of the problem. The ultimate goal should be to get out of debt and stay out of debt, and not simply write a fat check to serve as a temporary patch. It is more sensible to jump-start your management efforts and cut costs elsewhere in your spending plan because emptying out your emergency fund can mean even greater debt if an emergency arises and you do not have an adequate amount of cash on-hand to cover the costs.

2. Having No Plan of Action
Taking a lax approach to your debt is a recipe for disaster. You may eventually achieve your goal, but the process may be lengthy and tedious. Just imagine a college student who randomly takes courses that appeal to them without ever looking at their transcript to see what’s needed to graduate.
Save yourself the headache and devise a detailed debt repayment plan that incorporates your financial goals.

3. Getting Caught in the Minimum-Payment Trap
Making the minimum payment each month may give you more flexibility in your budget, but you more than likely will never get out of debt. In most instances, particularly if the outstanding balance is high, the minimum payment may only cover interest (or not much more), leaving you with an untouched principal balance.
Instead of making this mistake, allocate as much money as possible toward your monthly payment, even if the amount is way more than the minimum, to ensure that your payment efforts are not in vain.

4. Robbing Peter to Pay Paul
Advancing cash from one debt source to another solely for the purpose of making your monthly payments may cause you to end up in a bigger financial crunch than you initially bargained for. If your financial situation is dire and you‘re robbing Peter to pay Paul just to make timely payments, reach out to the creditors and request that they grant you some sort of temporary relief until you are able to sort things out.
In addition, refrain from using any sort of financing to pay for purchases unless it is absolutely necessary.

5. Ignoring Statements and Credit Reports
Both your statements and credit reports paint a picture of where you stand in terms of your debt obligations. Ignoring these documents can be very costly and time-consuming down the road if inaccuracies exist because errors that are not promptly reported may be more difficult to dispute.

To avoid these issues, immediately review your statements each month when they arrive to verify their accuracy. If discrepancies exist, report them as soon as possible to the creditor so that the issue can be resolved before the inaccurate information is reported to the three credit bureaus. Also, review your credit report at least once every four months for mistakes – you can get them for free once a year through You can also monitor your credit once a month for free using the Credit Report Card.

Personally, I have applied Item # 2 and # 3 in dealing with my credit card debt. So far, I am now almost out of the rut and setting myself debt-free.

What's your plan?

To your debt-free life,

Read more:

Photo credit:

Tuesday, June 04, 2013

Are You Tired Of Your Lingering Debt?

That's the big question that many of us want to be answered. I have been there. It's only fairly recently that I am seeing changes in my finances. Would you believe that I have savings or should I say some investments now in the Stock Market? It's not BIG but compared to when I was working in Makati, I now have some!!! And I know it will grow. That's it, you need to know how to grow your money in order to get out of DEBT!

Here's an encouraging news that our mentor, Bo Sanchez, sent to all members of the Truly Rich Club. You see, I decided that I needed a mentor to help me grow my money. So, I joined the Truly Rich Club and since then I had taken advantage of every lesson being taught by Bo.

You will be informed and you will have to also make a decision when you read this very good article by Bo Sanchez.

Want Of Create Your Future Millions Through The Stock Market?  Now Is The “BESTEST” Time Get In.

          Forget my bad grammar.
          I’m making a very important point.
I believe that everyday is the BEST time to start investing in the Stock Market.  No kidding.  Because to start is glorious.  So many people don’t start!  All they do is talk about starting.  (Does this sound familiar to you?)
But there are days that are BESTEST than others.  (My Grammar teacher in grade school is rolling in her grave right now.)  And this month is one of those BESTEST days.
Why?  Because the Stock Market is down.  You see, in the past four months, we saw the Stock Market go up like a turbo rocket.  It went berserk.
But now, it MUST go down before it goes up again.  That’s just its cyclic nature.
That’s why—if you haven’t started investing in the Stock Market, get into it NOW.
Is This For You?

By the way, my letter today isn’t for everyone. 
Please disregard if this isn’t your concern.
I don’t expect everyone to join my TrulyRichClub 
If this isn’t for you, I apologize for bothering you with this letter.
Because today,I’m specifically writing to people who want to grow their financial life—and who want my guidance in investing in the Stock Market.
Are you tired of being stuck in a rut in your finances?
Are you tired of your lingering debts?
Are you tired of feeling the pain of wanting to help people you love, but can’t, because you don’t have the resources?
Are you tired of your big fears and uncertainty?
Are you tired of working very hard everyday, only to realize that you don’t really have any savings for your future?
Just in case you’re that person, let me help you.
To know more about my TrulyRichClub, click the link below:

May your dreams come true,

Bo Sanchez

PS. Don’t Miss This Window Of Opportunity When The Stocks Are Low.  To know more about the TrulyRichClub, click the link below:

Friday, April 26, 2013

How Can You Benefit From The Exuberant Stock Market

This is the best thing that happened to the Philippines! Our economy is growing and the stock market is exuberant. Yesterday it hit pass the 7000 mark!

So what's in it for you and me? You must not let this opportunity pass you by. How? Learn and be informed, that's how.

I made it a point to learn. We never stop learning isn't it. I became a member of Truly Rich Club and I am now being mentored by no less than Bo Sanchez.

You to can learn and benefit from the improving economy of our country. You are just a click away from it right now.

I am printing an article by Bo Sanchez. We receive this from him on a regular basis, as members of the Truly Rich Club. I know you will learn from this. Enjoy reading and let's learn together.

Wednesday, April 24, 2013

It Pays To Be Financially Literate

I teach Work Ethics And Values to our OFWs bound for Japan. Most, if not all, needs help in the area of finance. They can earn money with their skills but they don't know how to make it grow. You know, how to make your money make more money.

I have learned a lot from my mentor, Bo Sanchez, since I joined his Truly Rich Club. Today, I can say that I have been blessed to learn how to invest in the stock market, the Truly Rich Club way. It was one of my major decisions, but I was happy that I made a decision to follow my mentor's advice. Today, I am able to impart these lessons to our OFWs.

You too can learn a lot. If you want to make your money make more money, you must try investing in the stock market. Truly Rich Club makes it easy to understand how to invest in stock market for you. If Bo's maid were able to invest, you too can.

Here's one of Bo Sanchez' article that will inspire you to consider investing and joining the Truly Rich Club. I hope you will learn and enjoy it.

Sunday, April 14, 2013

Has The Stock Market Gone Up A Lot?

You and I have one thing in common, the desire to prosper. Oh boy, isn't it true? If only I knew how to invest 30 years ago, I could have been truly retired and being supported by my millions because of my investments!

Well, you can avoid the delay and can start now. Why not retire early, say 20 years from now, a millionaire? Is it really possible? You bet, it is now.

For this, I would like to share my mentor's article "You Think The Stock Market Has Gone Up A Lot?"
I can tell you, almost a year ago, I did what he told me to do, invest in the stock market, and I did. Now I can see why. I am learning a lot and ready to pass this on to my children to prepare them for their future. You too can.

Tuesday, April 09, 2013

Money 101: Q & A with Warren Buffett

Here's an article by Aaron Task which was published at Yahoo! Finance. There is something we can learn specially if it comes from the Warren Buffett.

You and your children will benefit from this interview with the famed investor, Warren Buffett.

To commemorate Financial Literacy month, Yahoo! Finance is proud to bring you a Q&A about financial education for kids with famed investor Warren Buffett. 

One of the world's richest men, 
Buffett is also the voice of a new animated series entitled "Secret Millionaires Club," which offers kids tips on investing and basic business concepts. "The more you learn, the more you’ll earn,” Buffett says in the series, which also features the voices of Jay-Z and Shaquille O’Neal. The first DVD of the series was recently released and is available for purchase on More information can be found at

In addition to the Q&A below, we invite you to check out our newly refreshed Financial Education hub: 
Money 101

Every day Yahoo! Finance helps you make financial decisions with confidence and we also want to be your one-stop shop for financial education. 

As always, you’re feedback is welcomed: 
Let us know what you think.

— Aaron Task, Editor-in-Chief, Yahoo! Finance

Yahoo! Finance: How did you get involved in the 
Secret Millionaires Club?

Warren Buffett:
 My friend Andy Heyward, who is a producer of kids entertainment, and I came up with the idea to help educate kids about financial matters. I thought the idea of using the power of cartoon characters to carry a message was a good one, as is  teaching financial lessons at an age when it can help them.
YF: What does the term "Secret Millionaires Club" refer to?

WB: In the pilot episode, a group of kids come together to save their local youth center. In the process, they come across a valuable baseball card which they sell to save their youth center. They ask my help to help them understand and manage their money. In the process we form the Secret Millionaires Club, and have lots of fun adventures together learning about money and business.
YF: Is the goal to help kids understand finance and related concepts — or to help them learn how to amass wealth? Or both?

WB: The goal has nothing to do with amassing wealth, and everything to do with helping kids understand money, and develop healthy habits from a young age. Someone once said, “the chains of habit are too light to be felt until they’re too heavy to broken.” We’re trying to help kids develop healthy habits that will help them their whole life.  
YF: What are some of the key financial terms and business concepts you hope kids learn from the series? How did you learn them?

WB: Some of the lessons you’ll hear in this series are: “The best investment you can make, is an investment in yourself.” “The more you learn, the more you’ll earn.” “Learn from your mistakes, and the mistakes of others.” “Great partnerships make any job easier.” “Fail to plan, plan to fail.” “With business as in life, get to know people before you judge them.” “It’s not just the outside that counts, it’s the whole package."
YF: Is there anything you can share about how you taught your children about business and finance that other parents might adopt?

WB: All the lessons in Secret Millionaires Club are lessons I taught my own children. We produced this series to try and teach other kids, and in some cases, their parents! They are simple lessons that can help you in business and in life, no matter what age you are.

What is the #1 thing parents should teach their kids about money — and #1 thing they should NOT teach them?

WB: Secret Millionaires Club has lots of good lessons about money such as learning not to spend more than you have, and saving for the unexpected, and not borrowing money unless you have a plan to pay it back. The series shows the consequences that can happen if people don’t make wise decisions. We’re trying to help kids develop good decision-making skills from a young age to avoid some of these pitfalls.
YF: Is the series aimed at kids specifically or is it designed for kids and parents to watch together?

WB: We created Secret Millionaires Club for kids, knowing it would also help parents. And it has. It provides stories that kids can relate to which help them understand different situations in business and in life, and hopefully help them develop the skills to make good decisions their whole life.
YF: Why do you think financial education is so important for kids?

WB: So many adults get into financial trouble, in business and in their personal lives, because of bad decisions. We hope to influence kids at an early age so they learn to think about their actions, and the consequences of making bad decisions. It doesn’t just influence success in business, it influences your family life as well. We want to help guide kids toward leading more productive lives.
YF: Have you reached out to the DOE or other government agency to discuss building a curriculum for financial education in the public schools?

WB: We already have a program that is in thousands of schools and youth organizations. Every year, we have a contest called the “Learn and Earn” challenge. Thousands of kids use what they learn in Secret Millionaires Club episodes to come up with their own business ideas. The finalists come to see me in Omaha and present their business plans, showing what they have learned from Secret Millionaires Club. It’s a lot of fun for the kids, their teachers, parents, and most of all for me! It shows that at a very early age, kids not only understand financial matters, they come up with some pretty terrific business ideas themselves!
YF: What's an appropriate age to start teaching kids about money?

WB: It’s never too early. Whether it’s teaching kids the value of a dollar, the difference between needs and wants, or the value of saving. These are all concepts that kids encounter at a very early age, so best to help them to understand it.

Photo credit:

Wednesday, January 16, 2013

Choose To Make Your Money Make More Money

I am amazed at the response of people whenever I talk about "Managing Your Resources", a quick view of how people can create wealth through the resources God has given us.

I teach this lesson mostly to our workers going to Japan as interns under the JITCO/POEA program.

Their response? Their eyes brightens up and I feel hope starts to swell in their hearts!

Using Robert Kiyosaki's "Cash Flow Creating Wealth" and "Cash Flow Creating Poverty", they realized that it is possible for them to be millionaires if they can manage their money well by making "savings" a priority in their budget. Then, learn how to make their money make more money by "investing".

They don't teach this in school.

Thursday, January 03, 2013

Investing For Your Future

Why do the rich gets richer and the poor gets poorer? Is it true in your case? In the Philippines, it looks like the concept is true. It became clearer to me when I ventured into investing in the Stock Market.

About the last quarter of 2012, I decided to try the stock market and prove that what my mentor, Bo Sanchez, says is really working. He said, he taught his maids how to invest in the stock market and they are successful! I thought, if his maid can invest, there's no reason I can't.