5 Financial Resolutions for a better and brighter 2015

This I got to post. If you're going to make a New Year's resolution, this must be included. You can't pretend that you're doing well financially if you have not done these major financial resolutions yet. 2015 is your time to start doing these. I hope this helps.

In a few hours, we’ll be welcoming the New Year with hope and enthusiasm. After all, it’s a chance to start our lives anew. We can pursue the dreams we may have left off, or perhaps start building something fresh and entirely different. The feeling that you are given a clean slate is exhilarating and exciting. It leaves you inspired to take on goals that we have yet to find the courage to start… until now.

How Your Hard-earned Money Can Grow For You

Matagal na din akong nagtuturo sa mga Overseas Filipino Workers (OFW) specially sa mga papunta ng Japan as interns under the JITCO program. More than 19 years na! Ito ang mga natutunan ko patungkol sa PERA, handa ka ng malaman?

1. Madali kumita ng pera. Hindi problema ang sweldo, lao na kung sila ay masipag, hindi salit sa ulo ni Shachou, mabait at masunurin. Kadalasan, meron bonus pa pag-uwi.

2. Marami sa mga interns ang nakapagpagawa ng bahay o napagawa at na-improved ang lumang bahay. Ito ang isa sa importanteng dahilan kaya nag-sasakripesyo ang intern na magtrabaho ng 3 taon sa Japan.

3. Marami ang natulungan ng intern sa mga pag-aaral ng anak, kapatid at minsan pamangkin.

4. Bihira ang umuuwi ng walang naipong pera. At least meron nakakapag-ipon ng 100,000 pesos (maliit na ito).

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 (Credit.com) 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 AnnualCreditReport.com. 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,
Jimmy

Read more: http://www.foxbusiness.com/personal-finance/2013/08/20/5-mistakes-make-when-managing-your-debt/#ixzz2caIWfRCz
Photo credit: http://money.howstuffworks.com/personal-finance/debt-management/debt3.htm

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:

Yes Bo, teach me how to grow my money!

Tell me more aboutthe TrulyRichClub

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:

Yes Bo, teach me how to grow my money!

Tell me more about the TrulyRichCl

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.

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.

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.

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 Amazon.com. More information can be found at www.smckids.com.

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.

YF: 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: http://finance.yahoo.com/news/money-101--q-a-with-warren-buffett-140409456.html

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.

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.

Investing Made Easy

Did you know that investing is really easy? Robert Kiyosaki, author of the famous book: Rich Dad, Poor Dad, has this theory that the best way to get out of poverty is to be in the quadrant of either a Business Owner (B) or an Investor (I).

I have been an employee for the past 27 years. It was rewarding financially, but it wasn't the kind of reward you want to end up when you retire. So, I decided to try investing in the stock market. My intention was to see how my money can work for me. Ultimately, I am investing in the stock market to gain experience and prove that it is better than putting my money in the bank. The return on investment (ROI) is better.

5 Things to Never Keep In Your Wallet

I used to think that I need to keep all stuffs in my wallet. Credit cards, ATM cards or Debit Cards, Driver's License, SSS card, etc. I am now of the opinion that it is better to have them all in my wallet just in case I need them, I have access to them right away. Right? Wrong!

Yes, I have realized that if I lost my wallet containing all these important stuff, I am in big trouble. Imagine calling all the credit card companies and canceling the cards to protect it from the thieves? That's just one problem. What about my SSS number? If thieves can access it, they can apply for a credit card in your name and make costly purchases in your name! Whoaaa!!!

How To Save Money Every Month

I just can't let this article pass us by. So I am re-posting it here. Here's some practical ways we can save on money monthly. I love what Moneymaking's idea to stop bringing your credit card for a month. I feel this is a real challenge to all of us. There's a false security in bringing our credit card with us, in our wallets, isn't it. We often tell and even convince ourselves that we might need it, "just in case". So we end up using it. If there is a supply, we usually create the need.

Well, here's what I want to focus on: what activities should we do. My friend from Fiji, Savenaca, always tells me, "No more theories, theories. Just do it!" So here goes:

1. Stop bringing your credit card. At first, you will feel very restricted but you will slowly realize where you are spending money on. It’s amazing that we remember our purchases so much better when we pay in cash.

Doing The Right Thing

I am happy with what I am doing. As I often say, sometimes we fail in managing our finance because we fail to monitor our expenses.

The starting point in budgeting our financial resources is to find out how and where your money is going. I am doing an experiment on my finances. To find out if I am within my set budget, I am taking note of all my financial transaction and recording them in a simple Excel file.

I am excited to see how it goes. So far so good, meaning, I am faithful and consistent with my recording.

See you on my next report.

Have a blessed life ahead of you.
Jimmy

Areas of My Finances I Need To Review

I was hit with two, yes two costly bank charges because of insufficient fund. I felt bad, really bad, because it's really a simple matter but I missed it. The charges cost me a lot. The money could have been used to put petrol on my car for 2 weeks. Whoaaaa!

How did I addressed of this problem? First, I immediately went to my bank and enrolled my checking account to their "back up plan" where they will take money on my savings account to fund my checking account if their is insufficiency. I should have done this a long time ago!

Do You Manage YOU?

This is true. I always tell my students in our Work Ethics And Values Seminar at Uno Overseas Placement that they are running a business whether they like it or not. And that business is their LIFE.

Looking at my own life, I think I can honestly say I am having an exciting but hard time to make my "business" a  profitable one.

When I read this article from someone I admire, I was encouraged by Dave Ramsey when he wrote this wonderful and practical article entitled: "You Inc: Manage Your Money Like A CEO". He knows what it is to be in debt and how to get out of it as well.

You will certainly appreciate his ideas and it will help you start a good habit of managing your money well. So, here it is for you.

"If you managed money for ‘You, Incorporated’ the way you manage money for you now, would You hire you?"

Top 3 Free Budgeting Tools For You

You want to be serious about making your financial house in order but don't know where to start. Well, here's a starting point for you. Find out what's happening to your finances, Take an inventory of where every cents go by listing all expenses you do daily for a month. Categorize the expenses by type e.g. Food, Gas, Utilities, etc. Tally.

The result will give you an idea how to set your budget for each category. Budget is very important. It gives you a parameter of how and when you can spend your money. It helps you to be disciplined in the use of your hard-earned money.

5 Tools For Teaching Your Kids How To Save

I love this article by Carol J. Alexander at the Christian Personal Finance. I would like to post it here to guide you, if you're a parent. You will benefit a lot if you try to use it on your kids. I have seen some of her ideas worked on my children. Now they're all professionals and saving is part of their finances. You must teach them while they're young. 

5 Tools For Teaching Your Kids To Save Money

All children are different. My six children may all look the same on the outside, but on the inside they all march to the beat of a different drum. I have naturally hard workers, and I have those we trained to work. I have a son who breathes music, and I have another son that needed his music lessons.

Likewise, I have a few who squirrel away every penny they get and a few whose pennies slip right between their fingers. Yet as a parent, you want to do your best to train your children to have positive character qualities—and saving money is one of them. Here are 5 tools for teaching your kids to save money.

What We Say Matters

Its been hectic these last few weeks. What can big debt do to a person? More specifically, how do you deal with at least four banks running after you and collecting from you huge amount of money?

For a simple guy like us, that means a lot of worry and anxiety. My blood pressure would probably rise due to tensions running high. Sleepless nights. No appetite for food. These are just some of the consequences of debt, which are due and collectible.

During these times of crisis, people blur out words that are not helpful to solving the problem. Words are very important. What we say, the words that come out of our mouth, are like the "steering wheel" of cars or the "rudder" of big ship that can steer that thing to the direction the driver wants to take it.

Most often, during this times of crisis we say words that have negative effects like "there's no more hope", "I am going to jail for this", or "there's no more solution" to this problem. You know what a person believes by what comes out of his or her mouth.

Proverbs 21:18 says "Death and life are in the power of the tongue. An they that love it shall eat the fruit thereof." In other words, what comes out of our mouth determines life or death. If we choose negative words, you shall eat it and it will happen.

Choose to say what you want to see happen in my life. Because your tongue, what I you say, is the steering wheel of your life!

So if you want to get out of debt, even huge debts, the solution doesn't start from your bank accounts, or from your friends, and relatives' help. It starts from your mouth. What you say is the steering wheel of your life. You say what you want to see happen to your debts. Try it, it works.

To yours and my debt-free life,
Jimmy

Budgeting For The Starters

I had a wonderful time with my eldest daughter, Rache, just before she left for a vacation in China. One of the things we talked about was how she will have money ready every time an opportunity to travel presents itself to her. She has realized that she must be serious in her finances from that time on. I am an advocate of having a family budget. I have been telling her to have a budget of her own so she can manage her finances well. I think that small talk we had will change the way she values her money. I have a guest post here about starting to make a budget. It's simple you can easily do it. I am proud of Rache. She will be a millionaire someday if not soon. Here's a guest post from Financially Poor:

Budgeting: For The Just Getting Started

So you have come to the realization that you need to control your finances. Well I’m here to help you get started. Starting a budget is somewhat easy but there are a few steps that can trip you up. What I’m going to do is walk you through the mine field so you can have a budget that you can call your own.

Starting out

What your first step needs to be is make a list of categories of bills that you have every month like rent or mortgage, phone bill, etc.  Here’s what mine looks like:

The reason to list those first is so when you decide how much goes into each category you can get the necessary bills out of the way first and know how much you have left over for the rest of the categories.

Next make a list of all of your monthly variable expenses like this:

If you want to make the categories more detailed go for it. You can make eating out into breakfast lunch and dinner if you want. Customize it to whatever works for you. Don’t worry about making it perfect the first time around though. Budgets tend to evolve over time so just make a first one that will get the ball rolling. The Spouse 1 and Spouse 2 is for fun money for each person FYI. Be sure when you put the two groups together that you add a line for savings between them.

Divvying Up Your Money

After you’re done making categories for your spending it’s time to find out your spending. This step is to find out how much money you spend in each category. There’s a few different ways to do this.

One way is to guesstimate how much you spend in each category. Your regularly monthly bills will be pretty accurate but your variable spending will probably be pretty off. With this method you’ll be adjusting your budget a lot and can be frustrating so I wouldn’t recommend it for most people.

The other way is to track your spending for a few months and fill in the categories with those amounts. If you have a debit card I would use that because then you can see your transactions online and it’s so much easier to keep track of. If you don’t have a card and you just use cash then think about getting a small note pad and writing your purchases down. This isn’t the most fun step but it is the most eye opening experience. When you actually see how much you spend a month you may be very surprised.

At the end of each month put all of your purchases in their different categories. This will give you an idea about how much you spend in each category. Now comes the meat and potatoes part. The point of a budget is to control your money instead of letting it control you. So this is where you decide how much you want to cut back on variable spending. I’d recommend you cut back slowly so that it’s not a big shock and turns you off. If you spent $300 on entertainment try to cut back to $250. If you cut back a lot you might get frustrated that you can’t stay within budget and could cause you to give up. so each month just cut back a little more and eventually you’ll figure out where a comfortable level is for that category.

Once you figured out your budget write it down on a piece of paper or put it in a spread sheet. I write down my budget in a notebook so I can carry it around wherever I want to and work on it. I have mine set up like this:

Another reason I write in a notebook is because I fill out, on the page after my budget, columns with the different variable spending categories and amount budgeted. Then through the month I write down the expenses as they occur in the correct category. This helps me save a lot of time.

That’s pretty much it. Not hard at all. Over time your budget will be customized to your situation. What you just created is a gateway to a better financial life.  This is a tool that’s going to help you get control over your finances.

How was your experience setting up your first budget?

I hope you have made one budget for yourself and your family. 

To your debt-free life,

Jimmy