Tag Archives: rules of investing

Women and Financial Independence

by: Francisco J. Colayco

Check this article that we had in the March 2011 issue of Illustrado!

 

Nang Magising si Juan Episode 1 (Sneak Peak)

by: Francisco J. Colayco

We had an event launch of our newest comedy-reality TV show, Nang Magising si Juan, last May 13. A hundred people from various media, corporate, and other entities attended the event. We were very happy with the turn-out and the reaction everyone had when they saw the first episode of Nang Magising si Juan.

So for the followers of my blog, here’s a sneak peak of the first episode:

Watch Nang Magising si Juan, as I and the other members of the Colayco Foundation team will try to help Ariel in his financial predicament. Catch it starting May 18, 8 am, at GMA News TV Channel 11!!!

Should Girlfriend and Boyrfriend Invest Together?

by: Francisco J. Colayco

I am RG, a fresh grad and still searching for a job. I have read 2 of your books (Wealth and Money). I am inspired to achieve financial independence the time I could no longer work.

Today, I have save money from my allowance when I was still studying. I have saved my money on savings deposit alone on one bank. My father is a salesman and my mother is a housewife. My family’s source of income is dependent on my father’s boss. I have two siblings and I am the eldest. My younger brother is a college student who is on his 2nd year while my youngest sister is a 5th grade school student. We have our own house in. The problem is that every time it will rain, our place experiences floods that will really get into our house. The tendency is that we will carry our things at the 2nd floor of our house. That is why one of my goals in five years is to buy my family a new home that will not be flooding anytime it will rain.

I wanted to ask if I m making the right decision to put a portion of my savings deposit to mutual funds and government bonds?

Another is that my boyfriend and I are saving money for our future use. Actually for our future anniversary celebrations although after reading your books I come to realize that it will be better if I will invest it. I ask him if it will be alright, and fortunately, he agreed. So, I would like to ask where can I invest it on one account where the two of us is the investor?

Want to know my answer?  Check out the Good News Pilipinas by clicking this link!

What Can a Widow Do with Her Money?

by: Francisco J. Colayco

CF Wrote: Can you teach me what to do with the money worth P200, 000.00 that my husband had left me. How can I grow this money so that I can continue to provide for my children who are still dependent on me. We live in the province.

I have four children. My eldest is already a nurse but is still jobless. The other three are still studying in college. The tuition fee of my children each year used to cost up to P108, 000.00 per year but, by next school year it would decrease to just P76, 000.00 because one of my children would be enrolled under TESDA. Their expenses, including their food and fare would cost up to P6,420.00 monthly. The other monthly expenses are the electricity bill P2,500.00, our water bill is about P400.00, the cable internet would P800.00 and the budget for the food would be P9,000.00 monthly.

I have no job and I only depend on my SSS pension worth of P7, 677.00. I am afraid that the money that I have kept would eventually run out because of our daily expenses.

I am thinking of building a small store here in our place but, we are inside a subdivision and not on the main road. There are already a lot of sari-sari stores here in our place. I also wanted to study how to bake so that I could sell pandesal every morning. I don’t know what to do first.

I hope you could advice me

Find out more at Wealth of Advice. Visit Good News Pilipinas at this link: http://www.goodnewspilipinas.co/can-widow-money/

 

CF Wrote: Can you teach me what to do with the money worth P200, 000.00 that my husband had left me. How can I grow this money so that I can continue to provide for my children who are still dependent on me. We live in the province.

I have four children. My eldest is already a nurse but is still jobless. The other three are still studying in college. The tuition fee of my children each year used to cost up to P108, 000.00 per year but, by next school year it would decrease to just P76, 000.00 because one of my children would be enrolled under TESDA. Their expenses, including their food and fare would cost up to P6,420.00 monthly. The other monthly expenses are the electricity bill P2,500.00, our water bill is about P400.00, the cable internet would P800.00 and the budget for the food would be P9,000.00 monthly.

I have no job and I only depend on my SSS pension worth of P7, 677.00. I am afraid that the money that I have kept would eventually run out because of our daily expenses.

I am thinking of building a small store here in our place but, we are inside a subdivision and not on the main road. There are already a lot of sari-sari stores here in our place. I also wanted to study how to bake so that I could sell pandesal every morning. I don’t know what to do first.

I hope you could advice me

– See more at: http://www.goodnewspilipinas.co/can-widow-money/#sthash.0QTxg8vQ.dpuf

Manggigising Na!

Airing on GMA News TV, Sundays 8:00AM beginning May 18, 2014

Produced by Colayco Foundation for Education, Inc. in cooperation with Red Ants Media. Supported by KsKCoop, Landbank of the Philippines, Chooks To Go, AurumOne Makati, and many more.

“Nang Magising Si Juan” is not your ordinary financial literacy program. This comedy-reality show is set to educate, relate, entertain and inspire by tackling common money issues every Filipino can relate to. This show not only teaches practical and doable financial management, but also promotes positive values and corrects wrong mindsets in and beyond the topic of money.

 

The driving point of the whole show is this: Beyond the how-to, it’s the essence, the core principles and the right attitude applied that can truly make a difference.


To further emphasize the importance of practical application of principles, this show features a social experiment on the show’s main character. The goal is to enlighten him and improve his financial situation. As a relatable character, the show aims to inspire the audience and send them the message, “Kung kaya niya, kakayanin niyo rin.”

 

“Nang Magising si Juan” is named as such because it directly reflects the perceptions, attitudes and habits of Filipinos and tries to serve as a wake-up call.  On the other side of the coin, this show also reinforces the value of getting up and actually doing something to achieve one’s personal goals and dreams.

 

The main character is Ariel Villasanta, a real-life comedian who got his share of the limelight and extravagant living but is now struggling with debt.  Refusing to come to terms with reality, he projects a flamboyant image and lives in a big house, but with no electricity. (To which he puts a signage on his gate for all his neighbors to see: “Support Earth Hour Every day!”)

 

His anxiety about his finances urges him to talk to the financial guru in the show he writes in, “Feeling Close with FJC”.  This show-within-a-show is a parody of a typical business & finance  show: stiff sofas, big potted plants, tacky background design and lounge music playing. This will be used as a platform to deliver the financial principles and techniques that Ariel will process throughout the show.  The show’s star, real-life award-winning financial guru Mr. Colayco, a wise but brutally frank man, corrects Ariel’s wrong perspectives and pushes him to change with challenging questions.

 

Along with other characters (played by non-actors), Ariel encounters different financial issues that plague the common Pinoy. Mr. Colayco gives practical advice and techniques in layman’s terms. Ariel puts some of it to practice, some he willfully ignores to do his own “diskarte”(not without amusing consequences of course).

 

In his journey to financial literacy and freedom, Ariel discovers that there’s more to managing wealth than just accumulating money and becoming rich. He also learns the values of self-discipline, hard work and even self-worth and generosity that improve his quality of life in a way more than money can.

 

Nang Magising Si Juan is open for commercial advertisements for more information email partnerships@colaycofoundation.com

Tips on How to Stick to Your Budget

by: Francisco J. Colayco

first appeared on GMA News Blog, Sept. 6, 2010

I have lately been getting quite a number of queries on how to make both ends meet. It seems to me that there is a growing desire among the general population to now take hold of their financial lives. This probably has to do with the credit card collection pressures that a good number of income earners are now being subjected to.

There is really no magical solution to this but to accept the reality of your present cash flow. And that simply means reducing your expenses and increasing your income. Easier said than done. And the first step is to budget one’s lifestyle.

Budgeting is always a topic that needs to be revisited. Nobody likes to have to think of a budget. It’s just wonderful to be able to just spend without having to look at the price tag. Fortunately, I have been programmed by what I have been teaching to look at the value for money of anything I buy.

When we were newly married, my wife did not even want to bring me along to do any marketing or shopping because she was afraid I would not know if the price item was too high compared to other stores. She was right, actually. Assessing the value of the prices of goods is really very dependent on practice. If you are not the one who regularly shops for certain types or products, chances are that you will not get the best price. That’s one tip for the family. Each member should be assigned to purchase certain types of products to make sure that the price is right.

Until you are wealthy enough not to have to look at the price tag, you need to have a budget. Let’s review the process of making a budget. Remember that it should always be written down.

You need to make your Personal Financial Plan before anything else. This means that you have a financial goal and you can only have goals if you know where you are starting. You need to know what you own (assets) and what you owe (loans or payables). There are formulas to compute how you can reach your goals. These are in my books or explained in the seminars we give or in our website.

After knowing your goals, you need a clear idea of your income. You need to know what your take-home pay is so you know exactly what you have to spend. Understand all the deductions made from your income whether you are an employee or self-employed. Even in your own business, you should pay yourself a salary and pay the necessary taxes and Social Security, Pag-ibig, Philhealth etc. Understand what kind of benefits you get from each deduction. Taxes are expenses that we all have to pay to run our country. The benefits are the roads, security and similar services that we get. Understand what benefits you get from Social Security, Philhealth and Pag-ibig because these are some kind of insurance or options for loans with reduced interest or even retirement.

Remember the principle: INCOME MINUS SAVINGS EQUALS EXPENSES. You already know your income as we discussed in the last article. Now make a simple list of your expenses.

Divide your expenses into those that are the same every month such as rent or loan amortization. Then, the others are those that change every month such as electricity, food. It becomes very clear that for the fixed expenses, you cannot easily reduce without doing something drastic. For example, you may need to move to another house if you want to reduce your rent or sell your house to remove your housing loan.

For the expenses that can change every month, you will find it much easier if you know in detail how much you spend for each category. For example, “food” is a general category but it could include junk that you really don’t need. Have a pocket “spending notebook” and just jot down every amount that you pay out including payment for a bottle of water, a bag of peanuts, a piece of candy, bus ride etc. When you go to the grocery, you should have a specific list of what you can buy.

If you are trying to understand your food (or any other category) budget for the first time, you can do this. Spread all the items you bought on the table and think carefully whether each item is a “need” or a “want”. Remember that a need becomes only a want if there are options to “downgrade” to a less expensive brand or type for the same item. For example, fresh foods are usually cheaper than processed foods.

Involve your family in making your budget and assign each to be the “authority” in prices of items that you regularly buy. The person in charge should keep himself always aware of the changes in the prices and where to best buy them. Remember though to input the cost of transportation when you find that a certain item is cheaper in a place far from your home.

There is no right or wrong in making a budget. Each person or family has different priorities. One prefers to always eat the better food and just stay at home and one would rather have fun outside and hardly eat. You need to plan together, understand and respect each other’s needs.

While you are finding ways to decrease spending, find ways to increase your income. Sometimes people are bogged down by their mindset on what they can or cannot do. This is especially true in the Filipino culture where those who took up a college degree feel that they should only be in a white-collar job. Our system of having house help readily available helps in developing the mindset from a very young age. In western countries and more developed countries, every person has to do his share in the housework from childhood. Therefore, everyone doesn’t think twice of doing any kind of work.

Given an open mindset and humility to doing any kind of work, surely you can find a sideline to add to your income. For example, doing simple home repairs, cooking meals or landscaping for others can be good options especially for those who are looking for people they can trust. If you are too proud, you can start as a hobby and slowly charge a fee as you gain a good reputation. There are other talents you can use like teaching a musical instrument, writing, tutoring etc. In the beginning, this will surely not earn much but do the best job you can even if it pays for only a meal at the start. It can develop into a full-time business in the future. There is so much that can be done but in the final analysis, reputation will carry you through success.

To summarize your budgeting effort:

1. Keep a record of your daily spending. Have a small notebook and pencil always with you and jot down any expense immediately.

2. Understand your real cash-flow income and expenses at least a month ahead of time. If you have a partner or family, make sure you all agree with how you are going to spend the money.

3. Reduce spending in a very studied method. Be creative with the ways you can cut expenses each week and practice until you get the hang of it.

4. Keep track of your budget weekly and monthly so you can make adjustments. There will always be unplanned situations. Life is really like that. For example, when you are on a road that suddenly gets blocked, you will find a way to go around the block. It is the same with your budget. Be ready with options.

Even Priests Have to Save

A blessed “Happy Easter” to all!

Check out this article we have on Good News Pilipinas last April 6:

We received this from Reverend Father JM of a province in Southern Luzon.

“May the Grace and Peace of the Lord be with you! I just want to express to you my joy and appreciation. I have attended the talk given by Mr. Armand Bengco to our clergy for our day of recollection. That talk paved the way for me to discover you and your Foundation. I also bought a set of books you authored. After having read your books I want to tell you that I have learned a lot from you. You have the wisdom to teach people how to improve their lives and you know exactly how to do it in a manner that is enjoyable yet profound. Since I became a priest in 1990 one thing I felt I needed so badly is financial literacy. Now that I’m in my 21st year in the ministry I got the answers I have been longing for from your books. I’m definitely sure you have already helped a lot of our kababayans. I wish you all the health in spirit, soul, mind, and body so that you may continue doing that unique service to our people. You are God’s gift to our nation. Salamat po! Oh, by the way, I’m interested in joining the KSK soon. I wish to meet you personally sooner or later when time allows. Be assured of my prayers!”

Armand Bengco is the Executive Director of Colayco Foundation and he gives very inspiring talks to all groups of people in all walks of life. Note this priest who is already in his 40s to 50s and still learned something new.

There are so many priests like Fr. FM who are in the service of God and who teach all that we need to merit eternal life. This is very important because all of us will pass away and if we believe in life after death, we want to make sure that we attain a good life.
Start the path to financial wellness today! Join the One Wealthy Nation community. For more details, visit www.onewealthynation.com

Constant Vigilance

written by Art Ladaga (based on the experience of Mr. Armand Bengco)

You open your email account, checking every message that you got for the past weeks and months. As you continued browsing, you came across an email from an unknown source. You opened to see what it’s all about. The message says that you won a huge sum amount of money. You couldn’t believe it. YOU’RE AN INSTANT MILLIONAIRE!

 

But wait. There’s a catch.

 

Before you receive your “prize,” you need to do something. You’re required to provide personal info and send a certain amount. The sender assures that once they obtained the “necessary requirements,” the money will be sent to your house.

 

You may have the following questions on your mind: “Is the message true?” “Is the sender a legitimate or real entity?” “How did I end up on their email list?”

 

What you got is a spam, an irrelevant or absurd email send to a wide variety of people. And the offer being presented to you is none other than a SCAM! Every day, millions of people receive spams containing ridiculous or outrageous messages. Financial scams are one of them. Even if the essence of the message is unthinkable, there are still people who will fall for them hook, line, and sinker!

 

If you receive an email from an unknown source, here are some important questions to ask to see if it’s a scam:

 

  1. Do you know the sender?
  2. Did you have dealings with the sender before?
  3. Did you remember participating in this “activity?”
  4. Is it possible for the sender to give you such an amount of money? How/where did it get it?

 

If you are in doubt with any of the details, IGNORE AND DELETE THE MESSAGE AT ONCE!

 

Here is a sample spam about getting one’s financial benefits. Observe how this email was immediately identified as a scam:

 

Constant vigilance is a necessary trait to have, especially in money matters. It can definitely save you from making erroneous and costly decisions!

Mr. Armand Bengco is the Executive Director of Colayco Foundation and the General Manager of KSK-SMP Coop.

Art Ladaga is the current Programs Development Officer of Colayco Foundation for Education.

Smart Summer Shopping

Everyone can’t help but feel the heat during summer. It’s a good thing that there are things around to help you cool off during this hot and sweaty season. Nevertheless, there are still instances that the summer heat can get through one’s financial senses. You may spend beyond your budget, buy something that you cannot really afford, or not using your credit card carefully.

How can you enjoy spending in the summer without succumbing to financial strokes?

Check out our Cosmo Cash tip in Cosmopolitan Magazine’s July 2013 issue! True enough, this tip is not just applicable for the summer. You can also do this throughout ANY SEASON!

July 2013 issue of Cosmopolitan Magazine

 

Contributed by Guita Gopalan and Arthur Ladaga of Colayco Foundation

*Fight for your dream of a wealthy future! Join the One Wealthy Nation community today. For more details, visit www.onewealthynation.com today!

All About Scams

by: Francisco J. Colayco

We received this email from CA of Cavite. “nakareceive po ako ng text message/notice from CCF – Colayco Charity Foundation na naglalaman po na nanalo ang simcard ko worth P550,000.00 last Sunday January 22, 2012 dahil daw po sa may fundraising kayo nationwide activities. galing po sa cell #09277734584 ang pangalan po ng nag text sa akin ay Cheza C. Santos.

Unfortunately nung tumawag siya napaniwala niya ako na nanalo po sa ganyang halaga at pinagprovide niya ako ng 5 smart buddy cell card worth P300.00 at another 4 cell card para daw maprocess ang napanalunan ko. Total of P1,600 ang ipinadala ko. Napagtanto ko na niluluko na ako ng taong ito gamit ang pangalan ng foundation niyo.

Tinanung ko po ung address ng office nila before nung tumawag ang nag scam saakin nasa 29 floor Galleria Corporate Center EDSA corner Ortigas Avenue Quezon City 11100 hotline #02395800.

Hope with this situation, matulongan ninyo ako na mastop ang taong ito na manluluko pa ng iba. kaya ko po sinumbong sa inyo ang nangyari dahil ayaw ko po na meron pang ibang tao na maluko niya.

Want to know our reply? Check out the latest article on Good News Pilipinas now! Click here to go to the article.
Be a part of the WEALTH REVOLUTION!!! Join One Wealthy Nation. For more info, visit www.onewealthynation.com.