personal finance

The better way to use ATM

2009-04-11T08:29:00.000-07:00

Avoid using your ATM like wallet for it cost you P7.00-10.00 pesos every transactions.
Do not keep too much money in it to avoid unnecessary withdrawals and Do not withdraw big amounts of money because it risk your life if some theft is near you.

Learn about Banking

2009-04-09T22:58:00.000-07:00

Optimizing your Bank to save more

Savings is where our freedom will comes first but we all know that we have to secure our savings.
One obvious answer on where to put our savings in through bank.

Let's start to know the basic types of Bank accounts.

Saving Accounts-the most basic of banking accounts that secures your money from theft and also makes your fund less accessible compared to your wallet which help you prevent over spending.
Checking account-An account more superior than savings account can make you pay bigger amount of spending which enables you not to draw money.
Time Deposit-this a good place to put your excess cash because of its higher interest compare to the two types mentioned earlier. But the money you will invest will be frozen for such time the agreement is matured.

How interest was computed?

Interest = Principal x Interest Rate x Time

Interest rate is quoted in annual or yearly basis in percent.
To compute the interest in less than a year, you have to devide the interest to 360 and multiply on the number of days covered.
All interest are levied 20% on withholding tax so the computation will be
0.8%(1%-[1%x20%])

Always remember that Banking is not free and you should be mindful of that........
-coolgear-

How to make your money grow?

2009-04-08T22:42:00.000-07:00

It is very important that you start your financial plan now before its too late.
As you improve discipline in your savings, you need to have financial literacy and planning also increase.
PARETO PRINCIPLE (80/20 PRINCIPLE):
States that a small number of cause (20%) is responsible for a large percentage (80%) of the effect.
You have to practice living within 80% of your active income (income you get from your work) this should support all of your basic needs to support you life. (20%) will serve as your self payment, this will be responsible to fund your wealth generation in due time. Eventually becoming a passive income (income you get from your investments).

Your Journey to Financial Freedom

2009-04-07T06:15:00.000-07:00

December 3, 2002, I found myself walking up the stage to receive my hard earned college diploma.
Wow! I can’t imagine how I managed to survive my dreadful experiences being a working student September 2002 in high spirit, I took the Civil engineering board exam to further fulfill my dream of becoming a full pledged Civil Engineer; unfortunately, I was unsuccessful.
I was born poor and I can no longer afford not to work because I have to help my family.
Luckily, I was hired as cadet engineer in a big company based in Laguna.
I worked hard and push myself up to my limit for me not to lose job and further enhance my skills as engineer. My salary keeps on rising every payday in exchange of a good work performance. Some satisfied clients offered me jobs with greater wage and benefits I accepts some just to give better support for my parents and 2 brothers. Again, years passed by so quickly but I am still stuck in financial rut. Because of this, I experienced emotional stress that leads to a poor performance at work. I got sick and was not able to work in a week. Disappointment came when I get my paycheck which is not enough for our expenses as a result being absent. I borrowed money to a friend, He gave me the money say “Pare…You cannot give what you don’t have, save something for yourself and you’ll be alright”. His words strike me so hard that I was able to ask myself what was the purpose why I am working very hard?, then I answered I WANT TO HAVE FUN!, I WANT A COMFORTABLE LIFESTYLE! And I DON’T WANT TO PASS MY AGONY TO MY NEXT GENERATION!...................................HOW?????

YOU CANNOT GIVE WHAT YOU DON’T HAVE

A simple phrase saying if you keep on giving more than what you have, there is a possibility that in due time you will be like the person you are helping. You have to be financially secure first.
It is difficult to start saving but once you get the habit, it is easy as breathing. Make it a habit to save 20% of your salary before you start making your budget, this 20% will be your way out from what financial planners call as “Payday-to-payday treadmill”.

THE JOURNEY BEGINS:
Before you begin your journey, keep in mind the four personal financial guides:
1.) Know your financial capacity (your starting point)
2.) Where do you want to go? (your goals)
3.) Formulate your own budget
4.) Always keep track and analyze your progress.

Now that you already were guided, start now! Not tomorrow or next week for TIME waits for no one.

Good luck on your journey ahead and I hope you learn something…….

-coolgear-