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Time Value of Money: How to Determine the Value of Money with Respect to Time

Money received today is more valuable than the same amount of money a year from now. It is essential to understand the relation between mone...

Update on my Etoro Forex Investment

After a month on using the Etoro platform I learned a few things to maximize earnings and minimize my losses. I initially deposited $100 and added $153 two weeks after for a total of $253. As of December 7, 2012 my realized profit is $13.41. If I haven't made a mistake of copying two high risk traders my realized profit would have been at $36.57 to date.

Although at the moment my equity is currently at a negative, it is not yet a realized loss until I close my copied trades. If you take a closer look at my portfolio, you will notice that my current equity is lesser than what I deposited. The current P&L are the status of my open trades which is currently at a negative. Once these trades reverses it will turn into a profit.

After losing part of my equity by copying risky traders I learned how to manage my equity on high risk traders and medium risk traders. After analyzing the trading strategies of the gurus I am copying, I learned that I will be better off copying traders who have consistent gains and limit their investments.

I also learned to withdraw the profits every now and then since even the best traders will eventually lose on some trades. On some of the high risk traders I copied, I usually withdraw the profits I made until I recover my investment.

I am currently observing the Gurus that I am copying and I have decided that I won't be copying more gurus until I make my first withdrawal. I will post another update a month from now and once I make my first withdrawal.

Chinabank Money Lift Tax Free Time Deposit

Chinabank Money Lift Tax Free Time Deposit Product

China Banking Corporation (China Bank) has launched Money Lift Quarterly. A five-year-and-one-day time deposit product that offers high interest rates from 4.00%* p.a. for a minimum P50,000 to as high as 4.75%* p.a. for P1 million and above - tiered rates apply for other deposit amounts, substantially higher than other regular savings and time deposit accounts. Best of all, interest earned is tax-free (free from witholding tax if held to maturity) and paid out quarterly. Much more, document stamp taxes are paid by the bank

“MoneyLift Quarterly is ideal for customers seeking to invest their hard-earned money in a deposit instrument that provides security, liquidity, and good returns,” said Vice President for Customer Marketing, Owen S. Maramag. “With the continued low rates for regular deposits, customers should take advantage of this opportunity to lock in high rates for their savings and enjoy the quarterly interest payments, tax-free.”

China Bank’s new long-term deposit instrument combines attractive returns – fixed interest rates for the entire five year tenor – with PDIC cover and liquidity as the interest is credited every three months in a settlement account (savings or checking) which customers can use for whatever purpose or leave with that settlement account to also earn interest.

For More details Check out their websit at http://www.chinabank.ph

Initial investment On Etoro

Despite not so good reviews from other websites I decided to try Etoro with a minimal investment of $100. If I loose my investment I wouldn't be too worried about it. Since I am not totally familiar with forex trading I decided to copy the gurus based on their performance. If all goes well I will be investing more on Etoro.

I will post monthly updates on the status of my investment, how long it took for ROI and the performance of the Gurus that I am copying. The average gain of the Gurus I am copying is 10% per month. At that rate I expect to get my investment back within 7 months.

Equity Investment Strategies - Cost Averaging

Investing in Equity Trust or Mutual Funds is the most rewarding among other funds. This also comes at the price of greater risk in losing your investment. In order to increase your chances of earning more and lessen the risk of losing your investment, I will be discussing a couple of strategies that will maximize your earning through investing in Equity Funds. Some of these strategies will show you how you can make the most of a declining Equity Fund.

Since there are numerous Equity funds both from Trust Fund and Mutual Funds I will be using the Philippine Stock Exchange Index (PSEi) as my basis for these strategies. I will be comparing the Lump Sum Investment which is the benchmark with the Cost Averaging, Share Averaging, and Value Averaging.

Exploring Forex

When it comes to investing, I have always believed with the saying "don't place your eggs in one basket." I am always on the lookout for other alternative ways where I can diversify my investments. A couple of weeks ago I overheard John Calub in the radio talking about financial freedom and the wonderful world of forex.

I listened about how he is currently earning a lot of money through his investments. He was promoting his seminars wherein he was going to share his methods of investments. Although I wasn't able to attend his seminar, I did some research about him and found myself digging through a lot of testimonials.

One thing that caught my attention was his talk about investing in Forex. Back when I was still actively clicking on a lot of paid to click websites I came across an ad about investing in Forex. Since I didn't have a clue about it then, I didn't pay any attention on the advertisement. Fast forward a couple of years after, I came across the same ad from an articles that I was reading about Forex. It was the same ad I read back then and so I decided to click on the ad and read about it.

Buying Cheap and Smart

When ever I am torn between purchasing something cheap, I always remind "You'll get what you paid for". I've bought some items in the past which I thought were bargain but turned out to be junk a couple of days later.
Buying cheap products usually has its trade offs. Most cheap products have lower quality in terms of materials and craftsmanship and often have terrible after sales. After purchasing numerous cheap alternative products such as gadgets and clothing, I learned to compare the value with its price.

Not all cheap item are low quality. There are some items that are actually sold at a bargain price. All you need to do is examine the item before making a purchase. Affordable quality products can be purchased if you know where to find them. Below are some of the ways I purchase items at a bargain price.

Maybank High Yielding Tax Free Time Deposit

For people who are not comfortable in risking their money in high risk investments, Maybank is offering a High Interest Time Deposit product. This is suitable for those investors who prefer safe and secure investments. Since these are bank deposit products they are covered by the PDIC.

The ADDvantage Time Deposit is a fixed interest TAX FREE 5 year time deposit. People can avail this product for a small deposit of P50,000. This product is a great alternative from mutual funds or trust funds.

Product features taken from their website.


Benefits:Net of interest for individual client and waived documentary stamp tax upon maturity
Applicable For:IndividualCommercial
Balance Required:P50,000
Balance to EarnInterest:P50,000
Interest Earned Paid:Individual - 5% net
Corporate - 5% gross
Passbook/Record Book:None
ATM Card:None

For further details visit: http://www.maybank2u.com.ph/

How to Quickly Calculate Returns Using The Rule of 72

In the next couple of weeks, I will be posting useful personal finance tips to help you attain your financial goals. These tips and tools are for people who are just starting to organize their finances.

Most of us are always fascinated with the marketing slogan of double your money in a specific number of years. This marketing strategy has been used in a lot of financial institution to advertise their products. Most of these institutions usually don't specify their interest rates on their ads.

 The RULE OF 72 is a great tool for you to calculate the interest rate of these products. The RULE OF 72 is useful for computing how long it takes for your money to double for a particular interest rate. It applies to compounding interest rates wherein the interest earned will eventually earn interest.

Below are the formula and samples of how you can use the RULE OF 72.




A Time deposit offering a 3% per annum interest rate.

72 / 3 = 24 years

Your investment will double every 24 years




A bank offers a long term tax exempt time deposit DOUBLE YOUR MONEY in 10 years product.

72 / 10 = 7.2 %

Interest rate for the product is 7.2%

The RULE OF 72 is an excellent simple tool for determining which product to invest in. It will help you determine how long it will take you to reach your goal for a particular product.

Why it's Important to Track Your Expenses

Have you ever wondered why you usually have little left days before your next paycheck? Have you experienced emptying your ATM just to pay your bills? I was in this predicament a couple of years ago.

I spent on small things, and I didn't realize that I spent most of my salary on things that I didn't need. I didn't mind those expenses because the costs were negligible compared to my salary. I used to buy coffee during the morning right before I go to work. I would dine out twice or thrice a week with my girlfriend. I never realized that every peso I spent splurging on those little things would add up.

When I finally decided that I wanted to invest to prepare for the future. I made a plan on which products to invest in and when I would start investing. When the date came I didn't have to money to open an account. This continued until I finally decided to track my expenses.

How to Accumulate Wealth and Become Financially Independent

Accumulating wealth can be attained through proper planning and determination, no matter what your current financial status is right now. There are a lot of people who want to accumulate wealth but don't know where to begin. I have listed a few guidelines to help you get started with your path to financial freedom. With a little discipline, patience and determination, you will attain your goals in no time.

Start now! 

Money invested today will earn more than the money that is invested tomorrow. Ask yourself how many times you planned to save or invest but never started. If you don't start now, you will always find a reason why you can start tomorrow. Some of the common reasons people tell themselves are "It is pointless to save now since you can only set aside a small amount." and "I am still young I can always start preparing when I am older". These are the most common misconception among young adults.

When you have few responsibilities and a low cost of living, it is the best time to plan for your future. It is when you are young that you will have more cash to spare for your future. Even though if you are earning a low salary, your expenses are also at a minimum. As you grow older, it will be harder to set aside a portion of your income for your future. Once you start a family, there will be more expenses to worry such as rent or monthly amortization, groceries, utility bills, and tuition fees. Starting young will give you an edge when you grow older. Time is the best tool you have in increasing your retirement fund.

Wise Spending Through Online Discount Coupons

I have always loved to dine out. I usually spend the weekends with my friends or family. When I began thinking about my personal finances, I found out that I was spending a lot on dining out. A huge chunk of my salary went down the drain due to my excessive spending on dining at different restaurants.

Every week I go out explore and dine at different restaurants. Although this started out as something I do regularly with my friends, this has become some sort of a hobby for me to update my blog. Since I loved to dine at different restaurants, I started looking for ways to lessen my expenses on dining out. Luckily for me I heard an ad from the radio about a site that offers group discounts on various establishments.

Investing in UITF and Mutual Funds

I recently started investing in Unit Ivestment Trust Funds (UITF) and Mutual Funds. Even though a lot of these funds performed well the past years I made sure to spread my investments in different establishments, as the saying "Never put all your eggs in one basket".

UITF and Mutual funds offer similar products, they differ mainly by how they charge their fees and the institution that handles your money. UITF are offered by banking institutions while Mutual funds are invested in Mutual Fund Companies. I personally prefer UITF since you can link your bank account to your UITF account.