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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...

Napoleon Hill - Think and Grow Rich

Sharing this timeless book from Napoleon Hill. An excellent read for those who want to learn the Secret to Success. A guide on how to become successful and attain wealth. Napoleon Hills THIRTEEN PROVEN STEPS TO RICHES. Organized through 25 years of research, in collaboration with more than 500 distinguished men of great wealth, who proved by their own achievements that this philosophy is practical.

Savings Versus Investing

Which is riskier, placing your money in a piggy bank or investing it in the stock market? Whenever I talk to my friends about investing in the stock market most of them will tell me that they don't want to risk their money in an investment where in they might lose their money. After the continuous decline of the Philippine Stock market since its all time high last May of 2013 has made a lot of investors scared in investing on the stock market.

If you ask most Filipinos on how they could accumulate wealth, most of them will answering, placing their savings in a bank. The usually will tell you that placing your money in the bank is the safest way to achieving wealth since their savings are covered by the PDIC up to Php500,000. What most of them fail to realize is that their actually losing money by placing it in the bank. Although they are not losing physical money, they are losing the value of their money through the effects of inflation.

So is investing in the volatile stock market riskier than a bank savings account. To understand this more clearly we will explore the different ways of accumulating a million pesos by using different methods in achieving our goal. If a person with a salary of Php10,000 sets aside twenty percent of his income or Php 2,000 for investment how long will it take him to reach Php 1,000,000. We will also take into consideration the effect of inflation on the accumulated wealth once the goal of Php 1,000,000 is reached. The average inflation rate in the Philippines for the past 20 years is 6% per year.

PIGGY BANK0%41 YRS & 8 MO.PhP 1,000,000PhP 87,796.311039%
SAVINGS ACCOUNT0.03%39 YRS & 7 MO.PhP 950,000PhP 99,601.59904%
TIME DEPOSIT1%35 YRS.PhP 840,000PhP 130,039.01869%
LONG TERM TIME DEPOSIT5%23 YEARSPhP 552,000PhP 261,780.1282%
STOCK MARKET AVERAGE10%17 YEARSPhP 408,000PhP 371,747.21169%
STOCK MARKET 1986 - 201315.64%13 YEARSPhP 312,000PhP 469,483.57113%

What Type of Life Insurance Should You Get

Investing in a Life Insurance is one of the basic foundations in achieving financial stability. It frees you of the worry about the future of your family if anything should happen to you. When choosing an insurance it is essential that you understand what type of insurance you need and and their advantages and disadvantages.

Although there are a lot of people who avail on Life insurance products, there are some who have no idea what kind of insurance will fit their needs. The two basic types of Life Insurance is the Term and Whole Life Insurance. Each of these insurance products has their own benefits which will cater to your needs.

How to Look for Bargain Deals

Searching for bargain deals has become easier with the use of the internet. The internet provides us access to international retailers and independent sellers who offer lower prices compared to mall prices. You can save thousands of pesos by exerting a little effort on searching for other sources before making a purchase. Below are some tips you should consider before making a purchase.

Compare Prices
Every time you plan to purchase a big ticket item, it is always better to have an idea on what the prevailing prices are on the market. Ask your nearest local retailers for their prices to get a gauge on the prevailing market price. Search the internet for online retailers so that you will have an idea how much the item costs. If the price difference between the local retailers and online retailers are negligible, then it is more practical to purchase the items at your local retailer. Exerting a little effort before purchasing those big ticket items will prevent buyers remorse save you a lot of money in the long run.

Free $20 Stock Gift Card at Etoro

Etoro is handing out $20 to loyal traders who opened an account before they launched their expanded stock selection. They are giving it to traders who weren't able to avail the free $20 stock investment gift card before.

Etoro has a broad selection of almost a hundred stocks to choose from. They offer a lot of the popular brands such as Nike, Coke, Visa, Apple and more. You can invest in those stocks for as little as $10, and with the free $20 gift card, you can invest it in two stocks or invest it all in one stock for free.

For more details about this promo, watch Etoros official video below.

Disclaimer: Asides from being a trader investing in Etoro, I am not affiliated with Etoro and I am merely sharing this opportunity.

Earn SM Advantage Points at Shell Stations

SM has partnered with shell to provide more points for SM advantage members. You can earn 1 SMAC point for every purchase of Php 250 Shell Quality Fuel. You can also earn points everytime you purchase other Shell products and avail their Services. Check out Shells official website at http://www.shell.com.ph for more details.

Earn SMAC Points by Purchasing Shell Fuel

Philippines Discount Coupons

One great place to look for bargain deals and big discounts is to buy discount group coupons. These websites offer prices at a lower rate once the number of required buyers are reached. These sites have a variety of products to choose from. You can avail bargain deals for Dining, Vacation, Beauty Products and other products. Click on the images below and check out the great deals these websites offer.

Etoro Guru August 2013

One of the unique features of Etoro is their Copy trader. This allows you to copy all the trades a particular trader makes. Since there are a lot of traders to choose from in Etoro, you should be careful in choosing who to copy. Some traders have high return and high risk traders and others are low risk and low return traders. I prefer copying traders with consistent medium returns with sound money management.

One of the traders I recommend, which I personally copy is Hexcho2 or Hesham Kafafi. Hexcho2 doesn't keep a lot of open trades and rarely open high risk trades. His historical performance also shows you that he doesn't have any losing trades. He only uses a small portion of his account in trading. He earned additional 19.9% of his equity last month. For his 3 month gain is 62.5%, while his 6 month earning is 227.4%.

Even with his impressive historical performance, it does not assure future performance. It is advisable that you copy traders in your practice account first before copying them in your real account. For more information about Hexcho2 visit his Etoro profile account at https://openbook.etoro.com/hexcho2/stats/

Why you Should Save and Invest

A person with savings has more options in life. He is free to follow his choices and make his own decisions. He is free to worry about other important things in life. Investing improves your chance to increase your wealth. Investment improves your future financial stability while savings secure your present financial situation. Here are a few steps you can take in order for you to achieve financial freedom.

In order for you to spare some cash for your savings and investment you either must spend less than what you earn or earn more from other sources of income. For starters, you can budget your expenses around eighty percent of your current income and place twenty percent in savings. If it is hard for you to immediately adjust using this budget, start at a smaller portion, and continually adjust the portion until you are comfortable with the amount you put aside for your savings.

Philippine Term Life Insurance

When you are young and starting your own family it isn't easy to accumulate wealth for the financial security of your family. At this early stage in your life, the income you earn may be barely enough to support your family. As you begin investing for the future of your family or your retirement, you can still secure your family by spending a minimal amount each month. You can take extra steps to make sure your family will be okay in case something unfortunate happens to you.

One of the best way to secure the future of your family is to avail a term life insurance. No other investment instrument can secure their financial future at a minimal monthly payment. Insurance premiums are very affordable when you are at a young age. It is in this stage in your life when you have a lot of responsibilities and are usually strapped for cash.

Why You Should Properly Use Your Credit Card.

Credit cards has its advantages if it is used properly. It can provide you with discounts, perks and can even give you a ZERO percent interest loan for purchasing big ticket items. It is only when we abuse or misuse our credit cards that it turns into a burden instead of a tool to help you in your expenditures.

Before you go out and swipe that card at the counter ask yourself these questions. Have I fully paid my previous balance? Do I have cash in the bank to pay for the items once my credit card statement becomes due? Is my available credit enough to pay for the items?

Purchasing Repossessed Vehicles

Buying repossessed vehicles from banks has its benefits. If you are careful at purchasing a repossessed vehicle, you might even get an almost new used vehicle at bargain price. Although their are some vehicles that may look like a bargain it is always advisable that you carefully examine every nook and cranny of the vehicle before deciding on bidding or purchasing it. Meticulously choosing the right repossessed vehicle may save you thousands of pesos in the long run. It is always better to examine and reexamine a vehicle before making a decision. Below are some steps you could take to minimize your risk on purchasing a problematic repossessed vehicle.

1. Contact the bank and inquire about the steps on how to purchase repossessed vehicles. Ask for a list of their repossessed vehicles. Inquire about other additional expenses not included in the price. You can find some of the lists of repossessed vehicles from the links on my previous post Bargain Prices on Bank Foreclosed Properties. Once you have a list of the vehicles available for auction, check for low mileage vehicles that are within your budget. Some banks provide photos of the vehicles available for auction. Once you are done browsing all of the list from the banks, make a list of the vehicles you are interested in purchasing.

What You Should Do During a Stock Market Decline

Yesterday we witnessed the biggest decline of the Philippine Stock market since 2008. All the gains we made from the past two months were all wiped out. It seems as though the market is still continuing to decline further down.

For those of you who are now worrying about your investments turning red, you are probably asking yourself whether you should cut your losses, wait it out, or continue investing. Your decision depends on a lot of things and one important factor to consider is your investment horizon.

Etoro Successful Cash Withdrawal

After more than 7 months in Etoro I have finally made my first withdrawal. It took me a while to generate some profit due to some bad decisions by me at the start. I copied high risk trader in the hopes on earning money quick.

Below are details on the withdrawal I made on Etoro.

After my huge lost last January, I finally decided to copy consistent and reliable traders. I used to copy around 10 Gurus and now I am down to 4. My criteria on choosing Gurus has changed and I only copy Gurus who have good money management strategies and consistent growth in their equity.

Invest Intelligently in Stocks and Bonds

The Philippines is currently experiencing a bull market. The Philippine stock market is continuously hitting all-time highs and is consistently increasing over the past 5 years. Although this is a good thing for investors in the stock market, it will eventually shift and become a bear market. Since no one ever knows when a bear market will arrive it is best that we manage our investment properly and prepare for any event whether it be tomorrow, next year, or ten years from now.

Do You Need A Life Insurance?

Are you married? Do you have kids? Are your siblings financially dependent on you? Are you the breadwinner of the family? Do your parents depend on you for support? If your answer to any of those questions is yes, you should probably think of getting life insurance. 

Life insurance can provide the lost income to those who depend on you in the event where you lose your life unexpectedly. Most of us don't want to entertain our demise thoughts, especially when we are still at the prime stages of your life. 

Since we can never foresee death, it is always better to prepare your loved ones if something happens to you. The primary purpose of having life insurance is to provide income for the people who depend on you financially. Acquiring Life insurance might be the best investment you can make for your family.

Philippine stocks recover after two-day decline

The third investment grade score for the Philippines as well as the all-time high record of Dow Jones cheered the local stock market on Wednesday, sending the benchmark index to a soft recovery after two-day snap.

Astro del Castillo, First Grade Finance managing director, said in a telephone interview that the market mainly bounced back because of another upgrade for the country, which was given by Japan Credit Rating Agency and the record high registered in Dow Jones over night.

Can The Philippines Sustain Growth in 2013?

After witnessing the Philippine Stock Index hit record highs and above expectations on the growth of the economy this year, I wondered if the Philippines can sustain its growth. Watch Rishaad Salamat of "On The Move Asia." Bloomberg interviews HSBC's Trinh Nguyen on her views on economic growth in the Philippines.

Source: http://www.bloomberg.com/

Etoro 3rd Month Update: Regaining from The December Disaster

Tomorrow will be my 3rd month investing in Etoro. After copying a few bad trades I've learned a few lessons which will hopefully help me reach my ROI within a few months. The most important lesson that I learned from the disaster that happened last New Year was to never let greed cloud my judgement.

Back in December I began copying 5 high risk Gurus that ended in a disaster. One of the gurus ended up closing his account, another one ended up wiping out his equity. The remaining three gurus lost around 40-50% of the equity I used to copy them. 

Bargain Prices on Bank Foreclosed Properties

If your in the market on buying a property or used vehicle with limited cash to spare then banks are the best place for you to start searching. Most banks have a list of foreclosed properties on their website and if you already have a good idea of what you want to buy, browsing their long list will be much easier.

Before you go run to the nearest bank near you, it is important that you know what you want and think hard about your decision before you buy a property or vehicle. I bargain prices  Even if you see a property with a very low price it is still important that you examine the property carefully and read the details of the description.

Below is a compilation of some of the Bank foreclosed properties here in the Philippines

If your planning on purchasing a Foreclosed vehicles it is best that you bring a mechanic with you. Some of these vehicles may have pristine exteriors and interiors but since these cars may have been in the warehouse for a while, having a mechanic with you will greatly lessen your chances on buying a lemon.

If you are looking for a foreclosed property, it is important that you read carefully the status and details of the property that you are interested in. Some of the foreclosed properties on their listing are still under litigation or may have problems with squatters. There are also instances when the bank still doesn't have the possession of the property and the previous owner is still occupying the property. It is still important that you make an ocular inspection of the said property before making 
a big decision.

Phillipine Stock Index Breach 6,200, Hit Record High

The PSEi gained 42.31 points or 0.68 percent to 6,234.73, surpassing the 6,192.42 record close on Tuesday January 29, 2013.

"The volumes we've seen in the past few days show that there is increased liquidity in the system that is finding its way into the stock market. This is supported further by expectations of benign inflation and low interest rates. Sentiment continues to be upbeat on the growth performance of the Philippine economy for the year which should support the index's journey to new territories," said PSE president and CEO Hans B. Sicat.

Top Gainers % Change
Alliance Global Group Inc +3.28%
First Gen Corp +3.25%
Megaworld Corp +3.12%
Metro Pacific Investment Corp                             +2.87%
JG Summit Holdings Inc +2.71%
Petron Corp +2.61%
Manila Water Co Inc +2.16%
SM Prime Holdings Inc +1.65%
Manila Electric Co +1.63%
Ayala Land Inc +1.43%
Top Losers % Change
Jollibee Foods Corp -1.09%
Metropolitan Bank &Trust -0.93%
Robinsons Land Corp -0.92%
International Container Terminal Service Inc.      -0.59%
Aboitiz Power Corp -0.39%
SM Investments Corp -0.26%
Semirara Mining Corp -0.24%
Aboitiz Equity Ventures Inc. -0.18%
SM Development Corp -0.17%
Globe Telecom Inc -0.09%

Data Sources: Yahoo Finance & Bloomberg Watchlist

Should You Buy or Rent a House?

Have you ever wondered if it was better to buy a house than to rent one? Whether or not it was better for you to pay a monthly mortgage instead of paying a monthly rent. Most of us that ask this questions rarely know where to start in order to make a good decision. When we think about all the factors to consider, its hard to know where to start. 

Nytimes interactive buy-rent-calculator simplifies the comparison between the monthly rent and annual increase vs monthly mortgage, the inflation rate and the increase in value of the property. I suggest you visit . This tool organizes all of these data and shows the results through charts and detailed computations.

The site also offers advance settings you can adjust in order to make the analysis more accurate. One thing that would have been great is if the site gave you the option of placing interest rate on the down payment if you opted to rent and invest the money for down payment instead. This would have made my decision easier since I am still torn between buying a house or renting and investing the amount on various investment vehicles.

If I invested the down payment in the sample above to stocks, and placed an average annual growth of 10% on the 400,000 down payment, it will amount to 6,584,680.90 thirty years after. If you accounted for inflation rate at an average of 6% the value of the investment will amount to 1,297,359.00. 

Although there are risks in investing in stocks, buying a home also has its own risks. Whether you opt for renting or buying it really boils down on which is more comfortable for you. The tools provided above will only aide you in your decisions.

Bloomberg Watchlist - Essential Tool for Tracking Your Investment

When I started investing regularly in trust funds and mutual funds I had a hard time tracking investments. I had to regularly visit each of my investments website to keep track on the NAVPU for each of my investments.

This really wasn't a problem then since I used the Cost Averaging method in investing in those funds. When I decided to switch my investment strategy to Value Averaging, I was having a hard time tracking the NAVPU of my investments, since I needed to know how much money should I come up for my next investments.

When I found out that Bloomberg has a tool to track all of my investment I immediately registered and tried it out. They have data for most of the mutual funds and trust funds here in the Philippines and their records go back to as far as 5 years. Asides from using Bloomberg Watchlist to track my investments, I can also use it to test out in investing in stocks and study it before immediately jumping in to invest.

If you are regularly investing in Mutual Funds, Trust Funds and Stocks I suggest you visit their website at http://www.bloomberg.com/markets/watchlist/ and try out this tool. The best thing about this tool is it is free.

Invest In UITF, Mutual Funds and Stocks with low Monthly Investments

For the past few years I've been regularly investing small amounts in equity funds through my insurance. Back in 2009, when I started this blog, I was interested in investing in Trust Funds, Mutual Funds and the Stock Market. The only problem was I couldn't come up with the money needed for the initial investment. Every time I reach a certain amount I usually spend it before reaching my goal.

A year ago I made the decision to straighten out my finances and limit my expenses. After a few months I eventually managed to invest in a trust funds. I read some books about investing and learned the ropes in how to minimize risk in investing in equities. I currently have a mixed portfolio of equity and bond funds. Although it took me a while to start investing in these funds. Investing in these funds regularly became easier after seeing the results of my investments.