Last time, I posted an article regarding making goals as opposed to just making New Year resolutions, (STOP MAKING NEW YEAR RESOLUTIONS, START MAKING GOALS), after all, this is the start of the year, and while I always thought that today is the first day of the rest of your life (regardless what day it is ) this is merely in keeping with tradition….We all have dreams, We all carry movies in our minds about how life could be for us in a better world. There are those who dreamed of hitting the big time in their career, landing a high-paying dream job, a long sought promotion, a pay raise, etc. while there are those who are of the materialistic types-winning the lotto, mega or whatever. (it’s an all-in-one wish list).
Chances are, most people will never get what they dream about. They will go on playing those mental movies for themselves or talking about them to friends and family members.
Failing to live your dreams is not necessarily a bad thing. Lots of people are perfectly happy dreaming of one life but living another. The problem arises when the gap between fantasy and reality results in unhappiness or even depression. When this happens, it’s time to master plan a new life. And the first step is to establish goals.
Goals are different from dreams in four ways. They are specific, actionable, time-oriented, and realistic.
Specific: Being rich is a dream. Earning P1 million annually is a goal.
Actionable: Winning the lotto is a dream. Winning a marathon is a goal.
Time-Oriented: Earning P1 million annually is a goal. But earning that P1 million a year in five years is a better goal.
Realistic: Earning P1 million annually in five years is probably reasonable. Earning P1 million in four months is not.
I’m assuming your last name is not Zobel de Ayala, Araneta, Sy, Tan, Ty, Yu, or whatever...you know what I mean.
Goals are also different than objectives - more long-term and broader in scope.
Your master plan will be broken down into seven-year and one-year goals, monthly and weekly objectives, and, finally, daily tasks that will make it possible to achieve your medium-term objectives and long-term goals. For example:
Seven-Year Goal: an annual income of P1 million net in five years.
First-Year Goal: Eliminate P50, 000 worth of debt or loan
Monthly Objective: Get that dream job that you’ve been eyeing, or if you’re in sales, close at least twice the no. of sales quota required by your company, and if you’re in business, target twice (or thrice) the average monthly sales you had last year.
First Week’s Objective: Get that job interview, make at least 10 sales calls/presentation, or do a sales promo.
First Day’s Task: Write personal letters to CEOs of my top 10 "dream job" companies. (This on top of your usuall letter of application to head of HR or “The Manager”) or come up with a new killer sales presentation. And make a list or appointment with your prospects.
Okay, that’s the plan. Starting today, you are going to be performing tasks every day that support weekly objectives that, in turn, support monthly objectives that, in turn, support yearly goals that, in turn, support seven-year goals. All of this will be done formally. All of it will be done in writing.
At this point, you may be wondering: "Does it really matter whether my goals are specific? Does it make any difference if I write them down?"
Consider this..
Several years ago, there’s an interesting bit of information in a book by Tom Bay - Look Within or Do Without - that was completely mediocre except for this one little gem. According to Mr. Bay, Harvard Business School did a study on the financial status of its students 10 years after graduation and found that (remember were talking Harvard grads here):
• As many as 27 percent of them needed financial assistance.
• A whopping 60 percent of them were living paycheck to paycheck.
• A mere 10 percent of them were living comfortably.
• And only 3 percent of them were financially independent.
The study also looked at goal setting and found these interesting correlations:
• The 27 percent that needed financial assistance had absolutely no goal-setting processes in their lives.
• The 60 percent that were living paycheck to paycheck had basic survival goals (such as managing to live paycheck to paycheck).
• The 10 percent that were living comfortably had general goals. They thought they knew where they were going to be in the next five years.
• The 3 percent that were financially independent had written out their goals and the steps required to reach those goals.
And that’s just one study. Here’s one that shows the power of setting specific goals:
Researchers from Virginia Polytechnic Institute and State University asked 56 female undergraduates to do as many sit-ups as they could in 90 seconds. One group, told to "do their best," averaged 43 sit-ups on each day of the four-day study. The other groups, which had been given the specific goal to do consecutively more sit-ups at each session, performed significantly better, averaging 56 sit-ups on the last day of the experiment.
Studies are great, but personal experience is better.
You can spend your whole life dreaming. And dreams are wonderful things. By all means, dream away. But if you want to turn those dreams into reality, you need to transform them into goals.
What’s your wildest, longest-held dream? How can you make it specific? How can you make it actionable? How can you put a time limit on it? How can you make it realistic? Use these four questions to create goals you can aim for… then take action. And you’ll be living your dream in a few short years.
Source:http://www.earlytorise.com/2008/02/04/personal-goal-setting-or-dreaming.html
Friday, January 9, 2009
Monday, January 5, 2009
STOP MAKING NEW YEAR RESOLUTIONS! START MAKING GOALS!
"You read a book from beginning to end. Achieving your goal is
the opposite. You start with the end, and then you do everything you must to reach it."
The year is almost over, with the New Year comes the usual New Year resolutions, most of us are actually aware that we can’t stick to it,
its only in keeping with tradition, (much like those firecrackers we set-off at midnight, when its over, wala na)not in keeping it. So I’m thinking (duh) why not make a resolution the same way most of us do business, make a goal, and to make sure you stick with it, make it quantifiable or measurable. For example, why not make a financial goal? (ok I’m beginning to sound like an insurance salesman, of which I am he he) let’s say P10,000 every quarter in savings, which you could eventually use to invests, pay-off an existing loan or maybe an emergency fund, its up to you, as long as you start saving. One of the nice things about having savings as your goal is that you are actually hitting more than one bird with a single stone, (Be financially independent,I will balance my accounts, not get into debts, stop unnecessary expenses, limit nightly gimmicks etc.) Consider the following methods in attaining your goal. (I got this from Inquirer.net)
1. Watch closely where your money goes-It could hold the solution to your “I don’t have much money” or I don’t know where the money went” woes”.
2. Decide where your money will go-since savings is your goal for this year, now is the time to make-up your mind what you are saving for, pay off your loans, educational plans for the kids, a future trip..but get into the habit first.
3. Make a spending plan-Allocate your earnings wisely by making a written budget every month (something most of us don’t do) experts say pay yourself first (now that’s a good idea)-meaning set aside some amount for savings (an old envelope will do, but make sure you won’t touch it) before you settle bills and spend money. A good starting point would be 10%, but do make it bigger as your income increases or your debts decrease. Then set a ceiling for your regular expenses, now you’re starting to live within your means.
4. Start an emergency fund-you can use your savings as an emergency fund in case of emergencies or unplanned expenses, god willing if nothing of the sort happens, then your savings remains intact, if something of the sort does happen, at least you have something you can fall back to, especially if you lose your job. sort of your own insurance.
5. Manage your debt-never get one you can’t afford to pay, before you get one, compute your budget and see if you can afford to regularly pay them for a period of time. Applies also to credit card purchases.
6. Protect your name-maintain a good record, pay off your bills on time. your income tax promptly, etc. your good name is one of your( if not the) most important assets.
7. Look for ways to grow your income-maybe you can get a sideline business or job, to compliment your present income, then use the extra for investment. As the Chinese say: “yung pera lipad lipad lang yan, ikaw bahala habol” (money is just flying all around, its up to you to catch it)
8. Have the essentials-If you’re not: be a member of the SSS, and Philheath, get an insurance policy, this includes, hospitalization, disability, accident, even a memorial plan. Stop fooling yourself you don’t need them.
9. Be serious about investing-Those savings you put aside can earn more when placed in a proper investment vehicle. Leave some in a savings or checking account, but put the bulk in higher-yielding-mutual funds, UITF’s, stocks or bonds, depending on your appetite for risk, talk to a Banker or Financial planner, read articles regarding personal finance (Fancisco Colayco’s “Pera mo’ Palaguin mo” would be a good start-also see link below) an while some may think its not a good idea because of the crisis, come to think of it-its actually the best time, besides investments should be treated as long term, at least 10 yrs.
10. Share your blessings-I think this is self-explanatory
HAVE A PROSPEROUS NEW YEAR
Links:
www.colacofoundation.com
www.income-tacts.com
www.pinoysmartsavers.com
www.icap.com.ph
www.rfp-philippines.com
the opposite. You start with the end, and then you do everything you must to reach it."
The year is almost over, with the New Year comes the usual New Year resolutions, most of us are actually aware that we can’t stick to it,
its only in keeping with tradition, (much like those firecrackers we set-off at midnight, when its over, wala na)not in keeping it. So I’m thinking (duh) why not make a resolution the same way most of us do business, make a goal, and to make sure you stick with it, make it quantifiable or measurable. For example, why not make a financial goal? (ok I’m beginning to sound like an insurance salesman, of which I am he he) let’s say P10,000 every quarter in savings, which you could eventually use to invests, pay-off an existing loan or maybe an emergency fund, its up to you, as long as you start saving. One of the nice things about having savings as your goal is that you are actually hitting more than one bird with a single stone, (Be financially independent,I will balance my accounts, not get into debts, stop unnecessary expenses, limit nightly gimmicks etc.) Consider the following methods in attaining your goal. (I got this from Inquirer.net)
1. Watch closely where your money goes-It could hold the solution to your “I don’t have much money” or I don’t know where the money went” woes”.
2. Decide where your money will go-since savings is your goal for this year, now is the time to make-up your mind what you are saving for, pay off your loans, educational plans for the kids, a future trip..but get into the habit first.
3. Make a spending plan-Allocate your earnings wisely by making a written budget every month (something most of us don’t do) experts say pay yourself first (now that’s a good idea)-meaning set aside some amount for savings (an old envelope will do, but make sure you won’t touch it) before you settle bills and spend money. A good starting point would be 10%, but do make it bigger as your income increases or your debts decrease. Then set a ceiling for your regular expenses, now you’re starting to live within your means.
4. Start an emergency fund-you can use your savings as an emergency fund in case of emergencies or unplanned expenses, god willing if nothing of the sort happens, then your savings remains intact, if something of the sort does happen, at least you have something you can fall back to, especially if you lose your job. sort of your own insurance.
5. Manage your debt-never get one you can’t afford to pay, before you get one, compute your budget and see if you can afford to regularly pay them for a period of time. Applies also to credit card purchases.
6. Protect your name-maintain a good record, pay off your bills on time. your income tax promptly, etc. your good name is one of your( if not the) most important assets.
7. Look for ways to grow your income-maybe you can get a sideline business or job, to compliment your present income, then use the extra for investment. As the Chinese say: “yung pera lipad lipad lang yan, ikaw bahala habol” (money is just flying all around, its up to you to catch it)
8. Have the essentials-If you’re not: be a member of the SSS, and Philheath, get an insurance policy, this includes, hospitalization, disability, accident, even a memorial plan. Stop fooling yourself you don’t need them.
9. Be serious about investing-Those savings you put aside can earn more when placed in a proper investment vehicle. Leave some in a savings or checking account, but put the bulk in higher-yielding-mutual funds, UITF’s, stocks or bonds, depending on your appetite for risk, talk to a Banker or Financial planner, read articles regarding personal finance (Fancisco Colayco’s “Pera mo’ Palaguin mo” would be a good start-also see link below) an while some may think its not a good idea because of the crisis, come to think of it-its actually the best time, besides investments should be treated as long term, at least 10 yrs.
10. Share your blessings-I think this is self-explanatory
HAVE A PROSPEROUS NEW YEAR
Links:
www.colacofoundation.com
www.income-tacts.com
www.pinoysmartsavers.com
www.icap.com.ph
www.rfp-philippines.com
Friday, January 2, 2009
THINGS YOU NEVER KNEW YOUR CELLPHONE COULD DO
This is actualy an old article but still worth posting, considering your mobile phone can actually be a life saver or an emergency tool for survival. Check out the things you can do with it.
I. The emergency no. worlwide for Mobile is 112, If you find yourself out of coverage area of your mobile network and there is an emergency, dial 112 and the mobile will search any existing network to establish the emergency number for you, and interestingly this number 112 can be dialed even if the keypad is locked. try it out.
(Note: I did try it out and it works although what you get is just a voice message which tells you the local emergency no. which is 117)
II. Subject: Have you locked your keys in the Car? does your car have remote keys?
This may come in handy someday. Good reason to own a cellphone; if you lock your keys in the car and the spare keys are at home, call someone at home on the cell phone, Hold your phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. your car will unlock, saves someone from having your keys delivered to you. Distance is no object, you could be hundreds of miles away, and if you can reach someone who has the other"remote" for your car, you can unlock the doors (or the trunk).
(We tried it, and it works)
III. Hidden Battery Power; Imagine your cell battery is very low, you are expecting an important call and you don't have a charger. Nokia instrument comes with a reserve battery. To activate, press the keys*3370# Your cell will restart with this reserve and the instrument will show a 50% increase in battery. this reserve will get charged when you charge your cell next time.
(For Nokia cellphones only, I'm not sure if it works for other brands, or fake nokia and second hand units)
IV. How to disable a STOLEN mobile phone. Check your cellphone's serial number by dialing the following digits *#06# and a 15 digit code will appear on the screen. This number is unique to your handset. and if you bought your unit from an NTC authorized dealer, take the time and effort to have your unit registered by the NTC, so when your phone gets stolen, they will be able to block your handset, rendering it useless, even if the thief changes the SIM card. this applies to those using prepaid services, for postpaid services, it's easier since your units serial no. is already registered when you get it, all you have to do is report it at once when your unit is stolen. You probably won't get your phone back, but at least you know that whoever stole it can't use/sell it either. If everybody does this, there would be no point in people stealing mobile phones.
(We tried it on Nokia and sony-ericsson units, by dialing the same numbers, it did gave it's serial number, I don;t know the procedure for motorola and samsung)
I. The emergency no. worlwide for Mobile is 112, If you find yourself out of coverage area of your mobile network and there is an emergency, dial 112 and the mobile will search any existing network to establish the emergency number for you, and interestingly this number 112 can be dialed even if the keypad is locked. try it out.
(Note: I did try it out and it works although what you get is just a voice message which tells you the local emergency no. which is 117)
II. Subject: Have you locked your keys in the Car? does your car have remote keys?
This may come in handy someday. Good reason to own a cellphone; if you lock your keys in the car and the spare keys are at home, call someone at home on the cell phone, Hold your phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. your car will unlock, saves someone from having your keys delivered to you. Distance is no object, you could be hundreds of miles away, and if you can reach someone who has the other"remote" for your car, you can unlock the doors (or the trunk).
(We tried it, and it works)
III. Hidden Battery Power; Imagine your cell battery is very low, you are expecting an important call and you don't have a charger. Nokia instrument comes with a reserve battery. To activate, press the keys*3370# Your cell will restart with this reserve and the instrument will show a 50% increase in battery. this reserve will get charged when you charge your cell next time.
(For Nokia cellphones only, I'm not sure if it works for other brands, or fake nokia and second hand units)
IV. How to disable a STOLEN mobile phone. Check your cellphone's serial number by dialing the following digits *#06# and a 15 digit code will appear on the screen. This number is unique to your handset. and if you bought your unit from an NTC authorized dealer, take the time and effort to have your unit registered by the NTC, so when your phone gets stolen, they will be able to block your handset, rendering it useless, even if the thief changes the SIM card. this applies to those using prepaid services, for postpaid services, it's easier since your units serial no. is already registered when you get it, all you have to do is report it at once when your unit is stolen. You probably won't get your phone back, but at least you know that whoever stole it can't use/sell it either. If everybody does this, there would be no point in people stealing mobile phones.
(We tried it on Nokia and sony-ericsson units, by dialing the same numbers, it did gave it's serial number, I don;t know the procedure for motorola and samsung)
Tuesday, December 30, 2008
Summary Of my Last Year On The Computer
I must send my thanks to all those who have sent me their emails, because my life has definitely changed, after I forwarded it to a total of 2,170,687 people, costing me more than P300,000 in internet café expenses alone.
I no longer have any savings because I gave it to a sick girl (Penny Brown) who is about to die in the hospital for the 1,387,258th time.
I no longer have any money at all, but that will change once I receive the $15,000 that Bill Gates/Microsoft and AOL are sending me for participating in their special e-mail program.
I no longer worry about my soul because I have 363,214 angels looking out for me, and St. Theresa's novena has granted my every wish.
I no longer go to church or pray because God is attached to the files you sent me, and all I have to do is send it to 25 other people, and that earns me prayer points with God.
Thanks to you, I have learned that my prayers only get answered if I forward an e-mail to seven of my friends and make a wish within five minutes.
Thanks to you, I have stopped paying all my insurance premiums (ya right) because from now on, no accident will ever happen to me, after all, I’ve already forwarded your last email to 15 of my friends.
Because of your concern I no longer drink Coca Cola because it can remove toilet stains.
I no longer drink Pepsi or Dr. Pepper since the people who make these products are atheists who refuse to put "Under God" on their cans.
I no longer use cancer-causing deodorants even though I smell like a water buffalo on a hot day.
I no longer use Saran wrap in the microwave because it causes cancer.
And thanks for letting me know I can't boil a cup water in the microwave anymore because it will blow up in my face...disfiguring me for life.
I no longer check the coin return on pay phones because I could be pricked with a needle infected with AIDS.
I no longer go to shopping malls because someone will drug me with a perfume sample and rob me.
I no longer receive packages from UPS or FedEx since they are actually Al Qaeda in disguise.
I no longer answer the phone because someone will ask me to dial a number for which I will get a phone bill with calls to Jamaica, Uganda, Singapore, and Uzbekistan.
I no longer have any sneakers -- but that will change once I receive my free replacement pair from Nike.
I no longer buy expensive cookies from Neiman Marcus since I now have their recipe.
Thanks to you, I can't use anyone's toilet but mine because a big brown African spider is lurking under the seat to cause me instant death when it bites my butt.
And thanks to your great advice, I can't ever pick up the P500.00 I found dropped in the parking lot because it probably was placed there by a sex molester waiting underneath my car to grab my leg.
I no longer eat at KFC because their chickens are actually horrible mutant freaks with no eyes or feathers.
Oh, and don't forget this one either: I no longer take my kids to jollibee because you told me that their burgers are made of worms imported from china.
If you don't send this e-mail to at least 144,000 people in the next 70 minutes, a large dove with diarrhea will land on your head at 5:00 PM this afternoon and the fleas from 12 camels will infest your back, causing you to grow a hairy hump. I know this will occur because it actually happened to a friend of my next door neighbor's ex-mother-in-law's second husband's cousin's beautician.
This is a forwarded chain email to answer and END all forwarded chain emails ...honestly speaking, do you really believe all that crap?
I no longer have any savings because I gave it to a sick girl (Penny Brown) who is about to die in the hospital for the 1,387,258th time.
I no longer have any money at all, but that will change once I receive the $15,000 that Bill Gates/Microsoft and AOL are sending me for participating in their special e-mail program.
I no longer worry about my soul because I have 363,214 angels looking out for me, and St. Theresa's novena has granted my every wish.
I no longer go to church or pray because God is attached to the files you sent me, and all I have to do is send it to 25 other people, and that earns me prayer points with God.
Thanks to you, I have learned that my prayers only get answered if I forward an e-mail to seven of my friends and make a wish within five minutes.
Thanks to you, I have stopped paying all my insurance premiums (ya right) because from now on, no accident will ever happen to me, after all, I’ve already forwarded your last email to 15 of my friends.
Because of your concern I no longer drink Coca Cola because it can remove toilet stains.
I no longer drink Pepsi or Dr. Pepper since the people who make these products are atheists who refuse to put "Under God" on their cans.
I no longer use cancer-causing deodorants even though I smell like a water buffalo on a hot day.
I no longer use Saran wrap in the microwave because it causes cancer.
And thanks for letting me know I can't boil a cup water in the microwave anymore because it will blow up in my face...disfiguring me for life.
I no longer check the coin return on pay phones because I could be pricked with a needle infected with AIDS.
I no longer go to shopping malls because someone will drug me with a perfume sample and rob me.
I no longer receive packages from UPS or FedEx since they are actually Al Qaeda in disguise.
I no longer answer the phone because someone will ask me to dial a number for which I will get a phone bill with calls to Jamaica, Uganda, Singapore, and Uzbekistan.
I no longer have any sneakers -- but that will change once I receive my free replacement pair from Nike.
I no longer buy expensive cookies from Neiman Marcus since I now have their recipe.
Thanks to you, I can't use anyone's toilet but mine because a big brown African spider is lurking under the seat to cause me instant death when it bites my butt.
And thanks to your great advice, I can't ever pick up the P500.00 I found dropped in the parking lot because it probably was placed there by a sex molester waiting underneath my car to grab my leg.
I no longer eat at KFC because their chickens are actually horrible mutant freaks with no eyes or feathers.
Oh, and don't forget this one either: I no longer take my kids to jollibee because you told me that their burgers are made of worms imported from china.
If you don't send this e-mail to at least 144,000 people in the next 70 minutes, a large dove with diarrhea will land on your head at 5:00 PM this afternoon and the fleas from 12 camels will infest your back, causing you to grow a hairy hump. I know this will occur because it actually happened to a friend of my next door neighbor's ex-mother-in-law's second husband's cousin's beautician.
This is a forwarded chain email to answer and END all forwarded chain emails ...honestly speaking, do you really believe all that crap?
Friday, December 26, 2008
ARE YOU A SCAM-BUG?
Scam /’skam/- a fraudulent or deceptive act or operation (Merriam-Webster online)
Bug-an insect or other crawling or creeping invertebrate, some of which are known to love flying around lights(sometimes endangering themselves) or crawl over waste (that’s sh*t to you)
Ponzi scheme -fraudulent investment operation that involves promising or paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from revenues generated by a real business. Named after the person who started a pyramid scam, Charles Ponzi, an Italian immigrant to the United States who became one of the greatest swindlers in American history. (Wikipedia.org)
Multitel, francswiss, PIP, Royal Manchester, and most recently the Legacy Group of Companies. Which one did you invest in? all or none of the above? Much has been written about “how to tell a scam”, but none is about how to tell if you’re one who is easily duped by one. Based on the reactions of most of the people who were duped in any of the above, I have come up with crude and simple way to tell if you’re one, take a look below and see if it applies to you, it won’t take long.
1.) Insurance agents annoy you, you distrust bankers, and financial planners, however, you are instantly impressed when some hotshot rep of a company you haven’t heard of, or maybe was referred by someone you know, offers you an “INNOVATIVE” way to double your money in 3 to 5 years time “GUARANTEED”!(and this include testimony’s of satisfied clients-persons you know)
2.) You find the intricacies of financial planning such as savings, insurance, bonds, mutual funds, equities, and cost averaging, confusing, dull or boring, and not worth your time, which is why you prefer the”hotshot” who won’t bother you with the details (to explain how the whole thing works,) but goes directly to the bottomline-“ double your money in 3 to 5 years time “GUARANTEED”! Hmm makes sense doesn’t it?
3.) You think savings and investments are only for people who have disposable incomes and claim you can’t afford to have one, even if its only a few thousand for an insurance premium, or initial investment, from well established companies. however when some unknown company dazzles you with its vague” double your money” scheme, you have no trouble coming up with a hundred thousand , and eventually ,when that very same company is shown to be operating a scam, and either folds up or runs away with your money, your fist reaction is denial (that you invested) then, you play down your hundred thousand investment lost as in “at least I only lost that much compared to ...who lost a million or, as in the case of Legacy, you are actually grateful that you still receive a fraction of your total investments as interest payments, despite your principal being lost.
4.) You easily get worried when you hear that the reputable bank in which you have a deposit is exposed to the US sub-prime despite public assurances issued by Gov.regulatory agencies such as SEC, BSP, and even DTI, while on the other hand, you have no problems making an investment with some company who promised to double your money despite warnings by those very same government regulatory agencies about scams and the unsafe and unsound practices of some rural banks.
5.) You think setting aside at least 10% of your net income for savings is too much, while your total expenditures on the lottery (lotto-where you have a one in 80m chances of winning a million,) or maybe swertres (3 digit nos. game-where you have one in 700 chances of winning a few thousand) is at least equal to or more than that.
Bug-an insect or other crawling or creeping invertebrate, some of which are known to love flying around lights(sometimes endangering themselves) or crawl over waste (that’s sh*t to you)
Ponzi scheme -fraudulent investment operation that involves promising or paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from revenues generated by a real business. Named after the person who started a pyramid scam, Charles Ponzi, an Italian immigrant to the United States who became one of the greatest swindlers in American history. (Wikipedia.org)
Multitel, francswiss, PIP, Royal Manchester, and most recently the Legacy Group of Companies. Which one did you invest in? all or none of the above? Much has been written about “how to tell a scam”, but none is about how to tell if you’re one who is easily duped by one. Based on the reactions of most of the people who were duped in any of the above, I have come up with crude and simple way to tell if you’re one, take a look below and see if it applies to you, it won’t take long.
1.) Insurance agents annoy you, you distrust bankers, and financial planners, however, you are instantly impressed when some hotshot rep of a company you haven’t heard of, or maybe was referred by someone you know, offers you an “INNOVATIVE” way to double your money in 3 to 5 years time “GUARANTEED”!(and this include testimony’s of satisfied clients-persons you know)
2.) You find the intricacies of financial planning such as savings, insurance, bonds, mutual funds, equities, and cost averaging, confusing, dull or boring, and not worth your time, which is why you prefer the”hotshot” who won’t bother you with the details (to explain how the whole thing works,) but goes directly to the bottomline-“ double your money in 3 to 5 years time “GUARANTEED”! Hmm makes sense doesn’t it?
3.) You think savings and investments are only for people who have disposable incomes and claim you can’t afford to have one, even if its only a few thousand for an insurance premium, or initial investment, from well established companies. however when some unknown company dazzles you with its vague” double your money” scheme, you have no trouble coming up with a hundred thousand , and eventually ,when that very same company is shown to be operating a scam, and either folds up or runs away with your money, your fist reaction is denial (that you invested) then, you play down your hundred thousand investment lost as in “at least I only lost that much compared to ...who lost a million or, as in the case of Legacy, you are actually grateful that you still receive a fraction of your total investments as interest payments, despite your principal being lost.
4.) You easily get worried when you hear that the reputable bank in which you have a deposit is exposed to the US sub-prime despite public assurances issued by Gov.regulatory agencies such as SEC, BSP, and even DTI, while on the other hand, you have no problems making an investment with some company who promised to double your money despite warnings by those very same government regulatory agencies about scams and the unsafe and unsound practices of some rural banks.
5.) You think setting aside at least 10% of your net income for savings is too much, while your total expenditures on the lottery (lotto-where you have a one in 80m chances of winning a million,) or maybe swertres (3 digit nos. game-where you have one in 700 chances of winning a few thousand) is at least equal to or more than that.
Thursday, December 25, 2008
A LEGACY OF SCAM-BUGS
Pt. Barnum once said, “THERE’S A SUCKER BORN EVERY MINUTE”. First there was Multitel, then Manchester Royal, then Francswiss, then there was Performance Investments (PIP) and now, it’s The Legacy Group of Companies, and if we are to believe Pt Barnum, there will be more (investment scams and their usual victims) in the future, when will we ever learn? We also have that impression, that only the less umm sophisticated (financially) fall for this kind of scam, look closely, victims of PIP, Francswiss also includes people from Dasma and Forbes, and lest we forget, the US Sub-prime also includes Wall Street as its willing victims. That quote by PT. Barnum should be expanded “THERES A SUCKER BORN EVERY MINUTE-EVERYWHERE”.
Going back to Legacy (yes it was “The Group” that I alluded to in my last blog-“Rural Banks and Double your Money Schemes”, also an article by Dr. Raval) this is one instance that we’ve been issuing warnings and dissuading friends from investing, as early as December of 2005, because some officers of the Legacy group were overheard blaming it (again) at the US Sub-prime. when actually, the problem with legacy goes back 2-3 years ago.,( the current sub-prime crisis only blew up 4 months ago). Even during that time, it already looked like a pyramiding scam. Some of my friends listened, but most didn’t, and to think that it was during those times when Francswiss and the PIP scam were hugging the headlines. I even showed them how to tell a scam. Actually I wasn’t even aware of the full extent until last march, when my Partner informed me that the Regional Director of DTI (CARAGA) was already alarmed because the total investments at Legacy in CARAGA alone had already reached more than P500M, mostly from retirees, and probably their separation or pension. In short-all the money they have in the world.
I heard they had a meeting at one of the hotels here, they were expecting officers of the company to arrive all the way from Manila to clear things or maybe assure them, but none showed up. Now they are contemplating a class suit, in the hopes that once all the assets of Legacy will be liquidated, they will be paid, and some are starting to believe a story going around that there’s an interested buyer, and once Legacy is bought, they will be paid. I wish them good luck. since we’re all intelligent to know a scam when we see one, and we didn’t fall for this one, because were not bugs (and we know the meaning of scam) still its worth remembering: ”If it’s too good to be true..it probably is”.
P.S. If you had purchased $1,000 of Delta Air Lines stocks one year ago, you would have $49 left. With Fannie Mae, you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.
But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminium recycling REFUND, you would have $214 cash.
Based on the above, the best current investment advice is to drink heavily and recycle.
Going back to Legacy (yes it was “The Group” that I alluded to in my last blog-“Rural Banks and Double your Money Schemes”, also an article by Dr. Raval) this is one instance that we’ve been issuing warnings and dissuading friends from investing, as early as December of 2005, because some officers of the Legacy group were overheard blaming it (again) at the US Sub-prime. when actually, the problem with legacy goes back 2-3 years ago.,( the current sub-prime crisis only blew up 4 months ago). Even during that time, it already looked like a pyramiding scam. Some of my friends listened, but most didn’t, and to think that it was during those times when Francswiss and the PIP scam were hugging the headlines. I even showed them how to tell a scam. Actually I wasn’t even aware of the full extent until last march, when my Partner informed me that the Regional Director of DTI (CARAGA) was already alarmed because the total investments at Legacy in CARAGA alone had already reached more than P500M, mostly from retirees, and probably their separation or pension. In short-all the money they have in the world.
I heard they had a meeting at one of the hotels here, they were expecting officers of the company to arrive all the way from Manila to clear things or maybe assure them, but none showed up. Now they are contemplating a class suit, in the hopes that once all the assets of Legacy will be liquidated, they will be paid, and some are starting to believe a story going around that there’s an interested buyer, and once Legacy is bought, they will be paid. I wish them good luck. since we’re all intelligent to know a scam when we see one, and we didn’t fall for this one, because were not bugs (and we know the meaning of scam) still its worth remembering: ”If it’s too good to be true..it probably is”.
P.S. If you had purchased $1,000 of Delta Air Lines stocks one year ago, you would have $49 left. With Fannie Mae, you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.
But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminium recycling REFUND, you would have $214 cash.
Based on the above, the best current investment advice is to drink heavily and recycle.
Wednesday, December 17, 2008
RURAL BANKS AND DOUBLE YOUR MONEY SCHEMES
I TOLD YOU SO! unless you live in a cave I'm sure you already heard the news about several Rural Banks belonging to a particular group (of companies), closing (or declaring a bank holiday) or being taken over by the PDIC. and if you happen to be a depositor or an investor well.....
actually this was foreseen coming as early as 2005, when this company started soliciting investments in our place, in fact it was even surprising it took this long before it blew all over.maybe it was because the size; the total assets of all the Rural Banks belonging to this "Group" comprised about 11% of the total assets of all the Rural Banks in the Country.
I was exposed to it first hand because it was also the same time I became involved in the financial markets as a financial consultant. I was also invited to be an investor, and to attend their seminar, it worked like this: They were offering a double-your-money-in five-years type of investment, and the icing on the cake was: the interest would be paid to you in advance (the moment you make your investment) in the form of post dated checks. Honestly, you don't have to be a financial expert or an accountant to see (from the business point of view)that the numbers just don't add up, it smelled like a pyramiding scam (and the news on TV confirms this). Some of my businessmen friends were asking me if it was safe or possible, to which my answer has always been in the form of a another question: "Where can you find a business that actually pays in advance the profit, before the business has even started to operate'? (because thats how it looked like) unfortunately some did invest, which just goes to show that when it comes to greed, even level headed people are not immune. (remember the current US sub-prime crisis?) and now, reps from "The Group" have the audacity to put the blame on the current US sub-prime crisis. below is an article that I emailed to my clients way back at the time when people started investing with "The Group", before the US sub-prime even exploded. Take note of the date of the article, and take heed-because this also concerns other Rural Banks, Financial Establishments or investment instruments as well.
ASK Dr. NOET
By Dr. Johnny Noet Ravalo
INQUIRER.net
Last updated 12:59pm (Mla time) 05/10/2007
What can you say about the 20% interest per annum paid by some rural banks? Interest is paid monthly, covered by the PDIC, tax exempt, with five years maturity. In five years, a time deposit of P1 million will double to P2 million plus? -- Geno Real
A rural bank in my place offers an interest rate of six percent for a regular deposit and as much as 10% for a time deposit. Is the risk worth taking? I will only deposit the amount covered by the PDIC, Where can I check the strength of a rural bank to evaluate the risk I may be taking? Chester Barcenas
Geno, Chester, your respective inquiries are quite similar so let me just take them together.What is probably being offered to you Geno is a double-your-money type of deposit. This takes advantage of a provision in the law that exempts 5-year deposits from the final withholding tax. With this tax break, you would only need an interest rate of 14.8 percent to double your money in five years.
What are the risks to these? The same law that exempts you from the withholding tax says that if you withdraw before the five years are up, you have to pay the tax. The risk here is whether you have enough resources elsewhere to keep you from withdrawing the money you put in the potentially 5-year deposit. If liquidity is an issue, the chances of doubling-your-money in five years are quite remote.
Oh, just to be safe Geno, please make sure that the bank is indeed offering you a deposit instrument that is duly covered by the Philippine Deposit Insurance Corp.In both of your questions, the deposit rate being offered is something you should think about. For banks to continue operating, its lending and investment operations have to earn a premium over the deposit rates it pays out.
Under present reserve requirements (that’s the portion of funds banks are required to keep as reserves), this premium would be roughly 27 percent. That means a 10 percent deposit rate translates to a 12.7 percent loan rate to fund itself. This is before taxes, before administrative costs, before regulatory fees and before any premium for taking the additional risks.
(To put it plainly, if the bank promises you a 20% interest rate, then they have to loan out that same money at least 35% just for them to pay that 20%interest rate with the additional 15% as “spread” -the percentage they charge for operational expenses of the bank, we’re not even considering the profit the bank also has to make for that same transaction. For such a small place, like Surigao-how many do you think can afford to pay such loan rates, and the bank has to loan out that money if they are to pay back the 20% interest rate that they promised- Nards)
Make a judgment if the deposit rates these rural banks are offering seem reasonable to you given its environment and business because, no matter how you spin the calculations, these are the hurdle rates the bank must face to continue doing what it is doing.
The insurance provided by PDIC is a safety net. It should not be counted on as a first way out. The insurance should not give you a false sense of security. The point here is a commonly cited tenet in risk management: 100 year wars do not happen often but they do happen. And when they happen, the chances of you outlasting the war aren't too bright either.
When all have been said and done, the ultimate issue goes back to something Chester asked. It would still be part of your due diligence to judge the stability of your potential bank. It is your money so take the pain to make an informed choice of which bank you can trust with your money.
It all boils down to "trust". Thankfully, this does not have to be a leap of faith since there are clear tangible issues that you can consider and evaluate. But it is also not an exact science. Ask around the place what people think of the bank. Some will like it, others will have their own gripes here and there.
Rafael B. Buenaventura, the former Governor of the Bangko Sentral ng Pilipinas and an internationally seasoned banker was often heard saying: if it sounds too good to be true, it probably is.
Take heed. That is very wise counsel from a man who I consider to have very, very few equals.
*Noet Ravalo is the first Filipino to earn a PhD in Economics from Boston University and is a macro-financial economist by practice and profession. He was chief economist of the Bankers Association of the Philippines until 2002 and has since been doing consulting work for multilateral and foreign agencies. His current engagements are with the Bangko Sentral ng Pilipinas and the PDS Group. Over the past 12 years, he has been asked to provide technical inputs to both the Senate and the House of Representatives on various economic and financial legislation, some of which will have big impact on Filipinos’ personal finances.
actually this was foreseen coming as early as 2005, when this company started soliciting investments in our place, in fact it was even surprising it took this long before it blew all over.maybe it was because the size; the total assets of all the Rural Banks belonging to this "Group" comprised about 11% of the total assets of all the Rural Banks in the Country.
I was exposed to it first hand because it was also the same time I became involved in the financial markets as a financial consultant. I was also invited to be an investor, and to attend their seminar, it worked like this: They were offering a double-your-money-in five-years type of investment, and the icing on the cake was: the interest would be paid to you in advance (the moment you make your investment) in the form of post dated checks. Honestly, you don't have to be a financial expert or an accountant to see (from the business point of view)that the numbers just don't add up, it smelled like a pyramiding scam (and the news on TV confirms this). Some of my businessmen friends were asking me if it was safe or possible, to which my answer has always been in the form of a another question: "Where can you find a business that actually pays in advance the profit, before the business has even started to operate'? (because thats how it looked like) unfortunately some did invest, which just goes to show that when it comes to greed, even level headed people are not immune. (remember the current US sub-prime crisis?) and now, reps from "The Group" have the audacity to put the blame on the current US sub-prime crisis. below is an article that I emailed to my clients way back at the time when people started investing with "The Group", before the US sub-prime even exploded. Take note of the date of the article, and take heed-because this also concerns other Rural Banks, Financial Establishments or investment instruments as well.
ASK Dr. NOET
By Dr. Johnny Noet Ravalo
INQUIRER.net
Last updated 12:59pm (Mla time) 05/10/2007
What can you say about the 20% interest per annum paid by some rural banks? Interest is paid monthly, covered by the PDIC, tax exempt, with five years maturity. In five years, a time deposit of P1 million will double to P2 million plus? -- Geno Real
A rural bank in my place offers an interest rate of six percent for a regular deposit and as much as 10% for a time deposit. Is the risk worth taking? I will only deposit the amount covered by the PDIC, Where can I check the strength of a rural bank to evaluate the risk I may be taking? Chester Barcenas
Geno, Chester, your respective inquiries are quite similar so let me just take them together.What is probably being offered to you Geno is a double-your-money type of deposit. This takes advantage of a provision in the law that exempts 5-year deposits from the final withholding tax. With this tax break, you would only need an interest rate of 14.8 percent to double your money in five years.
What are the risks to these? The same law that exempts you from the withholding tax says that if you withdraw before the five years are up, you have to pay the tax. The risk here is whether you have enough resources elsewhere to keep you from withdrawing the money you put in the potentially 5-year deposit. If liquidity is an issue, the chances of doubling-your-money in five years are quite remote.
Oh, just to be safe Geno, please make sure that the bank is indeed offering you a deposit instrument that is duly covered by the Philippine Deposit Insurance Corp.In both of your questions, the deposit rate being offered is something you should think about. For banks to continue operating, its lending and investment operations have to earn a premium over the deposit rates it pays out.
Under present reserve requirements (that’s the portion of funds banks are required to keep as reserves), this premium would be roughly 27 percent. That means a 10 percent deposit rate translates to a 12.7 percent loan rate to fund itself. This is before taxes, before administrative costs, before regulatory fees and before any premium for taking the additional risks.
(To put it plainly, if the bank promises you a 20% interest rate, then they have to loan out that same money at least 35% just for them to pay that 20%interest rate with the additional 15% as “spread” -the percentage they charge for operational expenses of the bank, we’re not even considering the profit the bank also has to make for that same transaction. For such a small place, like Surigao-how many do you think can afford to pay such loan rates, and the bank has to loan out that money if they are to pay back the 20% interest rate that they promised- Nards)
Make a judgment if the deposit rates these rural banks are offering seem reasonable to you given its environment and business because, no matter how you spin the calculations, these are the hurdle rates the bank must face to continue doing what it is doing.
The insurance provided by PDIC is a safety net. It should not be counted on as a first way out. The insurance should not give you a false sense of security. The point here is a commonly cited tenet in risk management: 100 year wars do not happen often but they do happen. And when they happen, the chances of you outlasting the war aren't too bright either.
When all have been said and done, the ultimate issue goes back to something Chester asked. It would still be part of your due diligence to judge the stability of your potential bank. It is your money so take the pain to make an informed choice of which bank you can trust with your money.
It all boils down to "trust". Thankfully, this does not have to be a leap of faith since there are clear tangible issues that you can consider and evaluate. But it is also not an exact science. Ask around the place what people think of the bank. Some will like it, others will have their own gripes here and there.
Rafael B. Buenaventura, the former Governor of the Bangko Sentral ng Pilipinas and an internationally seasoned banker was often heard saying: if it sounds too good to be true, it probably is.
Take heed. That is very wise counsel from a man who I consider to have very, very few equals.
*Noet Ravalo is the first Filipino to earn a PhD in Economics from Boston University and is a macro-financial economist by practice and profession. He was chief economist of the Bankers Association of the Philippines until 2002 and has since been doing consulting work for multilateral and foreign agencies. His current engagements are with the Bangko Sentral ng Pilipinas and the PDS Group. Over the past 12 years, he has been asked to provide technical inputs to both the Senate and the House of Representatives on various economic and financial legislation, some of which will have big impact on Filipinos’ personal finances.
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