REFLECTIONS ON POVERTY, FAMILY & FAITH

"...For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me." - Matthew 25:35-36

Recently,  I've been blessed to visit two institutions for the first time:  Kanlungan ni Maria (a home for the aged in Antipolo City) and Molave Youth Hall (a "therapeutic center" for youth/minor offenders in QC).  
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Kanlungan ni Maria takes care of 21 abandoned lolo's and lola's while Molave houses around 230 minors who were charged or in the process of being charge of crimes (such as robbery, theft, frustrated murder, rape, public scandal, etc.)
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The first question that came to my mind is why is this happening to our "kababayans"?  Who in their right mind would neglect and leave alone a lolo or a lola?  Why kids at their young age would commit such crimes?
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One reason I can think of is POVERTY.  Maybe lolo's or lola's family cannot support him/her anymore so they have to let them go.  Maybe our youth offenders come from poor families as well and they have to make ends meet by stealing and robbing other people instead...
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Another cause maybe is FAMILY.  Maybe our family foundation is getting weak so that it's okay to let go of our grandparents and it's okay for our kids to roam around the streets and do whatever they want without proper guidance.
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Maybe its also a question of FAITH.  Maybe since we are poor that we feel that we are neglected by God.  We have our own free will and we choose to do what is "practical" in order to survive instead doing what is "moral and right".
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In a recent Advent recollection, the priest said that we must be ready to feel the "tsunami of faithlessness"....I think this is also one cause why these things are happening to us...
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But there is always a ray of light....a goodness in every heart....such as the tireless men and women who provides care to our lolo's and lola's...the social workers and staff who dedicated themselves in guiding and counseling our youth offenders...
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But we need to do more...a question to ask ourselves is NOT WHETHER TO BUY THE NEW iPHONE 4S =)...but more importantly, what can we do more to alleviate POVERTY, promote strong FAMILY values and stress the importance of keeping and living the FAITH...
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Washington SyCip (founder of SGV) said he admires someone if he has done something to reduce POVERTY....
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Ma. Lourdes Carandang (well-known clinical psychologist) mentioned that PARENTING plays a most critical role in nation building...
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Lastly, Jesus said " Come to me, all you who are weary and burdened, and I will give you rest."
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Let us join the fight....starting NOW...in our own little way....whatever we can....

To God be the glory and have a blessed Christmas everyone!

Hope this helps.

Ge

IF I AM SANTA CLAUS...

If I am Santa Claus....I will wish and give you some "priceless" gifts this holiday season...

But first, I will remind you that Christmas is not about me but about the Baby Jesus who was born in a "manger"...

For your country, I wish you freedom from war, poverty and corruption...

For your family, I wish you will celebrate Christmas together and may LOVE and PEACE reign with all of your family members...

For your belief or faith, whether you believe in Jesus, Buddha or Allah, may you continue to keep the faith and your Supreme Being bless you always...

For you my friend, oh there's a lot of things that I would like to give you.  I know you would have wanted a new phone (i.e. iPhone 4s is coming), a new car, a new house, a new job, etc. ..but since your Santa Claus is now an advocate of personal financial planning, I will wish you and give you some "priceless" gifts instead...=)

• HAPP"Y"NESS...(hey, start smiling...)
• PEACE OF MIND...(hey, start appreciating the simple things in life...)
• GOOD HEALTH FOR YOU AND YOUR FAMILY....(hey, start exercising...)
• FINANCIAL WELLNESS....(hey, start budgeting and saving...)
• CAREER FULFILLMENT...(hey, start about thinking and living your passion...)
• POSITIVE FRIENDS...(hey, when was the last time you catch up with your "positive" friends..)
• GOOD LUCK...(hey, we all need some luck too...)
• FULFILLED GOALS AND DREAMS....(hey, dream big and start living your dreams..)
• BACK TO BASICS...(hey, what is really important for you?...)
• LOVE....(hey, GIVE LOVE NOT JUST ON CHRISTMAS DAY...but EVERYDAY!...)

I wish you all a MERRY CHRISTMAS and a blessed NEW YEAR!!!

Hope this helps.


Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).   
 

THINK DIFFERENT: STEVE JOBS and MONEY

I just started reading Steve Jobs' biography written by Walter Isaacson.  I read about one-fourth of the book only and I got so much insights already.  For one, Steve was a perfectionist, impatient a@#$!!hole who only cared about developing the best product and making a dent in the Universe....Anyway, here are some excerpts from the book and Steve's thoughts about money, pursuing one's passion and believing in oneself.

• "I never worried about money.  I grew up in a middle-class family, so I never thought I would starve.  And I learned at Atari that I could be an okay engineer, so I always knew I could get by.  I was voluntarily poor when I was in college and India, and I lived a pretty simple life even when I was working.  So I went from fairly poor, which was wonderful, because I didn't have to worry about money, to being incredibly rich, when I also didn't have to worry about money."

• "I watched people at Apple who made a lot of money and felt they had to live differently.  Some of them bought a Rolls-Royce and various houses, each with a house manager and then someone to manage the house managers.  Their wives got plastic surgery and turned into these bizarre people.  This was not how I wanted to live.  It's crazy.  I made a promise to myself that I'm not going to let this money ruin my life." 

•  Andy Hertzfeld:  "Jobs thought of himself as an artist, and he encouraged the design team (of Macintosh) to think of ourselves that way too.  The goal was never to beat the competition, or to make a lot of money.  It was to do the greatest thing possible, or even a little greater...  We said to ourserlves, 'Hey, if we're going to make things in our lives, we might as well make them beautiful."

• "We all have a short period of time on this earth.  We probably only have the opportunity to do a few things really great and do them well.  None of us has any idea how long we're going to be here, nor do I, but my feeling is I've got to accomplish a lot of these things while I'm young."

• On deciding to start Apple:  "Even if we lose our money, we'll have a company,  For once in our lives, we'll have a company."  This was exciting to Steve Wozniak, even more than any prospect of getting rich.  He recalled, "I was excited to think about us like that.  To  be two best friends starting a company.  Wow, I knew right then that I'd do it.  How could I not?"
  

• On being a drop out:  "All of my working-class parents' savings were being spent on my college tuition.  I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out.  And here I was spending all of the money my parents had saved their entire life.  So I decided to drop out and trust that it would all work out okay."

Hope this helps.

Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).   

THE VALUE OF FINANCIAL PLANNING

":For which of you, intending to build a tower, does not sit down first and count the cost, whether he may have enough to finish it; lest perhaps, after he has laid the foundation and is not able to finish, all those seeing begin to mock him, saying, This man began to build and was not able to finish." - Luke 14:28-30

To realize the value of financial planning, ask a Lotto winner who suddenly won a hundred million but only to lose  all of it after a couple of years....

To realize the value of life insurance, ask a young widow who lost her husband and left her with three pre-schoolers...

To realize the value of a fire insurance, ask a businessman whose store or warehouse has been burned and nothing was left...

To realize the value of health insurance, ask a sick person who needed to advertise in a daily newspaper that she has cancer, she has no money and she is pleading for donations...

To realize the value of having an "emergency fund", ask a parent whose child suddenly had an  accident or a homeowner whose house or car has been flooded due to Ondoy or Pedring...

To realize the value of budgeting, ask a mother who earns a minimum wage and is feeding eight children and a sick parent...

To realize the value of saving, ask a young couple who can't wait to get married and start their own family...

To realize the value of investing, ask an OFW who worked for more than 10 years in Saudi only to come home broke, in debt and with only his appliances and "Magic Sing" as his treasured possessions...

To realize the value of a retirement fund, ask a Lolo or a Lola who worked for 40 or more years and raised his/her kids to be professionals but only to be left with no money and is unsure who will take care of them at their old age...


To realize the value of investing in debt payments, ask an employee who is "baon sa utang" and credit card companies are hounding him left and right...

Lastly, to realize the value of giving away money, examine the lives of St. Francis of Assisi or Mother Teresa...

Hope this helps,

Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).  
   

BASKETBALL FINANCE: ALI "MAN MOUNTAIN" PEEK

“Every man dies - Not every man really lives.” - William Ross Wallace

A couple of weeks ago, Ali Peek (PBA Talk & Text center/power forward) was shot in the neck at a parking lot after his workout.  Up until now, the police and Ali's family/friends are still clueless who did this and why.  Gladly, Ali survived and is now getting better. 

But the question is why?  People say Ali is one of the nicest guys in the PBA. He even won the Sportmanship Award back in 2007.  


Sometimes we really can't tell what will happen to us...


Sometimes you're up, sometimes you're down...


Sometimes its hard to understand why bad things happen to us even if we try to be nice to everybody...


Sometimes we worked so hard for our future, only to be stricken by a major illness or an unfortunate event...


So what can we do...the answer is to be ALWAYS PREPARED...let us cover the major aspects in our lives...

• Spiritual - Are we prepared to meet our Maker anytime soon?  Have we done enough for His glory?   Have we shown that we love Him and our neighbors?
• Relational - Do we treat our families as our top priority? Do we strive to spend quality time with them and show our unconditional love to them?  What legacy are we going to leave our children? 
• Financial - Do we have "income replacement" in case of sudden death, disability or critical illness?  If you are suddenly taken out of the picture, how will your family sustain their lifestyle?
• Physical - Are we taking care of our bodies to prevent any illness?  Are we strengthening our immune system so that even when illness or an accident strikes, we can recover quickly?
• Mental - Do we firmly believe in ourselves and stay positive?  Are we focused on our dreams despite the ups and downs?
• Social - Have we surrounded ourselves with positive and supportive friends who will always be there for you in good and bad times?  Do we prefer to have a thousand FB friends or just a few TRUE friends?
• Intellectual - Have we used our degrees, titles, and talents to the best of our ability and for the common good?  

I know we have lots of things to do.  We just need to prioritize which ones are important and take one small step at a time.

Hope this helps,


Ge

P.S.  God bless you and your family Mr. Ali Peek!


Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).   

 

Pacquiao and Personal Finance

What will you do if you are Pacquiao and you are guaranteed to earn $22 million USD for the fight which may even rise to $30 million once the pay per views and ticket sales come in?  WOW!!!!

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Sometimes we feel this way whenever we receive loads of money, as when we receive our 13th and 14th month pay, Christmas bonus, performance bonus, etc.  We are one time - big time.  We are the king of the world!!!

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The first thing that usually comes to our mind is to TREAT OURSELVES and BUY OURSELVES A PRESENT....after all, we deserve it after weeks or months of hard work.  I think there is no problem with this, the only issue is what will we buy?  If you're at PACMAN's level, this means a new car, a new house, LV and Hermes bags for Mommy D. and Jinky , new gadgets for the kids, etc.  If you're an employee or OFW, its kinda similar to what PACMAN does, only at cheaper prices and smaller quantities.  Right?

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Anyway, as a tribute to our "Pambansang Kamao", here are some suggestions on what to do with your bonus or extra money:

M - Make a budget on how will you invest/save/spend the money!  Rule of thumb is pay yourself first.  So why not allocate at least 20% of your bonus for investment/savings purposes.  10% for charity, tithing, church, helping others, giving back to your community, gift-giving, etc.  Then the remaining 70% for your spending (wisely!) purposes.    

A - Allocate a portion of your money for self-improvement.  Manny is already contemplating what he will do after boxing, how about you?  What are your career plans?  Why not learn a new skill, a new hobby, a new language, a new sport, a new business venture, a new investment vehicle?

N - Next is health!  We need to remain in tip top condition like Manny.  So please do your annual executive check-ups, treat any health issues rather than ignoring your ailment, get a health card for yourself and family (kung wala pa), go visit your dentist, treat yourself for a massage.

N - "Nanay Dionisia" factor.  For our aging parents, how can we make them happy for the remainder of their retirement ages?  I think as they grow old, they appreciate the simpler things in life.  Instead of buying them Hermes bags, why not accompany them to the doctor for their own executive checkup.  Maybe they need to visit their province of origin, meet up with relatives/friends.  Maybe we need to start thinking of purchasing a memorial plan and investing in a memorial lot or start studying about estate planning.    

Y - Your family's future.  Aside from the material things, our families will appreciate it if we start planning for the future.  That dream house, the kids' college fund, you and your wife's insurance and retirement plan.  

P - Play therapy.  I learned from a parenting seminar that play is very important for kids as they feel empowered when playing.  Play refers to physical activity rather than just shoving a computer or video game to a kid to play in the corner.  So why not bring your kids to the park or resort or carnival, have a simple picnic, and play together as a family. These little (not so expensive) experiences are what the children cherish.

A - Acts of random kindness.  We received so much blessings for the year, what can we give back in return?  Who can we help?  They say charity begins at home.  Maybe a struggling brother/sister or relative?  (but don't give them the fish,  rather teach them how to fish).  There are also a lot of orphanages, home for the aged, cancer-stricken kids, city jails we can visit.  

C - Christmas spirit.  Are you making your Christmas list already?  Who has been naughty or nice to us?    I accept that Filipinos love to give gifts!  But we just need to budget and avoid overspending and charging everything to our credit cards!  The tendency is during Christmas season, the possibility of maxing out our credit cards is highly probable!

Q - Quit smoking.  Smoking is just a literary expression of bad habits we need to break.  Its time to reassess what habits we need to stop for the betterment of our financial, relational, physical and spiritual health.  If we do this, then we can spend our bonus/extra money to other meaningful things!

U - Unli income.  Do you want to have unlimited income?  Why not spend your bonus or extra money with "earning" assets instead?  Your choices include:  real estate, business, mutual fund, UITF, stocks, variable insurance, bonds, etc.

I - I love PH.  Ask now what your country can do for you, rather what you can do for your country.  If we're gonna spend this season, why not support Filipino products.  Also, maybe its time to correctly pay our taxes to BIR or pay that overdue SSS or Pag-ibig loan.

A - Ahora mismo!  Invest in debt payments as soon as you have your bonus.  Before investing in other products or spending on consumer goods, maybe it will be good to pay-out your personal debts first!

O - OMG!  Lastly, we owe everything to our God so why not donate some to your local church, support its "stewardship" program, and invest in a Bible, the best book we can have.

Hope this helps.


Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).  

OFWs and Investing

A true luxury is a reward for investing in and developing a real asset." Robert Kiyosaki

Yehey!  It's almost Christmas.  Time for family and friends reunions.  Balikbayan boxes are slowly arriving.  Cash registers of malls are buzzing.  I bet our fellow OFW friends can't wait to go home for a much deserved break!!!
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Only in the Philippines.  When I was working in London, I used to have my vacation every December.  Everytime the plane lands in Manila, our hard-working Kababayans can't help but clap and cheer!!!  They were just ecstatic at the thought of seeing their families and friends again.  They can't wait to give their "pasalubongs", including the 4 to 5 handcarried items they brought. =)
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Where do the typical OFW invest or should I say spend their money when they come home?  Based on my observations/experience, the first items on the list are usually home appliances, i.e., new TVs, component (radio/CD players), DVD players, washing machine, laptop and the ever important, Magic Sing (karaoke system).  The ladies have new bags, new shoes, new dress, new jewelries, new perfumes.  The gents have new shirts, new watches with matching gold "bling blings", new Nike basketball shoes and a new CAR, why not?!!    On the otherhand, the kids normally have new toys, new dresses and tons of chocolates.  Ah before I forget, everyone gets a new cellphone!
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After the spending spree, here are the usual conversations:  "Di bale na, ngayon lang naman nakakaluwag."  "Kahit papanu, masaya ako at nakikita ko kung saan napupunta yun pinagpaguran ko."  "Masaya ako at nageenjoy ang pamilya ko."  "Konti-konti ko nang nakukumpleto ang mga gamit sa bahay". "  "Kaya ko naman kitain yan gagastosin ko sa next na sahod o next na biyahe ko."
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 According to InvestoWords.com, an "investment"  in finance relates to the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means to use money in the hope of making more money.
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Going back to the above scenarios, do we really invest or just spend on non-earning assets?  Do we buy assets that will generate income or more assets?  Do we earn money to make more money?  Sayang naman kung mapupunta lang sa "panandaliang' kaligayahan ang pinagpaguran nyo sa ibang bansa.  Sana magkaruon tayo ng "delayed gratification" mentality wherein tiis ng konti now for a better future.
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Where to invest? Here are some options:  1) stocks (check out CitisecOnline); 2) mutual funds (check out Philippine Funds Investment Association); 3) unit investment trust fund (go to your nearest BPI or BDO branches); 4) variable or unit-linked insurance (ask your Pru Life UK Financial Consultant, like me, ehemmmm); 5) business - franchise or own (read Entrepreneur magazine); 6) properties (preferably commercial / non-residential); and a lot more.
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Who to ask for advice?  There are a lot of personal finance coaches/experts and blogs out there.  I humbly admit that I have a lot to learn so I recommend the following experts: 1) Randell Tiongson (www.randelltiongson.com); 2) Efren Ll. Cruz (www.personalfinance.ph/); 3) Registered Financial Planners Institute members (www.rfp-philippines.com/); 4) Investopedia.com; 5) PinoyMoneyTalk.com; 6) MoneySense magazine; 7) Entrepreneur magazine; 8) Pesos and Sense (watch every Saturday, 8am, GMA News TV)
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More importantly, "dapat pag-aralan ng mabuti bago pasukin ang anumang pagkakakitaan."  We should know ourselves first kung anung klaseng investor tayo (tayo ba ay conservative, aggressive or medyo gitna lang) at kung anung investment ang naiintindihan natin.


Hope this helps.


Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo). 

   

10 Personal Finance Things to Do on a Long-Weekend Break!

Here are some great financial quotations I got from the net:  

"The spend thrift is happy a few hours; the saver, all his life."

"Beware of small needless expenses. Small leaks sink big ships – and big men – and big business – and big nations." 

"Failing to distinguish between needs and wants keeps many people poor. Think."  
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It's gonna be a long-weekend here in the Philippines.  Nov. 1 and 2 are declared non-working holidays!  Yehey!!!  What are your plans for the 4 day break? Enjoy, have fun, but don't break the piggy bank! =)

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Maybe you can alot a "small" amount of time to catch up with your personal finances?  Can you spare half-a-day or even 1 or 2 hours to do your financial planning chores?  You will have a total 96 hours (4 days multiply by 24 hours) of free time, anyway.  How much time can you allocate for your financial matters?
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I was listening to a John Maxwell CD the other day and he said, "Most people spend more time planning their summer vacations, than spend time planning their lives!"  I would like to add that aside from physical (or health), relational (or families), intellectual (or careers) and spiritual, the "financial" aspect needs proper attention and planning too.
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So for the long-weekend break, may I suggest 10 things you can do with regards to your personal finances:


1. Calculate your net worth (assets minus liabilities).  Have you ever wondered where are you now financially?  Do you have more assets than liabilities, or the other way around?  Since you graduated from college, how long have you been working?  With the XX no. of years you have worked, "anu na ang mga naipundar nating mga ari-arian at magkano na ang ating mga pinagkakautangan?"  Don't worry if you have more "utang" than assets.  It simply signals that you need to start controlling your finances and believe that a better future lies ahead!
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2. Assess your spending habits.  Do you spend more than what you earn?  What items do you usually splurge on?  Do you know how much are your regularly spending on bills, food, cellphone load and other discretionary items like watching movies, coffee at Starbucks, dining out?  Maybe its time to jot down and record your expenses on a daily basis to keep track of your spending.  Also, maybe it will also be helpful to come up with a monthly budget to ensure that all expenses are within limits and a certain amount/percentage is allocated for savings.
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3. Assess your savings/investment habits. Do you save or invest every payday or on a regular basis?  Do you allocate at least 10 or 20% of your income for savings purposes?  Where do you save or invest?  Is your money earning more than 4 to 5% per year (this is the average inflation rate)?  Have you explored other savings vehicles aside from savings and time deposits?  Maybe its time to learn more about stocks, mutual funds, unit investment trust funds, variable or unit-linked insurance.  To learn more about personal finance, check out "www.investopedia.com" or search J. Randell Tiongson's (personal finance coach) blogs or grab a MoneySense magazine at National Bookstore.
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4. Review your life insurance policies.  Do you already have a life insurance?  If you are the breadwinner of the family or you think your loved ones will suffer a financial loss in case of you pass away, then you need to get a life insurance.  If you already have one, check how much is the basic coverage and what are the other benefits/riders.  Do you have protection against disability and critical illness (i.e. cancer, stroke, heart attack, etc.)?  To know if your life insurance is enough, ask the help of a financial planner so he/she can perform a "financial needs" analysis.  You can ask me too, of course.  =)

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5. Organize your financial documents.  Its time to dust off those important files and place them in secure/safe location.  These include your birth certificates, marriage certificates, land titles (TCTs), bank passbooks/statements, credit card statements, investment/stock certificates, insurance policies, memorial plans, health plans, etc.
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6. Write your financial goals and dreams.  What are the things that you still want to accomplish in life?  Buy a new car, get that dream house, or study abroad, or set up a college plan for your kids, or a retirement fund for your self and spouse?  It helps to write it down, be specific and set a realistic deadline.  Since you will be on a vacation, pick a good spot (whether at home or by the beach) to reflect on the things you want to do and the legacy you want to leave for your family.  =)
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7. For our retired parents.  For those who still have parents, I hope they are still well and enjoying their retirement.  What I will say next maybe a little sensitive, but I hope you will see the value of these things.  For one, we need to start thinking about "estate planning".  Estate planning is more than just preparing a last & will testatement.  It is more importantly about protecting and preserving the wealth they have accumulated by minimizing estate taxes in case at death.  Study about estate planning or consult a lawyer or financial planner.  Other things we need to consider now is getting a memorial plan and purchasing a memorial lot.
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8. For our young children.  For those who have young kids at home, you need to start planning for their college education.  Where do you want them to study in college?   How much would it cost you in the future?  How will you save?  Are you going to save on your own, or will you purchase a college educational plan from reputable life insurance companies?
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9. For our retirement years. When do you plan to retire?  What kind of lifestyle do you want to have when you retire?  Have you started saving for your retirement or "bahala na"?  How do you plan to save for your retirement?  Do you think your SSS or GSIS pension or your employer's retirement plan is enough?
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10.  For our community.  Do we think only about ourselves and our families?  Or do we aim for a higher purpose of serving and giving back to our communities?  The Gospel today was about the 12 apostles and the Homily was about vocations.  The priest asked an important question, "We all have different vocations/careers.  Whatever vocations we have, how do we show Christ to others?"  Do we give our tithes, support a charity/foundation, help the poor in our own little way, or do we share our time, talents and treasures?  Maybe we can include just one more item in our financial budget for tithing, sharing and giving.

Hope this helps.

Ge  

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo). 

FACEBOOK AND PERSONAL FINANCE

"Facebook helps you connect and share with the people in your life." - Mark Zuckerberg


"FinanceBook helps you achieve your financial goals for the most important people in your life." - Ge Cantor =)

I've searched the net to find out why people go to Facebook.  The common answers are the following:

• To keep in touch with friends;
• To re-connect with people you've lost contact with;
• To express yourself on your wall post or page;
• To reduce stress from work, studies, family, etc.; and
• To join a group of people with common interests

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Facebook has definitely made an impact and will continuously affect our lives.  Do you FB at work, in school, at home or while in transit?  How long do you spend time checking those status updates/news, reading those shared quotes/stores, and viewing those pictures/videos?  Are you now "addicted" to FB? =)
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In terms of personal finance, has FB helped us improve our finances?  Does it help us to be more productive at work that translates to high performance rating and higher bonuses?  Has FB help us control our expenses and improve our spending habits?  Maybe FB is not designed to do all these things.  So may I suggest another "FB", and this is your FinanceBook.
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As in Facebook, you may start with your FinanceBook by creating your financial profile.  Your profile should include the following:

• Basic Information and Family - this about you, your age, your work, your relationship status (single, married, in a relationship or it's complicated); your family details (those dependent on you - your spouse, kids, your complicated bf/gf, etc.)
• Personal Financial Condition - this includes the list and corresponding values of your assets ("mga pag-aari") and liabilities ("mga pinagkakautangan").  Assets minus liabilities equals your Net Worth.  Do you have a positive or negative Net Worth?
• Cash Flow and Budgets - this includes your cash "ins" and cash "outs".  Cash "ins" are your monthly salary, income, commissions, allowance, "mga pinagkakakitaan" etc.  Cash "outs" are your monthly expenses, spending, bills, "gastos", "mga binabayaran" (savings/investments included).  Is your monthly income sufficient to cover your monthly expenses?  In other words, are you living below your means?  Are you following a monthly budget?
• Financial Goals and Dreams - What are your or your family's dreams and goals?  A new car, your own family house, pay-off all those debts, setting up a fund for your retirement or educational fund for your kids, etc.  Write it down, make it SMART as possible, cut out pictures or upload PHOTOS if you like (visualize your dreams).   By the way, this is applicable for everyone, whether you are single, married or in a complicated relationship. =)

***  
After setting up your financial profile in your FinanceBook, its time to "Add Friends".   You need friends to help you achieve your financial goals.  Here's the list of Finance Tools You May Know - See All:

To decrease your expenses/spending:

• Cash Flow Monitoring - so you can come up with a budget, it is better to write down your cash "ins" (income) and cash "outs" (expenses) for at least 3 months.  You may use a notebook, Microsoft Excel spreadsheet, or even your cellphone.  I suggest you keep your receipts for easier monitoring.  Just a warning, its gonna be hard to do this at first.  But if you can be on Facebook for an hour or more a day, why not update your FinanceBook for just 10 to 15 minutes a day or even 30 to 40 minutes every weekend!
• Credit Card Control - if you have a low self-control in using your credit cards, your best friend will be a "scissor" to cut in-half your credit card/s.  If you can't cut it immediately because it has an outstanding balance, your other friend can be your "refrigerator".  Put your credit card in the freezer and GO LEAVE HOME WITHOUT IT!
• ATM Control - similar to credit card, if you have a low self-control in using your ATM and you withdraw money everytime you see a SALE sign, better leave home without it and just bring enough cash for your daily needs.

To increase your income whether active or passive:

• Self-Assessment of Skills & Talents - can you earn extra bucks based on your current skills, knowledge, talents, hobbies?  Can you do networking, direct selling or be a Virtual Assistant ?
• eBay/Garage sale - can you sell stuff that you don't need anymore via traditional means (have a garage or "car booth" sale)  or on-line through e-Bay or sulit.com?  Hey, please don't sell items that are not yours!  Baka hanapin yan ni erpats or ni ermats!  =)
• Bank products and services - aside from savings and time deposits, your bank has other high-earning products like Unit Investment Trust Funds (UITFs).  You may also set-up an "automatic" savings facility with your bank wherein your bank will automatically set aside a certain portion of your monthly salary to a separate savings/investment account "para di mo na magalaw at magastos."
• Other investment vehicles/instruments - stocks, mutual funds, variable insurance, real estate, businesses, forex, hospital shares, etc.  There are a lot of choices.  Please assess your current knowledge and study.  Do your due diligence before getting into one of these investments.

To protect your income, the unexpected, and most importantly, your families. 

•  Life Insurance - whether we like it or not, there are the "what ifs" in life and we don't know when they will hit us.  "What if' the Lord suddenly calls us, or we become disabled, or we encounter an accident, or we are diagnosed with cancer???    I'd like to quote Mr. Efren Ll. Cruz's, RFP advice with regards to life insurance:  "Life insurance is a necessary expense for everyone, especially for the young.  Don't hide from the insurance agent. But do not fall for the fast talk of others as well.  Life insurance is there to protect income.  The best gauge of how much coverage you need is to know how much of income you want to protect." 
• Other insurance - Please consider also medical insurance or health cards for your family, car insurance, fire insurance for your homes and businesses.  Dapat parang boy scout,  laging handa!

(To be continued...)

"Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success."  - Pablo Picasso

Hope this helps,

Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo). 

BASKETBALL FINANCE: Last 2 Minutes!!!

"I can do something else besides stuff a ball through a hoop. My biggest resource is my mind." - Kareem Abdul-Jabbar

After blogging about "No Other Woman"(love-triangle Filipino movie), which made about over 160 page views, I was thinking how can I top that!   The answer is maybe I will not.  But I still believe that after showbiz or "tsismis", basketball is still a favorite of Pinoys.
***
Its sad to think that there might be no NBA games this season because of the lockout.  Anyway, we still have the PBA.  And I can say they have some interesting rookies, especially Paul Lee.  He can definitely shoot!
***
Back to basketball finance.  Games are normally played in four quarters of 10 minutes (FIBA) or 12 minutes (NBA) each.  Whats nice before in the PBA was when the announcer would shout "LAST TWO MINUTES!!!". In personal finance, I've learned that we also play four quarters when it comes to our finances.
***
The first quarter is CASH MANAGEMENT.  This relates to how we handle money.  Do we budget and control our expenses?  Do we pay ourselves first before spending?  Do we monitor and record the "ins" and "outs" of our cash flows and compute our net worth (i.e. assets minus liabilities)? Do we distinguish between "wants" and "needs"?  Overall, how is our relationship with money?  In basketball, the first quarter sets the tone of the game.  It gives you a feel on how the game will progress.  That is why, the first five players are very important.  Same with personal finance, our attitude and discipline in handling money is key.
***

The second quarter is DEBT MANAGEMENT.   How is our debt-to-asset ratio?  Do we have more liabilities than assets?  Is our credit card balance like Pepsi MAX or Coke ZERO?  Are we experts now on "balance transfers" or simply getting a new debt to pay an old one?  In personal finance, financial planners advice people to invest in debt payment first, before investing in stocks, mutual funds, etc.  They even would advice that if you have excess cash in your savings accounts (that earn minimal interest), why not pay your credit cards first (which charge you an average interest of 3% per month).
***
The third quarter is RISK MANAGEMENT.  This includes both life and non-life insurance protection for you and your family.  To demonstrate the importance of risk management in personal finance, I would like to share some statistics I found out from the World Heath Organization report of 2010 with regards to the Philippines:

• Due to its geographical location along the so-called Pacific Ring of Fire and the typhoon belt, the country faces various natural disasters such as typhoons, landslides, volcanic eruptions and earthquakes.
• Since 2006, the Philippines has consistently been among those countries around the world most often hit by natural disasters and, in 2009, it topped the list, ranking third in terms of mortalities (1334 deaths) and second in terms of number of victims (13.4 millions).
• Mosquito-borne diseases, such as malaria, dengue and filariasis, are an ever-present danger in endemic areas.
• Latest statistics (2005) show that cardiovascular diseases, cancers, chronic respiratory diseases and diabetes continue to be among the country's top 10 killers. Hypertension and diseases of the heart ranked fourth and ninth among the ten leading causes of illness in 2008.
• In a study conducted by the Food and Nutrition Research Institute (FNRI) in 2003, it was found that 90% of Filipinos had one or more of the following risk factors: physical inactivity, smoking, obesity, hypertension, diabetes and abnormal cholesterol.
• Accidents of all types, including road traffic crashes, rank fourth among the causes of mortality for all age groups. Road traffic accidents constitute the fifth leading cause of injury death, with a mortality rate of
  39.1/100 000.
• Average life expectancy for Filipinos is 70 years old.

 ***
The fourth quarter in personal finance is WEALTH MANAGEMENT.  We now know how to handle money, pay/minimize our debts and protect ourselves.  The last step involves making our money work hard for us by using various investment vehicles (e.g. stocks, mutual funds, UITFs, business, etc.) that earn more than the current inflation of 4 to 5%.  Of course, we have to know the corresponding "risk" and "return" of a particular investment.  Generally, the higher the return or earnings, the higher the risk.  We need to assess ourselves too if we are conservative, moderate or aggressive when comes to investments.  Lastly, our investment strategies will depend on what we want to achieve, which is basically our personal financial goals.  Have you written down your short, medium and long-term financial goals? 
***
By the way, I would like to give credit to Mr. Efren Ll. Cruz, RFP who conceptualized this CD-RW (Cash, Debt, Risk and Wealth management) in personal financial management. Thanks a lot Sir Efren!  
***

Regardless of where we stand now.  Whether we are still trailing by 10 or even 50 points in the 2nd or 4th quarter, there is always hope.  We just need to make a decision from now on to JUST DO IT (by Nike) and believe that IMPOSSIBLE IS NOTHING (by Adidas).  In the PBA, the "never say die" Barangay Ginebra fans will fight to the finish.  After all, BILOG ANG BOLA!!!


Hope this helps,


Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).  

"NO OTHER WOMAN": Love Triangles and Personal Finance

"Love is a circle not a triangle" - Sara Starr

Sorry gents, this one's for the ladies. I'll be going showbiz this time. =)

We had our weekly meeting last Monday.  Aside from business as usual, the other "important" agenda was this movie, "No Other Woman".  The ladies were so enthusiastically discussing about it, how nice was the story, what they've learned and the generalization that men are really "babaeros" in nature.  They say that the movie is a box office hit!!!.  Marami daw nakakarelate kase once in their lives, they were either Derek (the husband), Cristine (the wife), or Anne (the other woman)...

***

So what can we learn from this in terms of "personal finance".  Let's analyze per character.  Hey I did not watch the movie ha!.  Kinuwento lang nila. hehe

***

Let's start with Cristine, the faithful, loving wife.   She could be likened to "SAVINGS".  She could be  not exciting but she will always be there for YOU.  She's ready to give YOU a bright FUTURE but sometimes YOU just ignore her or don't give her importance.  Tsaka na lang tutal bata pa naman ako!!!  She can give you security, but sometimes YOU prioritize something/someone else.

***

Anne, the other woman, could be likened to "SPENDING".  She entices you to BUY high-end cellphones, laptops, watches, cars etc. because its exciting and exhilarating to get one!  YOU can show her off to your male friends.  YOU are just simply hypnotize by her beauty, her youth.  She is your NOW.  YOU are not concerned of the consequences, of the FUTURE, basta all you know is YOU are happy with her NOW.  Its the whole world against you and her.  You are willing to sacrifice your work, yourself, but more importantly your family.  You don't care about losing money, you just need to have her.  "Bahala na!"

***

Derek, the husband, is like everyone of us, the consumer public.  Everyday, we are bombarded by different ads/media.  Do we save ("Cristine") or do we just splurge and spend recklessly ("Anne")?  Do we start saving for our retirement or our kids' college education or get that life insurance?  Or do we really need to have the latest gadget or go travel abroad or have that new car?

***

A finance psychologist once said that if we want to improve our financial health, we should not just focus on making more money, but instead we should develop a better and healthier relationship with it.

***

I learned from a recollection that in order for us to solve any problem (money and relationship problems included), we need to have a "reality check" and first understand our "being".  Our being is made up of our personality type, behavioral patterns, values, beliefs, experiences, family upbringing, strengths and limitations.  Then we need to reflect on what are the things we still need to "outgrow" and what specific steps we need to take in order to improve or solve  that money or relationship problem.

***

Now on the question, whether are all men generally "babaeros".  Di naman!  You have to find out and understand his "being"  =) 

There is a funny quote that says:  "To be happy with a man you must understand him a lot and love him a little. To be happy with a woman you must love her a lot and not try to understand her at all."

Hope this helps.

Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).  

BASKETBALL FINANCE: Personal Fouls

"These are my new shoes.  They're good shoes.  They won't make you rich like me, they won't make you rebound like me, they definitely won't make you handsome like me.  They'll only make you have shoes like me.  That's it."  ~From a Charles Barkley commercial for basketball shoes, 1993

Wikipedia defines a "personal foul" a breach of the rules that concerns illegal personal contact with an opponent. It is the most common type of foul in basketball.  Samples of personal fouls include pushing, holding, illegal use of hands, hand checking, and illegal use of elbows.  May I add some Tagalog terms such as "nambalya", "nanuntok", "naniko" at "nangurot sa singit" (like what happened to Asi Taulava during the FIBA Asian games.  =)

***

Now, I'd like to point out some "personal fouls" when it comes to one's finances.  Believe me, I have committed these mistakes too so I know what were the consequences.  I just want to share these with the hope of people, especially my friends and family, to avoid the same mistakes.

***

"KASKASPINOY"

"Kaskas" is a Tagalog slang for using your credit cards.  This is different from the CashCashPinoy (www.cashcashpinoy.com/) where you find the best deals in the Internet, although they make you "kaskas" your credit card as well.    

Having a credit card and using it is not bad per se.  The "personal foul" is when:

• You "kaskas" your credit card and you don't have the cash to pay for it come due date.  Basta kaskas lang ng kaskas.  Bahala na, may dadating naman ako na pera/suweldo next month! 
• You are not paying the full outstanding balance of your credit card bill.  
• When you can't even pay your minimum amount due.  This can be considered a "flagrant" foul already.
• Another "flagrant" foul is getting cash advance from your credit card, kase you need money or wala kang pambayad sa iba mong credit card.

***
"SM"

 I like going to SM.  My kids at a young age (ages 4 and 2) love to go to SM.  Sa London may Oxford Street at Brent Cross mall pero wala pa ring sinabi sa SM.  Again, walang masama sa pagpunta sa SM.  What I can consider "personal" fouls are when:

• Na-addict ka na sa SM.  Every week or every payday nasa SM ka at gumagastos ka kahit kapos o wala ka nang pera o baon ka na sa utang.  You have the attitude of "Di bale, di pa naman puno ang "credit card" ko."
• When SM to you is synonymous to always Spending Money, Shopping Monthly but not Saving Monthly, and Sakanalang Magipon.

***
"ATM"

We are happy with our banks that have a wide network of branches and Automated Teller Machines.  Our "customer friendly" banks make it convenient for us to easily gain access and withdraw money anytime and anywhere we want.  

Fair enough, but...you see our "mindset" when we see ATMs is to withdraw.  So the "personal foul" there is every payday, the first thing we do is look for the nearest ATM machine, check kung pumasok na ang suweldo and then withdraw AGAD dahil:  a) may babayaran na bills o utang;  b) maggrocery; c) may bibilhin na mga consumer goods (cellphones, clothes, etc.); d) may gimmick at sine/inuman mamaya; or e) ALL OF THE ABOVE


Financial planners are suggesting us to have an Automatic "Tago" Mindset.  "Tago" is a Tagalog word meaning to hide or in financial terms, to save.  Mahirap ito lalo na kung ang laging nating dahilan ay kulang pa ang suweldo natin.  Ok, I understand!  Maybe we can do it one small step at a time.  Maybe we can start saving lets say 1% or 5% of your suweldo every month.  Pag medyo may disiplina na sa paggastos at sa pagbudget, puwede natin taasan ng 10%, 15%,  20% o hanggang 30%.  Ang mahalaga, maging "habit" na natin ang magtago at magipon muna bago gumastos kada suweldo.
***

In basketball, a player is allowed to have six (6) "personal fouls" then he's out of the game.  In personal finance, its OK to commit "personal fouls"  but we need to learn from them in order not to do the same mistakes again.  A "foul-out" in personal finance could mean loss of properties, loss of family or even loss of "self-worth".


Hope this helps,


Ge


Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).