Category Archives: Investing

How to Spend Your 13th Month Pay

Merry Christmas!

It’s that time of the year when Filipinos are happiest.  Many are eager to receive their 13th month pay to buy presents for family and friends, and to splurge a little on gadgets.  For some, there are extras, perhaps even a 14th and 15th month pay.

How do I spend my 13th month pay?

How do I spend my 13th month pay?

How do you use it?  I strongly suggest you think a little beyond the holiday season, Christmas presents and merry making.  Why don’t you….

  1. Plan

Close to 70% of people who get large amounts of money go broke within 5 to 7 years.  This is because many people are so unfamiliar with having a large amount of money.  Plan how to use your money, and budget how much you want to spend for Christmas and how much you want to allot for more productive use.A good rule of thumb is 10% for your spiritual community, 20% for your future, and 70% for your expenses and lifestyle:

  • 10% for your eternity
  • 20% for your maturity
  • 70% for your family

And then you plan further.  How do you spend your 70%?

  1. Protect Your Family

Have you considered what would happen if the Lord decides to call you home early?  What would happen to your family?  You can be healthy today, but what if tomorrow, you meet an accident?  Will your family go hungry?Buy SUFFICIENT life insurance coverage.  There are inexpensive options available, such as term life insurance.  P6,000 annual premium at age 25 can buy you P1M coverage.Combined with some mutual fund investments, P3,000 per month for 10 years can  buy P1.2M of life insurance at age 25, slowly growing to more than P4.8M coverage ( or P3.8M cash benefit) by age 60.

Learn about protection, savings and investment in free seminars,  like the SAVING YOUR FUTURE seminars on Practical Money Management from IMG.

  1. Eliminate debt

The typical Filipino makes strange financial decisions.  Most save in banks where their money earns 0.20% per year (that simply means if you put P100,000 in the bank on Jan 1, then by December 31, the bank will give you P200 interest after withholding tax), but borrow from the “friendly Bumbay” at 5-6, or from the “sosyal” credit card company at 3.5% PER MONTH.

Pay your credit card debt. By paying  credit card debt you effectively invest your money at a rate at least equal to the 3.5% they charge you.

Read more about How to Invest by Paying Your Credit Card, and earn an equivalent compounded annual growth rate of approximately 51%

  1. Invest

Investing is increasing the value of your assets using your existing resources, like time and money.  While some consider investing a science, there are enough elements of creativity involved, I prefer to think of it as an art.Investing in your greatest asset – you – is probably your best investment.  You probably invested hundreds of thousands of pesos in your formal education (elementary, high school, college) so you can get a good job, and work for money.

Invest in your financial education, to learn how make money work for you, and to gain financial wealth and spiritual abundance at the same time.  Join the TrulyRichClub.

Start by taking a crash course in stock market investing.Invest in safe investment vehicles to build your retirement fund and your children’s college funds. Equity mutual funds and UITFs are good starting points.

  1. Setup Your Emergency fund

Setup your emergency fund, normally three to six months of your living expenses.  Emergencies are for emergencies or unexpected large expenses such as medical emergencies or temporary unemployment.  Sale in malls are not emergencies, even if your dream shoes are on sale at 70% off.

Keep your emergency funds in savings or time deposits.

  1. Indulge

Spend a little on yourself.  Save specifically on little pleasures for yourself, maybe an occasional vacation or adventure.  Save for your future, but  treat your present self every now and then.

A note on the 10% for Eternity

Share your blessings  to your spiritual community and to the less fortunate.  Remember we are merely managers of of God’s wealth.  Giving actually makes you feel more blessed, and appreciate the abundance of God’s universe.  Giving makes you win in all areas of your life.  In other words, TrulyRich.


Bobet Prudente is a financial coach and Senior Marketing Director at IMG TrulyRichMakers.  He is a member of Bo Sanchez’ TrulyRichClub .  He conducts regular FREE Saving Your Future seminars on Practical Money Management Techniques in Quezon City.

 

Are you ready to grow your wealth?

Are You Ready to Grow your Wealth?

Investing early and correctly make it easy!

Don’t’wait for the right time to invest, now is the right time!

People who wait till tomorrow to invest never actually  start, because tomorrow never comes;   there will always be another tomorrow.

Suppose you are 20 years old, and you want to have P5M in your retirement fund at age 60, then you have 40 years to build your retirement fund.

If every month, for 40 years, you save P421 in an investment vehicle that earns 12% per year, you will have P5,000,000 in your retirement fund.

Investing P421 monthly at 12% will give you P5M in 40 years!

Investing P421 monthly at 12% will give you P5M in 40 years!

But most young people will say, “I’m young, I’m healthy and I just got my first job! I’ll enjoy my salary and begin saving later!”

At age 30, you wonder if you should begin saving.  You still have 30 years to save before you retire at age 60, right?

If every month, for 30 years, you save P1,416 in an investment vehicle that earns 12% per year, you will have P5,000,000 in your retirement fund.  Because you waited 10 years, the amount of money you need to save to reach P5,000,000 already tripled!

Investing P1,416 monthly at 12% will give you P5M in 30 years!

Investing P1,416 monthly at 12% will give you P5M in 30 years!

At age 30, people say, “I just got married and have lot of new expenses.  I’ll save tomorrow.”

Many people have excuses not to begin saving and investing.  But just look at this table.

Investing early makes it easier to build wealth

Investing early makes it easier to build wealth

At age 40, one needs to save  P5,004 every month, investing at 12% per year for 20 years to have P5,000,000 at age 60.  But people at age 40 say, ”The kids are growing up, and I have lots of school expenses.  Maybe I can begin saving tomorrow.”

At age 45, one needs to save  P9,909 every month, investing at 12% per year for 15 years to have P5,000,000 at age 60.  The amount needed almost doubled in five short years!  But still people say, “My God, I didn’t know college can be so expensive! I can’t afford to start saving.  Maybe tomorrow.”

At age 50, one needs to save  P21,500 every month, investing at 12% per year for 10 years to have P5,000,000 at age 60. The  amount more than doubled! But still people say, “My parents’ retirement money just ran out, and we have to support them.  And I have more bills to pay. I really hope I can start tomorrow”

At age 55, one needs to save  P60,600 every month, investing at 12% per year for 5 years to have P5,000,000 at age 60. The  amount almost tripled!  That is about P2,000 per day!

Which is easier, saving P421 PER MONTH starting at age 20, or saving P2,000 PER DAY starting at age 55? At age 55, people sadly say,

“I should have started saving yesterday.”

And finally at age 65, people say, “My retirement money is just enough to pay for my debts. What will I spend tomorrow?”

It is never too late to start saving and investing! The earlier you start, the better!  It keeps on getting exponentially more difficult as you grow older.

Are you ready to start saving and investing? Are you ready to grow your wealth?

Save Your Future by learning Practical Money Management Techniques in our FREE seminars. Register early, there are limited slots available!   Click below to register for the FREE Financial Seminar in

  • Makati (World Center Bldg, Sen. Gil Puyat Ave, Makati across Mapua)
  • Quezon City (Timog Ave cor. Quezon Ave, in front of Ninoy Aquino monument)
  • Dasmarinas Cavite (Camerino Ave, near main Church)
  • Calamba Laguna (Highway corner Chipeco, Brgy Halang)

Soldivo Investing Made Easy via BPI ExpressOnline

After you open a Soldivo Bond Fund or Soldivo Strategic Growth Fund account, you’d naturally want to make additional investments regularly to take advantage of money cost averaging.

You can make additional Soldivo investments electronically via your BPI Expressonline account. BPI treats the Soldivo mutual funds as “merchants,” so we can invest by “paying” Soldivo, using your folio number as reference or account number.

Soldivo Investing Made Easy with BPI Express Online

Soldivo Investing Made Easy with BPI Express Online

To Enroll Your Soldivo Fund Account(s):

  1. Go to http://www.bpiexpressonline.com/ and log into your BPI Online account.
  2. In the main menu, select the following: Payments & reloading → Bills Payment → Enroll Other Bills
  3. On the e-form, fill in your BPI account details.
    • Under the ‘Company Name’, select the Fund name (Soldivo Bond Fund Inc/SBFI or Soldivo Strategic Growth Fund/SSGFI )
    • Under ‘Reference Number’ enter your corresponding folio number (e.g. 6001xxxxxx).
  4. Click ‘Submit’.
  5. You will receive a confirmation notice of your enrolment and a copy sent to your registered email address. You may now make your additional investment online.

To make Additional Investments:

  1. Go to http://www.bpiexpressonline.com/ and log into your BPI online account.
  2. In the main menu, select the following: Payments & Reloading → Bills Payment → Pay Bills Today
  3. On the e-form, under ‘Pay’,
    • select the SOLDIVO fund name with the corresponding folio number (SBFI 6001xxxxxx or SSGFI 6001xxxxxx)
    • Input the amount to be invested
    • Select which BPI Account to be used for payment
  4. Click ‘Submit’.
  5. A pop up window will appear verifying your investment details. If the information is correct, click ‘OK’.
  6. You will receive a confirmation code of your investment and a copy sent to your registered email address.

 

To Schedule Regular Investments

After enrollment, you can automate your Soldivo investing by scheduling merchant payments to your Soldivo account.

  1. Go to http://www.bpiexpressonline.com/ and log into your BPI online account.
  2. In the main menu, select the following: Payments & Reloading → Bills Payment → Scheduled Bills Payment → Schedule Bills Payment
  3. On the e-form, under ‘Payment Details’,
    • select the SOLDIVO fund name with the corresponding folio number (SBFI 6001xxxxxx or SSGFI 6001xxxxxx)
    • Input the amount to be invested
    • Select which BPI Account to be used for payment
  4. On the e-form, under ‘Schedule Options
    • select Recurring Payments
    • select Monthly or Quarterly  
    • Input How many
    • Input Start Date
  5. Click ‘Submit’.
  6. A pop up window will appear verifying your investment details. If the information is correct, click ‘OK’.
  7. You will receive a confirmation code of your investment and a copy sent to your registered email address.

 

Over-the-Counter

  1. Visit any BPI Branch
  2. Fill-out a Deposit/Payment Slip. Fill in the following details:
    • Under ‘Account Name/Merchant’s Name’, indicate the fund’s complete name.
    • Under ‘Reference No.’, indicate your folio number (e.g. 6001xxxxxx).