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Showing posts from June, 2015

How to Earn from Stock Market?

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Our agenda on this post is to discuss the 5th foundation of money skills which is MAKE IT. Make money thru your chosen investment vehicle.
In this lesson, I will discuss how to earn from the stock market and how the stock market works.
How the stock market works?

Stock market is like a “PALENGKE”. There is a buyer  (mamimili), seller( nagbebenta) and product (stock or company). The main difference is the broker or the trading platform provided by your broker.
Example: “Gusto mo bumili ng isda at isang kilong bigas,  ang laman ng wallet mo ay 120 pesos lang. Ang gusto mong isda ay tilapia at ang presyo nang isang kilo ay 90 pesos habang ang bigas na sinandomeng  naman ay 35 pesos ang isang kilo .” Ang kabuuang halaga ay 125 pesos ngunit ang pera mo ay 120 pesos lamang. Kailangan mo humanap ng mas murang nagtitinda ng tilapia at mababang klase ng bigas.
Sa stock market ay ikaw ang buyer, at gusto mo magkaroon ng shares sa isang kompanya. Humanap ka ng kompanya na mabibili mo sa halaga lang ng…

SSS Strategy to Financial Freedom

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This is not SSS or social security discussion, I would like to share how to save few bucks in your daily shopping. This idea came from my wife while roaming around the grocery stores.

SSS Tips to Financial Freedom;

1. Save thru buying from promos. Companies usually does a monthly promotions to increase sales, grab those buy 2 get 1 free. Look around the grocery stores in which items fall into this category especially those items with long expiry dates that you can stocked for future use such as shampoo, toothpaste, dried items, cleaning items,etc. etc,

2. Substitute branded items to a growing brand. You might not agree with this one especially if you are used to a popular brands but if you are tight with budget why not save, all products on the shelf of supermarkets passed a same quality control standards. You might want to collect coupon for discounts.

3. Shopping fresh food items.  Good ex.  Packed fruits below.

The cost of one packed assorted fruits around 7-9 AED but If you will …

3 tools for reducing risk and increase potential financial success

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Let's say you have a money machines giving you extra cash and received an increased on your salary of 80k every month.
How you are going to allocate the extra cash? Are you going to invest on stocks,mutual funds,real estate agent,bonds,uitf ?
The answer to this question will determine your financial freedom.
The three tools to reduce risks disclosed in money master the game by Tony Robbins according to David Swensen, the rockstar of institutional investing are the following;
1. Security selection- stock picking. 2. Market timing- short term bets on the direction of the stock market. 3. Asset allocation- long term strategy for diversified investing.
Application in real life; 1. Stock picking - selecting stocks that could give a potential returns of 8% annually or doubled in value at the time of retirement.
2. Market timing- PAM strategy, this is the strategy for market timing, calculating the entry point and collecting gains at a good amount of gains. If you want to learn more join me on www…

How to save 628k PHP in a year?

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I was shocked by my phone bills, I received a notification from Etisalat that I used up my flexible minutes and 1gb internet data and total bill of 1555 AED equivalent to almost 15k PHP.
This post was inspired by that morning  event, and I would like to share tips on how to save a few bucks from everyday expenses thru substitution.

First, Lessen eating on restaurants. The truth 3 or 4 times a week, my family schedule eating out, I will not be able to change this habit because this is our family's  weekly bonding time. Instead, I cut on my daily lunch, I don't packed for lunch but UAE's expensive canteens and restaurants push me. I saved 25 AED a day equivalent to 550 AED a month from packing daily lunch meal.

Second, Increase transportation costs and save from expensive housing. The rental in Dubai hit the roof ceiling. I have a housing allowance of 6000AED but I decided to take it as a cash and look for my own accommodation. I live outside Dubai to save 50% of rental and go fo…

How to become the best Daddy Trader?

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To all the Daddy Traders out there, Happy Father's Day. "Mabuhay po kayo".

I was greeted by my wife a Happy Father's day, though my 2 months old baby will not be able to say it, she wave her little hands and continue with her sleep.

I took the challenge of being a Newbie Mentor but the truth there is a another side of me as a Position trader and known as the PAM Master (https://www.youtube.com/watch?v=uUtYxIZpMMU) . I trade for a living and manage different investment portfolios.
Today, as we celebrate Father's day, I would like to give few tips that will help you understand the life of a Daddy trader;
First, Cash flows from passive and active income.
Build different sources of income or money machines. Don't rely on one source only. You need a bigger capital, if you want to be a hardline trader, having only 5 digits of capital will not be enough and it will only be a waste of time if you don't have enough volume.
If you made a mistake on your trades, you…

4th Newbie Lesson Program

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We are on our 4th newbie lesson. Here is the you tube link https://www.youtube.com/watch?v=LmdF1l_-pxM .

Now, you fully understand your risk appetite. If your risk appetite is somewhere between conservative and aggressive,  no time, and possible heart attack in the swing of the market, then mutual fund is for you. 


After you invested in mutual funds, you might want to start learning how to invest in the stock market. If you have enough time to study and ready to commit yourself in research and understanding the valuation of companies, then stock market is for you.
Basic steps to start investing in the stock market:
1. Study and research. Taking an online courses whether free or with a fee. (I'm holding a special session for the next level of Newbie course, http://www.newbie.ph/p/newbie-intensive-trading-course.html ). 

It is highly recommended that you watch you tube videos of Pesos and Sense and ANC On the Money. In addition read the book of Benjamin Graham,  “The Intelligent Investo…

3rd Newbie Lesson

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We are running on our third lessons of the newbie mentoring program.  Here is the link for the video https://www.youtube.com/watch?v=Cfr4dvrNNUU .
I believe that you already checked your financial standing and continuously monitoring monthly budget and buckets allocation. It will take time to be discipline in monitoring your monthly cash inflows and outflows.
We are going to look at the remaining three foundation of money skills:
You can move to invest it level once you have built your emergency funds, secure health and life insurance and there is an overflowing cash.
Again secure yourself first, check with your employer the health benefits and insurance protection, if you are an OFW, renew the OWWA and Philhealth membership. If you are planning to buy a dream house then it is wise to  include PAGIBIG funds in your monthly budget.
I believe that you are set to choose the financial instrument that you might want to invest in. 

Few newbie questions;
1.When to start investing? 
2.How much capit…

2nd Lesson Newbie Program

I would like to thank you for continuously reading and watching our lessons in this newbie mentoring program. If you have friends and colleagues who want to join  our journey to financial freedom, please feel free to share this link.
Today ,our lesson will be about different monthly budgeting formulas. We need to control the inflow and outflow of money every month. This will help us determine how much the possible amount of savings that we  canallocate to different financial instruments.
“Naging ugali na nating mga Pinoy na pagnatanggap na ang ating sahod o monthly paycheck, ay tuloy na sa inuman”. Hindi na nag-iisip kung saan ilalagay ang konting labis dito”. “Isipin natin na hindi habang buhay ay malakas tayo at magtatrabaho kaya dapat gawin natin ang paghahanda para sa retirement”
We have three formulas to choose from:
1. Buckets Allocation. 2. Cash flow budgeting.  3. 10 -20-70 formula.
The first formula , the buckets allocation,  refers to placement of money in different buckets such a…

How to earn Extra 40k PHP monthly while sleeping ?

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Don't be surprise that it's possible to earn while sleeping thru different money machines. Time out from stock trading while building other passive income sources such as real estate and blogging.
Last night before I went to sleep, I received an alarm notification from Airbnb and Google wallet. I said to myself "Money Coming In".
29,307 PHP rental for the next 4 months.

Another regular monthly payment of 5- 10k from Google Ads.
"What you focus on is what you get." indeed true.
You might not believe this is my minimum passive income every month. My goal is not to worry for my family at the time of retirement and not to depend on our SSS which I missed paying for the last 6 months.
This is not to brag how far I achieved at this point but to inspire and be a blueprint of Pinoys passive income earners.
For newbies, I would like to encourage you to continue your financial journey and if you are lost and want to know secrets especially on trading and Google ads,…

What's your plan to 1 Million PHP???

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"If you don't know where you are going, every road will get you nowhere. -Kinsinger."

P in the acronym PAM is Planning. I believe that if you want to go far in your carreer or achieve something, there is a need to plan. If you fail to plan, then plan to fail a famous quote that keeps reminding us that we need to plan. We can argue that a plan is not a guarantee that we can be successful but this plan will give us direction. It is our GPRS in our daily journey.

PAM PSE Tracker App
What is your plan for your financial future?

This a taboo topic and broad. I know you are not prepare to answer it because the busyness of everyday job keeps your mind away from financial concerns. Let me plan it for you. Financial freedom is your goal and we need to plan for it.
First, Build your emergency funds.

Most newbies grab the stock market without having this fund, sometimes they are force to follow gurus and sell their red stocks because of unexpected families need. You should have at le…

How to be an intelligent investor???

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This post is dedicated to the Intelligent Investor, Benjamin Graham, mentor of Sir Warren Buffet.
5 Intelligent investor tips;
First, study and research the company deeply. Stock is not a ticker or electronic symbol, it has an underlying value. It is an  ownership interest in actual business. "Siguraduhin mo na ang stock ay naiintindihan mo ang product or service nito at ituring mo na isa ka sa mga owner."
Second, Market is a pendulum that forever swings. It can be expensive or cheap. PSE index hit an expensive level that's one reason of red market. Intelligent investor buy a stock which is undervalued, DCF or PV method can be used.

Third, No matter how careful you are,one risk that an investor cannot eliminate is the risks of being wrong. As a newbie mentor, I personally make mistakes in market timing, but I carefully pick stocks for long term.
Fourth, The future value of every investment is a function of it's present price. The higher the price you pay, the lower re…

How to double your income for a lifetime???

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Many Pinoys leaving the country and work abroad  as OFW, main reason is not earning enough. They want to double their salary and earn more or they have a better opportunities working abroad. There are also others that don't have the same good story. Some suffered from illegal recruiter, maltreatment from employer and underpaid jobs.

How to double your income?
1. Education.

Take your career into the next level. After I graduated with Accountacy degree, I never stop accumulating knowledge in different fields such as Culinary Arts, Programming, Marketing, Entrepreneurship etc. etc. After gaining the education required, look which industry is paying well then start job hunting.

2. Experience.

If you followed my story ( http://www.newbie.ph/2014/09/a-dishwashers-journey-to-one-million.html, I worked as a dishwasher, pizza maker, Chef de partie, then Head Chef.  The salary gap is high not only doubled but 5 times higher. Experience is a best teacher. 
3. Promotions. 
Deliver more than …

How to make 1 Million Pesos thru the Power of Compound Interest?

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“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” - Albert Einstein As Albert Einstein quote that compound interests is the eighth wonder of the world, this is the power of money earning for you not you working for money. This is a basic of investing and the main reason why you are investing in bank savings, time deposits, bonds, mutual funds, uitf, stocks etc. etc,
To give you an example, if you have 1000 php invested for an instrument that could give you a yearly interest of 10% ;
1000 x  .10   100
An interest of 100 at the end of first year, then next year;
1100 x  .10    110
Then at  second year, the amount of money you have is 1210 php.
The interest reinvested to your original principal then the interest value keep increasing every year. Many financial advisors advice the young generation to start early to benefits from the time that the investment could accumulate interests.
As an example, let's say Juan…

Money Mindset to Financial Independence

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“ Congratulations to you”. 
Welcome to NEWBIE mentoring program.  
Our first task is to discuss and check  your  money skills, discuss the steps to achieve financial freedom , and the right money mindset.
Let us look at different definitions of money that inculcated into our minds since our childhood:

1.Money is the root of all evils.
2.Money can’t buy happiness.
3.Money doesn’t  grow on trees.
The above definitions of money are very familiar. These definitions will hinder you from increasing your wealth from limiting beliefs . 
Money is a key ingredient to your financial independence. You should have  right mindset and fight the way our heroes fought for our "Inang Bayan". Mabuhay the Newbies in the Philippine stock market.
Let us discuss one by one the definition above;
Definition #1, Money is the root of all evil.
According to 1 Timothy 6:10, “For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves wi…

How to prepare your finances for newborn baby?

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Many parents suffered from unexpected expenses for a newborn baby, it's better to prepare for it. We want the best things for our babies but problems could arise such as increasing prices of hospitalization, diapers,milk etc. etc.
I recommend to those parents that starting out to prepare and plan for their upcoming baby. 
Here are my tips:
1. Establish good relationship with your parents and family members. They will help you in this new endeavor. If they become grand parents, they will be more excited than you and they are willing to take care of your baby during the time that you need to get back to work, most of the times OFW kids left in the Philippines with grand parents, in this case you save from paying nanies and you are at peace of mind. 


2. Health insurance. The first thing I thought when my wife got pregnant. My wife is a high risk pregnancy and I make sure that she will have a proper medical treatment. Her insurance paid for the 9 months medical treatment and included…

What I have learned in the past 31 years of my life ???

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As I celebrate 31 years of my life, I would like to share 31 lessons that I've learned. It's not easy to make a summary in 31 bullet points, these are simple lessons from my experiences, travel, education, books, seminars, events, meet up and from people that I met in 25  different countries.

1. Love is the greatest of them all.

“Love the LORD your God with all your heart, with all your soul, with all your mind, and with all your strength.” (Mark 12:30)

This is the root of everyone's existence. Love should be shared all the time, as God shared his loved to humankind. No doubt that I'm a fruit of my parents love to each other.



2. Family, the basic of society.

Everyone is a part of family. This is one of my greatfulness everyday, I was raised by a loving parents and with amazing siblings. I'm thankful that my parents opened my eyes to many possibilities. I lost my Mom at a young age  and that triggered me to live independently.



3. Marriage.

90% of success determined by …