OFW Corner : The Chemist

November 23, 2011 Leave a comment


I  hear this joke from 1 of my friend. At first it sounds funny but, after awhile I feel bad since there were sad truth hidden on  it.

Do you know, what is the common occupation of an Overseas Filipino Workers spouse?

It is CHEMIST, which means “Ke Misis o Ke Mister umaasa” this Tagalog word sounds like Chemist. (In English – they were dependent on the income of their wife or husband working abroad). It may sounds a joke, but it is also a sad reality. Actually, I found it a common phenomenon for a family with a kin working abroad, that many of them don’t work anymore and just waiting for the remittance to come.

Actually, this is the main reason why a bunch of OFW’s ends up nothing after working many years abroad. They regularly sending remittances, and their relatives were also spending it regularly. This story of sending and spending (without any saving or investing) money is a disastrous financial habit.

I urge relatives and spouse of OFW’s to do work, so that their extra income can be reinvested and their family’s money can grow. When I say work, it is not necessarily the 8 hours job but other productive thing that can yield extra income or extra savings in which they could later re-invest to grow more.

The job of your spouse or relatives working abroad is not forever, and a single global macro-economic event that will result to unemployment could somehow spells disaster for the family’s income.

Don’t just sit and wait for the remittances to come, every OFW dependents (spouse or relatives) should spend their time, energy and money on ways that builds wealth.

It’s hard to earn a living abroad, I know it because I was an OFW for more than 7 years. And my message to all the OFW’s dependent is to manage their finances wisely, save and invest.

***************************************************************************************

About these ads

Filed under OFW Corner Tagged with ,

The Resilient PSE

November 22, 2011 Leave a comment


I was kind a please with the performance of the Philippine Stock Market today. Last night, the DOW was down 248 points and today I was expecting a dramatic drop on the Philippine Stocks but indeed it displayed resiliency. (PSE was down by only 9points or 0.23%.)

All day, I was on a bargain hunt and hoping to add more positions on JFC (Jollibee), MPI (Metro Pacific), SMC (San Miguel Corp) and EDC (Energy Development Corp.) but these were all up.

Looks to me that some Global Funds are now looking on for the emerging market like the PSE. If I am right, this situation would likely benefit us.

Anyway, with the current European debt crisis plus the US looming economy, I think there will be times that our local market will be shaken. For me a buy on dip strategy is a good approach, because with a high risk and little promise of gain on the develop markets,  global investors would somehow start coming in to our market.

I guess the next challenge right now is to spot a value stocks before foreign investors start buying them.

*************************************************************************************************

Filed under Investment Tagged with ,

Physical Attribute

November 16, 2011 3 Comments


Just want to share this story about trading beauty for wealth.

Do you want to get rich by marrying a rich man or woman?

It is now part of reality that, financial stability becomes one of the main criteria for marriage (admit it or not). Of course, you wan t to live in a comfortable life after marriage that’s why marrying a rich person could be a plus factor.

If you have a stunning physical attributes,  I guess this dream of marrying someone with enormous wealth is somehow within your reach. For those gifted with pretty looks, I think you are now jumping with joy. But wait let’s analyze your situation.

Beauty for Money.

Let say person A has the beauty and person B has the money. From these details, person A marrying person B is like a trading beauty and money.

Person A provides beauty and person B pays for it, a simple trade. But there is a problem from this trade-off, person A beauty will fade off from time to time, while person B money will not fade off without any good reason. So, we have now a conclusion that this deal isn’t fair and square.

In economic viewpoint, person B is an appreciating asset and person A is a depreciating one. If beauty is your only asset, your value will be worse after a decade.

So, are you still dreaming of marrying a rich person?

Here’s another one.

There were too few rich people that is fool  (if you can find one, jump on it). What I mean is, rich people always looks for a value, and this value should be appreciating from time to time. If you only possess a beauty, I think it’s not a good trade for their wealth.

I’m sorry to disappoint anyone who is dreaming to marry a wealthy person. But there are other ways to get out of financial misery, if you are still young and whatever your source of income is. There is still a way to gain wealth.

I said before on my earlier blog that investing is one of the secret of the rich, but you don’t need to be rich to get started on it.

Anyway, if you really were gifted with exceptional beauty. You can go for a modelling or enter the showbiz industry. I think it sounds more decent than trading yourself for wealth.

********************************************************************************

Filed under Financials, Inspirational Tagged with

Financial Independence or Social Status

November 10, 2011 2 Comments


Which would you choose, Financial Independence or Display Your High Social Status?

For many, displaying their high social status is some kind of achievement. Of course, there is no reasons in the world not to get proud if you are driving a brand new luxury car especially, when you see others (like your neighbor or office mate) driving a second hand car.

The truth about displaying high social status would somehow expensive and unreasonable. Example : Driving a luxury car from home to work would yield the same result as driving an average car. Since, it’s main purpose is to get you to your work or where ever you want, these 2 cars bring you there. (Unless, the average car will only make a halfway from your destination.)

Most of the time, caring too much for a  social pride ends up in a Financial disaster.

Why Financial disaster? Imagined maintaining a golf club membership, drinking expensive coffee every afternoon or morning break, and other expensive activities that doesn’t  yield any.  If you are on the middle income level, these bad spending habits will surely bring you to deep credit card debt.  Since pride is at stake, getting a credit loan would somehow the last resort just to maintain a high social status.

Actually, a financially independent people have a little space for envy even if they saw someone buying new things (like luxury cars, hi-tech gadgets and others).  They have this simple old rule “If you don’t need it, don’t buy it.”

For me, displaying your social status would not mean that you are financially healthy, unless you are one of those with hundreds of millions or billions of dollars  net worth. People with stable financial status do not need to show how much is their worth, but instead knows the significant value of the things they owned.

**************************************************************************************

Quote :

The millionaires motto “You aren’t what you drive”. – Anonymous

Filed under Financials, Inspirational Tagged with ,

Stocks Fundamental Measurement / Analysis

November 6, 2011 Leave a comment


Investors uses these fundamental analysis to select and evaluate stocks.

These measurements were useful in determining the companies current worth and how the market values the stock.

  1. Earnings per share

(http://overseaspinoyinvestor.wordpress.com/2011/09/26/stocks-fundamental-measurement-eps-earnings-per-share/)

  1. P/E Ratio or Multiple

(http://overseaspinoyinvestor.wordpress.com/2011/09/28/stocks-fundamental-measurement-pe-ratio-or-multiple/)

  1. Dividend Yield

(http://overseaspinoyinvestor.wordpress.com/2011/09/29/stocks-fundamental-measurement-dividend-yield/)

  1. Price to Sales (P/S) Ratio

(http://overseaspinoyinvestor.wordpress.com/2011/10/01/stocks-fundamental-measurement-pricesales-ps-ratio/)

  1. Price/Book (P/B) Ratio

(http://overseaspinoyinvestor.wordpress.com/2011/10/02/stocks-fundamental-measurement-pricebook-pb-ratio/)

  1. Net Profit Margin

(http://overseaspinoyinvestor.wordpress.com/2011/10/04/stocks-fundamental-measurement-net-profit-margin/)

  1. Return on Equity (ROE)

(http://overseaspinoyinvestor.wordpress.com/2011/10/06/stocks-fundamental-measurement-return-on-equity-roe/)

——————————————————————————————————————-

Quote :

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. – Warren Buffett

****************************************************************************

Filed under Investment Tagged with , , ,

Making Millions of Millionaires in the Philippines

November 4, 2011 10 Comments


Financial Literacy and Investment Opportunity

When I start this blog a few months ago, its main advocacy is to open the eyes of every Filipino especially those who worked abroad into these 2 things.

I keep on saying that investment is not only for the rich, but it is for every body who wants to get out of their financial bondage.

Now, I become more ambitious by encouraging millions of Filipinos to Invest and become millionaires. Every body could explore the wealth that every investment could offer, and if you are investing now I am very optimistic that it is only a matter of time and you will achieve your goal. So, the next challenge for this blog is to create a million traffic (or visitors per year). I guess some reader of this blog might think that it is quite impossible by just looking at the statistic (number of  hits) of this site.

When I started this blog, it could hardly master at least 1 visitor per day for its 1st 2 months. And, I think this sole visitor was my 13 years old daughter, reading my earlier post. But, after 6 months I was seeing a lot of visitor on my sites, and I start seeing some comments and subscriptions. From at least 1 visitor per day it grows to almost 100 visitors per day, in just a short period of 6 months.

Actually, I was not even on the halfway from this goal of making millions of Filipino millionaires but I am very optimistic that it will happen soon. If this blog could reach millions of Filipino every year, and encourage bunch of them to create wealth through properly managing their finances and investment. I guess I am not that far in achieving one of the ambitious  goal of this blog.

Of course, our country will benefit more if we can encourage millions of  Filipinos to invest. Why?

Let me count the ways.

1.  By investing in either equity or bond, we are pumping more liquidity to our Financial system. If we have a healthy financial system, it is inevitable that economic prosperity will follow.

2.  Normally, every president elect in the Philippines needs to travel a lot by convincing foreign investor. If we can encourage 1 million OFW (Overseas Filipino Worker) and another 1 million hardworking Filipino (living in the Philippines). I guess we have save the precious time of our leader (the President) courting  foreign investors, and he could just focused his attention on other matters.

3.  We can reduce the unemployment rate (or possibly zero out).  Since, cash is available every where, companies who wants to expand their operation will have an easy access to cash. Expanding their business operation means more work force.

Anyway, I guess I was day dreaming (it’s like dreaming an impossible dream). I am an OFW, and investing is one of my way to help my country.

Do you want to be a part of this bunch of Filipino millionaires? Manage your finances now, and start investing.

Let us make our country a better place to live. Isn’t it good to think that you are helping your country and making wealth at the same time.

************************************************************

Filed under Financials, Inspirational Tagged with , ,