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And to add to your point, invest in your health (physical, mental, emotional/spiritual). Money is just one of the means for a healthier you.

 

Yep. Health-wise, I still need to make myself get up and walk outside the house. I'm such a couch potato.

 

Ayan, mukha tuloy akong sako ng patatas. Lol

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anyone investing in mutual funds/UITFs that have regular income payouts? so far the only one i've heard of that has this feature is a BPI feeder fund whose name i can't recall right now. i want to try acquiring assets based on cash flow considerations

 

Very rare for local offerings. Mostly don't have income payouts, to add they don't have a standard/regular interest out. Namely it would be tricky to rely on them for cashflow. You usually earn from capital appreciation in the local MF/UITFs. You would need to redeem/sell some of your holds to realize a profit. There are foreign fund which provide regular dividends/interest out, but you would need to invest in dollars.

 

For cash flow, better to invest in fixed income instruments. Gains might be lower, but you can their rates are fixed and are released in regular intervals. This makes cash flow more reliable.

 

 

 

Regular payouts on those kinds of investments are usually low risk but have low returns too. Is this the type that you're looking for? MFs and UITFs have a payout of anywhere from 1-8% per year (not guaranteed of course) but you could also expect the same loss. It's a good place to park your money for long-term future use, around 7-15 years or more in the future. I'd still rather put up a well thought out and planned business if you're looking for cash flow.

Business is a good option too, but it would require a bit more work.

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Do a research on dividend growth investing. Maraming gumagawa nito. Some of they look at an index say PSE index of 30 something companies (blue chips), chech each stocks kung nag go grow ba ang dividends nila year on year and start buying those.

 

Personally since wla ako sa Pinas, i invest in ETFs which also give dividend income. I receive dividends every quarter and i see it grow over time. Like as of today, converted to Peso, im receiving around Php 150k per quarter. Its still small, but it will grow over time especially i automatically reinvest all dividends that i receive. nag a add p ako ng additional ETF shares kada sweldo every month so year on year tumataas ang dividend income ko.

 

Positive sa approach na to is kung enough na yung dividend income mo to live, you can retire na e.g. if you only need Php 100k/month to live and your dividend is 100k, you can live on your dividend without selling any of your nest egg of shares.

 

Sakin since nsa Australia ako, ang tax rule dito ay kung ang income tax rate mo mas mataas sa dividend tax rate, your dividend income will be tax at that higher income tax rate kya laki ng nawawala sa dividend income ko as of now since nsa top income tax bracket ako. Pinagiisipan ko pa if its worth opening up a trust and buy ETFs through that trust.

Edited by JohannBeckham
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Woah that's a lot of cash in ETFs. Did a rough computation, average dividend payout is 4% per annum so if you're getting getting 150,000php a quarter you have around 15mil/php in ETFs or 427k AUD.

 

Could you share how you slowly(or quickly) you built those funds up?

Yayamanin kasi talaga sina JB at MRS 😂✌️ Tingin ko kaya nya napalago ng ganyan dahil every month continuous ang paglalagay nya sa etf..high percentage ng monthly income. Mas ok kung ang target ay greater than 50% ng monthly income mapupunta sa etf. I am doing it kaya meron din akong 150k per quarter...150k rupiah 😂😂😂
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Woah that's a lot of cash in ETFs. Did a rough computation, average dividend payout is 4% per annum so if you're getting getting 150,000php a quarter you have around 15mil/php in ETFs or 427k AUD.

 

Could you share how you slowly(or quickly) you built those funds up?

I invest primarily in 3 ETFs Australia (ASX 300), U.S. (Total U.S. market index with dividend yield of measly 1.84%) and International excluding U.S. (FTSE All World ex US Index with dividend yield of 3.22%)

 

How i built it is slowly. Basically ginawa kong savings account ang brokerage account ko. All savings goes to it. And at the end of the month, kung may natira pa, i also buy ETFs with it.

 

I guess the key is increase the gap between your income and your expenses meaning plan to increase your income while minimizing your expenses (as long as it doesnt compromise on what you value).

Edited by JohannBeckham
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Yayamanin kasi talaga sina JB at MRS 😂✌️ Tingin ko kaya nya napalago ng ganyan dahil every month continuous ang paglalagay nya sa etf..high percentage ng monthly income. Mas ok kung ang target ay greater than 50% ng monthly income mapupunta sa etf. I am doing it kaya meron din akong 150k per quarter...150k rupiah 😂😂😂

Tumpak. High savings rate (meaning high income and low expenses).

 

As long as di nako compromise values nyo. Like family togetherness, good health, security, etc.

 

Actually we are not super frugal, but we're not super lavish din nmn. We eat several times for dinner sa restaurant every week, go on holidays in differents states sa Australia and South East Asia several times a year (though short lng lng 1-2 weeks). We dont always have high savings every month pero at the end of the year our savings rate still roughly 50% of tske home and 100% of them are in ETFs.

We dont have emergency fund to tell you the truth since at the end of every budget month zero ang balance ng bank account ko.

 

Guys please dont get me wrong ha. Im not bragging or trying to show off. All im hoping is sana may mapulot kyo or matutunan sa mga sine share ko. Yan n lng ang contribution ko sa community na to.

Edited by JohannBeckham
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Aside from ETFs do you have any other investments going on? Also if I may ask what's your line of work and how much do you earn annually?

 

Di ka naman nag mamayabang, nag tanong ako eh haha. I appreciate the honesty and your position is something I'm working towards so good job on getting there!

Gusto mong yumaman?! Sali ka na sa networking group ko. Power!!! 😂😂😂✌️✌️✌️

Seriously, tingin ko wala sa line of work or annual income yan. Depende sa lifestyle yan...From your total income, how much you save vs how much you spend

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Aside from ETFs do you have any other investments going on? Also if I may ask what's your line of work and how much do you earn annually?

 

Di ka naman nag mamayabang, nag tanong ako eh haha. I appreciate the honesty and your position is something I'm working towards so good job on getting there!

Outside of my superannuation (parang equivalent ng 401k sa U.S.), wla na akong ibang income generating asset. I rent, i dont own any realestate anywhere. I dont own gold (except for my wedding ring), bitcoin, or any other commodity. I just own broad based, index hugging ETFs and i own thousands of companies from holdings inside those ETFs all over the world.

 

I'm doing I.T.work (mainly doing business analysis) in one of the government department dito sa Australia (yes I'm a public servant, though low level lng). My income gross is a little on the high side, as i said im on the top tax bracket which means my income is greater than AUD 180k a year (its actually even greater than 200k a year). So its on a high side and im so grateful for it. Yung last sweldo ko sa Pinas is Php 38k/month gross way back in 2006 and when i started work in 2001 as a programmer my salary is Php 10k/month gross. I guess the key atleast for me is to invest in yourself (training, certification, softskills, etc.). Also dont wait for opportunity, make opportunity. Keep valuable friendship and dump toxic ones. Malaking tulong sakin nung nag abroad ako kasi mas na stretch pa lalo yung capabilities ko kasi your dealing with more diversity of cultures and practice. Whereas kung Pinas lng sobrang limited.

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Gusto mong yumaman?! Sali ka na sa networking group ko. Power!!! 😂😂😂✌️✌️✌️

Seriously, tingin ko wala sa line of work or annual income yan. Depende sa lifestyle yan...From your total income, how much you save vs how much you spend

Para sa akin, its both. I mean may floor ang how much you can scrimp and downgrade your lifestyle (especially king may asawat anak ka at magulang and or kapatid na umaasa sa income mo). Pero wlng ceiling ang income on how you can earn more (unless you decide that enough is enough, ok na sakin Income ko, mag reretiro nko).

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Gusto mong yumaman?! Sali ka na sa networking group ko. Power!!! 😂😂😂✌️✌️✌️

Seriously, tingin ko wala sa line of work or annual income yan. Depende sa lifestyle yan...From your total income, how much you save vs how much you spend

Networking??? F*uck networking! I will never join any of those, and you shouldnt too

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[quote name="sexdrive9000" post="14706206" timestamp="1572955637"

Johann have you ever thought of reinvesting or investing your money into things here in the Philippines or completely AUS na lahat ng investments and ipon mo?

 

Gotta agree on networking/mlm. But gotta disagree on VUL, it does have value to it. Ang problem lang is na ooverpower ng drive to earn commissions ng isang insurance agent (I refuse to call most of them financial advisers since a lot don't know s@%t about finance) vs. actually teaching people on how to manage their finances and the available money making tools at their disposal.]

 

First reason why im not investing my money directly in Philippine assets is because thru my international ETFs, im already indirectly invested in Philippine companies e.g. SM Investment Corp, Ayala land, BDO, JG Summit,etc. (Total of 29 Philippine domicilled companies). I don't want Philippines to overweight my international (excluding U.S.) stock allocation since Philippines is such a tiny economy compared to other economies in the world e.g. Japan, Great Britain, France, Canada, China, etc.

 

Second reason is I'm not 100% sure if i want to retire in the Philippines. Since Australian passport ako, i have options to retire elsewhere like Portugal, Spain, Italy,France, etc. Or heck, i could go live in regional areas here in Australia or buy an RV and drive around Australia or buy a sailing boat and sail around, its not necessary for me live overseas. So the long and short of it is, i have tons of options and i'll decide where i want to retire later when im near retirement.

 

Third is the simplicity of my passive approach to investment of index fund true ETF. Its set and forget. Plus filing my taxes is super easy. It only takes minutes to prepare my tax especially automatically fill in sya sa online tax form. I also focus on australian tax law and so far im up to date. My mental load is lighter kasi my asset is domiciled in Australia lng and i only have to concern myself on Australian laws/rules. Magbago bago man ang batas sa Pinas, magpapalit palit man ng presidente/senador/congress, di ako affected. Happy life.

Edited by JohannBeckham
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Gotta agree on networking/mlm. But gotta disagree on VUL, it does have value to it. Ang problem lang is na ooverpower ng drive to earn commissions ng isang insurance agent (I refuse to call most of them financial advisers since a lot don't know s@%t about finance) vs. actually teaching people on how to manage their finances and the available money making tools at their disposal.

Do you happen to sell VUL?

Do you have VUL yourself?

How much (% wise) of your investment is tied to VUL if I may kindly ask?

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I read an article about computing your emergency fund written by Fitz Villafuerte, RFP.

 

The article is found in https://fitzvillafuerte.com/emergency-fund-calculator-how-much-money-do-you-really-need-to-save.html

 

To compute for the emergency fund, the formula he used is:

 

Emergency Fund = (ME x 6) + (IM x 3) + (ME x IH) + PE

 

Using that formula, I made some adjustments to my own value. Instead of omitting my savings, insurance, and investments in the equation, I included them (turns out these three items make up 40% of my budget) and upped my no work period to 12 months (hey, I am part company owner, part freelancer).

 

All in all, I should save 1.3 million pesos for my emergency fund.

 

Currently, I only managed to scrape 10% of it.

 

Damn.

 

Hustle, hustle, hustle!!!!

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Still better than nothing lalo kung icompare mo sarili mo sa majority ng mga pinoy right now kahit malaki sahod isang kahig isang tuka pa rin

I read an article about computing your emergency fund written by Fitz Villafuerte, RFP.

The article is found in https://fitzvillafuerte.com/emergency-fund-calculator-how-much-money-do-you-really-need-to-save.html

To compute for the emergency fund, the formula he used is:

Emergency Fund = (ME x 6) + (IM x 3) + (ME x IH) + PE

Using that formula, I made some adjustments to my own value. Instead of omitting my savings, insurance, and investments in the equation, I included them (turns out these three items make up 40% of my budget) and upped my no work period to 12 months (hey, I am part company owner, part freelancer).

All in all, I should save 1.3 million pesos for my emergency fund.

Currently, I only managed to scrape 10% of it.

Damn.

Hustle, hustle, hustle!!!!

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Still better than nothing lalo kung icompare mo sarili mo sa majority ng mga pinoy right now kahit malaki sahod isang kahig isang tuka pa rin

 

 

Hindi ko inihahambing ang sarili ko sa ibang tao. Hard lesson learned yon. Focus on yourself and no one else.

 

May hinahabol kasi akong goal. Noon ko pa naisip yon...early 20s pa lang ako. Lately, I realized that I do not like the feeling of not being able to have the money to use when an urgent or sudden expense pops up. Ang hirap kumilos kapag wala kang iikutang lugar. Ang hirap ng ipit ka kasi sakto lang budget mo.

 

Also, totoo ang sinabi ng ibang financial experts, tumataas ang confidence mo sa sarili mo kapag alam mong may pera ka, kesehodang mapagkamalan kang shoplifter, kapag isinampal mo sa buong staff ang card mo, mabibili mo ang lahat ng tinda nila nang walang kurap. Kaya mo silang titigan sa mata at confidently mo silang mababara kapag minamaliit ka. Lumalawak mundo mo kasi kahit upscale store, hindi ka mahihiyang pumasok, kasi you can afford it.

 

That is what I am after. Naranasan ko kung paano maging kawawa kasi sapat lang pera mo. Ayoko nang balikan yon.

 

That's why I work like I have 5 kids. Ayokong maipit sa iisang economic strata lang.

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Hindi ko inihahambing ang sarili ko sa ibang tao. Hard lesson learned yon. Focus on yourself and no one else.

 

May hinahabol kasi akong goal. Noon ko pa naisip yon...early 20s pa lang ako. Lately, I realized that I do not like the feeling of not being able to have the money to use when an urgent or sudden expense pops up. Ang hirap kumilos kapag wala kang iikutang lugar. Ang hirap ng ipit ka kasi sakto lang budget mo.

 

Also, totoo ang sinabi ng ibang financial experts, tumataas ang confidence mo sa sarili mo kapag alam mong may pera ka, kesehodang mapagkamalan kang shoplifter, kapag isinampal mo sa buong staff ang card mo, mabibili mo ang lahat ng tinda nila nang walang kurap. Kaya mo silang titigan sa mata at confidently mo silang mababara kapag minamaliit ka. Lumalawak mundo mo kasi kahit upscale store, hindi ka mahihiyang pumasok, kasi you can afford it.

 

That is what I am after. Naranasan ko kung paano maging kawawa kasi sapat lang pera mo. Ayoko nang balikan yon.

 

That's why I work like I have 5 kids. Ayokong maipit sa iisang economic strata lang.

Wise words from Neville! Thanks for sharing

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Hindi ko inihahambing ang sarili ko sa ibang tao. Hard lesson learned yon. Focus on yourself and no one else.

 

May hinahabol kasi akong goal. Noon ko pa naisip yon...early 20s pa lang ako. Lately, I realized that I do not like the feeling of not being able to have the money to use when an urgent or sudden expense pops up. Ang hirap kumilos kapag wala kang iikutang lugar. Ang hirap ng ipit ka kasi sakto lang budget mo.

 

Also, totoo ang sinabi ng ibang financial experts, tumataas ang confidence mo sa sarili mo kapag alam mong may pera ka, kesehodang mapagkamalan kang shoplifter, kapag isinampal mo sa buong staff ang card mo, mabibili mo ang lahat ng tinda nila nang walang kurap. Kaya mo silang titigan sa mata at confidently mo silang mababara kapag minamaliit ka. Lumalawak mundo mo kasi kahit upscale store, hindi ka mahihiyang pumasok, kasi you can afford it.

 

That is what I am after. Naranasan ko kung paano maging kawawa kasi sapat lang pera mo. Ayoko nang balikan yon.

 

That's why I work like I have 5 kids. Ayokong maipit sa iisang economic strata lang.

 

Makakawawa ka naman parang pasan mo ang daigdig 😂✌️ Ako nman e nagseset ng realistic goal...hindi naman kelangang magwork hard, though i am also working hard 😂 ...and smart 😉 i totally agree na hindi mo dapat kinukumpara sarili mo sa iba, kasi malulungkot ka lang 😂 kung ayaw mong maniwala, try mong ikumpara Investments mo sakin...este kay JB pala 😂😂😂✌️✌️✌️
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Makakawawa ka naman parang pasan mo ang daigdig ✌️ Ako nman e nagseset ng realistic goal...hindi naman kelangang magwork hard, though i am also working hard ...and smart i totally agree na hindi mo dapat kinukumpara sarili mo sa iba, kasi malulungkot ka lang kung ayaw mong maniwala, try mong ikumpara Investments mo sakin...este kay JB pala ✌️✌️✌️

 

 

Hahahahahaha!!!!!!!!!!!!! May daya naman kina JB at MRS, pareho silang nasa abroad. Monetary value pa lang, talo na ako.

 

Wala pa akong 1 M sa bangko, di pa talaga ako makakampante. :D

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Hahahahahaha!!!!!!!!!!!!! May daya naman kina JB at MRS, pareho silang nasa abroad. Monetary value pa lang, talo na ako.

 

Wala pa akong 1 M sa bangko, di pa talaga ako makakampante. :D

Yeah I agree, malaki advantage kapag nakatira at nagwo work sa first world country like U.S., Australia, Norway, etc.

Pero wag ka, we earn in dollars, but we also SPEND in dollars.

 

If I convert my expenses last month into pesos, here are some of it:

Grocery: Php 60k

Rent: Php 60k

Charity: Php 25k

Eat out: Php 22k

Electricity: Php 17.5k (paid quarterly)

Insurance: Php 10k

Internet: Php 2.5k

And many more.... (NOTE: I consider ourselves very frugal with this budget compared to our peers)

 

So yes I agree that those of us who earn dollars have big advantage, but also please be aware that we also SPEND in dollars. What matters most is the "SAVINGS RATE"! ofcourse it will be big advantage sa higher income earners to save, but if your saving the same rate as me or MRS, you will become financial independent in the same speed/velocity as us. If we both start from zero and we both save 50% of our take home and i earn 10 times as you, we willstill both become financially independent at the same time even though my income is 10 times bigger, something like 17 years or so. Simply because we save at the same rate.

Edited by JohannBeckham
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Hahahahahaha!!!!!!!!!!!!! May daya naman kina JB at MRS, pareho silang nasa abroad. Monetary value pa lang, talo na ako.

 

Wala pa akong 1 M sa bangko, di pa talaga ako makakampante. :D

Ipapalit mo peso mo sa rupiah o kaya sa dong para may 1M ka na rin 😂✌️

Tama si JB, we earn dollars but we also spend in dollars. Tignan mo yung expenses nya napakataas..sa insurance at sa eat out + drink out lang ako mas mataas...+travel pa pala 😉

Edited by Papa Pipoy
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Yeah, I get what JB and Papa Pipoy say. Naalala ko tuloy ang sinabi ng tour guide namin sa Singapore: mataas ang cost of living doon. They just make do with their hustle.

 

Naiisip ko tuloy na ang hard work dito ay may halong suwerte talaga. Kahit magaling ka, kung may hindi ka ibinalik sa universe, hindi ka nito bibigyan ng kahit anong biyaya.

 

Perhaps everything is relative then. Even with money. We here in the Philippines see most first world currency as having the bigger value while forgetting that the cost of living in said countries is way higher.

 

Nonetheless, that does not mean that we should not continue our hustle, regardless of location or marital status. We have to secure our future, we never know if someone can help us when we find ourselves in a bind. That includes the family members and friends we supposedly helped.

 

Enough musing, back to hustling. I have work to do :D

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