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Saving Your Hard Earned Money


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#21 luol_deng

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Posted 24 January 2005 - 02:52 PM

for me the best tip has always been dont spend more than what you earn. And always spend wisely...if you need it get it but if you dont need it hold the urge off. For me when i get paid weekly and i put 50% of each paycheck into a savings account where i cannot touch it and grows interest, maybe a system like that can help too.

#22 Johny Crucified

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Posted 24 January 2005 - 05:18 PM

the secret according to Millionares next door, which is really a basic... "Pay yourself first"...
the formula, INCOME - SAVINGS = EXPENSES, not INCOME - EXPENSES = SAVINGS.

#23 MTBCommuter

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Posted 25 January 2005 - 09:29 AM

I read that book too. Millionaires Next door

#24 knives_out

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Posted 25 January 2005 - 02:00 PM

may napanood ako na documentary sa TV about money. may example dun na if you start saving 500 pesos a month in a bank (not sure about the interest rate) at the age of 26, by the time u turn 40, your savings would have reached 2 million plus....delaying the start of saving by only 1 year would already bring your savings down to 1 million plus....so start saving na mga bro...pag may isinuksok may madudukot.

#25 jt2003

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Posted 25 January 2005 - 02:47 PM

may napanood ako na documentary sa TV about money. may example dun na if you start saving 500 pesos a month in a bank (not sure about the interest rate) at the age of 26,  by the time u turn 40, your savings would have reached 2 million plus....delaying the start of saving by only 1 year would already bring your savings down to 1 million plus....so start saving na mga bro...pag may isinuksok may madudukot.

<{POST_SNAPBACK}>


I'm not saying this is wrong. Frankly, I don't know. But in the old days, local banks (meaning, Philippine banks) used to give out rates of up to 6% on savings accounts, perhaps even higher (I seem to remember rates of up to 8% way back when). These days, an ordinary savings account gets only 1%. A dollar savings account gets only 0.5%. All these rates are per annum. Maybe someone can actually make a comp*tation.

But just this little tip. If, by any chance, you were or are a dependent of a member of the armed forces, go to AFPSLAI. Their rates are much higher than local banks. Of course, the assumption is the money will always be there. But with any government institution, you just can't be sure these days. Sorry, being grim again.

#26 MTBCommuter

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Posted 26 January 2005 - 01:06 PM

Actually, tama ka hindi rin safe ang pera mo sa bangko... pinayayaman mo lang sila kasi, gamit nila pera mo

#27 Guest_batabatuta_*

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Posted 26 January 2005 - 03:18 PM

add ko lang.....

formula 1 for financial sucess is FINANCIAL WORTH = ASSETS MINUS LIABILITIES

formula 2 for financial sucess is DEBT RATIO = TOTAL LIABILITIES DIVIDED BY ANNUAL INCOME
***a safe debt ratio would be 10% or less.

now back to regular programming...

If you want to really make the most out of your small income.......

1. Buy gold jewelry. You get to wear them and when you have them appraised after 6mos. you'll realize a 25% markup or something like that. You can always start with the inexpensive ones and yes....gold rarely depreciate if it does.

2. There are banks that offer double your money in 5 years at a minimum of Php10k per transaction. It's not gonna yield big interests compared to other securities but esp for those "One day millionaire" people, these help a lot since because you cannot spend your money unless you pre-terminate it and before you know it na-doble na sya. Ipunin mo hanggang P10k tapos kumuha ng time deposit tapos ipon ulit tapos time deposit ulit and again and again....Tama din yung sinabi ni Anaheim.....buy Treasury bills.

3. Invest in your company cooperative schemes.

4. Do not take for granted bottle deposits, discount cards, paluwagan offers....They bring you income when you least expect it.

5. Make a spreadsheet of your monthly salary for 5 year or more...coupled with the fixed and variable expenses....para makita mo how a certain increase in an expense could affect your accumulated savings for the future. What it does is it helps you plan

6. As much as possible....find ways to restrict yourself from withdrawing your savings such as opening a saving account Passbook method tapos patabi mo sa iba.

Edited by batabatuta, 26 January 2005 - 03:23 PM.


#28 MTBCommuter

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Posted 28 January 2005 - 01:56 PM

Pag tinabi mo pera mo, out of sight out of mind, bigla ka na lang magugulat, ang laki na pala

#29 jt2003

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Posted 28 January 2005 - 02:44 PM

Pag tinabi mo pera mo, out of sight out of mind, bigla ka na lang magugulat, ang laki na pala

<{POST_SNAPBACK}>


I think that's right. That's really the "piggy bank principle," which still works, but over time (and assuming there are no emergencies). You're practically forced to save. Should you want (not need) the money, you just cant take out this or that amount; you have to break the piggy bank. Oftentimes, that's what deters you from destroying the piggy bank and spending what you've already saved. It can be an actual piggy bank or an account that gives high yield for as long as you don't withdraw for a certain period.

#30 MTBCommuter

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Posted 31 January 2005 - 09:05 AM

With that in mind, who among the savings and loan banks today offer a higher interest rate?

#31 jt2003

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Posted 31 January 2005 - 01:20 PM

With that in mind, who among the savings and loan banks today offer a higher interest rate?

<{POST_SNAPBACK}>



Best I've encountered in terms of interest rates is AFPSLAI, but you have to be related to a member of the armed forces to open an account. Bonds are rather scary these days because of the mounting budget deficit (there's always the possibility of the government defaulting on these bonds. Just think of Argentina.).

I have a simple rule. I keep a fourth of my savings (oh boy, I wish I had more) in cash. The rest are in banks. I'm not very keen on the stock market these days, because although it looks up, it can crash any time. Bonds and securities are real risks these days, unless you're committed to watching the market so that you can make decisions in an instant (which can be done easily, though, with online trading).

I try as much as possible to keep a 4:1 ratio in terms of cash in bank and cash on hand. I also try to spread it out as much as possible so that if one financial institution goes under, there are still funds elsewhere. So what if banks offer just 1% interest per annum? You still have a fourth of your savings on hand. And your funds are still safe.

You also have to remember that PDIC insures only up to 100k. That's why you have to spread out your liquid assets.

I hope that helps a bit.

#32 HB10

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Posted 31 January 2005 - 03:06 PM

Back to basics: Save 10% of everything you earn, use another 10% to settle your loans, spend the rest. Old-school advice pero sobrang helpful pa rin hanggang ngayon.

#33 legato

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Posted 31 January 2005 - 03:46 PM

Back to basics:  Save 10% of everything you earn, use another 10% to settle your loans, spend the rest.  Old-school advice pero sobrang helpful pa rin hanggang ngayon.

<{POST_SNAPBACK}>



yes it's very helpful. Pero I save as much as I can even more than 30% of net income.

#34 MTBCommuter

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Posted 31 January 2005 - 03:49 PM

Wow buti pa kayo nakakapag save, ako kulang pa sweldo ko sa akin hehe

#35 legato

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Posted 31 January 2005 - 03:52 PM

may napanood ako na documentary sa TV about money. may example dun na if you start saving 500 pesos a month in a bank (not sure about the interest rate) at the age of 26,  by the time u turn 40, your savings would have reached 2 million plus....delaying the start of saving by only 1 year would already bring your savings down to 1 million plus....so start saving na mga bro...pag may isinuksok may madudukot.

<{POST_SNAPBACK}>



may be you're talking about goverment securities like T-bills and T-bonds that has an annual interest
rate of sometimes even morethan 10% which is risk free because it's guaranteed by the government.

#36 legato

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Posted 31 January 2005 - 03:56 PM

Wow buti pa kayo nakakapag save, ako kulang pa sweldo ko sa akin hehe

<{POST_SNAPBACK}>



kailangan eh hehehe...


for anyone who wants to know more about how to manage your hard earned money, I recommend to read the book of Francisco J. Colayco. It was discussed in simple terms and the practical ways on how to save money from your net profit (active income sa financial terms) are easy to understand.

#37 MTBCommuter

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Posted 31 January 2005 - 05:08 PM

I'll look at that. Actually, may business ako ngayon. Kaya lang, I separate it from my income kasi I consider that as "IPON"

#38 jt2003

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Posted 31 January 2005 - 05:20 PM

Wow buti pa kayo nakakapag save, ako kulang pa sweldo ko sa akin hehe

<{POST_SNAPBACK}>


I know what you mean. Just the act of saving is really hard these days. Most of my savings (salamat, salamat, salamat), however small, came from years ago.

#39 plowed99

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Posted 01 February 2005 - 01:40 PM

paano ba makakaipon e sa taxes lang napupunta yun sweldo ko?! putek na taxes yan. daig pa natin ang ibang states sa u.s. sa taas ng taxes! binubulsa lang naman ng mag hinayupak na mga nasa gobyerno! siyetttt! hehehe

#40 plowed99

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Posted 01 February 2005 - 01:43 PM

Actually, tama ka hindi rin safe ang pera mo sa bangko... pinayayaman mo lang sila kasi, gamit nila pera mo

<{POST_SNAPBACK}>


tama. tapos ang interest per annum 1% minus 20% of that mapunta pa sa taxes. nu ba yan! tapos pag nagka-bank run pa, yari ka! hahaha




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