Time to Start Investing

I hope at this point you have already opened and funded your stock market account. Accord Capital is good. COL Financial is also good. But whatever is most convenient to you is okay. The more important thing here is that you do it now. Rather than regret you've started later than sooner. I encourage you to start today.

Anyhow, I've just convinced Mark to re-open his account at Accord Capital and he agreed to start with Php 5,000 again. You don't need to start big. All of us must have to start somewhere small and safe. And again, invest only the amount you're sure you won't be needing in the near future.

So there, I just purchased Mark's first stock last week. I bought 7-Eleven at P82/share.

I particularly like $SEVN because it is well-run by its CEO, Victor Paterno, and is continuously having expansions throughout the country. The price may fluctuate up and down in the next few months but it should be fine. We are doing this for the long term. Just eye on the target.

I also bought this because I do not see a catalyst that would make it reach its target price right away-- it will give us time to accumulate for a long period of time at a low price.

Since my portfolio is already fully positioned (meaning, I have already consumed all the balance it has to buy stocks), I am poised to wait for the time my target price gets met.

But, by the way, I am planning to open a new account with an initial investment of Php 5,000 so we can start the journey together. I will be buying Php 2,000 amount of shares every 15th and 30th of the month, just like what the SAM says, but with my own research fused in to it as well. You can do the same, or you can invest the amount that you have always planned to invest. Just be consistent.

I like Bo Sanchez's SAM (Strategic Averaging Method) because it tells you the buy below price of a stock and it also tells you its target price. If you are curious, it looks something like this. -------->>

The thing is, Bo's Truly Rich Club membership does not come free. One has to pay a certain premium. But the membership comes with all of Bro Bo's E-Books like My Maid Invests in the Stock Market, The Turtle Always Wins, among many other investment books written by him. And what I think he can give you that I (or any other mentor) can't is his ability to calm you when you feel like you've done the worst decision (in stocks, or in life itself). He would also email you inspirational stories and quotes to go along with your journey towards wealth creation.

I strictly suggest that as a newbie investor, you do not just buy a portion of a company without knowing its fundamentals. And, fundamentals are always better when you know the right price to enter (the buy below price). Do not deviate from the stocks listed there unless you have a very good reason (and research) to do so. I have deviated from SAM stocks many times in the past, and I regretted most of it. But, of course, now is different since I already read financial statements and public disclosures of companies every trading day. I do my homework religiously.

If I were to give 3 companies that aren't in the SAM but are great stocks to watch out are (although, this is always with CAVEAT attached to it), they would have to be:

1. Vista Land and Lifescapes, Inc. ($VLL) of Manny Villar: Property Sector. I have seen the resilience of this stock since I started in the stock market. The business of VLL is selling mid-high end residential properties. But it has lately been venturing into commercial spaces very aggressively. Aside from COL Financial and Regina Capital recommending this stock for long term, I personally believe in this company and in Villar's business capability.

2. Jollibee Food Corporation ($JFC) of Tony Tan Caktiong: Consumer Sector. I must say that this stock does not fail to amaze me. Just when I feel it's already too pricey, it does not stop getting higher and higher achieving all time highs in the past months. Jollibee, Greenwhich, Chowking, Red Ribbon and Mang Inasal are all under this listed stock, so as long as Filipinos eat in these establishments, you are assured JFC is in good condition.

3. Century Pacific Food Inc. ($CNPF) of Christopher Paulus Po: Consumer Sector. If you love Century Tuna, you would want to have this stock in your portfolio. Aside from its innovative management, it is also your best bet in the coming ASEAN Integration because of its tuna business, as most ASEAN counties are Muslim. And if you must know, CNPF is also behind leading brands such as 555, Argentina, Swift, and Birch Tree.

But I will reiterate this, I only recommend you put them on your watch list. Observe their movement both in the short term and in the long term. I am not recommending the purchase of these stocks because I do not foresee the future. There are many suggestions out there, but you will have to do the decision by yourself. Have a plan and stick to it.

Stock Market is basically a waiting game. If you get bored or spooked out, you will lose a lot. The market is an expensive place to know yourself. You should already have a plan and be ready to execute it whatever it takes. Control your fear. Wait for the target price before you sell. Diversify. And most of all, think positive.

Power of Three (Social Media Tag)

Since this blog is meant for us to share things with each other and get to know each other better, I hope you do this tag, too. If not in your blog, in your notes in FB would be great. ;) Don't forget to tag me there!

(Link to my FB page)

Three names you go by:
1. Christian- for the peeps who knew me since childhood.
2. Karl or Carl- at work.
3. Carlo- for most.

Three screen names you have had:
1. Prop.
2. CarlPhD.
3. Moronic Writer.

Three physical things you like about yourself:
1. Eyes- my students say my eyes communicate.
2. Lips- my ex-flame says it's sweet.
3. Skin- well, because I take care of it well. Lol.

Three physical things you don't like about yourself:
1. Thinning hair. Haha. Genetic, I know.
2. My teeth, I guess. I need braces.
3. My flabs, which I'd always refer to as my 'love handles' haha.

Three parts of your heritage:
1. Filipino.
2. Chinese—My great grandpa was from mainland China.
3. Spanish—My abuelos were Peninsulares, I was told. ;)

Three things that scare you:
1. Poverty.
2. Rats.
3. Failure.
 
 








Three of your everyday essentials:
1. Internet access.
2. Iced water.
3. A good bath.

Three of your favorite musical artists:
1. Darren Espanto. Hahaha! Guilty Darrenatic.
2. Whitney Houston.
3. Don McLean.

 





Three of your favorite songs:
1. On My Own (Whitney Houston).
2. I Can't Make You Love Me (Leroy Sanchez).
3. Bad Day (Daniel Powter).

Three things you want in a relationship: - in no particular order
1. Trust.
2. Care.
3. Intellectual and Physical Connection.

LIES:
1. True love only comes once in a lifetime.
2. You can live a fruitful life even without profound spirituality.
3. Economic Bubble in the Philippines.

TRUTHS:
1. It's difficult to restore trust once it's broken.
2. Law of supply and demand.
3. I am pogi.

Three physical things that appeal to you:
1. Playful and naughty eyes.
2. More or less same height as mine.
3. Soft lips.

Three of your favorite hobbies:
1. Traveling.
2. Writing.
3. Hanging out with friends.

Three things you want to do really badly now:
1. Job promotion.
2. To be RFP (Registered Financial Planner).
3. Love life! Hahaha!

Three careers you're considering/you've considered:
1. Veterinarian.
2. Magazine Editor.
3. Fund Manager.

Three places you want to go on vacation:
1. Istanbul, Turkey.
2. Brasília, Brazil.
3. San Francisco, USA.

Three kid's names you like:
1. Francis.
2. Kit.
3. Lex.

Three things you want to do before you die:
1. Write a book.
2. Be in a nurturing relationship.
3. Travel around the globe.

Three ways that you are stereotypically a boy:
1. I find it hard to keep my nails clean when I commute.
2. I can not be celibate. Hahaha!
3. I find it hard to wear white and keep it spotless throughout the day.

Three ways that you are stereotypically a girl:
1. I like to take my time accomplishing things.
2. I change my mind rather too often. Hehe.
3. I have moods.

THREE people I would like to see take this tag-quiz:
1. My friends from SLU.
2. My high school classmates.
3. My students! Hahaha! It'd be fun!

Is money the root of all evil? Can you be happy without it?

Why does a literature teacher of all people talk and blog about financial wellness and wealth creation? Am I, a former ANAKBAYAN-UST member, promoting capitalism and turning my back against my socialist principles?

If you are going to ask me now whether wealth is necessary to be happy, I will probably not hesitate to answer YES. But don't be quick to judge. I first have a story to tell.

Lucio is a farmer. He is married to a school teacher, Rebecca. And this couple has two children, Isabel and Rico.

Lucio just makes about fine in farming to feed the family. Rebecca or T. Becky (as I fondly call her [in my mind]) also helps in the family finances. She also has three piglets in her backyard which she plans to sell in December when prices are usually jacked up for the cholesterol season of Christmas.

The four members of the family live on the income of both parents. They live well just within their means. The couple feel rewarded that their children were raised to be happy and content with what they have, and not asking for what their parents can't give them. They live in simplicity and peace. Why shouldn't they, they are debt-free despite the hard times. Theirs is an exemplification of a happy home.

The children, Isabel and Rico are intelligent kids. Isabel is third in her class, and is doing exemplary well in Filipino and English. Rico, on the other hand, may not be as smart as her ate but he excels both in academics and in sports. They are respectful and they are raised to be kind Christians. If you ask other people, nothing about the family is not okay. They might not have the most comfortable life in the world but they find reasons to be happy each and every sunrise.

Lucio is fairly smart himself. He was just not fortunate enough to go to college, in which case he should have taken up agriculture. His parents thought he was going to be a farmer anyway. But in all fairness to Lucio's parents, they taught all their children the best practices in farming that they learned over the years. Lucio is the best among them; he's the most skillful.

Rebecca was fortunate to have been chosen by the town mayor to be granted scholarship. She teaches Home Economics and Livelihood Education (H.E.L.E.). Since her parents could not help her through college, she sold AVON products to get by.

So far, would you need lots and lots of money to be happy?

But why would you need more?

You are Lucio. You have a loving and caring wife who does not take work at home. You have two smart kids who are very determined and focused in their studies and other interests. What more can you ask for? )If I may just digress, many rich people I know would spend all they've got just to be happy.)

But:

• The kids would sooner or later be going to college, right? And parents who have college kids know what I mean.
• If somebody in the family got sick, where would they get fast money from? Sell the pigs right away? How about the excess bag of feeds? Three piglets would amount to what, not much. Just break even.
• If Lucio caught a bad strain of bacteria from some rodents' urine in the farm, or he got bitten by a dog or a Dengue mosquito?
• If Rebecca was hit by a car because she walks home from school?

Okay, I understand that you don't want to think about all these possibilities. It's human nature to hate thinking about undesirable instances. But how about CAPITALISM?

While you live simply and happily and contently, trying to make both ends meet, the rich are getting richer and richer devising a way to extract money from you without you realizing it. They create problems, or rather, they MARKET problems:

• They lure you into buying Coke because, God! It is soooo damn hot! You deserve it. The commercial says it refreshes you.
• You deserve to be "extra" happy every payday! You've earned it! And so, you treat your family of four to McDonald's! Yehey!
• You need to contact your classmates about your homework, so you need to load up on your mobile phone. I-unlitext mo na lang para sulit. Tapos, itext mo na rin si crush bago matulog para sumaya ang buhay mo. Uyy, kilig. Siyempre, pag-college ka na, imbes na bumili ka ng laptop (medyo mahal), tablet na lang ang ipapabili mo. Pwede ka nang magresearch at mag-encode dun. Bongga!
• Ikakasal ang bestfriend mo! Ano kayang gift ang ibibigay mo? Nakakahiya naman kung photo frame. Lamp shade kaya? O electric fan? Parang Wowowee kabuhayan package!
• Anniversary! Tumatanda na si misis. Nagiging sentimental na yan. At nagiging sensitive kung di mo naaalala ang anniversary. Anong handa? Saan ang date? Ano ang gift? Silver Wedding Anniversary soon! Kumusta naman ang damit damit ng entourage?

And the list goes on...

And again, while you're happily living simply and happily, big corporations with the aid of mass media drag you down into poverty. And I don't think in that case you're going to be happy very long.

Fast forward: When Lucio and Rebecca get old, do you think they can live on the wife's GSIS pension? How about the health care needs of the elderly? Medicines, checkups, vitamins and supplements?

Do you suppose Isabel and Rico will be happy to take care of them when they have their own families? However they want to help, they can only do so much for their parents.

And since there was a big possibility that they were not able to afford sending their kids to college, even if the children were willing to support their parents being raised as good Christians, where would they get money from? They will just probably end up being menial employees doing what, secretarial, janitorial or manual jobs. Chances are, Isabel and Rico will be having financial problems of their own.

AT, hindi pa manginginom at nagyoyosi si Lucio ha! Wala siyang bisyo! Kung meron pa siyang bisyong nakalakihan, ewan ko na lang. Hehe.

So, what do you think is the answer to our question? Do you need wealth to be happy? If you were Lucio and Becky, will you be contented with happiness? Let's admit it, money is a way to achieve AND maintain a happy life. Think about it.

I am sorry for the lousy plot, it was spontaneous. I know any minute after I post this blog, my sisters will be pointing out my grammar and tense inconsistencies. I also apologize if there is any, or if there are many. :) I admit, I am not a good writer. But I hope I was able to stress the importance of sound financial education or even just basic financial literacy.

Accidents come when you least expect them. And old age comes swifter than you can ever imagine. If you are young, invest early. You're greatest asset is your youth, capitalize on that. And if you are not so young anymore, I am guessing, at least, you are earning more than the young, so you can think of more sophisticated investment tools while you do your day job and duties. Let your money work for you.

If you want to change your future for the better, read. Or ask. I can make myself available if you have questions. I will do my best to help you.

And it is free, because I am a socialist. Because I was ANAKBAYAN.

I care for the Filipinos because I am Filipino (and Ilocano, and Tsinoy). I will choose halo-halo over creme brulee anytime, because I my taste says I am masa, and there's nothing embarrassing about it.

And because I am a teacher who swore to help educate those who need education.

Ask me and I am going to do it for free. But I have one condition. If I teach you (or if I have taught you) a thing or two, pass it on. Pay it forward.

Where this "Kapehan" is Going: A Tribute of Some Sort

I have noticed that all the blogs I have posted recently are about the stock market, personal finance, and investment tools. Honestly, I have not been conscious about it. I guess I have only been writing about the first thing that comes to mind when I sit in front of my computer and start typing.

I dunno, maybe to argue about what I write about would be too forward-thinking. And assuming. I do not even know if people actually read what I write because people do not like to comment. I used to maintain a blog when I was in college, and people (take note, plural) would actually bash me because of my opinions about a certain movie, a certain artista, or a politician I sincerely dislike. Well, at least then, I was made aware that people read the stuff I write, however negative their comments were. Haha.

In fairness to my family, I know they read my blog because they would call me to correct my grammar and poor choice of words over the phone. What can I say, they're more grammar Nazis than the English teacher.

Oh yeah, my high school friend Lourence (also my ex-flame's confidante) asked me about Philam Asset Management products last week. She said she got curious about insurance when she read my blog!

And another high school classmate Don Richie and my sister's friend Romulus, recently asked me about opening an account at COL (or not) and start investing soon! Haha! Some people actually read my blog! :)

And yeah, how can I forget my former student's mom, Mrs. Abad! She also said she wants to open an account for Erick, maybe start him on Easy Investment Plan (EIP) for his future.

Meg, my journalism classmate, also asked me about what educational plan I can recommend for her little son. She said she came to know about my affiliation with Philam through my blog.

That's 5 already, exclusing my family! Yahoo! At least I know I have 5 people who drop by my Kapihan once in a while to read when there is nothing good to do. That's enough motivation for me to keep writing!

My gosh, this post has turned into an inventory of my readers! Like some sort of homage! Hahaha. :)

By the way, my brother King just told me he is interested to open an account with Wealthsec. He said he was convinced to invest in the stock market because of Mark. I am actually very excited for him! I will also be monitoring his stocks every now and then. And if you also happen to plan to open your own account soon, let me know so we can compare and talk about what stocks are looking attractive to buy. It's always more joyous to go on a journey when you're with friends, right? Let's walk together in this financial wellness journey, side by side.

List of Online Stock Brokers in the Philippines

I am sure, you are now itching to open your very own account with a stock broker. It's always the most exciting part-- to be able to start buying BDO, BPI, Metrobank, Jollibee, SM, Ayala Corporation, PLDT, San Miguel Corp., Universal Robina, and so on. While it is practical and ethical that you buy shares from the companies you yourself patronize and trust, it is not always the safest way towards successful investing. But I guess talking about when to buy what stock would make for a good topic next time. This time, I am going to introduce the brokers that you may want to partner with in your journey towards investing.

There are many online stock brokers out there that a beginning investor can try. It's also good that many of them have trial accounts--some for 5 days, some for 3. Aside from that, they would often provide free seminars about market outlook, financial wellness and other things important to their investors. These seminars are very good programs to set your expectations in line with reality, as you should very well know, stock market investing is not like in the movies. So here there are:

Because I am a Truly Rich Club Gold Member, Bro. Bo Sanchez recommended COL Financial, since it has an Easy Investment Plan (EIP). The COL EIP is an easy and simple way to start investing in the stock market. For as low as Php 5,000, you can start building your personal wealth while minimizing your risk and maximizing your returns through the time-tested strategy of peso-cost-averaging.

The interface of COL is relatively user-friendly. There are many tutorial videos available online on how how to go about using its system. This online broker also provides daily technical and investment guides for its clients. It also has a monthly newsletter which is supposed to orient the investors about what to expect in the short-term and long-term headwinds.


Accord Capital (Philstocks.Ph) is my second online broker. My cousin Mark (who I blogged about last week) also subscribes to Accord. What made us like it so damn much is its console. It has real-time ticker which does not lag; you can choose 12 stocks that you can monitor closely (it turns red if its price gets lower, black if it's unchanged, and green when it's higher); and there is also a day chart with volume below it. It's the best one I've tried out there.

The minimum investment that you need to open at account at Accord is Php 5,000. It does not offer, though, many technical and fundamental researches for its clients. But there are many internet sites to gather fundamental information from (you can also ask me, if you want), so it would not be much of an issue. But I tell you, if you want a user-friendly interface, this is your best bet. It would also help if you have an Android device because it already has an app which you can download for free from the App Store.

My third online broker is First Metro Securities. It is stock brokerage feature of Metrobank.

I can't say a lot of good things about it aside from the fact that it also has its own application downloadable from the Apple AppStore and Android Googleplay.

Aside from its being slow, it does not also give very useful researches to its clients. Its interface is kind of antiquated; it is hell hard to use! But I chose it as my third broker because it is very easy to move funds to-and-from my Metrobank Direct Online Banking. If you feel like your money is sleeping in your savings account, move it to your First Metro Sec account, and do some stock trading on the side. and if you feel like you will need the money in the next three days, return the fund in your savings. It's actually fun.

BPI Trade is very much similar to First Metro Sec, but the only difference is that it does not require a minimum fund to invest as long as you are a BPI customer. It is also relatively easy to get your trading account up and going, according to my friends who use it.

Because of curiosity, I experienced using its trial account for 5 days, and I can say that its researches are very good. The only reason why I chose First metro Sec is because BPI branches all over Baguio are extremely congested. SLU pays its employees through BPI checks. It would take me an hour at least just to get my check encashed, and this is not a hyperbole.

[All of us in the family (extended family members included) are loyal BDO customers even before the merger of BDO and Equitable-PCI Bank. And since we kind of established a special rapport with the management, I would just go directly to the manager (without queuing) and encash my BPI check there. She would just deposit the amount in my BDO account like it's just a swap. Oh, I love BDO. I trust no other bank as much.]

The last one that I got the chance to try, through the recommendation of my good friend Nikki Yu, is Wealthsec. One needs at least Php 10,000 to open an account with this brokerage firm according to her but it is worth it. What I love best about Wealth is its very good research, and its friendly fund managers.

According to its site, Wealth Securities Inc. is among the leading stock brokerage companies in the Philippines. It has ranked among the top 20 brokerages in the Philippines since its incorporation in November 1986. In 2000, Wealth received the Euro Money Award for Excellence as the "Best Domestic Securities House in the Philippines". Wealth caters to both retail and institutional clients in the Philippines and overseas. With over 25 years of experience in equity securities, its research team is often quoted in local newspapers and journals for their stock picks and coverage of mid-to-large cap stocks. Over the years, Wealth has developed a reputation for having a keen eye in spotting small companies with sound fundamentals and strong growth potential.

The newest online stock broker out there is MakeTrade. According to its site, eager to grow and expand its brokerage and investment banking business, in 1988, ATR Holdings partnered with Kim Eng, one of Southeast Asia’s leading securities and investment broker. Through the alliance, the ATR Kim Eng Financial Corporation (ATRKE) was able to expand its domestic and foreign client base, solidify its capability to initiate deals, and promote its products abroad. By offering exceptional execution capabilities and providing excellent research with timely calls and recommendations to clients, Maybank ATR Kim Eng Securities, Inc., continues to help realize its parent company’s vision to be a regional powerhouse by 2015. In 2013, Maybank ATR Kim Eng Securities, Inc. launched its online trading service called MakeTrade, extending its reach to retail investors.

There are many other online brokers out there. I just did not have the time to try all of them, partly because I think I am very contented with the ones I already have. But just for the sake of information, here are the online brokers that you may want to try so you can share what their strengths and weaknesses are. The table was borrowed from www.pinoymoneytalk.com, one of the sites I often read when it comes to personal finance.

Hindi ba sumasapat ang kita mo?

"Income is determined by the amount of problems you are willing to solve for others." -Vic and Avelynn Garcia

Ilang beses ko rin binalik-balikang basahin ang mga libro sa "Unleash the Highest Potential of Your Money" Series dahil ang dami nilang naituturong bago sa mga gaya kong interesadong mapaganda ang personal finance situation.

Ang sabi ng mag-asawang Garcia, ang isang kumpanya ay may problema kaya siya maghahanap ng empleyadong lulutas sa problema nito. Kung mas malaki at mas mahirap ang problema, mas mahal ang bayad.

Ngayon, tignan mo ito: kapag nahaharap ka ng problema sa trabaho, huwag kang maiinis. Huwag kang malulungkot. At lalo nang huwag kang magagalit. Iyan ang dahilan na may trabaho ka. Kapag wala ka nang problema sa trabaho, kabahan ka na, baka hindi ka na kailanganin sa kompanya mo.

So now, gusto mo bang lumaki ang kinikita mo? Eto 'yun.

Dagdagan mo ang problemang sinusolusyunan mo para sa iba. Hindi tumataas ang sweldo ng maraming tao dahil ang problemang sinusolusyunan nila last year ay iyon pa rin ang kaya nilang solusyunan ngayon. Hindi nga naman tataas ang sweldo mo kung iyon parin naman ang kaya mong gawin, diba?

Kaya sa Lunes, itanong mo sa boss mo kung may bagong problema ba siyang gustong ipalutas sa'yo, bukod sa dati mo nang ginagawa para sa kumpanya. Kung makikita niyang kaya mo nang lumutas ng problema na mas mahirap, pwede ka na niyang i-promote. Pero dapat ay may kakayahan at cedentials para mapanindigang worthy ka para sa bago mong problem-solving venture. Marami kayong gustong mag-solve sa problema ng boss mo--hindi magiging madali iyan. Agawan iyan. Ipakita mong ikaw ang karapat-dapat na lumutas ng problemang iyan dahil kayang-kaya mo 'yan.

Ngayon, parehong prinsipyo ang ia-apply mo sa paggastos o expenses. Kung mas marami kang problema, mas marami kang gastos dahil mas marami kang kailangang ipasolusyon sa iba. Ang problema lang, nauutakan tayo madalas ng mass media sa paglikha ng mga "problema" na hindi naman talaga natin kailangang problemahin. Gusto mo ng halimbawa? Ok.

• Cellular Phone. Una, kailangan mo ba ito? Bakit?

Si Neil, bumili siya ng P 1,000 na MyPhone. Si Abrick, bumili ng iPhone, and he had to shell out P 35,000 for it.

Si Neil kasi, ang problema lang niya ay isang gadget na pwedeng pantawag at pang-text. Sa isanlibong piso, solb na siya.

Si Abrick, ang dami niyang problema! Talk, text, camera (high-resolution), wifi, bluetooth, music, movies, email, Facebook, Twitter, Tumblr, at porn at marami pang iba, kaya trentay singko mil ang kailangan niyang panlutas sa komplikasyon ng buhay niya. O sige, dahil pa kailangan niyang ibandera ang APPLE brand. Anong problema niya? Hehe.

Ano ang ibig sabihin nito? Ang taong maraming problema (o pinu-problema), magastos. Ang taong konti lang ang problema, matipid. Tama?

• Sapatos.

Si Neil, bumili nang Advan na rubber shoes. Okay na. Isa lang naman ang problema niya eh, sapatos.

Si Abrick, bumili ng Nike. Ang daming problema. Una, sapatos. Pangalawa, dapat sapatos na may "Air", at dapat, 'yung sinusuot ni Michael Jordan. Kaya, ang solusyon sa problema ni Abrick na may "air" ay P 6,000. Ang pinakamalaking problema ni kuya kaya kinailangan niya ng mas mahal na sapatos bukod-tangi sa iba ay "image problem"... Sabi nga niya, "Ano na lang ang sasabihin ng madlang people?" Sige, kuya, i-push mo 'yan.

Hindi pa masyadong malala si Abrick. Marami akong kilalang mas malaki ang image problem kasya kanya. Kailangan, Lebron. Kailangan Kobe. Kailangan Wade. Sige, ikasasaya niyo 'yan.

• Kape.

Aminado ako, problema ko ito. Pwede namang 3 in 1. Pero kasi... I'm very particular with my coffee that I have my own Keurig Coffee Maker at home. Bulk of my monthly expenses goes to coffee. But when I get to master my coffee appetite, I know it will save me a lot of bucks. Ang mahal ng K-cups na kailangan ko pang ipa-shift mula sa COSTCO.

Kung gusto ko naman ng frappe, I would go to my favorite coffee shop ($SBUX), and it does not feel good to shell out around P 200.00 for coffee. Nagiging mahal na bisyo ito. Pero kasi... Yun. Alam ko nang marami akong problema tungkol sa kape ko. Hahaha! Mawalan na ako ng celfone, o sapatos, o kahit ano pa, huwag lang ang kape ko! Waaaah!

Again, I will remind you, the less problems you have, the wealthier you become. The market borrows the power of mass media to lure you into buying things and shove these things to your face and convince you YOU NEED THIS! You can not resist it, admit it. So the best way to fight this is: avoiding. Isipin mo na lang na imbes i-gastos mo, idagdag mo na lang sa pambili mo ng stocks mo! Right? :)

So, be wise in your spending. Let your critical mind do its own thing to distinguish your needs from your wants. You will soon be able to buy the things you want, and more (!), if you only commit to improve your spending habits.

Why Coffee?

I have started this blog with little thought about how to name it, how to design it, or what voice to use when writing it. What was clear in my mind was the idea that it was going to be “coffee”.

Why coffee?

I initially thought that it’s going to be a hang out place for people who do not have anything better to do. I envision it to be like Starbucks—online version. I saw that it could be a place to chill; a place to chat over a cup of brewed coffee or a venti Frappuccino, depending on your taste and temperament.

In St. Louis University, during our break, my colleagues and I would talk about how things went in our previous classes over a cup of coffee. It would somehow soothe us from stress, calm us from over-excitement (or annoyance/irritation, for that matter), or just to quench our thirst. We would also share how we discussed a certain poem, fiction or play in class, or if students liked Shakespeare better than Elizabeth Barret-Browning, or if whether to discuss Rizal’s Makamisa or not anymore. The most brilliant ideas often surface when we gather over coffee.

Also, I envision this blog, like coffee, in a sense that we all drink it regardless of economic status, gender, ethnicity or whatever else. Coffee has remained to be one of the most in-demand commodities in the world—and that kind of democratization of a certain good appealed to me. I hope that I am able to reach out to people with different tastes, backgrounds and preferences of all sorts. And I hope I am understood by the youngest of my readers, but not bore the maturest of them, either.

But most importantly of all, I made coffee the central metaphor of this blog to connote a certain wake-up call (or energy boost) that we should already change our ways to have a better life. We all deserve to be financially well. We all deserve to get out of debt. We all deserve to provide the best for our families. And we all deserve to be rich.

Being rich is not about having too much excess money than you actually need. Being rich is about feeling that you are living in abundance and in comfort. Being rich is about feeling secure that you will never have to starve yourself and your family ever again. And, being rich is being able to impart and share something to others because you feel blessed and fortunate.

I hope we continue to find ways to get rich and to attain our financial goals. And this is only possible through continuously seeking out, asking, or reading about how we can further improve our financial situation.

So, I say, share that coffee.

Share the joy of it.

Share because you deserve it as much as the person next to you. And share because God loves you.

Mark, The Young Investor

This is my cousin Mark. He just finished high school last March. Aside from the obvious (that we share the same genes, and therefore, we look alike), he is also smart (it runs in the blood). Haha.

But he used to be a bottom feeder. He would fail most of his quizzes, he would rather go to SM or play table tennis even if it was exam week, and I can not explain enough that being good looking (or being my cousin, for that matter) would make him pass in my subject (I was his teacher in English in his sophomore year). But since that talk we had once (because we rarely spoke outside the classroom), he started to effort in his studies.

[Fast forward: he was third honor in the last two years of high school. Nothing is really difficult if you put your mind into it.]

There were many changes in him that I started to notice, especially when he started to hang out with me and my sisters. He put aside his playing computer games and watching anime, while he learned to be concerned about his grades. There is a lot more that I see changed for the better, but the most notable is about his spending habits.


His parents being both in the states, he used to not value money. "Money is created to be spent anyway." He would buy new clothes or new discs for his PS3 every time we would go to SM (and that's about once a week). But that was before.

Mark would sometimes come to our house, since our houses are connected by a passage way. He would watch CSI:New York or Bones with us (my sisters and I) in the common room. But one time, the TV was off because I was reading Bo Sanchez's "My Maid Invests in the Stock Market". He asked what's the book about. I said, "It's about growing your money faster than in banks."

I noticed that he was listening intently as I was explaining.

So, I asked, "Why? Would you want your money to grow?"

He said, "Umm, yes. But..." Since there was "but", I disengaged and went back to reading.

He asked again, "How do you grow your money that fast?"

I said, "In the stock market." Obviously, he looked puzzled, and everything I said was Greek to him.

So, fast forward again, I made things simple for him. I opened an account under his name at Accord Capital with an initial investment of P 5,000 (this is the minimum for students). He deposited P 1,000 pesos per month for 3 months. I bought P 2,000 amount of shares every month and I would show him what I bought for him every time I'd put an order.

After the third month, he saw that he was earning well from Manny Villar-owned $VLL (Vista Land Properties). I applied peso-cost averaging (PCA) in this instance. In the 4th month, he decided that he was going to put P 2,000 pesos monthly, instead of P 1,000. Plus, the gifts he received that Christmas, the money his mom sent him-- and all the money he not really needed, he put into his account. We bought another good company, $MBT (Metrobank). And then, another, $PF (Purefoods). [You notice that all these companies that we bought are the ones we believe in, and whose products/services we really consume.]

Good thing it also happened that when we bought these companies around December-January, we were able to bottom-pick them. Along the way, we decided that we were contented with the profit, we sold and bought some stocks with the help of our friend who does charts and is good with technical analysis, PAM. By the end of May, this was how his portfolio looked like (from all his deposits amounting to P 48,000.00, it has become P 57,401.44) :

It must be noted, though, that if you do not know how to time the market like PAM does, I don't advise buying and selling stocks every so often. You will only be making the broker richer from commissions.

By the start of July, Mark decided to liquidate. He said he wants to sell all his equities. When we sold everything, we netted around P 58,150.00. He got scared that all stocks were starting to peak, and that at any moment then, he thought, the market was going to crash like this:

But, what can I say, PSEi is resilient. He just watched the market go up even more. But I told him, a gain is a gain. Do not ever regret selling at a gain, it's almost impossible to catch the top. Or, at least, to catch it every time. Mark's fund is now in the safekeeping of mamang. I heard they opened a bank account for him.

As I have said again and again, my only regret right now is that I did not start saving up and investing early on like Mark did. Instead of spending on things that are not really necessary, one can grow his money well in different investment tools out there, the stock market is only one of them. And with this that he has already started, I like to believe that he's going to be rich when he grows up. He now saves his money in the bank whenever he receives some from his parents.

I believe that everyone can do this, too. If you start setting aside a small fund for your investment now, by the time you graduate from the university, you will have been ready to invest in other more sophisticated kinds of investments. And there are many sites out there which can help you with your decision-making. I can also give you my opinion about things if you ask. But the decision will have to be made by you.

Note, also, that the August (ghost month) is fast approaching. If you are a starting investor, I recommend that you open your own account before the great sell down so you can get the blues (blue chips) at a good bargain.

Just remember this before you do anything: investigate before you invest. Happy investing!

So, you want to start investing? (Part 3)

As a child, we (my sister Karen and I) were taught by our granny (who we dearly call mamang because she was the one who raised us) how to wisely save money. She introduced to us early in life how banks operate, and how a time deposit (way back then) could help us grow our initial fund without having to do anything. Even as a child, I was already taught how to make passive income.

On top of that, I can consider mamang to be the epitome of being "Chinese kuripot". Iba ang pagka-kuripot ng Pinoy, eh. Iba ang ka-kuriputan ng lola ko. She thinks many times before she spends. More often than not, she decides not to. And when she does, she haggles like an expert.

But, well, my financial temperament may have come from my dad. He spent his money thoughtlessly (if I may say so). When he entered politics, people came to our house EIGHT DAYS A WEEK asking for financial assistance like crazy: may it be for funeral, for tuition, for hospitalization, for their basketball league expenses, for employment, or for whatever reason people have invented. A vice mayor's salary is only so much, and was nothing compared to the amount he was shelling out.

To cut the epic story short, his expenses were multiple times greater than what he was earning. And I was like that a year ago until I decided I did not want to be like that. I love my dad dearly, and he was undeniably a generous person. The problem was precisely that, he was TOO generous and too gullible.

So, what's my point here? According to Vic and Avelynn Garcia, people can generally be categorized into 4: the survivor, the pretender, the seeker, and the unleasher. Let's take a look where everyone in the narrative falls under.

A. Survivor. This person truly lives within his means. It is because his income is exactly equal to his expense level. Laging "I will Survive" ang drama niya dahil wala siyang naitatabi. Sapat lang ang kita niya sa araw araw para sa gastusin niya para mabuhay.

Survivor ako dati noong nagtuturo pa ako ng ESL sa Mapua habang nag-aaral ako ng MA sa UST. Kung anong sweldo, 'yun mismo ang pinagkakasyang pangkain, pamasahe, pang-gimik at pang check-in. Hahaha! Joke lang. Kung nagkataon nagkasakit ako noon, kailangan pang lunukin ang pride para magpatulong sa magulang para sa pang-ospital. At kung nagkataon pang wala kaming bahay sa QC, sa sweldo pa dapat huhugutin ang pangrenta.

B. Pretender. This person likes to believe that she deserves the finest things in life. So, kahit call center agent lang naman si ate sa Libis, lagi siyang sa Starbucks nakatambay, lagi mo siyang makikitang papasok ng sine sa Gateway o Glorietta, at lagi mong makikita sa FB niya na pa-travel travel lang siya sa Boracay, sa Hong Kong o sa Thailand, ganun. Malaki-laki rin naman ang kinikita ni agent lalo na kapag lumalagari siya sa commissions, pero ang lifestyle talaga ni Pretender ay masyadong magarbo beyond her means. Pero lagi naman siyang may "friends" na nanlilibre sa kanya, at magsasakay sa kanya sa car, kaya "GOW!" sabi ni Ruffa Gutierrez.

Napansin ko ring ayaw na ayaw mag-selfie (ng ibang pretenders) sa bahay nila dahil baka plywood ang makita mong background. Naku, masasaktan ang ego niya kapag nalaman mo ito. This lifestyle is ridiculous. But what's more ridiculous is the fact that I know a lot of people who are in this category-- mga taong nabubuhay sa credit card.

C. Seeker. This person has excess money but does not know how to manage his personal finances.

Many yuppies who live with their parents and have little to no financial responsibility at home. Ang salary nila, na pinapasok ng employer sa kanilang ATM ay doon lang naka-park hanggang di na nila namamalayang malaki na pala. Sayang ang potential ng pera nila, kulang sila ng kaalaman tungkol sa investment tools na nasa merkado ngayon.

My dad can be considered a seeker before he entered politics. He was able to provide well; we were educated in the best universities in the nation; and our family lived comfortably from what he earned from land rentals, from the bi-annual income from his hectares of farmlands, and from the estate his parents left him. He was a seeker, but too bad he found politics to spend his money on. Ayan, nawala na lahat, he spent everything "for humanitarian causes". Bye, bye cash.

D. At ang panghuli, the Unleasher. This is the person who knows how to unleash the highest potential of his money because he knows all the available options out there.

Ito ay ang klase ng taong mula sa kita niya, may itatabi siyang fixed na pondo para sa savings, at marunong siyang dumiskarte sa buhay. Alam niyang ibukod ang needs sa wants. Alam niyang ang labanan ang paggastos ay imposible, lalo na't nasa harap niya ang likes niya, kaya ang gagawin na lamang niya ay umiwas.  At alam din niyang magbukod ng emergency fund na pwede niyang hugutin kung kailangan.

And this, guys, is what I want us all to become.

By the way, my mamang is the absolute unleasher. Just right after the sudden decline of time deposit rates in banks, she ventured into buying properties. Just right after the earthquake that hit Northern Luzon in the early 1990s, she was sold a prime lot in Baguio at an insanely low price! And now, it is where our 6-storey dormitory stands.

While I work full time in the university, I set aside fixed amount which I invest; I set aside money for my expenses (my needs and sometimes, my wants); and I set aside an emergency fund which I give to mamang for safekeeping.

Since I learned how to become an Unleasher, I have changed my attitude towards money. I learned how to make my money work for me, and not me working for money. But of course, it takes a lot of time and discipline before one becomes a true unleasher. Pero kung nasanay at na-train ka na, it's very rewarding because you can sleep soundly at night without having to worry about tomorrow. Whatever happens.

This also entails having to consider not only the potential yield of one's investment, but also his level of protection not only for himself but also for his family if ever the great uncertainty knocks (in case of illness, accident or whatever else).

I will talk about the investment tools next time, and this is the more exciting part of it.

Keep tuned in. :)

Another Big Leap Towards Wealth

Since the start of classes is still far ahead, I took it as an opportunity to look for an income-generating endeavor (alam niyo naman ako, natuto nang maging enterprising).

And luck must have been on my side that afternoon when I fetched my mom from her dermatologist. She happened to be chatting with her amiga who apparently heads the Philam Asset Management, Inc. Unit in Pangasinan.

They were having such fun conversation (basing on their giggles), so I just sat beside them and opened my mobile phone. My mom's friend greeted me with smiling eyes. I greeted back, but quietly, since I usually get shy around people my mom's age. She extended her hand to me and introduced herself. I nodded in respect, then shook her hand. She continued, "So, hijo, you're into trading equities daw?" I said, "Yes, ma'am, but barely profiting from my trades of late."

"So, what's stocks do you trade?" she asked.

My mom butt in, "Ay, yung mga recommended ni Bo Sanchez. TRC member 'yan."

Yeah, that's my mom. She always does that. I said, "I'm keeping my core positions in tact. I do not short them." But, I am almost fully liquid now. I have withdrawn most of my stock money to use for Forex. My remaining stocks, though, I keep in long term.

My mom's friend winked. My mom is a businesswoman, and she finished accountancy, but equities are just not her stuff. She does not take any interest in the stock market at all.

So, I finally answered the lady, "Resorts World, po. Sta. Lucia Land, and Vista Land. Yan po ang mga trades ko lately." She laughed and said, "You have a good risk appetite!"

Hell yeah! But it's my trades that usually get me in trouble. But yeah, it has not stopped yet to be a profitable venture, in fairness to it.

She asked me if I have interest in UITFs, Mutual Funds and Bonds. I said I'm still learning how they're traded. I have been wanting to diversify my investments, but so far, I have only experienced dealing with futures. And then, she said, "If you really have interest in these things, you may want to be part of my team. I'll train you."

Wow! I just got myself a second job! Who would have thought that I'd find a job opportunity at a derm clinic, right?

And so, the day after that, I was oriented into the company by an officer in Urdaneta Branch. He explained the things that are required of me as a prospective financial advisor, the perks of being affiliated with this internationally linked company like PAMI. And, the many rewards if I get to do the job well. Many, many rewards.

I readily got interested in the offer. I figured that being a financial advisor can give me a chance to promote financial literacy in Baguio and in Pangasinan. And to my friends, and my students' parents, and my sisters' suki, and everybody who needs it. Based on their product orientation, hindi nakakahiyang i-alok ang mga investment programs nila, in fairness.

And if you are reading this, and you think you have what it takes to be a financial advisor, you may also want to try out, and be part of our team. :) They will be training us well in this field. And what's good about this kind of thing is that it's not full time!

What I already know, I'll also be sharing with you. We'll be one team. One entity with one common goal: to help people reach their financial aspirations by assessing their risk profile, and helping them create their financial plans for the short, the medium and the long term. I will also share with you my stock market books on fundamental and technical analysis if you want. Or just for the heck of it. LOL.

So, there. I am now reviewing for my exam tomorrow. It will be administered by the Insurance Commission for the eligibility to become a legit financial advisor. If you also plan to join the team, I will give you my reviewer! Hahaha! I researched online and compiled the materials into a thin reader. You may holler me at 0922.800.7185. You may also poke me on Facebook.

Okay now. I'm gonna go back to reviewing. Till next time, ciao!

Coffee (a poem)

Since you've left, coffee tastes just like coffee; however I mask its taste with sugar and creamer.

Starbucks tastes no different, only a million times sadder.

I tried drinking coffee with pan de sal, but it only tasted a lot worse than it is. It was like drinking coffee that tastes like tears.

I once had coffee with a stranger I met from god knows where and the coffee was as bland as the conversation. It got cold so fast. I didn't even finish the cup.

Coffee may have lost its essence to me now.

I have been drinking coffee with you in the worst of times but it never tasted bad.

When you left, coffee has turned into cum—it just has to be ejected. That if from another, it’s something you want to taste but never want to swallow.

But

I still haven't given up on finding the right coffee. Tea is just too boring and beer is just too, well, I like beer, but you don’t.

So, please.

Just please...

Make my coffee taste good again.

-----------------------------

This was written summer of last year. I was writing this in positive hopefulness, but the thing I feared most still happened. It could not be undone.

But I post this now because I am finally letting go. I have stopped reaching out. And, well, I have stopped caring.

So, goodbye to you.

I have now contained you in this poem, and I am ready to close this page of you and me.