7 Common Money Traps Even Smart People Fall Into

Important Aspect - Cash Flow Management

Handling cash flow is very important aspect since all work hard for money and tends to make the most of our income. In order to avoid spending mistakes and help to stretch the cash for a longer time the following tips could be helpful –

1. Buying things on sale

Buying things on sale tends to be a mistake and can actually be a huge money waster. Whatever the price or bargain may be, if one purchases something which would not be used, it would be like throwing away your money. Before indulging in the sale purchase, one need to ask oneself whether the said product would had been purchased if not put up for sale and will be used after purchase. One should indulge in sensible
purchase and not go on a shopping spree for anything on sale.

2. Buying stupid products

Sometimes one tends to indulge in purchasing useless things and then repent for having done so. Prior to purchasing any of these unwanted commodities, one could hold onto to purchases for a later date if essential. It is best to limit them by having certain standards for the purchases especially big purchases.

3. Spending money on problems one cannot solve with money

Stop to think if by going shopping or indulging in some purchases, would help in resolving certain issues in life. There could be other options which could be more beneficial than in shopping and wasting money.

4. Refraining from spending when one has the opportunity

Your hard earned money needs to be spent on what could add great value to your life. It would be pointless if one cannot spend the money earned on important things in life and miss out on opportunities that come your way.

5. Not maximizing rewards and points 

Reward credit cards are of various shapes and sizes enabling the user to collect points on purchases like merchandise, gift cards, airline miles or cash back which could be utilised at the appropriate time when needed. One could opt for a card which offers points while shopping for basic like the grocery which when accumulated could be used for gas fuel or if travelling, an airline miles reward card which could be beneficial in the long run and take advantage of the points or cash back.

6. Not setting up automatic savings outside your 401(k) 

One should discipline oneself in setting up an automatic investment plan to come up after the pay check comes to your bank account every month. We often tend to pay the bills and other non-essential things leaving our savings till the last, if there is anything left after all. This needs to be avoided if keen on a good future.

As the saying goes -Money Saved is Money Earned. You could check with an investment company to set it up which would be very beneficial over a period of time. Automate your savings and investing inside as well as outside of your 401 (k) and set a direct deposit from pay check to bank account and monthly automatic transfer to your investment account.

7. Not spending enough

Sometimes we tend to compromise on our purchases by not buying the essentials when the need arises. We look out for other options which at times could be dissatisfying on purchasing. If one can afford it, go in for the best quality which will satisfy your requirements even if you have to delay the purchase.

Three Ways To Make Your Small Business More Profitable

Small business owners typically find their minds dominated by an important question: How can I make my company more profitable? If you're looking for answers to this question, you'll be happy to note that there are many strategies you can utilize to ensure that your small business becomes a money-making machine. Here are three strategies to try:

1. Enhance Your Meetings.

Meetings are the medium through which you and your business partners strategize regarding how you're going to move the company forward. When you optimize and expedite your meetings to facilitate this purpose, you can get more done in less time. In understanding that time is money, you should recognize the role that meeting enhancement can play in generating more revenue for your company. Businesses like Meeting Metrics specialize in providing business owners with the techniques and tools necessary to keep their companies moving forward and making money. Learn more about all of the business-building services that Meeting Metrics has to offer when you click here.

2. Market Online.

Online marketing has become one of the most expedient and effective advertising methodologies available to small business owners. These days, the phrase "growth hacking" has come to define the process in which small business owners use online marketing strategies to build their audience, convert prospective customers, and generate brand loyalty. One of the great things about growth hacking strategies is that they are cost-effective, meaning that using them can help you generate wealth without necessitating that you invest a lot in the marketing process. Some of the more prevalent growth hacking strategies available to you include:

• website analytics 
• search engine optimization 
• A/B testing 
• content marketing

3. Network.

The key to generating more wealth for your small business is constantly building your network of loyal clients and business partners. This process is realized through consistent, effective networking. If you are not already in the habit of networking in a very systematic, strategic way, you need to put this objective at the very top of your priority list. As you begin, remember that networking can transpire in both formal and informal settings. Formal modes of networking include attending lectures, conferences, and other events related to your field. Informal modes of networking include things such as attending baby showers, football games, and other social events where you're likely to meet new clients.

Conclusion 

If your primary goal is to ensure that your small business becomes as profitable as possible, implementing the strategies above can help. By optimizing your meetings, investing in growth hacking methodologies, and networking regularly, you'll likely find that your small business starts obtaining absolutely amazing conversion rates!

How To Immediately Achieve Financial Independence

Unfortunately, most of us (low to middle-high asset class) slogged our life away for the house (a building in which people live). Let us remove the super wealthy from this equation as property is probably dirt-cheap to them. Let us also neglect the fact that many treated property as investment, instead of residential.

I just did a serious review on my financial status (yes, again and again). I realised if we are to sell away our 4 rooms flat now and buy a 3 rooms flat, we are officially financial independence immediately! So, now the question is, the luxury of having 1 more room worth the extra 3 - 5 years of working full time? The most common answer I can anticipate should be not worthwhile. Ironically, most people will rather work till retirement age to buy as luxury a house as possible.

Alternatively, we can also buy a 4 room BTO flat at around $300,000. We may have to sacrifice on the location and accessibility to amenities compared to my current flat which is beside MRT, shopping centre and future various establishments. For 2^nd timers BTO applicant, we will have to keep trying and waiting for opportunity to grab one, which can take many years.

If we want to maximum the effect of profiting from the property, we have to partially cash out it as early as possible. Why? Because the money can provide interest compared to a property stay idle and risk devaluation as lease get shorter and lose it competitive advantages (MRT will be established everywhere in future). However, we are not in urgency to move. We quite enjoy the conveniences that comes along with our current flat.

To make my options even more complicated, I am always a fan of staying near workplace. Since I am not going to work in 2-5 more years (or freelance) and my wife enjoy her work and may work for another 8 to 10 years, I am thinking to move near her workplace. This will save 2 hours of my wife and child’s time, as the childcare will be there anyway.

Summary, if I want to retire immediately:

1. Stay in current flat and keep trying BTO (4 room). Downgrade again to 3 room during old age. Bite the cherry twice like what my friend said
2. Buy 4 room resale flat near my wife workplace, where I may not have much profit (unless I bought 3 room resale flat). Thereafter, try BTO (3 or 4 rooms flat) years after

If not, I will just stick my neck out and work full time for another 5 years till 37 years old. I will achieve financial independence anyway. Alternatively, I will work full time for another 2 years, and continue with freelance for 5-8 years to achieve financial independence

My objective is to provide the best for my family. I will keep my options open. What is best for my family than my time and devotion? Here is a video that parents should watch : 

BPI Family Savings seeks to expand lending by 15%

BPI Family Savings Bank, the thrift banking arm of the Bank of the Philippine Islands, is seeking to expand its lending portfolio by 15% next year on the back of strong growth seen in the provinces and as mortgage and auto loans are seen to drive the growth.

The bank is currently “tracking Php200 billion” in loans and it targets to “cross” that level by yearend,” BPI Family Savings Bank, Senior Vice-President, Retail Loans Cristina L. Go told reporters in a briefing yesterday.

“Our numbers show really fast growth in the last five years, which mirrored -- double the size of retail loans... [for] 2016 we’re still targeting 15% loan growth,” Ms. Go said.

BPI Family ended 2014 with a Php173-billion loan portfolio, accounting for 25% of BPI’s total loan portfolio.

As of the first half, BPI Family’s retail loans were already up 20% with 54% or Php107 billion of the total coming from housing loans.

“Growth is more broad-based with loans more affordable -- housing, micro enterprises, auto dealership... in value, housing loans are big but in terms of volume, auto dealerships is higher,” Ms. Go said.

She noted that Php60 billion or 30% of the Php200-billion loan portfolio target for 2015 will come from provincial, attributed to real estate development booming outside Metro Manila, car dealerships rising in provinces and small and medium enterprises “more alive” in the countryside.

“We’ve seen growth in provincial -- at 25% -- outpace the general Metro Manila area, which is at 15-18%,” Ms. Go further said.

The bank continues to be “positive and optimistic” given the country’s current scenario where “forecasts are very positive” and as overseas Filipinos “have more propensity to avail of house, car, and business [loans], she added. “Home, car and business are their top priority in investments. They’re hoping to come here, retire here.” BPI Family has around 180,000 clients.

Moving forward, Ms. Go said BPI Family plans to put up 19 branches, mostly in areas outside Metro Manila to service the growing market in the provinces.

The thrift arm of Ayala-led BPI currently has 185 branches. Earlier, BPI Family Savings Bank President Natividad N. Alejo said putting up a single branch is estimated to cost the bank about Php8-10 million.

Although she declined then to disclose BPI Family’s net earnings in 2014, Ms. Go noted that BPI Family Savings Bank has always posted good earnings since it is BPI’s consumer unit and “the consumer market is very strong.”

BPI Family’s listed parent BPI posted Php9.3 billion in net earnings in the January to June period, up 16% from the year-ago level of Php8 billion.

Shares in BPI closed at Php86.10 each yesterday, up 50 centavos or 0.58%.

-- Business World

The case for Letting Coffee go for your savings & investments

Photo Source from coffee.gotham

Coffee is actually very healthy. There are a bunch of research and studies about it. It is loaded with antioxidants and beneficial nutrients that can improve your health. The studies show that coffee drinkers have a much lower risk of several serious diseases. BUT, it's not as valuable as water wherein we really NEED it.

The Coffee industry is a big income generator around the world generating at least about $30 billion in annual revenue (in the US so that's just one country and that's not the only country that demands coffee).

Also, there is controversy that also plague this beloved drink, reports of toxicity stemming from dangerous growing methods and the roasting process; there’s also that addicting properties of caffeine, as well as the issue of acidity. But we will be talking about your personal spend on coffee.

So with that, I'M SO SORRY COFFEE LOVERS!!

Now that's out of the way, let’s have a sample computation:
-Php150.00 x 2 drinks a day - for a branded coffee
-That's Php2100.00 / week (or seven days)
-Php9,000.00 / month
-Php108,000.00 / year

Okay, that's a frap! A plain-ass coffee would cost around Php75.00 (still the lowest branded coffee)
-Php75.00
-Php2,250.00 / month
-Php27,000.00 / year

So, if you are earning Php27,000.00 per month then it’s safe to say that you are spending a month's-worth of your salary for that Php75.00 coffee per day. It might have been a million in 40, 20 or even 10 years if you have used it in investment or business.

Fine, that's over simplifying it but you still need savings (money set aside) for you to pay off your bills, health plan, insurance, emergency funds and then investments.

Wait, your thinking.. "I'm gonna buy 3 in one coffee instead!" that's fine; let's calculate:
3 in 1 sachet costs about Php8.00 and let's say one's consumption is at least twice a days since it's cheap right?
-Php16.00 per day
-Php480.00 per month
-Php5,760.00 a year

Well, you can justify all you want but that's still a potential savings of over Php5,000.00. This can be invested as a start in a pooled fund like a UITF or mutual funds or open an online stock market broker account to begin investing!

Come on, I know you can do it! Is coffee a need or a want? A medication? Who knows, but ultimately, you decide. Heck, ask a friend to treat you to coffee or just use company provided coffee instead! :)

The future is in your hands. For now, I'll settle bringing a water bottle and get enjoy my boring H2O!

Philippine-American Life & General Insurance Co. (Philam Life) expects boom in health portfolio

Philippine-American Life & General Insurance Co. (Philam Life) expects its health portfolio to continue expanding on increased demand seen over the last two years since it was introduced, a top official of the insurer said yesterday.

Philam Life Chief Marketing Officer Jaime Jose M. Javier Jr., said its health products currently account for “more than a third” of all its new sales. “Our health products have gathered a lot of momentum in the last two years. In 2013, when it was launched, it was among the bottom but now, it is one of the bestsellers,” Mr. Javier said in a briefing on Tuesday.

“One-third of our new business is coming from health and the trend will continue despite the growing base. As of last count, it’s around 30%, even,” he added.

Mr. Javier noted that being healthy is among the top concerns of Filipinos, boosting demand for health-related products. “The relevance of health insurance makes it easier for consumers to relate to it,” he said.

In a bid to further expand its health-related offerings and help address growing health concerns, Philam Life launched Philam Vitality, a wellness program meant to promote a healthy lifestyle.

“We want to offer total wellness package and make insurance more than just a risk cover. It’s a one-of-a-kind product where members are rewarded for being healthy... ,” Kats P. Cajucom, Philam Life Deputy Head of Vitality said in the same briefing.

Mr. Javier said Philam Life is seeking “a few thousand” members for the first year of Philam Vitality, targeted for current policyholders.

BETTER YEAR
Moving forward, he said Philam Life may end the year with better premium income compared to 2014.

“This year can really be a good year given good investment environment and good channels. I hope [we could match last year’s] but if the stock market improves, we’ll even do better,” Mr. Javier said.

Last July, he said Philam Life is on track to surpassing its premium income last year on the back of better performance of both its agency sales and its bancassurance business.

Philam Life reported an Php18.312 billion in premium income in 2014, the third largest in the industry, although down from the previous year’s Php19.966 billion, based on its submitted annual statements to the Insurance Commission.

Philam Life’s total assets stood at P226.8 billion, net income was at Php5 billion and net worth of Php85.2 billion. It has close to 6,000 policyholders and more than 1.7 million insured group members.

-- Business World

DSWD, NYC launches Youth Development Session in Cebu

Envisioned to help address the many challenges faced by Filipino adolescents today, the Department of Social Welfare and Development (DSWD) in partnership with the National Youth Commission (NYC) and Department of Education (DepEd), launched recently the Youth Development Session (YDS) at Abellana National School in Cebu City.

The said event will be attended by NYC chairperson Usec. Gregorio Ramon Tingson together with commissioners Jose Sixto “Dingdong” Dantes III, Jo Jan Paul Peñol and Percival Cendana.
Herminia Cabahug, DSWD7 officer in charge together with Pantawid Pamilya workers, partner-beneficiaries and other partner implementers will also grace the event.

YDS is the parallel intervention to the Family Development Session (FDS) implemented by DSWD through the Pantawid Pamilyang Pilipino Program. It is a modular session that aims to motivate the adolescents in attending and finishing their education. The YDS shall help motivate the adolescents in attending and finishing their education.

“We recognize that the youth of today are faced with various challenges and some of them do not have the appropriate skills and proper attitude to face these challenges. Through the YDS, we are hopeful that we will be able to save our children from the many ills of our society such as drug addiction and early pregnancy,” shared DSWD Secretary Corazon Juliano-Soliman during the first launching of YDS in Tandang Sora National High School.

Moreover, YDS is expected to help equipped the youth with appropriate knowledge, attitude and skills to face developmental challenges, see available opportunities and overcome possible risks to aid them in achieving optimal and holistic development.

Topics to be discussed during YDS include Changing Body, Teenage Pregnancy, Pornography, Peer Pressure, Substance Abuse among others.It will be conducted in a school-based setting during weekdays within class hours.

YDS modules include Social Preparation, Change: Metamorphosis of a Person, Your Changing Body, The Changing Mind, Body Image and Healthy Lifestyle, Your Changing Emotions, Expressing Your Emotions, Changing Roles and Expectations, Defining Your Indentity, Appreciating Your Self-Worth and Discovering Your Destiny.

Meanwhile, Regional Winners of the Pantawid Pamilya Exemplary Children 2015 will also be awarded tomorrow. They will receive medals, certificate of recognition and cash prize worth Php8,000 to the grand winner. Runners-up shall also receive Php6,000, Php4,000, Php2,500, respectively. Another Php2,600 will be given to all the regional winners as transportation assistance.

Criteria for this year’s search include Behavior and Practice (20%), Talent (20%), Intelligence and Wit (20%), Community and School Participation (20%), and Kaya Koang Pagbabago Presence and Appearance (20%).