Delayed Gratification VS Instant Gratification

Lately I went to a telecom company in a mall and bought a post-paid plan. A lot of people were there falling in line, waiting their number to be called and with faces excited to own smartphones and gadgets.

I was planning to buy Smart’s Pocket Wi-Fi through Plan 599. Yes, a Wi-Fi gadget. Not a smartphone. And I still have my old Nokia phone with me while others have their latest gadgets.

While we were talking with the agent, I was offered with other plans. And guess what, iPhone 5!

I was mind-computing. Good debt or bad debt? Cost Benefit Analysis. My hands were sweating. I was excited! Not to brag but modestly, I could afford that plan. However, I changed my mind. I chose the pocket Wi-Fi. Thanks, my sanity was functioning.

Sometimes I feel a tinge of envy when I see someone holding a touch-screen phone, playing apps and having a luxury in typing a message instead of the conventional keypad that is hard to press.

Instant gratification

Some people are impulsive by nature. And I don’t blame them. Whenever they want something, they must acquire it immediately. As in now! They have this high momentum to get that something they want. It’s good if that something they want is not a biggie. But it actually is!

And that’s the downside. Everything that we want is often a luxury, not a necessity! And you know what, luxurious objects are damn expensive! Right?

Think about it – iPhone, BMW, Louis Vuitton, Tag Heuer. These are all luxury items. And the cost is the price to pay for the luxury! This would cost me a fortune to buy all of these! So why do I talk about this? 

Because some of us are investing on these luxurious yet DEPRECIATING items! These maybe expensive. Very expensive. But guess what after 1 week, the price depreciates its value! Now, is that considered an investment? Not at all!

Delayed Gratification

Most of you know of this but I’m pretty sure this is the principle of business magnates. Instead of investing on luxury items, a wise investor spends his money in Assets. No, not gadgets. Not bags. Not cars. Not watches. Jewelry, maybe.

Why? Jewelries are appreciating assets. A wise investor invests in assets that can provide a substantial income. A steady cash flow that can make them afford all the things that they want – maybe a luxury item!

So the ultimate goal therefore is to invest in ASSETS. When these assets are providing cash flow, you can afford all the luxury items the world can offer!

You know now why I chose the pocket Wi-Fi.  I want to be a serious internet marketer. And to be such I need to invest for internet connection. And as soon as I can earn on this venture, only then that I will buy a luxury item.

Now what? Instant or delayed gratification? :)

You Don’t Need to be Warren Buffett to Invest in Stock Market

Not long ago when I opened my online trading account, my officemate cringed at me saying, “What? You have a trading account? Are you an expert on that?” I didn’t answer to end the conversation.

You know, the more you talk, the worse it gets. The thing is, skeptics and hypocrites are the ones who always comment on everything.
Worse, they don’t empower you at all. They tend to infect others through their crippling comments that paralysis you to move on something you seem is the best thing to do.

So that’s what I did. I did not say a word. I only smiled and thought, perhaps he’s right and maybe he’s wrong. He’s right in a way that I am not an expert in stock trading. I admit that. Gosh, who is? And maybe he’s wrong.

Why? Because even though I’m not an expert, that WON’T STOP me at all. And I tell you, COLFinancial’s trading interface is easy.

I never tried their demo account. I never researched anything about their trading platform. What prompted me to make a move is, it was recommended by Bro. Bo Sanchez. He trade stocks through COLFinancial. And even his maids and drivers invest on it too! So why shouldn’t I?

Now my account is good and I earn a bit. But my earnings are higher than investing it in banks. Savings account? You will earn roughly 1% per annum. Stock market? An astounding 10 – 20%!

You don’t really need the knowledge of Warren Buffett to start. You don’t have to be a stockbroker either. COLFinancial will provide a Daily Investment Guide that you can refer what stocks to buy on a certain day. And you don’t need a huge amount to start investing. Why? Because at Php5,000 you can already open an account. Easy, eh? Read my other post on opening an account.

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Therefore, it is extremely vital to know how to ensure responsible usage of these loans. There are many online providers such as Midwest title loans who are offering instant cash for car. But before you approach them, it is essential for you to know how these loans work and why risks crop up so that you can make a safe deal.

How Title Loans Function?

A title loan is a secured lending featuring the amount as per your car value. In most cases, you will be able to take up to 50% of your car's worth. But for this to happen, you need to obviously have a car whose price is totally paid off. The chosen lender then tends to assess your car’s value before presenting you an offer. Here, you need to remember that there is no need to borrow all that is on offer. It is wise to borrow less because doing so can save significant money and can also make repayment burden-free. Although these loans are repaid within a month right from the day you take the money, the duration of repayment can change from one lender to another.

Why Risks Crop Up to Take a Toll?

Just imagine a scenario when a person needs only $1,000 but is provided an offer of $3,000! What you think will happen in this case? Well, the person is sure to take that $2,000 extra instead of taking what is required. This is the main reason why several people tend to face problems with car title loans. If you compare title loans to payday loans, the former is much larger in terms of amount than your income. But because you accept the big loan, you allow the lenders to take the advantage of lending you more and then enjoying the extra interest and penalty fees on default. Not only that, but in worst cases, the lenders can even take away your car. Therefore, to keep risks at bay, it is better not to borrow a single penny above your needed amount.

What Proactive Steps Can be Taken for a Wise Deal?
 
Prior to applying for a title loan, ensure that you find out the precise dollar amount in need so that you can borrow only that much. If you fail to do so, then you will be only responsible for the aftermath as you struggle to repay it. So, find out the exact amount you need by taking into account your possible sources of income and expenses. Further, ensure that the lender is not giving you any other options. A title loan with many options can be troublesome. Do some online research to get an affordable interest rate that is actually always high.

In case you accept a big loan, be ready to repay it by seeking new ways of earning money. You may have to work overtime, sell your old stuff online, cut down your current expenses, and pick up some weekend jobs. Taking these steps will relieve you from the tension of repaying the loan.

Ramy Gobel is a financial geek who is a freelance writer by profession. He is recently an in-depth research on car title loans by focusing more on online lenders and the possible pros and cons. Ramy recommends Midwest title loans for Americans.

We're Not So Different, Corporations And I

Image from realizedworth.com

I got a big wake-up call while going through my education in finance. Individuals are, in many ways, companies. Companies have financial statements and individuals have personal financial statements. Since I've learned how to analyze financial statements, it's frightening to know that I'm worth very little and I'm not an attractive "company". Damn you finance degree! I know now that I have not been managing myself very well. I've not been investing in myself and increasing the value of Me LLC/Inc.

There are two personal financial statements:

1. Balance sheet is your assets and liability. What you own and owe, showing what you're worth.
2. Statement of cash flow is your inflow of cash minus outflow

Companies have income statements, but since companies revenues are from sales of product/service and most individuals revenues are wages, a personal cash flow statement and personal income statement would look very similar. Basically, it is the realization of how we carried out our spending plan/budget.

Step 4 in moving toward financial wellness is making the decision that YOU are the Chief Financial Officer of YOU LLC/Inc.

The responsibilities of a family CFO are:

1. Planning and creating goals to prepare the family for future conditions. 
2. Presenting, and reporting of accurate financial statements.

If you are married, a board (family) meeting should be conducted and simply explained (to spouse and children) on what actions are necessary to meet financial goals. Empower your children by asking their help on making a snazzy powerpoint presentation and even opinions on what the family can do to meet goals. Of course, transparency is very important, you can't hide your spending from your kids!

What we can take from step 4 is that, in the end, we are responsible for our wealth. Our actions today affects our financial future. Believe in tomorrow and the future.

Whoever disbelieves - upon him is [the consequence of] his disbelief. And whoever does righteousness - they are for themselves preparing,

30. Surat Ar-Rūm (The Romans; 44)

Keeping Things Clean And Simple

Steve Jobs

When I look at a picture of the late Steve Jobs with his black shirt, blue jeans and sneakers, I think of freedom. Let me explain. During hajj, when having only ihram to wear, there's no questioning the appropriate clothes to wear for the day or need to mix-and-match colors. We might not think much of it, but sometimes, picking out clothes can really consume our time. Even if it's only ten minutes, 360 days would make it 3,600 minutes or 60 hours spent. So, Steve Jobs was able to spend three days of his year to focus on more important matters by eliminating clutter.

Keeping things clean and simple is the third step to financial wellness by eliminating the clutter and managing paperwork that comes from our transactions; bills, receipts, stubs, statements, and more. Suze Orman and financialliteracymonth.com's provides a guide on how to manage the paperwork.

Some of the things that manage to fatten and stay in my wallet forever are:

• Sales Receipts
• ATM Printouts
• Grocery Receipts

Pretty straight forward for step 3 and InshaAllah step 4 will follow soon.

Financial Market analysis on plant-based foods

Research shows that eating vegetarian food reduces obesity and various diseases. The majority of the people are aware of the fact that how non-vegetarian food supports cruelty to the animals and harm the environment. From restaurant’s to fast food joints, vegetarian options are becoming commonplace and have expanded from natural food store to club stores and mainstream grocers. Study also shows that the trend driving interests in vegetarian eating people will continue. The business people however, cannot make profit by only catering to this requirement and thus intend to offer delicious and affordable plant based foods.

It has been observed that consumer who seeks for vegetarian foods prefer fruits, grains, vegetables and dairy products. Market analysis shows that the demand narrows down to dairy alternative products as well as meat. The analysis also shows that around 60%of the vegetarians feel stronger about food being an important part of their lives than the non-vegetarian groups.  The survey also shows that 5.2% of the population was ready to follow a vegetarian-based diet in the future. Around 7% of the population was even willing to give up non-vegetarian foods completely.

Approximately, 1.8 million people are vegans who all do not prefer egg, animal ingredients and even dairy products. Vegans are heavy users of products that only meet their requirements. Research shows that vegans have positive influence in the automotive field.  They do not mind to pay extra for clothes, automobiles and food if they are made in such a manner that does not harm the planet. Basically, the population of vegans is moving from marginal level to the mainstream globally.

The main question that arises is who eats plant –based foods? The study reveals that low income household are more likely to prefer vegetarian foods .Even older people falls into this category and it has also been found that around 70% of the female are semi-vegetarian aged between 45 and older.

The range of vegetarian foods is increasing and the growing market has been successful in attracting major competition. There are several market research companies conducting research work for vegetarian foods. If you want to read more about research on vegetarian food, you can check with Redshift market research Company’s website to get the details.

How To Open An Account with COLFinancial

So you’ve made up your mind already? Ready to get started? Else, check out my post on Top 3 Things to Consider When Investingin the Stock Market or the Stock Market Introduction before you proceed. You must have the conviction and be committed before doing this. I warn you. You might regret if you dive directly without testing the waters.

In this post I will show you how to get started in online stock trading thru the multi-awarded and most acclaimed stock market broker COLFinancial.

No, I am not connected with COLFinancial nor an affiliate of this website. I am just recommending something that I personally use so that I can provide valuable information based on experience, not from anyone else.

So here’s the step-by-step guide on opening your COLFinancial account:

      1. Choose your investment plan. You can have the Easy Investment Program (EIP) which has a minimum initial deposit of P5,000. Or you can have a Trading Account with a minimum initial deposit of P25,000.

     2. Download the Guidelines and the Application Form. (You must have an Adobe Reader to read the pdf files. Else, download the Adobe Reader here.

      3. Fill-up the application forms: (a) Customer Account Information Form [CAIF], (b) Specimen Signature Card and (c) Online Trading Securities Agreement. Use the Guidelines as your reference.

     4. After filling up, mail the Application form to COLFinancial together with the Additional Requirements: (a) Photocopy of 1 valid Philippine’s Gov’t-issued ID and (b) Billing Statement. (For foreign citizens, call 6-515-888 for further instructions). You can opt to mail thru LBC, Air21 etc. 

     Here’s the address:

2403-B , East Tower, Philippine Stock Exchange Center, Exchange Road, Pasig City 1605 Philippines

        5. A sales officer will contact you thru call or email confirming your application and for your COL account number.

        6. Fund your account. You may choose the following options:

(a)     Online Bills Payment thru

          BPI (www.bpiexpressonline.com)

          BDO (www.mybdo.com.ph)

          MetroBank (www.metrobank.com.ph)

(b)     Over-the-counter Bills Payment thru BPI, BDO or 

          MetroBank

(c)     Business Center Cashier

As soon as you can fund your account, your COL username and password will be emailed to you after 24 hours! You can start investing in the stock market!

If you want to have a test drive first, you can open a 7-day DEMO account or download the PSE Primer at www.colfinancial.com Here’s the contact information of COLFinancial:

Hotline – 6-515-888

Fax – 636-3512

Email – helpdesk@colfinancial.com

Ready? Aim! Fire! Earn!

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