Why Experience is Not the Worst Teacher

Antagonists say that experience is the worst teacher, well not me. This is a bias judgment and the greatest disabler of human curiosity. Imagine telling this to a young child and watch his reaction. What could we expect?

He would definitely avoid an experience. The word "experience" denotes a negative connotation that is instilled to the lad's mind making him feel averse of new experiences, not to try other things that nobody dares to do.


But don't get me wrong, all experiences are good.


The effects of this is not that apparent and the after-effects are even more plaguing. Here's an example based on a real life story of my friend.

My friend's parents were married at an early age: her father at 21 and her mother at 18 years old. They were blessed at first. They loved each other and they have four lovely children. But not until the 25th year that her parents suddenly separated! 

The reason - her mom gave birth to a son from another guy. Depressing.

When the extended family (her uncles, aunts) came in to probe about the issue, they found out that the reason why her (my friend) mother left them is because she didn't love her husband anymore and she didn't want to live like a nanny - taking care of children and staying at home all the time. She wanted to go out with her young friends to party like there's no tomorrow. 

In a wider perspective, there are are many possible reasons why she had done that decision. However, one of the most probable reasons (which her uncles and aunties also agreed), is because her mom haven't passed through the post-teenager stage. When she got married at the age of 18, what she did was all motherly tasks and activities.

While other women at this age go travelling around the country making friends and exploring their womanhood, her mother was already breastfeeding the baby.

The problem can be attributed to the early motherhood of her mom. Instead of exploring one's self at an early age and marry at the right time, her mother did the opposite.

What I am trying to say is that, the more experiences that you have the lesser the chances of activities to recur when life tends to be serious. Thus, it is better to start with self-discovery at first and then move on to another stage.

Good or bad experiences, there is no exception. For as long as you tried something illegal yet you know how to get out, there's nothing wrong but ALL the risk is in you! It's kinda similar to my previous blog post - Once Tasted, Always Wanted, where I unearthed the whole meaning of the short phrase.

Experience is like a coffee. It is best served in the morning. One should be open to new experiences for this will mold us into perfect US. To try things at an early age is an advantage because you will have an idea what and how it feels like and your learning is growing with your age. Hence, experiencing more things is a wise move!

Similarly, in the context of investing, people who are exposed to investing at an early age has a far greater advantage than those ones who learn at early 20's or even 30's. Conclusively, learning is effective at an early age.

I often hear people stating the exact age when to start a certain endeavor. Yes, this is possible but the learning curve is greater. That is why I encourage everyone to learn investing as early as NOW or not later than this MOMENT!

Tips on Selling Your Structured Settlement

People who are seriously injured in an accident might be eligible for a sizable financial award as compensation for pain, suffering, and lost wages. If it is your award, decide on taking it in one lump sum, or you may settle for the guaranteed distribution over a long period of time. We call this a "structured settlement."

Whoever owes you the money usually purchases an annuity from an insurance company, and the insurance company pays you the financial award in installment payments. You receive the tax-free annuity payments over the rest of your life.

The structured settlement annuity helps you meet your continuing financial needs as the injured party:  medical expenses, family support, and replacement income because you cannot work. To keep the investment sound and the distribution sure, an insurance company administers the annuity.

Despite what some people think, a structured annuity does not change your award. It just pays you installments. In time, you may decide that you need more money and want to sell all or part of the settlement payment/s for a lump sum.

Selling structured settlements helps you when you find the installments do not meet your needs because of inflation. You may suddenly need a large amount of money to finance a move or a child's college education.  In any case, the award was to you, and you own the annuity. So, consider your option to sell:

Identify your need:

• You need a percentage of the remaining payment/s.
• You need the value of a few payment/s.
• You need the entire value in the annuity.

What to do?

• Contact an attorney. Your existing annuity can be difficult, and the sale of the structured settlement can complicate this problem. For example, if you decide to sell a percentage of the award payment/s, the shares can get confusing. Contact an attorney who has experience working with structured settlements and can help you navigate the process with ease.

• Do homework: There are hundreds of websites representing buyers. Check the buyer that interests you with a call to the state Attorney General's office and the Better Business Bureau. Doing the proper research will arm you with the knowledge you need to accept the right offer and to ensure that you are doing business with a reputable and trustworthy individual.

• Defer payments: Consider deferring payments. This gets you cash now and does not reduce your payment/s until later. Whatever you decide on, demand a written offer. If the buyer resists a written offer, continue shopping.

• Secure several offers: Shop around in search for the best offer and avoid dealing with only one company. You want to have several options at your disposal.

Follow your gut when selling structured settlements: Do not commit to anyone you are not comfortable with. Choose a buyer who is patient with you, explains the pros, cons, and paperwork. There needs to be some professionalism and respect. The award is yours to do with as you will, so you will want to be sure that you are working with a lawyer and buyer you can trust.


About the author: Alex White is an investor and personal finance expert. He enjoys blogging about what he does best.

3 Best FREE Services Not Worth Spending

I am one of the advocates of the cliche, "The best things in life are free." While this may sound stupid or something (think about Lamborghini or Hermes bag which obviously you can never get for free), I know that this is not quite bad. Try these stuff first and you can thank me later.

1. FREE Education at Harvard, MIT, Princeton University, etc.

With the advent of technology, everything's possible with the power of internet. With no limits, no hocus-pocus, no scam or something, everyone can study short courses for FREE with a simple touch of a button.

No, this is not your ordinary school. And when I say "not ordinary", I'm talking about schools like Harvard, Georgia Tech, MIT, Princeton University and many others. 

Coursera is the new name of the game. Here you can find short courses like Arts, Music, Mathematics, Programming, Science, you name it! You will simply register at www.coursera.org, provide basic information and you can browse all the FREE courses ranging from 2 weeks to 12 weeks.

Choose courses that you like and you can enroll as many as you want!

The time needed for these courses vary from 10 hours to 20 hours per week - you decide on your choice. The medium of instruction is very simple. The professors will provide instructional videos for the discussion (which you can download) and will also give assignment every week.

You have to complete all the assignments and pass on time for you to pass the course. What's more interesting is that some courses offers certificates of course completion. Not bad for a free course, right? Just visit the website www.coursera.org for more info.

2. FREE Internet using VPN

While others are struggling to pay their internet bills, some are browsing the Internet for FREE at their fingertips! I found out about this really cool stuff when I was a bit broke and couldn't help myself but download movies and watch videos on Youtube.

I Googled, "Free Internet" and then I learned Free Browsing Technique (FBT). I was really amazed and it's really powerful that I could even download High Definition (HD) videos for FREE! How's that for free, huh!? Here's how you can do it. Thank (or hate) me later whatever happens.

Things needed:
a. Computer (laptop or desktop)
b. USB Modem for Internet Connectivity (i.e. Globe Tattoo, SmartBro, or any brand)
c. Prepaid Sim Card - Smart or Globe only (to be attached on the USB dongle)

How:

a. Insert the Prepaid Sim on the USB dongle.
b. Reload credits on your Sim card.
b.1. For Smart users (Philippines), load at least Php 2.00
b.2. For Globe users, No Load is needed :)
c. Activate your GPRS to start browsing the internet.
c.1. For Smart, type "SET" and send to "211". Follow instructions thereafter.
c.2. For Globe, key in "GO" and send to "2951"
d. Configure your USB Modem. Read more here for the tutorial.
e. Register at Symbianize and download the Virtual Private Network (VPN) here. (courtesy of www.Symbianize.com)
f. After download, right-click on the icon and click "Run as Admin"
g. Click "Yes" when a window pops up and continue. Now the icon must appear below on the tray. If not, VPN is not properly installed.
h. On your dashboard (Globe Tattoo or SmartBro), click "Connect"
i. If it's already connected, right-click on the VPN icon and click "Connect".
j. If the VPN icon turns green, you are successfully connected. If it's red, it is not connected yet so try reconnecting.
k. That's it! For more information and tutorial about this gig, visit www.symbianize.com

Note: If you are interested, enjoy reading the tutorial thread in Symbianize. Otherwise, buy a postpaid plan instead :)

3. FREE BlueRay Rip (BRRIP) Movies

In addition to the Free internet in Item 2, here's another fun stuff that you can have to have a Two-Punch Combination of your freebies (just like what I did).

When you are not contented with the quality of movies the Cinema offers, itching your ass to sit and watch the movie again and when you want to see a movie in your room with your family or friends using your LazyBoy chair, then you can download that movie for FREE and have it seen on your Samsung SmartTV with a Dolby Digital surround.

How's that for a Home Theatre? Not that bad. Well call it piracy. But I do believe that there are times when you find the comfort of watching movies at home than screeching tires going to the Cinema. 

For FREE movies, you must register at Symbianize for you to download all the great FREEbies - ebooks, mp3, movies, software, portable programs and all the digital stuffs the world can offer.

(Click here for BRRip Movies) Symbianize is a forum site for all sorts of things. Absolutely FREE! For me this is the most important forum that I know and I couldn't live without it. Try heading to the site and search for "movies" and there you have it. FREEBIES all the way...

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here.

Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction.
Practical example

If you paid the loan back in one go at the end of year one, you would owe them £108. That is, your original £100 plus 8%. The bank will likely ask you to pay the interest monthly though. Divide £8 by 12 months, and you get 67 pence a month (well 66.66 pence if you insist). If you decide to repay the loan back after six months – but paid no monthly interest – then you will owe them £104. When you think about it, the APR will still be 8% per full year.

Let us try something different. Suppose you paid back £50 after 6 months. In this case, your situation would look like this:

• First six months, interest added £4 (capital sum £100)

• Second six months, interest added £2 (capital sum £50)

The total interest of £6 you pay is only 6% of the money you originally borrowed. But then, you did give them back £50 halfway through, which is why there is a saving of £2 overall. Moreover, you only have to scratch around for £52 at the end of the loan period. It always makes sense to pay a loan off quicker.
Penalty interest

Of course, if you fall behind on monthly interest payments (or fail to pay the loan back on time with interest) then the situation will look different. Now here is a hot tip. Some card firms with the lowest advertised APRs charge the highest penalty interest rates, if you are late with payments. So pick your service provider with your own plan in mind.

Using a credit card for purchases

Pretty much the same logic applies: if you keep up with payments and do not overspend, your situation should stay under control. If you do not though, the interest can spiral out of control to the extent that you can hardly keep up with it. Yet another good reason not to use your credit card for luxuries like beer and holidays.

Is the lowest APR the best?

Not necessarily. Here are some tips that will help you make the right and most informed decision:

• Only half the customers that apply get advertised APRs. Learn to look for terms like “representative” and “average” in advertisements.

• In practice, credit card firms do creditworthy checks, analyse our individual payment records, and then apply an APR that balances out their risk.

• Be wary of choosing a particular card because of the “free” add-on rewards. You have to spend money to qualify for them, meaning they’re not free after all.

• Aim to pay for your purchases every month, and repay your loans on time. If you do not, be sure to compare the penalty interest rates you will end up paying.

So is a credit card a bad thing?

Definitely not, credit cards have many benefits. These include a plan in hand for unplanned expenses and detailed statements so we can see where every pound we spend goes. That said it is important to use a credit card responsibly, so you stay out of financial trouble, and avoid that dreaded bad credit record.
Finally, a quick word on whether to have a credit card at all. In the UK, you can seldom borrow money if you do not have a record of previous credit. This can be a real bind when you need a mortgage to buy a house. A clean credit card is the perfect way to build your reputation. Just choose the APR most suitable for you.

7 Lessons On A Trip to The Party Island - Boracay

Three weeks ago, I went to Boracay to experience the luxury of resort living and to escape the cubicle space for a while.

The travel was spontaneous and unplanned. Due to desperateness of not having a plunge on salty clear waters for months, we booked a flight straight to the lovely island without even thinking for the accommodations, itinerary and budget.

Well the stupid notion turned out to be terrific and I didn't regret either. There are several reasons why I chose to go to Boracay instead of other beautiful places in the Philippines.

(1) Boracay is said to be the World's Best Island in 2012, Best Beach in Asia for 2013 based on TripAdvisor's survey, defeating other destinations across the continent. Worth trying, I thought.

(2) I don't want to be a foreign citizen in our own country. When my friend (an American) told me his experience in Boracay, I was just nodding stupidly. At the end of the conversation I laughed and said, "Yeah, I should go to that beach soon."

(3) I want to experience partying at the beach. While having a disco on the city lights may sound nice, I find it great to dance with a soft ocean breeze on a native hut.

(4) Travel enlightens your ideas and imagination. A wider perspective enables us to visualize and prototype our thoughts clearly.

(5) A prequel to my desire of living a nomadic lifestyle. 

There are two ways going to Boracay from Manila, Philippines: (1) A direct flight from Manila (MNL) to Caticlan (MPH) or (2) Manila (MNL) to Kalibo (KLO). Convenience-wise, the first option is preferable. You can save 2 hours of travel, if you want to.

But we challenge discomfort and embrace adventure so we opted for the second option - Manila to Kalibo. Our flight was scheduled to be at 3 pm on a Friday afternoon.

Lo and behold, there was a notification to cancel all flights of ZestAir. So we ended up waiting there for seven (7) hours in the airport until we were transferred to another carrier.

Couldn't blame them either. The reason of cancellation of all flights was due to safety issues being detected on the airline. Way better than being landed on the sea if it weren't detected beforehand, I thought.

We arrived at Kalibo Airport at 11:30 pm. We searched for any means to travel going to the Jetty Port (the port where boats are stationed going to Boracay island).

Before heading to the exit, there was a banner posted "Php 250 going to Boracay thru a shuttle van." I wasn't paying attention instead, I asked the security guard if there is anything else we can ride going to Boracay. The answer is negative.

Considering the time, there was no other vehicles available except for the van. No choice so we hopped on the van and traveled for 2 hours.

While in the course of travel, we were laughing out loud and making fun of our travel experience and was so excited to see the island.

Both of us were first-timers in Boracay. When we arrived at the Jetty Port around 1:30 am, we felt hopeless. But the feeling was gone when we saw a boat still accepting passengers going to Boracay!

However, the fare was almost 7 times higher - Php 100 instead of Php 15 regular rate! The reason why it's more expensive is because it was beyond their regular travel time which is from 6 am - 10 pm.

First myth that we busted - you can go to Boracay at ANYTIME, no time limits!

We arrived at 1:40 am in the coast. I could still remember the amazement on my face when my feet were subsiding while stepping on the "floury" sand. 

After the boat ride, we rode a trike going to Boracay and paid Php 50 each. At exactly 2:00 am, I had my first step in Boracay.

But there was a problem: where would we stay? We haven't booked hotels or anything. We thought that we could just find cheap accommodations by wandering around the place.



We went to places nearby for accommodations but all were closed! It's already 2:00 am.

So what we did was still brilliant - drunk beer in the shoreline while watching the tides. It's not until 6:30 am that we finally found a decent place to stay for just Php 1,500 a night.

While we were walking around looking for rooms to stay, a certain guy approached us and offered a room. He guided us to the place and we liked it at first sight.

It was great! Not to mention that it's in Station 1 - the center part of Boracay. There are five (5) stations in Boracay. And I would say, if you want the party-crowd, go to Station 1 or 2. Else, go to Station 3 if you want a private moment. It is silent, less-crowded and serene. I've never been to Station 5.

We had our room in Casa Santa Fe. The room has two beds good for 3 people: 1 queen-size bed for two and a single bed. It already has an aircon unit, Wi-Fi, TV, and a hot & cold shower (no free breakfast).

So if you're in three's, you're gonna spend Php 500 a night. The landlady suggested that we could buy something from the market and have it cooked for free, courtesy of her. That was part of their service. But we opted to eat outside and look for something new!

Second myth busted - you can book a room anywhere in Boracay, on-the-spot!

The man who helped us find a room happened to be our tour guide. He showed us the spectacular activities to do in Boracay at a LOW price. I was cynical at first but when I found out that he's trustworthy enough, I was confident.

As a first-timer, our original plan was to go around and explore all the establishments, take pictures and discover all places there that are worth visiting the next time around. But we never failed to swim and experience the buzz about the soft white sands in the shore.

I fell in love with the beach and I couldn't compare anything better than that. I already went to Bohol and Cebu. But for me, Boracay is the best.

When the dark gobbled the sun, the excitement rolled in. Party time! We dressed our best outfits and headed to the funkiest bar in Boracay - Club Paraw. According to our tour guide, Club Paraw has the largest crowd among all and the variety of people is great - Filipinos, Korean, Chinese, American etc.

For Php 150 entrance fee, you have a free 1 glass of vodka and you can dance all the way you want. I shouldn't have danced, considering that I only dance with the rhythm of electronic dance music, but I gave in when after a while the DJ played Steve Aoki's Boneless. Couldn't help myself when my feet dragged me to the dance floor. And the party started until we went home at 3:00 am.

The last day was a blast. We had a dinner buffet for Php 280 and we ate like there's no tomorrow. The roasted fish was so intense and I loved the pork and the chicken. We bought few souvenir items and then packed up, headed home.

For just a night and two days stay, I really enjoyed the short vacation (should have been longer if it wasn't because of the delayed flight) and I hope to visit once again after some time, of course in groups.

7 Lessons I Learned in Boracay

1. If you're in vacation mode, you can opt for a cheap flight. But never book on a budget airline during business trips. You'll surely be in trouble!

2. Time is more important than money. We could have chosen a flight from Manila to Caticlan and save 2 hours of travel instead of Manila to Kalibo.

3. Make sure you arrive in Boracay in the morning. This is the check-out time of people in hotels. Perhaps you could take place on the rooms.

4. As a first-timer, you need to have a tour guide. They can take you anywhere and might give you discounts.

5. Travel light. Don't carry anything that you won't need. Save your space for souvenirs and goodies.

6. It is more fun & cheaper to travel in groups. Laughing out loud will never be the same if you're in a group. Likewise, it is cheaper because expenses can be divided.

7. As an investor, book promo tickets in advance and save for the trip. Imagine how this trip could inspire you to work hard and think of the future. This could make you excited and enthusiastic of what's going to happen ahead. Invest in something that money cannot buy.

How about you? How was your experience in Boracay? Any places that you plan to go? :)

Update: Check out my 2nd post about Boracay - 5 Unusual and Offbeat Things to do in Boracay 2016

5 Lessons on a Bearish Market

The Philippine stock market is really depressing today. With the drastic downturn in the economy, all IPO's have been affected resulting to an all-time low for several days.

A 25% loss on my stocks is alarming! This is not to brag but to show my real losses. My investment is quite small for now.


For those of you who haven't invested in stock market yet, you can read my articles: You Don't Need to be Warren Buffett to Invest in Stock Market, How to Open an Account with ColFinancial and Offline or Online Stock Market Trading for introductory guides.

Take note that you can start investing for as low as Php 5,000!

Based on the reports, the reason of the bearish market is due to Federal Reserves development and decrease of exports to China.

As an underdog economy, Philippines is always (and forever will be) affected with the major economic players - US and China.

This is nothing new. The stock market is like a roller coaster - it goes up and down. Sometimes positions are prolonged that you don't have any idea how soon it is to change.

This evokes us personally and leads to valuable lessons to be learned as a hardcore investor.

Lesson 1: Stock Market is Always Changing

This is nothing unique. A cliche that remains to be true in whatever case may be.

Considering that it's a business, chances are risks are always on investors' side lurking somewhere and waiting to attack.

The challenge is how to counteract risk to go on your way. Bottom line is the acceptance part - knowing that nothing lasts forever and how to act on changing times. 

Lesson 2: Patience

I agree that this is the most important attitude investors must have.

Without patience, there would be no businesses and investments made at all. Backed up with guts and boldness, nothing can be sturdier than a man with the ability to wait a better yield.

For as long as we are certain with something, nothing can get in the way and block our roads to the future.

Lesson 3: When You Lose, It is Time to Buy More

The binary results of stock market makes it exciting and predictable. You either win or lose.

The point is, investors are not really losing their money in the stock market during bearish times but the value of their assets.

Even if the price per share of that company reaches 0.01, that is nothing to worry about.

If the cause of sudden decline is by chance or temporary like a crisis or major disaster, still the investment value is intact and the value may rise again after recovery.

While it's really tough being broke, this is really the best time to buy MORE stocks. The cheaper it is, the higher is the potential for earnings. And this is where we find real bargain.

Lesson 4: Losing is Part of a Long-Term Investment

As what I have written before, Investing is different from trading.

The objective of the former is long-term appreciation, while the latter is short-term.

Ergo, no rush is expected in investing since the goal is to grow your money in 5-10 years.

And with that span of time, there will be surprises & setbacks that we wouldn't know and we should be proactive in dealing with it.

Lesson 5: Losing More is Earning More

When a stock is depreciating badly, for some it is a signal to get rid of that stock as soon as possible - minimizing loss.

However, that trick is far no wiser. To cut losses is a stupid mistake. When prices go down, it is the best time to buy, as stated in Lesson 4.

Far from it, the earnings also skyrocket the moment it bounces off and rise to its peak!

There's a significant difference already when you buy 100 shares at Php 10.00 versus Php 5.00.

When the price climbs up to Php 15.00, how much will the profit be between the two?

For the former, just 50% or Php 500.00 (100*15 - 100*10). But the latter is 200% or Php 1,000 (100*15 - 100*5). That makes sense.

Being an investor is not just about the money.

But way better than that is the attitude that you subconsciously develop along the way in times of defeat and trouble.

It also hones our skills in decision-making and being street-smart.

When you lose, you'll surely find ways to earn MORE again than what you have lost.

One more thing, the real personality  appears when your own money is at stake. And when upon self-discovery some attitudes are found out to be against your will, you can always change. We can always change.

Not Sure If I'm Going Into Debt Or Just Using My Credit Card

Philip J. Fry (Futurama) thinking.

 We all use credit cards differently. Some use it like a charge card, borrow then pay in full when is due. Some use it as a loan, borrow then pay in installments. Sometimes, we have "pain" and "reward" signals when using plastic cards. Some people feel a rewarding experience from using their credit cards. I have a "pain" signal for myself that by using an ATM card pose a security risk by having to enter a pin. A risk of my card being hacked and a whole lot of "pain" and possibility that I may not be able to get my money back. I have that signal because it'd happened to me once, my ATM was copied, hacked, and used. But for credit cards, I lack a "pain" signal and have always treated it like cash. The pain comes much later when it gets me into debt.

Step 27 takes the financial literacy approach by educating the cost of taking on debt. We need to understand the terms such as interest or APR, length of loan, finance charge, credit limit, minimum monthly payment, grace period, over the limit and late fees associated with the debt. A much more easier approach is to just avoid it completely so that we would not need to understand it at all. When we use our card, we have to know exactly whether we are falling into debt by making that swipe purchase, since credit card increase purchasing power, but not increasing our income. If we avoid it completely, we know we are not falling into debt when we are making a purchase with cash.

 An interesting part is how debt affects us not just financially, but also emotionally and physically. Are we really ready to take on a burden of back pain, migraine, anxiety and depression by getting into debt? Debt is for the financially and mentally prepared.

Or do you, [O Muhammad], ask of them a payment, so they are by debt burdened down?

52. Surat At-Tur (The Mount; 40)