It Only Takes Two-Peso Daily To Become A Millionaire

To become a millionaire one must follow a consistent plan backed by constant action. Ordinary people realized that it’s very hard to acquire even a million peso during their lifetime. In this post, I’m going to show how simply a two-peso saved daily (or 2 dollar if your not from the Philippines) could be turned into a million.

Take a look at the figure below.

Annual Savings : P730.00
Starting Age of saving : 14 years old
Yearly Interest : 10%

15 years later (29 yrs old) :P 26,243.30
30 years later (44 yrs old) :P 132,818.71
51 years later (65 yrs old) :P 1,029,613.45

Two peso daily savings will reach 730 a year. You need to open up a time deposit account in a bank. The best place to do it is at your local bank because they accept minimal amount requirement upon opening an account with them.

It’s just like saving like a kid by putting the said amount in a piggy bank daily and after a year it should be transferred to a time deposit account so that it will earn 10% yearly and compounded annually. Time is the most precious asset when doing this kind of savings. Its better when you start young. Maybe you plan to make it a five-peso daily savings so that you will be rewarded more with the savings later on when you retire.

Forbes Magazine’s Year 2011 List of Filipino Billionaires

Here are the new list of Pinoys who were included in Forbes magazine’s latest statistics in wealthiest people in the Philippines. This year there are eleven of them:


1. HENRY SY
Networth: $7.2 billion
Age: 86
Marital Status: Married, 6 children


Owns SM retail-chain of store’s in the country. SM Prime, the Philippines’ largest shopping mall developer, run by son Hans, plans to list its China operations. Shares in SM Investment, family’s largest asset, up nearly 40%. Banco de Oro Unibank, country’s largest bank, run by daughter Teresita Sy-Coson. Listed property developer Belle Corp., expected to open its first casino in Manila in2012.

2. LUCIO TAN
Networth: $2.8 billion
Age: 77
Marital Status: Married, 6 children

His biggest asset, Hong Kong-based Eton Properties, is enjoying a big boost in property values. Has taken in PAL Holdings, which controls the Philippine Airlines. He also owns Fortune Tobacco, the largest tobacco company in the country.

3. JOHN GOKONGWEI JR.
Networth: $2.4 billion
Age: 83
Marital Status: Married, 6 children

He founded JG Summit Holdings which line of business includes airlines (Cebu Air), telecoms, real estate, banking, hotels and power generation.

4. ANDREW TAN
Networth: $2.0 billion
Age: 58
Marital Status: Married, 4 children

He owns Alliance Global, a holding company which business includes food and beverages, real estate and gaming. Another firm he owns, FDC Utilities is a power
generation company where his wife is a member of the board.

5. DAVID CONSUNJI
Networth: $1.8 billion
Age: 90
Marital Status: Married, 8 children

He was the major stockholder of DMCI Holdings and Semirara Mining. He also owns a construction company which expanded into infrastructure, real estate, mining, and power.




6. JAIME ZOBEL DE AYALA
Networth: $1.7 billion
Age: 77
Marital Status: Married, 7 children

Chairman of Ayala Corporation. Interests include real estate, hotels, financial services, telecom, utilities.

7. INRIQUE RAZON JR.
Networth: $1.6 billion
Age: 51
Marital Status: Married, 2 children

Controls the operation of International Container Terminal Services Incorporated.

8. EDUARDO COJUANGCO JR.
Networth: $1.4 billion
Age: 76
Marital Status: Married, 4 children

Manages San Miguel food and beverage company.

9. ROBERTO ONGPIN
Networth: $1.3 billion
Age: 74
Marital Status: Married, 4 children

He has investments in property, mining and telecom.

10. GEORGE TY
Networth: $1.1 billion
Age: 78
Marital Status: Married, 5 children

He owns Metropolitan Banking and Trust Corporation and Federal Land.

11. TONY TAN CAKTIONG
Networth: $1.0 billion
Age: 58
Marital Status: Married, 3 children

The founder of Jollibee Foods which now has 2,300 branches worldwide. He bought Mang Inasal from Edgar Sia II. He planned to put up a factory in China to supply Jollibee outlets there.

Mutual Funds Investment

 Mutual Funds Investment is considered to be as Level I of investment type. Joining the Stock Market is a Level II. Planning a mutual fund investment is also a good alternative way of investing your savings. Better returns than banks’ time deposit offers. This way you have no hassles of doing the trade personally unlike in the stock market investing which burden is all done by the investor-- yourself.  

          Mutual funds in managed by a professional financial advisor called the Fund Manager. Its duty is to buy shares stocks for you in the stock market by using your invested money in the fund. The fund manager pooled together the total funds of all the clients he/she handles in order to have huge investment portfolio. It is advisable for those newbies investors to stick to mutual funds rather than directly investing in the stock market.

Some Profitable Mutual Funds Companies in the Philippines are:

1.     IMG – International Marketing Group

2.     Sunlife  Financial

3.     Cocolife Asset Management

As I have known, it is better to join IMG. Accordingly they cater to major financial institutions here in the Philippines including Cocolife. But this is a multi-national company with branches in other parts of the world.

Sunlife Financial, a Canadian conglomerate is also an international company which had diversified financial services such as insurance plan, educational plan, mutual fund investment, forex, and others.

I assure you that these two competent companies is a must in Mutual Fund in the Philippines. Their branch offices are located in various key cities in the country in order to serve the provincial areas.

What Are The Blue-Chip Firms In The Philippines That Are Good To Invests In?

What is a blue-chip firm or stock?

Wikipedia says that according to NYSE a blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad.

The characteristic of blue-chip companies according to UBS Financial Services, Inc. are:

· rated Buy by the Sponsor;
· market capitalization in excess of $5 billion;
· financial strength, a record of profit growth and reputation for skilled management;
· established, well-known company considered to be stable and mature with a reputation for
providing high quality goods and services; and
· a leader in its market niche.
· In addition, companies are analyzed for their record of earnings over a relatively long
period of time and future potential. Dividend payments, while not required, are considered.

A stock can be considered as blue-chip if it has four of the characteristics above.

There are lots of blue-chip firms in the Philippines. These companies generated bigger growth from its capital. A publication from CLSA, titled “The Moat Report” identified some Philippine firms included in their latest elite list of 246 “durable” Asian companies. CLSA is a leading brokerage and investment group in Asia-Pacific based in Hong Kong.

These companies are: (1) Philippine Long Distance Telephone Co.; (2) SM Investment Corp.; (3) International Container Terminal Services, Inc. and (4) Jollibee Foods. These four companies have sustainable operations that lead to better returns in investment capital.

Forbes magazine identified that the two biggest stockholders of these blue chip firms was included in the latest roster if world’s billionaires. They were Henry Sy of SMIC and Enrique Razon of ICTSI.

It is advisable to put some of your investment capital through these establishments as their status imply. The assurance that these companies hold to their capitalists promises a vital sign of growth potential in the coming years to come especially if an investor is doing a long term
investment.

How To Get Something Back From The Products and Services That We Pay For?

Initao Sunset @ Midway Beach Initao Philippines

The cost of daily living is never ending. One has to spend or pay something in order to live. There’s no such thing as free. There must be an exchange in everything we need. All of these are related to the stock market investment.

The payments’ of the never-ending consumption that comes out from our pocket is better collected by big companies. Sometimes we come to realize if how can we take back some of our spending from those big companies.

Buying some shares from Manila electric Company, Energy Development Corporation, East Asia Power Resources Corporation, Aboitiz Power and Manila Water Company will save us from the increasing electric and water bills we pay monthly. The diesel and gasoline for our vehicle be better coped up if we have invested some of our savings to Petron Corporation, Philippine National Oil Corp., Oriental Petroleum & Minerals Corporation, and trading in oil commodity.

Food factories like San Miguel, Pancake House, Universal Robina, Jollibee Foods, Liberty Flour Mills, Pepsi-Cola, RFM and Swift Foods are some Philippine companies who produce goods for our daily consumption and are offering shares of stocks to the public.

In the areas of transportation and telecommunications sector, think of it in relation to buying stocks shares at Aboitiz Transport Corporation, PAL Holdings, Cebu Air, Asian Terminals, International Container Terminal, Digital Telecoms, Globe Telecoms, PLDT, and Liberty Telecoms Holdings.

Our expenses in relation to the investment we have in the stock market could be returned back if we plan to invest more of our monthly income to these companies. The Easy Investment Plan (EIP) allows us to increase our investment portfolio each month thereby maximizing us to profit from the increase of stock prices of these public listed companies.

How Our Lifestyle Affects The Way We Plan For Our Investment Budget

Everyday we are struggling in our work to earn more. Doing the daily routine jobs makes us feel dissatisfied with the way we are living.

According to the recent study conducted by BMI that most Filipinos usually spends more of their income without spending limit where no budget is allocated for savings and investments. This instances especially happens to families who have a family-member working overseas.

According to Randell Tiongson in his article Why Our Neighbors are Richer than Us, published by Philippine Daily Inquirer, that,
"Neda reports place the savings rate in the Philippines at between 12 and 16 percent. Following the 70-30 rule on spending and savings, there’s not much promise for our nation. It is unfortunate that many Filipinos have embraced a First World consumerism lifestyle but have a Third World income. We simply do not save enough.
Does this mean we are hopeless? Definitely not. All we need to work on is our savings rate and we can best do so with financial education. We must embrace principles of proper budgeting, controlled spending, financial planning and we can start improving our surplus that will guarantee a better future for all of us."

The way we manage our monthly earnings totally depends on how we control our daily buying habits. Unnecessary spending on things that are not important must be cut off. Simple habits like smoking, drinking alcohols and soft drinks and even eating junkfoods will greatly enhance ones investment budget if these habits will be lessened or totally avoided at all cost. Another Filipino common vice which must be cut-off is the extra spending on cellphone loads. The danger of all this vices will not only eat up our monthly earnings but in the long run will also imperil our own lives.

We should indulge ourselves into integrated thinking in order to maximize our monthly saving power. Thinking deeply into the matters that affect our financial well being is vital. The essence of doing these creative thinking will definitely empower us to expand our wealth.

Take a closer look at this scenario. When we started saving at the age of fifteen years young just saving one peso (P1.00) daily it will become more than a million when we retire at age sixty. Yes, annually it will accumulate to P365.00 and keeping this amount yearly in a time deposit account with an interest of 10% yearly will eventually reach into more than a million if conscientiously undertaken through the years until the retirement age. The power of cost-averaging system is at your disposal. It only takes one-peso daily to become a millionaire. Think about some of your useless spend outs instead use it as a saving vehicle in order to augment your future wealth and experience the lifestyle of living like a millionaire.

Philippine Stock Prices Maintain Uptrend

The quotes below was published by Phil.Daily Inquirer under Personal Finance

"MANILA, Philippines – (UPDATE) Local stock prices moved up for a third straight session on Friday to close the week in positive territory as investors picked up shares of blue-chip companies and selected second-liners.

The main-share Philippine Stock Exchange index added 16.68 points or 0.39 percent to finish at 4,251.64. The run-up in prices the last three days allowed the index to end the week with slim gains over the 4,241.01 finish on Friday last week.

All counters were up, especially mining/oil, which outperformed others with its 2.43 percent jump, except the property counter, which was slightly down.

The stocks that lifted the PSEi were those of PLDT, SM Investments, Lepanto Mining, DMCI, Metrobank, Ayala Corp., Filinvest Land, Ayala Land and Metro Pacific Investments. Non-index stocks Vista Land, Nickel Asia and Security Bank also gained on heavy trade.

PLDT, which has a 14.32 percent weight on the PSEi, crept up by 0.43 percent to P2,350 each.

On the other hand, EDC, Semirara, Lopez Holdings, PNB, AEV, First Gen and PSE succumbed to profit-taking.

Turnover amounted to P4.64 billion."