How my kid’s twenty pesos* is turning into millions?

I wanted to title this review as “My Kids invest in the Stock Market (
and why you & your kids should too?)” but I decided not; because it will just remind you of one of my favorite books “My Maid Invests in the Stock Market” written few years ago by Bo Sanchez.(get here the free eBook).

Last July 2016, as an update, one of his MAIDs already MADE her FIRST MILLION! Are you not amazed? How can someone with 7k salary set aside or make about 12k monthly to get 1M only after seven years? What the Bunso is doing can give you a clue … (read on)

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Why become rich?

Dear Ate and Bunso,

I want to be very clear why I want you to be wealthy.

[ Gusto ko maging maliwanag bakit nais ko kayong yumaman.]

For Ate: to have almost 6 Million 30 years from now. Of course if she only wants that amount. And for what? Just read on.

[ Para kay Ate: na magkaroon ng halos anim(6) na Milyon  tatlumpung taon mula ngayon. Siyempre, kung gusto n’ya lang ang ganyang halaga. At para saan? Magpatuloy lang sa pagbabasa. ]

whyinvest goals purpose

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Journey with us as we study and navigate Personal Finance and Investing. Click join button in this facebook group/forum: Parents-Kids Personal Finance and Investing Journey (Parkid-PFI)

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And more than that amount for Bunso because she has the time advantage. Again, I won’t force the issue if you don’t like that much money. Now, you still remember the story of “Ping at Pong,” right? In investing, the earlier you start, the better because TIME helps compound especially the earnings. That is IF Bunso, like her Ate, demonstrates that she can also truly save 🙂 Continue reading

Manual

Any creation is always accompanied by a manual. 

A car has a manual so that when it malfunctions, the repair technician will know how to fix the trouble. The manual also teaches how to maintain the car to keep it in good running condition so it can get you to places especially your desired destination. 

Your cellphone has a manual, too! It gives the assurance you can know its proper use, its features and continue enjoying them using the internet,  as from time to time, your cellphone hangs and encounters all sorts of unexpected problems. 

Do you know that your life has a manual, too? Like a car or a cellphone, you are a creation – with a purpose, too! Sometimes it’s difficult to know it; and it may take a while to know what your purpose is for being here. But  I AM SURE that you are intended to be uselful. What are cars and/or cellphones, that are all over the place wherever you look, if they’re of no use? 

Know this. Just keep on looking until you find your usefulness! When problems come your way, you may feel broken and destroyed but you can be repaired. Thanks to your (repair) manual! Your life manual has also sufficient instructions how you can maintain a good & meaningful life. 

And yes, including how to create & maintain good finances – example of this is the 7.5 Million goal of each of you that’s coming your way in few years! Thanks to the guidance of an awesome community!

That’s why, financial or otherwise,  you always hear me tell you that you can live and enjoy a fantastic life to the full! Check your manual, that promise is there!

Just keep reading it everyday of your life not only during the mass or religion classes – even if you don’t feel like reading it at times. 

Oh, well. Thankfully, you can also watch its movie adaptation I recently discovered (see below).

Tell you something. Daddy is convinced that your (life/repair) manual is the best source of financial wisdom! It is popularly called as …

 
The Bible 1:

 
The Bible 2:

 
The Bible 3:

 
The Bible 4:

 
Attribution: Image from haynes.com; Gospel of Jesus facebook page for the videos.

Postscript: You may join.our community if you think your financial life is a mess right now. And change your life for the better! Know more about it, here!

Give all your money to the poor. Will you follow?

Others may feel differently. But for someone studying personal finance & investing like me who also would like to transfer the right knowledge and values to #2daughters, I find the story of the the rich man who consulted the Savior, very disturbing! It’s as if I’m in a dead-end, staring at a brick wall seeing some writing on the wall (like the image above). It seemed like all stuff I am discovering up to now will eventually end up useless!

What?! Sell my possessions and give the money to the poor?! Perhaps everyone, whether rich or poor at this very moment, will do the exact same thing the rich man did. He went away, was sad and grieved for he had great possessions. Honestly? I think even the poor would do that. 

I do. I don’t have great possessions yet. And with very little resources, I would question, why should I give to others when what I have is not even enough for me? I can not give what I don’t have! Hello?! In case I sell whatever I have, I’d rather use the proceeds which will definitely be insufficient still. Ako muna bago sila! (Me first before them!). Isn’t that how people, by nature, misbehave? 

Thankfully, I found this sensible note I can agree with. It reads:

“What does your money mean to you? Although Jesus wanted this man to sell everything and give his money to the poor, this does not mean that all believers should sell all their possessions. Most of his followers did not sell everything, although they used their possessions to serve others. Instead, this story shows us that we must not let anything we have or desire keep us from following Jesus. We must remove all barriers to serving him fully. If Jesus asked, could you give up your house? Your car? Your level of income? Your position on the ladder of promotion? Your reaction may show your attitude toward money-whether it is your servant or your master.”

(Above commentary is from the Life Application Study Bible, page 1436; published by Tyndale House Publishers, Inc.)

Therefore, having possessions and having the money or the lack of them is not the issue. Being rich or poor is not the issue. My attitude is the issue. Your attitude is the issue. No matter which strata you are in, in this society and generation, right now, while you’re reading up to this paragraph. 

This, I think, is the reason why there’s a saying “money is the acid-test of character” (credit to whoever said that). I once heard Francis Kong in a TV interview said that “money problem is an attitude problem.” Often because people misplace money in their lives. Money should always be a servant, and never a master, of our lives. May God help me to always keep that top-of-the-mind awareness.

Postscript 1/2: You can read the whole story of this rich man who was so attached to his great possessions in the link below:

Looking at the man, Jesus felt genuine love for him. “There is still one thing you haven’t done,” he told him. “Go and sell all your possessions and give the money to the poor, and you will have treasure in heaven. Then come, follow me.”
Mark 10:21 NLT (http://bible.com/116/mrk.10.21.NLT )

PostScript 2/2: Incidentally, I am part of a community that teaches that the ultimate purpose of wealth/money is to love and serve others. See for yourself if you fit, click this now!

The most difficult…

Somewhere in the video below, one line especially caught my attention. The billionaire (majority) owner of the Philippine’s largest online stockbroker, Edward Lee, who was being interviewed by FQMom Rose Fres Fausto, said this:  the most difficult is making your first million! (I’m not sure I quoted him right, go just watch the video below to validate). Therefore, the next millions are easier!

Powerful insight, right? But here’s what I have just realized. When you don’t have that much money yet (at least a million), the most difficult even is to finally start investing!

That’s my experience. It took years for me to finally open my own investing account. And a few more years for me, with the consent of my kids, to open two separate accounts for each of my #2daughters.

In my hope to find a magic pill to overcome this inertia and encourage more parents and kids to jump start investing ASAP, I sent some questions (luckily featured in 6:30 minute of the video below) when  the FQMom shared she got an opportunity to interview Mr. Lee who has over four decades of investing experience. 

Did I finally find the magic pill? Watch this insightful episode to answer my question.


Watch: FQ Live! Episode 10: Myopic loss Aversion
(sourced from YouTube, FQMom’s page, and Philippine Star article)


[How crazy can we get? We put more weight on pain over gain and we prefer sure wins; yet we cross the street directly facing the huge “Nakamamatay” warning sign, we bet on lotto tickets despite the 5M probability of winning. More explanation in the article and video from the FQMom]
 
 

Postscript 1/3: To the FQMom and FQSon Enrique(an investor himself since birth together with his 2 brothers) and their team: Thank you for repairing the lost portions of the answers to my questions!

Postscript 2/3: Including also here the playlist of FQ Live! (Link not yet available; to follow)

Postscript 3/3: For everyone interested: You can experience an easier way to invest!  Why not get the guidance of Trulyrichclub that receives mentorship from Mr Lee himself? 

Earthquakes can’t stop me!

I’ve had countless near-death experiences in my life.
During elementary years,  I almost drowned in a rangas (river) for not heeding to my parent’s advice not to bathe there because I didn’t know how to swim. Thanks to a friend who lifted me up for some oxygen.

Thus, in college, I took swimming lessons for my PE subjects. But I almost drowned again some years back during a company outing in Batangas due to my arrogance that I knew how to swim I could go near the floating boundary. I panicked I could no longer touch the sand. But images of #2daughters flashed before my eyes. It was such an inspiration that despite exhaustion I was able to swim back to the shore.

I learned very important lessons I carry to this day. That both ignorance and arrogance can kill you! With investing, I find these very valuable.

The most recent was yesterday. I was giving my all finishing my work to rush for an Aunt’s birthday to reunite with 2daughters but something shook my world.  Continue reading

Crush

[Crush is natural human experience like investing. But both can be disastrous in the short-term 🙂 Enjoy both journey keeping sight of longer time horizon.Labyu!]

I’m borrowing a drawing from the bunso’s Facebook post. The comic strip has been altered for the purpose of this post.  I’m yet to see if this is her notebook or her classmate’s when I see the #kidinvestors in few days.

I’m not surprised if she knows the word crush now. Before she even learned of that word, I already discovered she had a crush on someone at a very young age.

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Why the heck I need to invest?!

I overheard two friends in a coffeeshop.

Question: Are you considering passive income that can sustain you when active income stops?

Answer: Yes

Then you need to invest!

I did not get this point early on. For two decades, I have been working. Spending. Working and spending. Then it came to my senses.

What if I can NO LONGER work?

Can my spending stop because I’ve got no more work?

The hard truth hit me: my spending only stops when I’m dead! When dead, I would even incur expenses for a decent funeral.

And so I realized. Sure, I must spend now. Enjoy life with my expenses right now and enjoy my salary. But I should never neglect my future self. You live only once (yolo) – both in the present and in the future.

I imagined the worst. The future self that is stamped with “unfit to work” or unfit to do any productive business!

Without (active) income, I would rely to others. I don’t like that kawawang picture of myself.

Let me tell you about my daily commute.

I use a connecting flight. Continue reading

It’s your behavior, stupid!

I don’t mean to be mean in this essay. But if this hurts you, please just forgive me.


Then thank me after especially if this knocks off some sense to you that you’re suddenly fired up with actually doing your saving and investing plan in whatever favorite asset/s you may find. [At sana lang, gagawin mo talaga 🙂 ]

Execution or “actually doing something as you intended” is the behavior part of anything you want accomplished.

Just doing it!

The daughters are not very much aware yet that with the tiny amounts they buy for specific stocks / fund right now, they are actually paying more for the cost of buying their favorite stocks; but I don’t stop them.  Continue reading

Money is NOT the most important

This blog is primarily about money.

But I’ve got a shocker.

Money is not the most important thing!

But literacy about it is my advocacy because, whether we like it or not, money has huge impact in all areas of anyone’s life.

One of ate’s school assignment the other week was the life story of Leo Tolstoy. If you read his story, he came from a wealthy family but later on as his spirituality mature, he abandoned his wealth. That was perhaps the calling he discovered. Saint Francis of Assissi did that same thing. There’s nothing wrong with that. People are supposed to discover their calling to serve God best either through the “vow of poverty” or “vow of generosity.” You have the power to choose, remember your gift of free will?  Continue reading

Stock market wisdom

If you are a Colfinancial client, you must have already read this from your inbox.

I find this worth sharing even for those non-clients because this founder’s letter is actually encouraging #financialLiteracy. I share their dream of helping every Filipino become rich!

People just do not realize there is a way. Continue reading

What is a nice investment?

Simply put, how you live your life can be the nicest (best) investment you can ever have/do because this has impact in your present and future life as well as the afterlife (we believe in that) when your mission on earth is over.

Have you been living life out of “love,” regardless it’s Valentine’s day, or otherwise? I think that’s a very important review question that will dictate your purposes for investing.

While living in this planet, some investments will give you tears as exemplified  in the latest ad (below) of a company you partly-own 🙂 😉  [ sshh! Don’t tell anyone you own few Jollibee mascots 😉 that earn money during kiddie parties. ] Continue reading