How to spot fake money
November 3, 2006
Do you know what makes the Philippine five-peso bill below a fake? If you don't, these pointers from the Bangko Sentral ng Pilipinas (BSP) on how to spot fake currency will definitely come in handy.
- For P10 and P5, genuine coins are not magnetic, have deep "griddings", and made of smooth, fine metal. Designs of counterfeit coins are off-centered.
- Genuine one centavo to P1 coins can either be magnetic or non-magnetic. But the BSP said no coins of such denomination have been faked yet.
- Genuine currency notes are a bit rough in texture while counterfeit bills are very smooth.
- Genuine bills also have embossed watermarks. They have window security thread, colored green to magenta when exposed to light.
- Lastly, authentic currencies don't have Manny Pacquiao's face. Well, not yet, that is…
Don’t just save money, save it wisely!
October 24, 2006
Your cash today will have a smaller value in the future if you don’t guard against inflation.
It pays to save and keep some money for the future — you’ll be prepared and won’t need to borrow when unexpected emergencies come up, and you’ll have enough to make that long-awaited purchase for a car or a similar asset you’ve long desired.
But while it is good to have cash available at all times, it is not wise to hold very large deposits. Experts say doing so is a misapplication of resources.
When cash is not king
To most businessmen, cash is king but even the most successful of them do not maintain very large deposits of cash. Most likely, their wealth will be spread out in various assets, from stocks to bonds, mutual funds, real estate, and finally, cash deposits at a smaller percentage compared to the other asset classes. Here are at least two reasons why their cash deposits are not that substantial:
Living a financially-free life in your 60s
October 17, 2006
Congratulations! It’s time to enjoy the fruits of your labor while still making your money work for you.
People think of the 60s onwards as a swinging time — you can choose not to work and opt to play with your grandchild, do 18 holes of golf or be at the mall the whole day. Ideally, you should be able to sit back and enjoy life. However, senior citizens have to face increasing health care costs, and shrinking income.
If you have diligently taken care of your personal finances in your younger years, this may indeed be a time to fully enjoy the rewards of years and years of working. You may just live on the interest income from your investments.
But if you were not able to prepare for your retirement years adequately, you should take steps to ensure that you will still be financially capable to meet your needs.
The tips below will be of help to all senior citizens money-wise.
Cost saving tips for drivers
October 15, 2006
Save your finances from unnecessary stress by learning to cut costs. Here are some cost saving tips that are sure to help.
Driving habits that hurt your budget
Buying gasoline from the cheapest source can save you a little on fuel costs. But what would really make a significant dent in fuel expenses is a change in driving habits.
Avoid hard braking by keep your distance and rapid acceleration. The first thing foreigners notice about the Philippines is how Filipino drivers are on the road. Experts say a relaxed driving style can save up to 40 percent on fuel costs. That’s at least P640 per week for someone who drives from Quezon City to Makati City every day and who uses a car with a 1.6 liter engine. You can save up to P33,280 for one year on relaxed driving alone.
However, the Department of Energy also warns that a speed of below 75 kilometers per hour also wastes gas.
In your 40s and 50s: reaching investment peak
October 14, 2006
So you’ve made a mark in the world. The 40s usher in midlife. But there are two ways to look at these years: as a period of crisis (thus the term midlife crisis), or as a period of exciting possibilities. After all, the 40s and 50s are the years when most men and women are at the peak of their careers.
This is also ideally the peak of your earning power. Secure your financial future by looking at your 40s and 50s as an exciting time.
At this point, your children may already be in college, or are done with it and are now working. You may still be giving them money, but if you have saved diligently over the past years, this may not be such a burden.
Since you have obtained a wealth of experience in your chosen field by this time, you may be more confident and successful in your career. Business opportunities may come up, or further advancement is possible up the corporate ladder. What should you do with more income?
The answer: Build wealth so you can continue the good life in the future and ensure that you do not outlive your money. Retirement, after all, may just be 10 years away.
Here are some ways to build up your personal wealth in your 40s and 50s.
How prepared are you for disaster?
October 6, 2006
Almost a week has passed since typhoon Milenyo (international codename: Xangsane) lashed at Metro Manila and nearby cities and provinces. For many city dwellers, life is back to normal and only dead trees and bare billboards seem to remind them of the storm's fury.
But there are hidden, more dreadful reminders especially for those whose properties have been destroyed or who are left behind by casualties of Milenyo.
As the cliche goes, it wasn't raining when Noah built the ark. Disaster-proofing is most effective when its done while the sun is shining. To be ready for any calamity, experts point to five must-do items that anyone can do — now.
Getting established in your 30’s
October 6, 2006
The thirties is the time when things are moving up: you’ve been promoted to supervisor or manager, or you’ve started a business that’s up and running. You have more or less figured out what you want to do in life, and you may be starting a family too. Whatever your status in life is now, these are the years when you should be firming up the foundation for your financial future.
True, retirement may seem so far off, but the key to having a comfortable life at that time lies in how you handle your finances now.
Your expenses may be at its highest at this time, especially when you have children to put to school, a home to build, and parents to look after. However, these expenditures should not deter you from building your personal wealth. All it takes is good money management.
Start early so you can retire early
September 27, 2006
The most exciting thing for young people who have just graduated from college is earning their own money. After applying and going through interviews and tests, the prospect of receiving their first pay is something they all look forward to.
Whether you’re a fresh graduate or someone who has been working for a few years, there is something you should aim for: building your personal wealth. Don’t live from paycheck to paycheck for the rest of your life. With wise money management, you’ll be able to live well and prepare for your future adequately.
The Four Stages of Financial Life
September 23, 2006
Just as a child’s needs change over time as he gets older, your needs change too. That includes financial goals and needs. But by anticipating your needs, you’ll be better prepared financially to meet them.
Most people go through the following four stages of financial life:
2. Building a family (30s)
3. Middle age: your career peak (40s and 50s)
4. Retirement (60s and beyond)
Let’s look at each one.
How to make a financial plan
September 14, 2006
Most people want to have a nice home, put their kids to good schools, have the things they need, and live well in retirement. A comfortable lifestyle, however, does not just happen overnight, unless you win the lotto jackpot.
It takes foresight and planning, which has to start now. Have a financial road map to get you from where you are right now to where you want to be in 1, 10, 30 years or more.
What is a financial plan?
According to the book The Citibank Guide to Building Personal Wealth, “A financial plan is not a prediction of the future but a tool to help you in attaining what you want in life.”
It includes your realistic and achievable targets, taking into consideration your earnings potential, lifestyle expenses, and your tolerance for investment risks. Although a financial planner or investment adviser can make a financial plan for you, you can map out your own plan.
