Archive for the ‘law of attraction’ Category

Photo Courtesy: Google Images

Photo Courtesy: Google Images

Before you continue reading the whole post, I have a confession to make. I have become a victim of an investment scam (Aman Futures, 2012). It was year 2012 when a big fraction of my savings bid farewell in my pocket and down the drain to perish forever. Like most of the so called “investing people” that time, we all felt depressed and confused. But that nasty scar brought a gargantuan learning experience. I vowed to myself to not let it happen again. I subjected myself to self-imposed research, sought attendance in financial seminars and read and read to learn stuffs I never thought existed. I realized if people only knew what I know today, we all could have made wise investment decision. I hope this post will help provide guidance to you and the people you love.

Many people confuse investment with business or deliberately use them interchangeably. The truth is they are alike but are not the same. In Robert Kiyosaki’s Rich Dad, Poor Dad book series, it is a continuous theme and pronouncement that an investment is money you put into something that has the potential of getting a return. If you purchased something but has no potential gain/profit then it is not an investment. For example, you buy a new house and call it an investment. If you do not plan to have it rented or sell it in the future for a higher value; it must not be defined an investment.

Investment could mean a lot in many people. Some attach emotions to it which will make it wide of the mark. I know someone who buys a new car and say that it is an investment for himself. This isn’t an investment! You call it an ego bolster instead.

  1. Recruiters are in Haste – Scammers know that they do not offer you anything with value. And because you do not know it or doubt about it, they do not want to give you time to think about it. So to avoid that you’ll do in-depth research, they will be pushy. And to rid-off annoyance, you will sign up only to regret it in the end.
  1. Buy More to Earn More – This usually happen in “networking company” scams. They will sell you products that are hard to sell. When you realize that it is difficult to dispose your inventory, you have no resort but to recruit people to earn from their recruitment commissions. The problem with this thing is that, essentially no company will survive without a product being sold and bought. Earning money due to recruitment is a tell-tale sign of a company waiting to collapse. Here’s more, according to RA 5601 or otherwise known as Anti-Pyramiding Law, the SEC requires all MLM (Multi-Level Marketing Company) to not engage in Pyramiding Scheme. This means that total worth of products given back to members of the MLM must not go lower than 73% of the total capital shelled out by the member. Example, if your registration for a food supplement MLM company is P 10,000 the stocks you must receive should be worth not under P 7,300.00
  1. Recruiting Members to Earn – Now I really, really want you to get this so please read very carefully. If you were asked to recruit so you will be compensated, then you have all the right to doubt. Here’s why. According to the Securities and Exchange Commission (SEC) when a company registered to them as a corporation collects “membership fee” to compensate uplines and representatives and relies on the circulating membership (not on products sold), in effect that company are collecting securities or investment amount. Any company in the Philippines that sells securities or collects investment is defined as an “Investment Company” and because they will fall within that category, they are bound by law to secure a Secondary License (as per SRC RULE 68, AS AMENDED) from the SEC (Securities and Exchange Commission). If they fail to do so, then you are dealing with an unregistered company thereby making their offer null and illegal.
  1. Use the Rule of 72 – According to investopedia, “It is a rule stating that in order for you to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to grow”. How do you use this rule in your investment? If someone approaches you and says “ I will double your money in two years….” That simply means 72/2=36. Hence, using this formula, you know that your money will grow 36% per year. Although this is possible, this is also very ambitious. Remember risk-reward trade off, the higher the return the higher the risk. So if your heart is not prepared to take on high risk investments, this is not for you. The problem happens when representatives in these so called companies promised you that guaranteed return with NO RISK AT ALL. Quite frankly, a company without proven track record to provide that high return is a scam. Too good to be true as they say.
  1. Do your Homework and Research – We are in the information age so looking for information is easy. If you have any doubts about an investment opportunity or any networking company, you may check Securities and Exchanges Commission’s advisories. In their website you may be surprised to know that it houses a long list of companies who may have engaged into unfair investment practices. Always exercise due diligence so as not to be duped by shark-like scammers hungry to get hold of your hard-earned money.

P.S. I hope you learn something new. If you think this is helpful, please share.

P.S. 2. Please join our group in Facebook called Pagadian City Stocks Network

Cost-vs-Value

I got a query on facebook recently from someone who is interested to learn about stock market investment but somehow apprehensive about it due to the cost of investment.

First I would like to apologize to most of my facebook friends. I have been advocating that you invest in the Philippine stock market and yet I failed to consider individual financial capabilities. It is a fact that for the many and uninformed, the word stock market is quite intimidating. People believe that you need to have millions and millions of pesos to invest, giving an erroneous idea that the stock market are only for the rich. In this post, I will clarify some of these myths and I will try my very best to make this as simple as possible.

I personally believe that the stock market in a great equalizer. This means that both the rich and the average income earners can do it. You can buy shares of companies and become partners of growth in big corporations in the Philippines. These include the likes of Jollibee, Ayala Land, BPI, BDO, SM, GMA or ABS-CBN. How awesome is that!

So how much does it really cost to invest in the stock market? My answer is it depends primarily in two things: a. company price per share and b. number of shares you are willing to buy. To avoid confusions, please remember that  by definition a “stock” is equivalent to “shares”. So If I mention about stock I also mean shares. For example, in the case of Jollibee Foods Corporation, their price per share is P201.00 (as of may 29, 2015). Is this something you can afford? It’s funny sometimes because every time I talk about this example, people will assume I meant 201,000. Just imagine, when JFC opens its door in your next visits you can say to yourself that you are part owner of it.

However, our stock market will not allow you to buy just 1 share. Every company sells their share at multiple called board lot. Investopedia defines board lot as a “standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid “odd lots” and to facilitate easier trading.” In the case of Jollibee (JFC), the minimum share you can buy is 10. Hence, 201 x 10 = 2,100 as the amount of money you need in order to start investing in JFC. Now tell me, can you really not afford it?

Wait there’s more!

There are also good companies like SM Prime Holdings (SMPH) whose share is only P19.24 (as of May 29, 2015). This is not even close to a cellphone load you buy almost everyday. SMPH’s board lot is 100 so this means 19.24 x 100= 1,924. If you can spend 500 pesos in your facial treatment and splurge 1,000 in Mall’s midnight sales, why can’t you set aside the same amount of money for investment for you and your family’s future? If you truly believe that the company I mentioned here will still exist in the next 10 years, then they can be your best pick to start with.

Clear so far? Do you really need millions to invest? You can answer that question by now.

Now you have the money, what do you do next?

The next thing you need to do is to get a broker. A broker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. In this information age, we are so lucky that we can now transact almost anything online. And with this we have online brokers. There are many brokers in the Philippine Stock Exchange that allows you to open an account with them for as low as P 5,000. You can use that amount to start your very first buying of shares in the stock market. Of course if you have much extra cash then you can buy more. But if you are just starting, then P 5,000 is already a great start for you.

Brokers charge you by commissions. By buying and selling shares you also pay taxes that help our country. These are common charges you will encounter and that is normal. It really isn’t much, the most important thing is that you will learn and build a sturdy investment for your future.

I hope this post helps you at least get a better picture of the “cost of investment” in the stock market. Please do not be intimidated about numbers and terms, the more you study this, the more empowered you become.

I will leave you with these information and hopes that you will also do your own research. In my next post, I will explain how you can earn in the Stock Market.

P.S. If you need a financial plan for your investment and/ or coaching, please send me an email at fjaymoli@gmail.com. I will be more than willing to be your mentor and partner in your journey towards financial freedom.

P.S. 2. Please join our facebook group Pagadian City Stocks Network

Today, the last day of 2013, my twitter timeline has been flooded with so many tweets mentioning how people are planning to have a wonderful 2014 (Yes! I am tweeting while cooking). Indeed, these twitter posts are very inspiring and until someone decides to act on it positively, those beautiful words of resolutions will only remain buried in the history pages of twitter wonderland.

So I put aside my ladle for a while as I wait for the beef broth to cool, leaving the kitchen, hooping on the stool and getting busy in my keyboard. I would like to share with you some simple ways how to make your 2014 incredibly wonderful.

Get a Positive Mindset

I don’t care whatever you want to do and how much money you have in the bank, as long as you don’t maintain a positive mindset, you will never get far. That is because a negative mindset will extinguish your passion. We know passion is what will drive you to do hardwork, inspire your creativity and ump your entrepreneurial spirit. A negative mindset is simply defined as “joy stealers”. You don’t want anything that will steal away your joy.

And do you know what’s the best way to get a positive mindset?

It is by cutting your associations with negative people. If the people who surround you with are infected with a negative mindset, know that they are contagious. It is not smart to mingle with spiritually constipated and emotionally retarded people. Oprah Winfrey even said, “Surround yourself only with people who are going to take you higher.”

Always Act Proactively and Positively

If there is an opportunity that is knocking on your door, invite it to come over. You have to seriously take this because every opportunity you decline becomes an opportunity for others. You can seldom see an opportunity coming back for you. It does not mean though that you grab every opportunity, but that you have to select the ones that will fund your physical, mental, emotional and spiritual life positively. Balance is still the key.

Always act positively. Of course we sometimes see tirades and gossips launched against up. But I challenge you to keep your cool because every feisty, bitter and angry word thrown at you are magnified by the one saying it. In other words, as they begin to say it open to the universe, they invite more for themselves. That is why you could never find a gossiping person happy; it is simply because their evil words eat their soul.

Make Peace with Your Past

We all made bad choices in the past, welcomed unhealthy associations with others and even made enemies with our friends. But let the pain of the past be left in the past. I am not saying this is easy, it is even maddeningly difficult. But the forgiveness you give is not really for them, it is a favor you give yourself. Marianne Williamson, author of “Everyday Grace” said, “As you forgive others, you begin to forgive yourself. As you stop focusing on their mistakes, you will stop punishing yourself for your own. Your ability to release what you think of as the sins of others will free you to release yourself, putting down the weapon with which you punish yourself so savagely. Forgiveness releases the past to divine correction and the future to new possibilities. Whatever it was that happened to you, it is over. It happened in the past; in the present, it does not exist unless you bring it with you. Nothing anyone has ever done to you has permanent effects, unless you hold on to it permanently.

Forgiveness is not easy. At times it is more painful than the word we suffered, to forgive the one that inflicted it. And yet there is no peace without forgiveness. Never.

Be Happy

Happiness is a decision. It is not a feeling. In fact, you cannot trust your feeling because it doesn’t tell you the truth. So if you decide each day to be happy before you even have your foot land on the floor every morning, your day will be a much brighter day.

Let no one and nothing stop you from being happy. It is your life. It is your responsibility to make it a joyful as you dream it could be.

Check and Improve your Finances

Although I subscribe to the idea that money does not bring happiness, I also know enough that the lack of it brings sadness. Money is a great tool to bless others and improve your quality of life. If anyone says that money is the root of all evil, then I’d say that person has been deceived. If you know how to use money, you can make a positive and astounding impact to the world. That is how the economy of the world works.

Get a piece of paper and know how much you are worth. You can do this by dividing the paper into two. The left side shall be your earnings (income) while the right shall be your liabilities. Deduct your earnings with your liabilities, and that is you monetary worth.

Free yourself from consumer debts. These are types of debts where you only spend for luxury and anything that does not give value to your pocket. Learn the world of investing and get some entrepreneurial activities. Get a mentor.

When you have more, you can give more. When you can give more, you create a happy and satisfied environment for yourself and your family. So improve your finances. Period.

Set New Goals

New goals that you instill to yourself are the ones that will inspire you work. To do something valuable. Goals may be great or small. Your goal may simply be as freeing yourself with debts or earning 100K of passive income in the stock market by the end of the year. The choice is yours.

But this 2014 make it different. Set some big bold new goals. Sky is the limit. Show to yourself what you can greatly do. If you claim to be a child of God, you can do all things that you set your mind into.

Let your goals move mountain. Set yourself up. And make a very big comeback.

Thank you for reading. I hope this inspired you to make a wonderful 2014. You can do it. Believe it and declare that you will have a wonderful year.

May your dreams come true. God Bless you.

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.”

 

The world is truly saddened for the loss of a true passionate leader who had helped changed the world – Nelson Mandela.

Even in the confines of his own cell, Nelson Mandela’s incarceration for 27 years by smashing apartheid in his home country (South Africa) had paved the way to bring balance in the scale of social equality. Discrimination and many other social injustices were exposed in the eyes of the world causing an awakening in humanity’s desire for egalitarianism that shaped the succeeding generation’s consciousness for social justice.

To pay homage to Mandela’s legacy, I have collected what I consider as his 10 most powerful quotes. 

 

1. “Education is the most powerful weapon which you can use to change the world.”

2. “I learned that courage was not the absence of fear but the triumph over it. The brave man is not that he who does not feel afraid, but he who conquers that fear.”

3. “There is no passion to be found playing small – in settling a life that is less than you are capable of living.”

4. “We must use time wisely and forever realize that the time is always right to do it.”

5. “Money won’t create success. The freedom to make it will.”

6. “There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered.” 

7. “Courageous people do not fear of forgiving, for the sale of peace.” 

8. “A good head and a good heart are always a formidable combination.” 

9. “It always seems impossible until it’s done. “

10. “As I walked out the door to the gate that will lead to my freedom, I knew that if I didn’t leave my hatred and bitterness behind, I’d still be in prison.”