Author Archives: Liza Chua

About Liza Chua

I'm a travel blogger and currently working from home as an SEO Consultant. I'm have so much passion about discovering things and writing those things in my blogs. I'm open to new learning especially if it's about saving money and how it will work for me. Follow me @womenality to connect me on Twitter and Instagram.

How to Compute Your Mutual Fund Earnings

If you just started your investment or planning to start investing on Mutual Funds and you want to know how much your money can earn, here’s a simple computation that will help you realize how valuable time is in your investment.

Let’s meet the two financial terms you should know.
1. NAVPS (Net Asset Value per Share):  The price of shares that changes on a daily basis. This figure represents the market values of the investment assets the mutual fund company owns.

2. Number of Shares: This can be determined based on the amount you invested in divided by the price of NAVPS
Amount of investment / NAVPS today = Number of shares you bought.

Example:  You have an initial investment of Php 10,000.00

1. Today’s NAVPS  is Php 3.6056

navps-sun-life-may-2014

Image extracted from SunLife website

2.  Calculate the number of Shares:

Php 10,000 / Php 3.6056 = 2,773 is your number of shares.

Let’s assume at the end of the year, the *NAVPS’ price climbs to Php 4.6200

Year End NAVPS: P4.6200
Current NAVPS: P3.6056
Difference in NAVPS prices: P4.6200 – P3.6056 = P1.0144
Number of Shares Owned = 2,773
**Profit = P1.0144 x 2,773 = P2,812.93

Of course, the *NAVPS we project before the year ends is very ideal but can happen. So if you have Php 10,000 that you are planning to add into your high interest savings for a longer term, think again. With this simple computation, you can easily see how you can maximize the earnings of your money.

Let’s apply this to my self. If I had an initial investment of Php100,000.00 when I started on April 6, 2011.

Apr 06, 2011 NAVPS: 2.6781
May 26, 2014 NAVPS: 3.6056
Difference in NAVPS prices: P3.6056 – P2.6781 = P0.9275
Number of Shares: 37,340
**Profit: Php 0.9275 x 37,340 = Php 34,632.85

This is why you need to do a thorough research before you let go of your hard earned money. Do you invest your money in mutual funds or look for best bank for high interest savings account? In the end it will depend on your financial goal.

Now all I can do is dream. But I already learned my lesson. =)

Now… ask yourself, can your money earn that from your savings account at the end of the year or just three years after?

*NAVPS is changing every day, it could have it’s high and low so it’s highly advisable that you keep your money for a long period of time.

**Profit – maybe subject for tax or fund manager fee of the mutual fund company you chose. Make sure that you know these stuff from the company that you want to invest in.

The Kind of Mutual Fund I Chose

There are several kinds of mutual funds but I won’t be tackling them here one by one. As I try to understand this new world I decided to get in, I would like us both to learn more about the best kind of mutual fund that will help us get started without risking a lot. For me, it’s Balanced Fund (others call it Hybrid or best of both worlds).

As mentioned in my previous post, entitled “What is Mutual Fund?“, I started my investment in Mutual Funds particularly Balanced Fund three years ago. But I had changed of plans which made me to stop adding more funds to my investment. My money with its income is still there of course but as some experts say, it could have been much bigger if I was able to fill it in regularly. The NAVPS at that time is just 2.6781. Now it’s 3.6127.

So what is a “Balanced Fund?” According to Sun Life’s website (my Fund Manager for this investment),

“Just as its name implies, the Prosperity Balanced Fund is the middle of Bonds and Equities — a mix of fixed income and larger growth-potential investments. Balanced Fund is traditionally the instrument used by investors who want to build wealth over time while seeking other investment avenues. Balanced funds are channels for diversification, too, as it provides the best of both worlds of mutual funds.

The Balanced Fund is for you if:

– You are ready to invest and currently looking at a mid-term investing horizon
– You are willing to take the risk but you are not ready to go all the way. The ‘Bond’ part of the Balanced Fund helps cushion the risks, should the stock market be fluctuating unfavorably.

I chose Balanced Fund because I’m not a risky person, at least for now. =)

Aside from the two factors stated above by Sun Life, here are 5 things that you should ask your self before investing to a Mutual Fund?
1. What is the goal of the fund?
2. What is the risk and how much you can take?
3. How is the fund performing?
4. How much is the initial investment and the fund manager fee?
5. Who manages the fund?

I was once told that in Mutual Funds, you can invest and forget. It will grow overtime especially if you choose to leave for a long period of time and fill it in regularly. The longer the term it stays, the higher the percentage that it will grow. However, if you want to monitor the flow of your investment, one thing you should look at is the ever changing Net Asset Value Per Share (NAVPS). Let’s learn more about NAVPS in another topic.

If you want to get started, all you need is a Php 5,000 initial investment. It’s just a sum of the 34 cups of Starbucks that you are willing to let go. Time is our friend when it comes to investing. Today, I’m so excited to fill in my investment again. When are you going to start?

What is Mutual Fund?

This video was posted two years ago and it explains (in Filipino language) what is a “mutual fund”. It also has examples that will help every Juan to easily understand and grasp how mutual fund works. Thank you for Pesos and Sense for this video.

I started doing Balanced Fund (a Sunlife product) three years ago but I was at halt for the last 1 1/2 years because my finances is so tight and I only got little to save. I was building my house back then.

I know it’s not a good excuse and I regret those times that I wasn’t able to fill in my investments. Nevertheless, it’s still earning up to this day. And I have a new house which is also an investment. Now, I’m coming back again to continue what I have started. And just like you, I’m back to Mutual Funds 101. Let’s start learning together.

Top 10 Richest People in the Philippines

Philippines Top 10 Richest

When I was younger, I always tell myself that I don’t want to be rich. I just want a life that is comfortable enough which will still make me crave to strive more to get what I want. Well, it has not always been the case as I grow older experiencing difficulties in my finances.  Lately, I uttered these words “Sana mayaman na lang ako” and “Kung mayaman lang sana ako” more frequently.

As I write this post and learning the list of richest people in the Philippines, I realized that I would like to be rich! I would like to have the power of money to help others.  I would like to enrich my life with good deeds using this tool. It’s more than just money!

Nevertheless, I don’t see anything bad for people being literally rich like these people. I’m pretty sure that they worked so hard to get into their places now. I simply admire them. Now I wonder… what it’s like to be really rich and be included in the Top 10?

2014 Richest in the Philippines

Top 10 Richest in the Philippines

Credits to the owner of the infograph.

New SSS Contributions – 2014 Table

It’s time of the year when almost 80% of my salary go to paying some personal benefits.  The Social Security System (SSS) is just one of them. I pay for my own SSS contribution since I’m a freelancer.

Last December 2013, I heard from the news that there has been changes on the contribution price so I have to adjust my budget this year because I pay it annually. If you’re looking for it, then  here’s a copy of the 2014 Social Security Systems (SSS) Contribution.

Social Security Systems (SSS) 2014 Contribution Table

SSS 2014 Contribution Table

The Passbook Story

The Passbook

The Passbook StoryShe married him today.

At the end of the wedding party, her mother gave her a newly opened bank savings passbook, with $1000 deposited in it.

She told her, “My dear daughter, take this passbook. Keep it as a record of your married life. Whenever something happy and memorable happens in your new life, put some money in. Write down what it’s about next to the amount. The more memorable the event is, the more money you can put in. I’ve done the first one for you today. Do the others with your husband. When you look back after years, you will know how much happiness you’ve both shared.’

She shared this with him after getting home. Both of them thought it was a great idea and couldn’t wait to make the next deposit! This is what the passbook looked like after a while:

– 7 Feb: $100, his first birthday celebration after marriage
– 1 Mar: $300, she gets a salary raise
– 20 Mar: $200, vacation to Bali
– 15 Apr: $2000, She’s pregnant!
– 1 Jun: $1000, He gets the big promotion
and so on…

However, as the years went by, they began fighting and arguing over trivial things. They didn’t talk much. They regretted that they had married the most nasty person in the world…There was no more love.
One day she talked to her Mother. ‘Mom, we can’t stand it anymore. We have decided to divorce. I can’t imagine how I decided to marry this guy!’

Her mother replied, ‘Sure, that’s no big deal. Just do whatever you want, if you really can’t stand it. But before that, do one thing. Remember the high yield savings passbook I gave you on your wedding day? Take out all money and spend it first. You shouldn’t keep any record of such a poor marriage.’

She agreed with her. So she went to the bank, and was waiting in the queue to cancel the account. While she was waiting, she took a look at the passbook record. She looked, and looked, and looked. Then the memory of all the previous joyful moments came back to her. Her eyes were filled with tears. She left and went home.

When she got home, she handed the passbook to him and asked him to spend the money before getting divorced.

So the next day, he went to the bank, and was waiting in the queue to cancel the account. While he was waiting, he took a look at the passbook record. He looked, and looked, and looked. Then the memory of all the previous joyful moments came back to him. His eyes were filled with tears. He left and went home.

He gave the passbook back to her. She found a new deposit of $5000. And a line next to the record: ‘This is the day I realized how much I’ve loved you throughout all these years. How much happiness you’ve brought me.’

They hugged and cried, putting the passbook back into the safe.

P.S. This story is very ideal but worth sharing. Who knows that it could really save a marriage. I have never been married but when I read this the first time, I got inspired and would like to do the same thing with my future husband. Most of the time, we needed a reminder of how we are once in loved with our partner and this passbook does not just serve as a reminder but also allows us to treasure memories and money.

Source: Learning Petals

OFW - Online Filipino Worker

Are You an OFW Like Me?

OFW - Online Filipino WorkerI’ve been working at home for more than six years already and this is my first time to write an article about it. My first job is in a corporate world in Makati in 2004 but after two years, the company closed. My second job is already home based which is more about supervising 17 people in an IT firm in Quezon City. I only report to work or meet my boss and subordinates once or twice a month.

For the past years, people have been asking me about my job and each time I’d say it’s a home based job, I would always see a big question mark on their faces. Internet jobs are just starting to boom during that time and most people especially those not technologically inclined individuals don’t know about it. There are many times I receive replies like…”Ahh tambay ka ngayon?” or “Ahh you’re helping your parents in the household chores?” or “Ahh you’re still looking for a job?” Yes, reaction like these can be embarrassing at times, depending on how it was delivered to me.

After a while I started using the term “telecommuting” which is the right term to describe this kind of work set up. But it has drawn a bigger question mark on their faces. Sometimes, I find myself explaining what I do in a very technical manner. Few people will start to understand but more often than not, I receive nods and the smart-like-acting response just “ahh…” as if they truly understand. ha ha ha.

Then, one day Jeff who also used to be my coworker in my first and second job told me that when people ask me what my job is, I’ll answer them that I’m an OFW – Online Filipino Worker. Lately I’ve been using the term and people would normally smile and easily understand that I work online. No further explanation needed unless they would follow up.   I’d say that this idea from Jeff made things easier for me. So if you’re like me who is struggling to find words to explain our job, answering them that I’m a proud OFW will be a clever one.

Credits to the owner of the photo. I edited it for this purpose.

 

Credit Card Rebates

Taking Advantage of Credit Card Rebate Programs

They say that credit cards give us a penniless way to buy anything we want, literally. But little did we know that this plastic money, if incorrectly use will bring a lot of financial dilemmas to us. I was once a victim of my own misuse and negligence. And now I learned my lesson well.

It will be sad to know that you arrived here because you’re drowning to your credit card debts. However, Jeff and I are twice as happy that you found us because you’re seeking for some financial pieces of advice. I won’t go to the very details of the problems I encountered before about using my credit card the wrong way. I know that you knew those already.

To give you a background, I previously have 5 credit cards from different banks which are now down to two (Visa and Mastercard).

Citi Cash Back Card – Get up to 5% rebate at all supermarkets and other everyday purchases.

Citibank Cash Back

Citi Rewards Card – Earn Rewards Points from all your dining and shopping purchases worldwide.

Every bank has their own ways to attract customers to get a credit card from them. Prior to resorting of using only these two credit cards, I had several credit card products from Citibank and other banks (no personal promotion here, they didn’t pay or ask me to write this post). One day, I decided to sit down and check my options because I still want and need a credit card. Over other products, I believe that these two credit cards are what I need and will have a great good return to me.

I just switched to Citi Rewards so I still don’t have enough things to share about it . Let me share with you the benefits I got from my Citi Cash Back Card, instead. It’s been my card for a year already but only recently that I was able to maximize its power. I can now literally pay using the money rebates I get each time I use this card.

This statement is my September 2013 statement and as you see, I have accumulated Php 3, 3832.31 and was able to pay my dues using this money. An increment of 500 is needed to redeem the rebate, just a note.

Credit Card Rebates

The annual fee of the card is Php 2,800 and I saved it too because I reached the Php 180,000 required expenditures for one year.

You may be thinking how come a frugal like me would reach Php180,000 expenditures in one year just to be qualified on the waived annual fees and savings. I’m not an extravagant person and this is the result of proper management of credit cards.

Below are the proven techniques on using credit card rebates.

1. As mentioned in my previous posts, I normally allot budget for a month which instead of paying cash, I use my credit card to pay for my buys. So I don’t go over budget, the money allotted will be clipped to the receipt. It’s like I already paid in cash.

2. I enrolled my utility bills. This card has a good rebate program for utility bills.

3. I allow my sisters to ride in my card. Same concept as #1, I would normally insist my sisters to give me their payment then I pay for their purchases using my card.

4. Joined spending forces with my Honey. I was able to enroll a supplementary card for my Honey with no annual fees for life (it’s the card’s program too). We used to pay Php 750 annually for his card’s annual fee which we categorize as extra expenses.  He uses his card the same way I do in #1.

This maybe ridiculous for some but this strategy really works for me. It’s been three consecutive months that I was able to redeem Php1,000 from my dues, totaling of P3,000 rebates and counting. This spare money is saved or sometimes used to buy other things that awaits for the right budget. It took me a while to finally formulate ways to accomplish these things and I’m so happy to finally share it with you.

I personally know some people who completely gave up their credit cards due to debt. For me, despite of past mismanagement, I believe it’s still a  necessary tool.  I’m not just saving, I’m earning from it too. So let’s not blame credit cards for our endless debt, it’s definitely the way we use it. It may sound I’m taking advantage of this tool but it’s the way it should be used.  I’m a good payer and knows my limitations and budget.

Do you have other tips to share to maximize credit cards? Your ways might work for us too. Please share it with us by leaving comments below.

Liza's own pork barrel

Meet Shisha

Since the inception of this blog, I have been thinking what could be the topic of my first post. Honestly, I’ve listed down several money saving topics on the side but then, I decided to post about Shisha. (“,)

Liza's own pork barrel

I remember having my first coin bank when I was in Kinder.  Since then I would always buy different coin banks and fill those with the Pamasko’s and excess baon’s I have. I had my last coin bank when I was in my third year college.

When I got my first salary as an IT worker in 2004, I had a hundred peso bill placed inside a book  (I will try to find later and post here) which will serve as a remembrance.  From then on, I tried to save money but for almost two years of working, I remember giving in several times to temptations of buying things which I don’t really need.  Until one day, I got a news that our company has filed a bankruptcy and will soon close.  It was my last day at work.

When I got home and looked at my passbook, I realized that I only had Php 20,000 and that’s all. Suddenly, I woke up to the fact that I no longer have a job and so unsure about how long will it take me to find another one.  I had several financial obligations during that time and somehow worried.  When I got my second job a month after,  I made a pact to myself that I will save money as long as I can.

Yesterday, I decided to buy a new piggy bank which I named Shisha. This will contain all the excess money I have reserved for the bills and whenever I have something left from my personal monthly allowance. This is separate from my savings and emergency funds which are both in the bank. Today, I deposited to her Php150.00 from the change when I paid my PLDT bill. I normally reserve Php 2,000 for PLDT each month.

Until I’m sure where to use the money that I kept in Shisha, her mouth will remain unopened. See the date?