Net Worth Update(June 2012)

Get Rid of Debt first

Get Rid of Debt first

Get Rid of Debt

It is very difficult to save if we are carrying credit card debt or any high interest debt. Let me explain why. Let’s look at one of my colleague’s situation. He loves electronics gadget, entertainment etc. and believes that since he has a job, he should reward himself by buying whatever he wants. 

And, like me and most ambitious individual, he would like to go on nice vacations and buy a house and lot in the future. But how he will achieve this ambitions? He’s spending more than he earned. As a result he owes SAR. 1,000.00 on his credit card. And he doesn’t pay it off in-full. Let’s break it down and see how building up credit card debt makes it impossible to save for future goals.

Imagine that he owe SAR. 1,000.00 in credit card. Every month that he does not pay that debt off in-full, he’s being charged with interest rate of 20% per year by the credit card company for the privilege of the loan they are making to him. That means additional 20% to any balance left on the credit card.

Let’s look at how it plays out. Assuming that he decides not going to add to his debt and he will pay only the minimum payment on his card.

Current debt = SAR 1,000.00

Interest rate paid to credit card company = 20% 

Monthly payment = SAR 30.00

Months to pay = 48 (that’s 4 years)

Total interest paid = SAR 435.00 (on top of the SAR 1000.00)

My co-worker doesn’t like that scenario and decides to tighten his belt and decide to pay SAR 150.00/month to his SAR 1,000.00 debt and not add to it!

Current debt = SAR 1,000.00

Interest rate paid to credit card company= 20% 

Monthly payment = SAR 150.00

Months to pay = 8 

Total interest paid = SAR 50.00

See here’s the different; if he only pays the minimum payment, and don’t even add to the balance, he can end up paying a ton of interest. He pays the minimum per month in the first example and paid an additional SAR 435.00 in interest on top of the original SAR 1000.00.

Would you buy those same electronic gadgets if they cost around 50% more than you’re originally paid for them? I don’t think so.

As you saw in the second example, if my colleague increases his payment to SAR 150.00 each month to pay his debt and didn’t add to the debt. 

In 8 months he get rid of the credit card debt. By increasing his payment, he can markedly speed up his debt repayment.

Let’s reverse the situation and pretend he has zero credit card debt and wants to start saving for his future goals.

Monthly saving payment = SAR 150.00

Interest rate paid by bank = 1.5% (or lower) per year

Balance after 8 months saving = SAR 1,213.00

Total interest received = SAR 6.83

Practical Application

* If he uses the SAR 150.00/month to save, at the current savings rates, he earn about almost SAR 7.00 over 8 months. I know SAR 7.00 isn’t much, but getting SAR 7.00 is still better than paying SAR 50.00 interest.

* Ask yourself would you rather get SAR 7.00 or pay SAR 50.00? 

Clearly, the takeaway is that in order to reach your financial goals, you must eliminate debt first.

Some of you may look at that small interest rate on savings and cringe. Actually, I’m one of those who cringe at the low interest rates on my savings. Don’t worry about the interest rate right now. You see that interest rates go up and down, and we have no control over the interest rates at all. And regardless of how much interest we are receiving on our savings right now, it is better to receive any amount than paying interest on our debt.

As long as you are carrying credit card debt, not matter how much you save, you lose! You can gain more financially by eliminating credit card debt balances than by saving. So pay off your debt first and then saves as you can.

My Maids Are Now Richer Than Many Managers

My Maids Are Now Richer Than Many Managers

from Bo Sanchez

TrulyRichClub

Do you want to invest in the Philippines Stock Market and retire millionaire? Let Bo Sanchez tell you how. 

Three years ago, I taught my Maids how to invest in the Stock Market. People laughed at me when I told them what I was doing. “That’s too much for them,” one friend told me. “They can’t handle that. It’s better to teach them how to put their money in the bank.”

But who’s laughing now? One of my maids has P308,388 in her Stock Market account. My other maid has P176,465 in her account. That may not be much to you, but to them, they feel very rich. And here’s a fact: My Maids are now richer than many Managers. I’m not kidding.

You see, I talk to a lot of Managers when I give corporate seminars. Many of them have Zero savings and are buried in debt. My maids? They’re confident that they’ll have P5 Million in 20 years.

If you’ve got 20 minutes a month, You can work a financial miracle in your life.

Each month, my maids bought the Stocks I told them to buy. It wasn’t easy, believe me. There were days when they didn’t want to invest their money—because they wanted to buy something. But with my coaching, they disciplined themselves and invested their money.

All it takes is 20 minutes a month.  First, set aside 20% of your salary each month. Next, put in your small amount into the Stocks I tell you to buy—which can be done all online, seated in front of your computer, in the comfort of your home. And that’s it. Do this each month and you’re all set to retire a multi millionaire.

Here’s the deal: Whatever small amounts you can put into the Stock Market today will be worth millions 20 years from now. I believe that investing (not trading) in the Stock Market is one of the best ways of growing your passive income. Yes, there’s a difference between trading and investing. And my eBook and special Reports will teach you the difference.

Guarantee: You’ll Be Able To Understand Me

Do you know the problem with the Stock Market world?  They don’t speak English. Honest. They speak a strange dialect that is spoken only in the second moon of the planet Uranus. But I’ve solved that problem. If my maids can understand me, then anyone can understand me.

I’ll Hold Your Hands Every Step Of The Way

TrulyRichClub

Here’s what I do for my TrulyRichClub Gold members. Twice a month, I send a very short “Stocks Update”. I’ll tell you what companies I’m investing in and how they’re doing.  Why will I give this “Stocks Update” Report? To give my TrulyRichClub members guidance and inspiration.

Especially when there’s a crisis, my “Stocks Update” will be crucial. It will prevent you from selling your Stocks because of your panic—and lose your money. And it will encourage you to do the very opposite—buy great companies when the prices are very low.

Join Today And You’ll Start Stocks Investing Next Week

I have to be honest with you: This may not be for you.  I don’t want you to get into something that isn’t for you. First of all, this isn’t for the person who doesn’t have a job or business.

In order to invest regularly, you’ve got to earn regularly. (My Maids earn a smaller salary than Managers, but you see, it’s not how much you earn, but how much you keep of what you earn.) If you have a regular income and are willing to set aside a few pesos a month to invest in long-term investments—so you can create millions for your future—then listen up.

Listen. Half of 2012 is gone.  So here’s my big question for you: What will you do this 2012 to start growing your finances?

Will you do something now?  Or will you be again wondering at the end of 2012, “Where did the year go? Why haven’t I done anything to secure my financial future?”

If you want me to help you, then click here now.

Sign up today, because I’ll be sending out my Stocks Update Report next week for my TrulyRichClub Gold members.

By next week, you can already start investing in the Stock Market. (My eBook will also teach you how to create an online account in COLFinancial, the biggest online stocks brokerage in the country.)

To join the Club and start creating your multi-million retirement fund, then click here today.

Yes, I’d Like To Growing In My Financial Life

May your dreams come true,

Bo Sanchez

PS1. Take Charge Of Your Financial Future. Don’t leave your 2012 to chance. Do something today that will give you financial freedom in your advanced years. I believe investing little amounts each month in the Stock Market will give you financial freedom in the later years of your life. To take charge of your financial future, click here now.

PS2. By the way, the TrulyRichClub isn’t just all about the Stock Market. It’s also about having an abundance mindset. Why? Believe me, all the technical stuff I’ll teach about The Stock Market WON’T WORK if you don’t have an abundance mindset. So in the Club, you’ll also receive a lot of Audio Talks and eReports from me about having an abundance mindset. To take charge of your financial future, click here now.

Are we allow to continuously pay SSS contributions even we reach 60 years old?

Are we allow to continuously pay SSS contributions even we reach 60 years old?

Social Security System (SSS)

Some readers of this blog are asking if they can continue  their SSS contributions after they failed to pay the contributions long time ago or they already reach 60 years old but wish to pay and complete 120 months of contributions as mandated. 

My father have a same concern and wish to continue his SSS contributions which he miss to pay long time ago. But when he go to telemoney, one of telemoney staff told to my father that he is not allowed to pay SSS because he is above 60 years old now.

To find out, clarify this and also to answer those question. I decided to send an e-mail to SSS customer service or their member relations department which i find in SSS website. My e-mail is goes like this (see quote text and print screen photo below).

"Dear Sir/Mam,

Magandang araw po sa inyo. Nais ko lang po magtanong tungkol po sa pagbabayad ng SSS Contributions. Ilan taon po o hangang anong edad po pwede magbayad ng SSS? Sa sitwasyon po ng aking ama.. Sa record po ng SSS, 61 years old na po ang tatay ko.. Ngayon po may maayos syang trabaho at kasalukuyang OFW. Nais pong ipagpatuloy ng aking ama ang paghuhulog sa SSS kaso nun nag punta po sya sa isang bayad center, sinabi po na di na daw sya pwede magbayad kasi more than 60 years old na sya. Totoo po ba ito? hindi na pwede ipagpatuloy ng aking ama ang pagbabayad sa kanyang SSS contributions? kung hindi na po pwede, ano po pwede gawin kung sakaling hindi natapos o nakompleto yun 10 years na paghuhulog? ano po mangyayari dun sa ibinayad? Sana po mabigyan po ninyo ng kasagutan mga katanungan ko po.. Maraming salamat po..

Regards,

melvin

www.moneygurado.blogspot.com"

SSS contributions inquiry

After more or less 3 months of waiting of their response. I was surprise when i open my e-mail one time and got reply. Im very thankful. Although it takes many months before i got response from them.  The important thing is to know the answer in my question. Here's the reply from Member Relations Department of SSS as quoted below. (see quote text and print screen photo below).

" MEMBER RELATIONS DEPARTMENT

Marso 20, 2012

G. MELVIN ENMOCIMO

G. Enmocimo:

Ito po ay may kinalaman sa inyong e-mail tungkol sa pagpapatuloy ng kontribusyon ng inyong ama na isang OFW.

Hindi po ninyo nabanggit ang pangalan at SS number ng inyong ama bilang basehan sa aming beripikasyon.

Gayunpaman, kung ang inyong ama ay dati ng miyembro at may balidong kontribusyon, maaari pong ituloy ang kanyang hulog/ kontribusyon gamit ang SSS Contribution Form RS-5 bilang voluntary OFW member. Ang hindi pinahihintulutan ay yaong 60 o pataas ang edad na inisyal o mag-uumpisa pa lamang maghuhulog ng kontribusyon. Maaaring magbayad sa mga telemoney / remittance center abroad O, sa kanyang representative sa Pilipinas sa SM mall, Bayad Center, commercial bank o SSS office Tellering unit.

Maaari ring makita ang kanyang rekords sa pamamagitan ng pagregister sa aming website www.sss.gov.ph sa ilalim ng My SSS menu gamit ang kanyang SS number.

Para sa karagdagang katanungan, tumawag sa teleponong 917-7777 o 920-6446 hanggang 55.

Maraming salamat po.

Sumasainyo,

EUGENIA D. DELA CRUZ

Tagapamahala"

SSS Contributions inquiry (reply)

Last word

From their replied. Even though some of my question was not answered. It is very clear that an individual who is already a member and has a valid contribution can continue their  SSS contributions regardless of age and how long they miss to pay. An individual who is 60 years old and above who want to join and start paying SSS contributions are not allowed. 

I hope from this experience of my father, this article can helps now  to clear the question in your mind about SSS contributions. For more question and concern about your SSS benefits. Don't hesitate to send an email to SSS member relations department like I did. They are willing to response in your e-mail even though it takes time.