Wednesday, December 15, 2010

Stay Hungry, Stay Foolish - Commencement Speech at Stanford given by Steve Jobs

From Evernote:

Stay Hungry, Stay Foolish - Commencement Speech at Stanford given by Steve Jobs

Clipped from: http://www.freerepublic.com/focus/chat/1422863/posts
thanks to SwordMaker 


Quotable Quotes
  • follow your heart, even when it leads you off the well-worn path, and that will make all the difference
  • Don't be trapped by dogma, which is living with the results of other people's thinking
  • Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work, and the only way to do great work is to love what you do. If you haven't found it yet, keep looking, and don't settle. As with all matters of the heart, you'll know when you find it, and like any great relationship it just gets better and better as the years roll on. So keep looking. Don't settle.
Thank you. I'm honored to be with you today for your commencement from one of the finest universities in the world. Truth be told, I never graduated from college and this is the closest I've ever gotten to a college graduation.

Today I want to tell you three stories from my life. That's it. No big deal. Just three stories. The first story is about connecting the dots.

I dropped out of Reed College after the first six months but then stayed around as a drop-in for another eighteen months or so before I really quit. So why did I drop out? It started before I was born. My biological mother was a young, unwed graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife, except that when I popped out, they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking, "We've got an unexpected baby boy. Do you want him?" They said, "Of course." My biological mother found out later that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would go to college.

This was the start in my life. And seventeen years later, I did go to college, but I naïvely chose a college that was almost as expensive as Stanford, and all of my working-class parents' savings were being spent on my college tuition. After six months, I couldn't see the value in it. I had no idea what I wanted to do with my life, and no idea of how college was going to help me figure it out, and here I was, spending all the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back, it was one of the best decisions I ever made. The minute I dropped out, I could stop taking the required classes that didn't interest me and begin dropping in on the ones that looked far more interesting.

It wasn't all romantic. I didn't have a dorm room, so I slept on the floor in friends' rooms. I returned Coke bottles for the five-cent deposits to buy food with, and I would walk the seven miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example.

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer was beautifully hand-calligraphed. Because I had dropped out and didn't have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and sans-serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later when we were designing the first Macintosh computer, it all came back to me, and we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts, and since Windows just copied the Mac, it's likely that no personal computer would have them.

If I had never dropped out, I would have never dropped in on that calligraphy class and personals computers might not have the wonderful typography that they do.

Of course it was impossible to connect the dots looking forward when I was in college, but it was very, very clear looking backwards 10 years later. Again, you can't connect the dots looking forward. You can only connect them looking backwards, so you have to trust that the dots will somehow connect in your future. You have to trust in something--your gut, destiny, life, karma, whatever--because believing that the dots will connect down the road will give you the confidence to follow your heart, even when it leads you off the well-worn path, and that will make all the difference.

My second story is about love and loss. I was lucky. I found what I loved to do early in life. Woz and I started Apple in my parents' garage when I was twenty. We worked hard and in ten years, Apple had grown from just the two of us in a garage into a $2 billion company with over 4,000 employees. We'd just released our finest creation, the Macintosh, a year earlier, and I'd just turned thirty, and then I got fired. How can you get fired from a company you started? Well, as Apple grew, we hired someone who I thought was very talented to run the company with me, and for the first year or so, things went well. But then our visions of the future began to diverge, and eventually we had a falling out. When we did, our board of directors sided with him, and so at thirty, I was out, and very publicly out. What had been the focus of my entire adult life was gone, and it was devastating. I really didn't know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down, that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure and I even thought about running away from the Valley. But something slowly began to dawn on me. I still loved what I did. The turn of events at Apple had not changed that one bit. I'd been rejected but I was still in love. And so I decided to start over.

I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods in my life. During the next five years I started a company named NeXT, another company named Pixar and fell in love with an amazing woman who would become my wife. Pixar went on to create the world's first computer-animated feature film, "Toy Story," and is now the most successful animation studio in the world.

In a remarkable turn of events, Apple bought NeXT and I returned to Apple and the technology we developed at NeXT is at the heart of Apple's current renaissance, and Lorene and I have a wonderful family together.

I'm pretty sure none of this would have happened if I hadn't been fired from Apple. It was awful-tasting medicine but I guess the patient needed it. Sometimes life's going to hit you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love, and that is as true for work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work, and the only way to do great work is to love what you do. If you haven't found it yet, keep looking, and don't settle. As with all matters of the heart, you'll know when you find it, and like any great relationship it just gets better and better as the years roll on. So keep looking. Don't settle.

My third story is about death. When I was 17 I read a quote that went something like "If you live each day as if it was your last, someday you'll most certainly be right." It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself, "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "no" for too many days in a row, I know I need to change something. Remembering that I'll be dead soon is the most important thing I've ever encountered to help me make the big choices in life, because almost everything--all external expectations, all pride, all fear of embarrassment or failure--these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago, I was diagnosed with cancer. I had a scan at 7:30 in the morning and it clearly showed a tumor on my pancreas. I didn't even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctors' code for "prepare to die." It means to try and tell your kids everything you thought you'd have the next ten years to tell them, in just a few months. It means to make sure that everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day. Later that evening I had a biopsy where they stuck an endoscope down my throat, through my stomach into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated but my wife, who was there, told me that when they viewed the cells under a microscope, the doctor started crying, because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and, thankfully, I am fine now.

This was the closest I've been to facing death, and I hope it's the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept. No one wants to die, even people who want to go to Heaven don't want to die to get there, and yet, death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of life. It's life's change agent; it clears out the old to make way for the new. right now, the new is you. But someday, not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it's quite true. Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma, which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice, heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalogue, which was one of the bibles of my generation. It was created by a fellow named Stuart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late Sixties, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and Polaroid cameras. it was sort of like Google in paperback form thirty-five years before Google came along. I was idealistic, overflowing with neat tools and great notions. Stuart and his team put out several issues of the The Whole Earth Catalogue, and then when it had run its course, they put out a final issue. It was the mid-Seventies and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath were the words, "Stay hungry, stay foolish." It was their farewell message as they signed off. "Stay hungry, stay foolish." And I have always wished that for myself, and now, as you graduate to begin anew, I wish that for you. Stay hungry, stay foolish.

Thank you all, very much.

Oh! The Places You’ll Go!

From Evernote:

Oh! The Places You’ll Go!

Clipped from: http://www.teamhope.com/seuss.htm


Quotable Quotes
  • And when things start to happen, don't worry. Don't stew. Just go right along. You'll start happening too.
  • You won't lag behind, because you'll have the speed. You'll pass the whole gang and you'll soon take the lead. Wherever you fly, you'll be best of the best. Wherever you go, you will top all the rest.
    Except when you don't.
    Because, sometimes, you won't.



Oh! The Places You'll Go!
by the incomparable Dr. Seuss
Congratulations!
Today is your day.
You're off to Great Places!
You're off and away!



You have brains in your head.
You have feet in your shoes.
You can steer yourself any direction you choose.
You're on your own. And you know what you know. And YOU are the guy who'll decide where to go.



You'll look up and down streets. Look'em over with care. About some you will say, "I don't choose to go there." With your head full of brains and your shoes full of feet, you're too smart to go down a not-so-good street.


And you may not find any you'll want to go down. In that case, of course, you'll head straight out of town. It's opener there in the wide open air.


Out there things can happen and frequently do to people as brainy and footsy as you.


And when things start to happen, don't worry. Don't stew. Just go right along. You'll start happening too.


Oh! The Places You'll Go!


You'll be on your way up!
You'll be seeing great sights!
You'll join the high fliers who soar to high heights.



You won't lag behind, because you'll have the speed. You'll pass the whole gang and you'll soon take the lead. Wherever you fly, you'll be best of the best. Wherever you go, you will top all the rest.


Except when you don't.
Because, sometimes, you won't.



I'm sorry to say so but, sadly, it's true that Bang-ups and Hang-ups can happen to you.
You can get all hung up in a prickle-ly perch. And your gang will fly on. You'll be left in a Lurch.


You'll come down from the Lurch with an unpleasant bump. And the chances are, then, that you'll be in a Slump.
And when you're in a Slump, you're not in for much fun. Un-slumping yourself is not easily done.


You will come to a place where the streets are not marked. Some windows are lighted. But mostly they're darked. A place you could sprain both your elbow and chin! Do you dare to stay out? Do you dare to go in? How much can you lose? How much can you win?


And if you go in, should you turn left or right…or right-and-three-quarters? Or, maybe, not quite? Or go around back and sneak in from behind? Simple it's not, I'm afraid you will find, for a mind-maker-upper to make up his mind.


You can get so confused that you'll start in to race down long wiggled roads at a break-necking pace and grind on for miles across weirdish wild space, headed, I fear, toward a most useless place.


The Waiting Place…for people just waiting.


Waiting for a train to go or a bus to come, or a plane to go or the mail to come, or the rain to go or the phone to ring, or the snow to snow or waiting around for a Yes or No or waiting for their hair to grow. Everyone is just waiting.


Waiting for the fish to bite or waiting for wind to fly a kite or waiting around for Friday night or waiting, perhaps, for their Uncle Jake or a pot to boil, or a Better Break or a string of pearls, or a pair of pants or a wig with curls, or Another Chance. Everyone is just waiting.


No! That's not for you!

Somehow you'll escape all that waiting and staying. You'll find the bright places where Boom Bands are playing. With banner flip-flapping, once more you'll ride high! Ready for anything under the sky. Ready because you're that kind of a guy!



Oh, the places you'll go! There is fun to be done! There are points to be scored. There are games to be won. And the magical things you can do with that ball will make you the winning-est winner of all. Fame! You'll be famous as famous can be, with the whole wide world watching you win on TV.


Except when they don't. Because, sometimes, they won't.
I'm afraid that some times you'll play lonely games too. Games you can't win 'cause you'll play against you.


All Alone!

Whether you like it or not, Alone will be something you'll be quite a lot.

And when you're alone, there's a very good chance you'll meet things that scare you right out of your pants. There are some, down the road between hither and yon, that can scare you so much you won't want to go on.


But on you will go though the weather be foul. On you will go though your enemies prowl. On you will go though the Hakken-Kraks howl. Onward up many a frightening creek, though your arms may get sore and your sneakers may leak. On and on you will hike. And I know you'll hike far and face up to your problems whatever they are.


You'll get mixed up, of course, as you already know. You'll get mixed up with many strange birds as you go. So be sure when you step. Step with care and great tact and remember that Life's a Great Balancing Act. Just never forget to be dexterous and deft. 


And never mix up your right foot with your left.
And will you succeed?
Yes! You will, indeed!
(98 and ¾ percent guaranteed.)



Kid, you'll move mountains!
So…be your name Buxbaum or Bixby or Bray or Mordecai Ale Van Allen O'Shea, you're off to Great Places!


Today is your day!
Your mountain is waiting.
So…get on your way!

Thursday, November 25, 2010

TIPS ON HOW TO BECOME A BETTER INVESTOR by Ron Nathan

From Evernote:

TIPS ON HOW TO BECOME A BETTER INVESTOR by Ron Nathan

lifted from Audio Visual Junkie http://goo.gl/3qygF

Here's the summary
  1. Do not Trade Against the Trend
  2. Cut Your Losses Quickly
  3. Do Not Average Down
  4. Do Not Overtrade
  5. Do Not Trade on Tips
  6. Do Not Chase Prices
  7. Be Wary of Inactive Stocks
  8. Buy Low Priced Stocks
  9. Learn Technical Analysis

TIPS ON HOW TO BECOME A BETTER INVESTOR
By Ron Nathan 

ORIGINALLY, when I wrote this article 6 years ago, it was entitled the Ten Commandments. However, this time, there are only nine, as I decided to omit the one about adultery. When Moses went up Mount Cyanide, he came down with two heavy tablets made of stone, engraved in Hebrew. Unfortunately, I am much older than he was, so I took the cable car up Mount Mayon and instead of bringing down two large tablets, I brought down two capsules. I had them translated from Mayonaise to English and here they are. 

Despite the humorous introduction, the rest of this article will completely change your investment psychology and you will be a far better investor in the future. What follows is based on 59 year's experience in London and Manila. You can profit from my observations and mistakes. It will be particularly useful for beginners whose knowledge of investing is limited. Good luck, and if you find it useful, cut out the articles and paste them on your bedroom or office wall, in between your pin-ups of Beyonce and Jessica Alba. 

Commandment No. 1: Do Not Trade Against The Trend 

You will be shocked to learn that almost 90% of investors in the Philippines, U.S., UK and Japan lose money in the stock market. This is because they ignore the first commandments and jump in only after the market has already had a big rise. Let us examine the Phisix first. 

On January 9, 1997, the index stood at 3,420. Since then, it has been changed many times, with the worst performers weeded out and replaced by better companies. Despite this, the Phisix is still below the level it was 13 years ago. So, in theory, you have lost about 20 percent of your money but this does not take into account inflation, which in earlier years was very high. Adjusting for the depreciation of the peso, you have lost 40 percent. During this period, you would have received hardly any dividends whereas you could have earned 10 percent plus on bonds before. Allowing for the loss of 13 years interest, your real loss is around 60 percent. 

It was the same story in Japan, where the NIKKEI plunged from, almost 40,000 down to 8,000, and is still only a fraction what it was in 1990. It would have been far better to have bought gold, property or an oil tanker. The value of super tankers had tripled. 

So why invest in the stock market at all? The short and honest answer is that you should not, unless you follow the rules, which I will set out in the next few pages. The prime requirement is patience. There is no such thing as long-term investment. Ask the Japanese, whom after 20 years are still losing much of their capital. 

You only BUY when the market has fallen and the technical indicators say that it is about to turn up. There are many indicators and I will deal with some in due course. Conversely, you SELL when that index has had a big rise and the indicators show that momentum is slowing down or is about to decline. 

Players do not use their head, they trade on their emotions, and this is nearly always wrong. I will tell you where to get the necessary fundamental and technical data, but in the meantime, you can use a 20-day moving average of the index or any stock, which you hold. If you have a computer program, you have a big advantage over the average investor. 

Commandment No. 2: Cut Your Losses Quickly 

Years ago, before the 9/11 attack, a financial journalist wrote two books called Market Wizards, in which he interviewed about 50 fund managers who had outstanding records over a five-to-10-years period. Obviously, this could not be just attributed to luck so he interviewed them in great detail, hoping to find the connecting link. They traded commodities, currencies, options, futures and stocks.
They came in all shapes and sizes, short, tall, fat, thin, and it took him a long time to find the connection. Some were pure fundamental analysts who never looked at charts; others were technical analysts who did not know one side of a balance sheet from the other. Some studied economics and neural networks while others preferred tarot cards or feng shui. Some had master's degrees or doctorates while others came from the street where they ran the jueteng or sold drugs. Some were extremely serious and studied DESCARTES while others made terrible puns, were covered in tattoos and wore nose rings. It took him a long time before he hit on the solution. As the first four groups were highly leveraged, about 10 to 1, they followed the principles of POP COLA. 

Prolong Our Profits, Cut Our Losses Aggressively 

Incredible as it may seem, although they took great care in their entry points, 63 percent of their transactions resulted in small losses. About 30 percent made small gains while the remaining seven percent scored huge gains, doubling, tripling, quadrupling or even becoming 10-baggers, because of the leverage. 

So, when you get it right, let your profits run until momentum stops rising. But when you get it wrong put a stop loss below your buying price, dependent upon your risk tolerance. Sometimes, this will be a mistake but it protects you against disaster. After all, you don't complain about paying fire insurance because your house didn't burn down. You can afford to cut small losses. It is the big ones that ruin you. 

Commandment No. 3: Do Not Average Down 

Under normal circumstances, I am against the death penalty, but not for those who break this commandment. They should be barbecued slowly over a fire while concentrated hydrochloric acid is dropped upon them. All the people I know who went bankrupt averaged down. 

One client bought 20 million shares at 54 centavos on the advice of his neighbor who was a director of the company. I was acutely unhappy because the shares had risen from their par value of 1 centavo. Not only would he not sell at 50 centavos as I suggested, but also he averaged down at 40 cents, 30 cents, 20 cents and 10 cents. He had to sell his house and his business to raise the money. Finally, the shares stabilized at 1 centavo, before going bankrupt. 

If you follow the second commandment, such disasters cannot happen to you. so you will never be faced with the decision of whether to average down. 

Commandment No. 4: Do Not Overtrade 

If you are trading every day, the only person making money is your broker. The expense involved is too high. You have to pay two commissions and a 0.5 percent sales tax. In addition, there is the difference between the bid and offer price, usually about 1 to 2 per cent. So you have to make four per cent just to break even. This is fine, so long as you BUY just as the stock is turning up, but if you deal constantly, the expense will ultimately cripple you. 

That small percentage is enough to make all the incredibly costly casinos in Las Vegas profitable. They can afford to give free rooms, free food and drink, and free shows to high rollers because they know that a percentage advantage of 3.6% is enough to guarantee the house a sure profit over the long run. Trade only when the technical indicators tell you to. For the remainder of the time, do nothing. Patience is a virtue. 


Commandment No. 5: Do Not Trade On Tips 

In England, we say, "Where there's a tip, there's a tap." 

I am sure you all remember BW. The shares were run up deliberately by a consortium that, by tips and cross trading, created enormous volume and sent the shares from P0.40 (under a different name) to P108. Almost everyone except me got sucked in, mostly at the higher levels, and those speculators, who did not use stop losses, saw their shares go all the way down to P0.40 and below. One old lady wrote to me that her broker had recommended it at P104. Would she ever see her money back? I replied, somewhat unkindly, "Only if you believe in reincarnation." These days, fewer people follow tips. 


Commandment No. 6: Do Not Chase Prices 

If the price runs away from you, don't chase it. Most of the time, it will correct. 


Commandment No. 7: Be Wary Of Inactive Stocks 

The documentary stamp, which made trading in shares well below their par value prohibitive, has been removed. As a result, trading has increased greatly and numerically third-liners comfortably exceed leaders.
I have a computer program that tells me when a stock increases in price by a certain percent and its volume is 50 percent above its 50-day moving average. This alerts me to inactive stocks that suddenly become active. Often, the spread between bid and offer is too great or the number of shares available is too small to be of any interest but occasionally, it throws up something interesting. 

Commandment No. 8: Buy Low Priced Stocks 

By this, I don't mean stocks quoted at a fraction of a centavo. I mean decent stocks standing around at P1 to P5. Obviously, it is easier to double your money on a low-priced stock than on a high-priced bank or insurance company. TEL, my most successful recommendation at P226 and now over P2600, is not likely to double from this level. 

The Last Commandment, No. 9: LEARN TECHNICAL ANALYSIS and I will tell you where to get information

If you desire to become a really competent investor, you must also learn global economics and fundamental analysis. By global, I do not mean that you have to study every country, but you must at least know what is happening in the United States. Wherever the American stock market is heading, the rest of the world will follow. After the 9/11 attack, the US market got battered for a few months and every other stock market followed the downtrend. When the US market finally got back on its feet, every other market recovered. 

How do you learn about the American stock market? First, listen every night to Bloomberg, assuming that you have cable TV, and tune into CNN. Listen to Chairman BERNANKE when he addresses the Senate or Congress. If you cannot do this, then read his speeches in the newspaper or go to the Internet and check on CNN Money.com or Bloomberg.com and also read the commentaries. When Wall Street sneezes, the rest of the world catches pneumonia. 

Basic Knowledge
For the local market, the business section should give you all the necessary information. But if you want more details, to the web sites of the National Economic and Development Authority or the Philippine Stock Exchange and listen to channels which are largely devoted to the economic and political situation of the Philippines. You can also enroll in courses at universities and colleges. 

Next, you should have a basic knowledge in fundamental analysis. This means that you need to know all about companies. You must know how to read a balance sheet, calculate the earnings per share and from this, the price/earnings ratio. You need to understand what a yield means, how many times a dividend is covered, and what preferred and convertible stocks are. You should know book value and understand such concepts as debt and cash flows. 

You can take a course in accounting or business management, and there are plenty of books, local and imported, in all the major bookstores. Or you can subscribe to my newsletter, which contains all of the above.
If you want to buy a simple but excellent technical analysis book, try TECHNICAL ANALYSIS OF THE FUTURES MARKET by John Murphy, available at local bookstores but expensive. It was written years ago but is still considered to be a classic. Every aspect is explained simply and it can be used for trading stocks, commodities, currencies or futures. Also buy Beyond Candlesticks by Steve Nison, a must. There are many sites on the Internet, which will teach you technical analysis and provide the necessary charts and parameters. Good Luck!

Tuesday, November 16, 2010

Managing Credit Cards



Do you use credit cards? 

There are so many people who fall in the trap of owning a credit card then getting in deep trouble because of debt.

Here are five rules how to manage credit cards properly

  • Always pay all dues on time
  • Don't pay annual fees
  • Maintain two credit cards and get rid of the other cards you don't use
  • Use the credit card with ongoing promos
  • If you fail paying dues on time, stop using the card and revert to cash

Always Pay All Dues On Time
This should be the easiest to do. Because credit cards are so easy to use, people tend to forget that it is not cash but debt. We are not totally to blame. Credit Companies are to blame too. Once the monthly bills comes in our mailbox, credit card companies entice us not to settle all outstanding amount by showing the minimum payment required. My advice? Don't pay this minimum payment but rather pay all dues. Credit card interest are so high it will cost you money.

Another tip is to pay credit card dues a day or two days before the payment due date. If you pay credit card through online banking, the credit to your credit card company happens a day after your account is debited. So just to be safe, pay it earlier to give time for any errors. Besides, this will force you to use credit card wisely since you are paying before the due date.

Don't Pay Annual Fees
This is a no brainer. Don't ever let your credit card companies charge you annual fees. Usually credit card companies offer waived annual fees on the first year then will start charging it on the following year. If they do, grab a phone and threaten them of cutting your credit card if they are not waiving the annual fee. Some will offer using loyalty points in renewing the card but don't give in. Annual Fees should be free. Just be strong in your stand that you would rather cut your credit card than pay annual fee. 

Besides, if credit card companies won't give in to your request, you can just apply for a new credit card. There are too many credit card companies offering waived membership fees out there. 

I've been doing this scare tactic and it never failed me. Occasionally, the customer service will tell me that he/she needs to talk to his/her supervisor and will just inform me three days about my request. After three days, i'll see a reversal of credit card fees on my statement.

Maintain two credit cards and get rid of the other card you don't use
Why? Makes it easy to manage cards and remember due dates. I only use two cards. One Mastercard and one visa. I use my visa in my regular purchases while i use Mastercard for big-time purchases. Having just two credit cards makes it easy for me to remember that my card due dates are on the 14th and 20th. 

Use the credit card with ongoing promos
Credit Card companies are battling for users so every now and then, major credit card companies offer exciting rewards. Before, BPI offered free Jollibee meals for every P1,500 single receipt purchase. Then HSBC offered free one tall Starbucks drink. This has saved me money because i get to earn free stuff doing my regular groceries. This is also one of my consideration in choosing what credit card to use. Whatever has the best ongoing promo, then i'll use that card.

If you fail paying dues on time, stop using the card and revert to cash
This advice is to avoid paying interests. One of my ways in managing credit card is immediately paying through online banking whatever purchase i've made during the day using the credit card. This is like treating credit card as cash. I only spend what i can pay for using cash. You may want to try this too to make sure that you settle all dues and avoid using cards.

Another is really managing cash. I don't pay credit card purchases immediately but sets up an automated payment through online banking. I make sure i date the payment a day or two before my payment due date. This way, i maximize the interest earning potential of my savings account.

Do you have other tips? Let me know



Monday, November 15, 2010

In Search for Money Online

Is it possible to earn money online?

That is the question i want to answer based on my personal experience. If you google that question, you'll get tons of search results and if you are like me, you don't know which one is for real because in most cases, you don't know the person. Well, you might not know me too but like you i'm asking that question as well. And to better answer that question, i searched and will blog my answers to that question "is there money online?"

Google Adsense
First time I've heard about the opportunity of making money on-line is through Google ad sense. I wasn't really able to have it going but based on my understanding, google adsense will pay you if your blog readers will click the ads. This is a complicated task for me because of the many things involved. First, i have to maintain a blog. This doesn't seem to be a problem because i maintain a blog. The problem is i am not posting regularly to my blog.  Not posting regularly means i don't get a lot of traffic. Traffic is one of the many considerations Google have in placing adsense in your website. Second problem will be getting the readers click the ads.  It is really a complicated process because having ads in your website might turn the readers away. I think the money making potential here is balancing between posting interesting reads that will attract readers and at the same time, post just enough ads so readers don't turn away.

Pay To Click
Learning that there are sites that will pay you for clicking ads sounds good to the ear. Then it will not sound so good if you realize they will only pay you a penny for each click that you made. And that is not the only catch, you also have to stay on the ad for 30 seconds before the penny is credited to your account. This business seems not so good considering that you'll have to click 100 times and spend 50 minutes just to get a dollar. However, the PTC sites attracts a lot of users through the referrals. The referral system means you also earn if the person you have referred continue to click the ads. This means that if you have 100 referrals, it will be so easy to get that $1 quickly.

I recently registered to one of popular PTC sites. I haven't earned a dollar yet so i can't give a concrete review of the site. Besides, the site requires that i have been a member for 30 days before i get a referral. I have decided to give it a quarter before making a post about on this. Besides, clicking ads is just a past time i do whenever i surf the web spending no more than two minutes a day. 

ODesk
Similar to jobstreet or jobsdb.com, odesk is an online job search engine with a twist. This is targeted to those who offers their skills without being physically present to the employer's office. In other words, this website offers online jobs for everyone of us. Got typing skills? You can find data entry jobs in odesk. You are an accountant looking for a bookkeeping job as a sideline? You can also find it here. A friend suggested this site when i told her my wife left her day time job. She earned a good sum of money writing for employers. I signed up in the site but i am really busy working on my day time job and getting another jbo will be a burden to me given that i'm still working on completing my masteral. I had fun answering the exams in the site though. The tests is a way to validate if you really have the skills like Basic English Skills, MS Word or MS Excel skills. 

My friends suggests that to get employers and thus get feedback (some jobs requires good feedback) just be persistent in applying. Once you get a job, do it well so you'll get a good performance feedback from your employer. Getting a good feedback usually snowballs into getting more jobs.

Freelancer
Similar with Odesk, this site offers jobs that you can do online. Another friend told me that it is easier to get a job here. She got an easy $10 data entry job. 

Citiseconline
The site offers you ability to trade Philippine Stocks. I've been investing into the stock market since 2006 but haven't really thought of this as an online business. However, when i take a look at it, this is a real money making online. You don't have to be physically present somewhere and all you need is a starting fund and online connection. If you want to learn more about investing in the Philippine Stock Market, read here


Currently, these platforms are the online money making activities that i am aware of. Of course, the usual buying & selling of merchandise are common here in the Philippines. Of all the four mentioned, i have earned only in PTC site (though really small amount). Expect future posts focusing on one of these sites once i start  earning really money. Do you know any legitimate money making activities in the internet or have tried any of these sites? Let me know 

Thursday, November 11, 2010

5 Big Budget Mistakes to Avoid

From Evernote:

5 Big Budget Mistakes to Avoid


Kerry K. Taylor, On Thursday November 4, 2010, 2:46 pm EDT 

Do you know where your money went? If you just got paid but your bank account is empty, maybe it's time to rethink your budgeting skills. Fixing the big budget blunders is not hard to do--you just have to want to do it! Here are five reasons why your budget is broken, and the ways to fix it.

Mistake 1: You don't have a system. Is your filing system a mess of envelopes scattered throughout the house? When your budget is blowing from room to room and you're confusing last year's grocery receipts with this month's food bill, it's time to try a better system.

The Fix: There are numerous ways to build a better budget. There are spreadsheets, software, and mobile phone apps to get the job done with less pain and more success. Download this free budget spreadsheet or check out these 6 Free Budget Software Choices for Everyone and pick your favorite option. You may just find your fortune.

Mistake 2: You don't honestly track your spending. You spent how much at the mall last week? If you're fudging your numbers before entering them in your budget, it's impossible to make everything balance.

The Fix: Tracking the money you spend and earn may sound like work, but it's easy to do when you save all your receipts and paycheck stubs. When you're on the go, enter your expenses in a mobile device, or carry a notebook. The idea is to track your cash, credit card, and debit card purchases to identify the costly culprits.

Mistake 3: You don't make it a habit. Old habits are hard to break, right? Well, ditching your budget after a few tries is a surefire way to fail. Building a solid household budget takes practice, and giving up after a week is a common reason for failure.

The Fix: To get back on track, give yourself the chance to succeed by setting aside time each week to track the flow of money into and out of your life. Only after several weeks of practice will you get into the habit and be able to update your accounts quickly.

Mistake 4: You don't have an emergency fund. There are exceptional people out there who never get sick, never lose their jobs, and never need a car repair. Lucky ducks, but I bet you're not one of them. When bad things happen to good people, chances are you'll need money to get through the tough times. And maxing out your credit cards or running up your credit limit can put you in a bad financial situation, leaving your budget broken.

The Fix: Add some wiggle room to your budget by starting a modest emergency fund. You probably don't need to save tens of thousands of dollars to protect yourself from life's gotchas -- a modest amount should keep you safe and prevent you from tapping your plastic when times are tough. See How to Start an Emergency Fund on any Budget for some helpful hints.

Mistake 5: Your spouse hates budgeting. Do you argue about money with your partner, spouse, or significant other? You're not alone. Fighting about money is a common practice in households across America, and can lead to bitter breakups that bust the bank.

The Fix: When he's a spender and she's a saver (or vice versa) it's time to calmly chat together. Set aside 15 minutes each week to discuss the current money situation and work together to set a few financial goals and to calculate your net worth. Lay no blame and make a commitment to work together to get through the mess. Download these free 3 Financial Goals Worksheets and try this simple Household Net Worth Spreadsheet to get on the same page with your spouse.

Kerry K. Taylor writes at Squawkfox.com, a blog where personal finance and frugal living are sexy, delicious, and fun. Kerry is the author of 397 Ways To Save Money: Spend Smarter & Live Well on Less.

How i Earned 114% in 268 days by Investing in Stocks

I've been advocating investing in stocks because i feel that this is my small way of contributing to our economy. Just to set this aside, I'm not an expert in stocks and have not gained millions of pesos but i do understand investing in stocks so i try, as best as i can, to teach other people that investing in stocks is worth the time (and money).

Last January 23, 2010, we had our son baptized. We got some cash gifts so i decided to put the money into stocks last January. During that time, stocks are trading at low prices because of the economic recession and the Philippine Stock Market is still on its way to recovery. 

I decided to buy two stocks using BPI Trade. I bought 6,000 shares of Megaworld Corporation (MEG) P1.18 per share and 800 shares of Ayala Land Corporation at P10.50 per share. The Megaworld amounted to P7,104 while the Ayala Land at P8,425. I guess most of you reading this blog have the P7k or P8k just sitting idle in your bank accounts earning a meager 1.5% interest. There are risks in investing in stock market but the profit is high as well. If you want to learn more, read here.

Today, i sold my Megaworld stocks at a P2.56 per stock giving me P8k return. More than 100% of what i have initially invested



I'm keeping my Ayala Land stocks for the meantime. It is currently trading at P16.50 well above my purchase price of P10.50. I still believe that the real estate in our country will continue to grow so i'm holding on to this stock. So that's how i earned 114% in 268 Days. Every now and then, i get to think of investing more money in the stock market. I imagine if only i have P1,000,000 back in January and invested everything in those two stocks, i could have gotten another million by today. But life does not work that way. There are risks and i have yet to prepare myself to handle those kind of risks. 

I hope this post will encourage you to start investing portion of your savings in the stock market.  If you are a little hesitant, you may want to try Peso Cost Averaging as a strategy.



Saturday, November 6, 2010

5 tricks to avoid impulse buys

by Farnoosh Torabi for CBS MoneyWatch.com



Here are five tips to help you gain control during your next shopping trip.
1. Stick to Your List
When you narrow your options, you simplify the decision making process. Making a shopping list - and sticking to it - can be one of the best ways to avoid impulse shopping. And be specific: Instead of considering all 200 winter coats in the department store, zero in on the few that meet your needs and fall within your budget. Otherwise, you may be tempted to spend more than  you should.
2. Get Some Air
Give yourself at least 10 to 15 minutes to disassociate your mind from whatever it is you’re considering purchasing, whether you’re shopping online or in a store. Put the item in your shopping basket online, or leave it at the sales counter while you take a lap around the mall. Without a sense of urgency or the pressure to buy, you can make a more rational decision.
3. Be Critical
Before you pull out your wallet, ask, “What are the trade-offs?” If you have ample cash in the bank, then you can afford the purchase. But what if buying a new laptop is the difference between going to the Bahamas for spring break or a staycation?
4. Phone a Friend
For big-ticket items, it sometimes helps to grab a second opinion. (And no, the salesperson’s doesn’t count.) You want to ask someone who understands your goals and can give you honest advice on whether that new sofa is worth the $1,200 price tag.
5. Use Cash
Using cash, rather than a credit card, may seem more painful. But if you can’t afford to pay cash, you might not be able to afford your new splurge, period. Actually watching our funds shrinking can be the very wake-up call we need to beat the impulse buy.

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