Merry Christmas

The season brings lots of joy and happiness, but similarly with lots of expenses.

Most people may have received their 13th month pay and bonuses by now, and I just hope it will be spent wisely. Better yet, save a significant chunk and invest. This money signifies how hard you’ve worked for the entire year. For next year, let your money work harder for you. Save and Invest are two words I highly recommend to everyone.

Though, expenses during the Holidays can’t be avoided. All you have to do is be educated with all the options available and to know how to get the best deals in town.

If you have imbibed the habit of paying off your credit card in full every due date, I suggest you spend using your card and not cash. Using your credit card for christmas shopping allows you to earn points, rebates, rewards, which you dont get when you spend cash. Likewise, it is the season of pickpockets and thieves, so it is better and secured to bring a plastic card than bundles of cash. BDO Card offers 0% interest payable in 6 months for a minimum purchase of PHP5,000. This is a great deal. You earn points, and at the same time you get to postpone paying for big ticket purchases this Christmas. Just make sure you have enough cash to payout for whatever you purchased, with or without the 6-month grace period. Again, credit limit is not additional purchasing power. If you pay your due in full every month, then your credit card is working for you and not the other way around. Likewise, with the skyrocketing gas prices (more trips to the mall for shopping means more fuel consumption), it wont hurt if you use a credit card that gives 5% rebate for all your fuel purchases. That’s a good savings.

This is the season when you might want to explore the full potential of the internet. At this age and time, almost everything can be done in the internet; Online Shopping, Onlne Banking, Online Food Delivery, etc. Not that i dislike human interaction, but the internet offers great deals and savings. Buying things online means lesser trips to the mall, thus lesser expenses for gas, food and things you buy which you dont actually need, but because the sale is just so tempting. The season brings lots of bank transactions, so expect jampacked and long lines in banks. Good thing, online banking is here. Have you seen the long lines in restaurants and food chains lately? I just hate standing in line. Now, with the internet technology, everything is possible. Its saves you energy, money and gives you more time to do things you enjoy.

Merry Christmas to everyone, and may you spend your money wisely this holiday season.

PSE – Buy, Sell, or Hold

Is this the beginning of a bull run?

Nah.. I don’t think so, but ride the uptrend as far as your comfort level.

All I know is that I have regained all my losses, since the Oct 2007 meltdown. And the best part is, my stocks are up 10%. Good Times

BOOK TIDBITS: The Best Investment Advice I Ever Received Part 2

More insights from America’s moneymaker…

 

RICHARD BERNSTEIN (Chief US Strategist, Merrill Lynch & Co.)

Save.  Save a lot and Save often.

Saving and Consumption are mutually exclusive. You can’t do both.

Most people think they’re saving for their retirement. Their credit card balances is compounding at 9% per year, whereas their investments are earning 8% per year.  In other words, they’re “saving” at an interest rate of  negative 1% per year!

 

PETER COHAN ( President, Peter S. Cohan & Associates)

7 Principles that Drive Corporate Value in any Economy

1. Value Human Relationships

2. Foster Teamwork

3. Experiment Frugally

4. Fulfill your commitments

5. Fight Complacency

6. Win through Multiple Means

7. Give to your Community

BOOK TIDBITS: The Best Investment Advice I Ever Received Part 1

In this Book (as compiled by Liz Claman), more than 65 of America’s top moneymakers share their winning strategies  to their most fundamental points. Famous people like Warren Buffet, Jim Cramer, Suze Orman, and Steve Forbes share their insights on finance and investing.

WARREN BUFFETT (Berkshire Hathaway)

Billionaire Investor shares 3 Principles:

1. Look at a stock as being part of a business versus something that has a lot of flash about it or something your broker or neighbor simply tells you about.

2. Stock <arket fluctuations are there to serve investors rather than to instruct them. Investors shoudl turn a deaf ear over daily market gyrations. Good quality companies can withstand these gyrations.

3. One can never be precise in calculating the worth of a stock, but what you can do is estimate. If you compute that a stock is worth $120, and the current market price is at $60, then buy it. In the long run, you should be able to realize hefty returns.

 

JIM CRAMER (host, CNBC’s Mad Money)

Lessons from my dad, Ken Cramer…

All that matters is inventory. If you have too much inventory, you’re in trouble. If you have too little inventory, you’re in trouble. If you have t pay too much to keep inventory, you’re going to get hurt. And if you have the wrong inventory, you will get stung.

Though his dad may be in the retail industry, such universal concept is very much applicable in the world of stock trading and investing. 

 

SUZE ORMAN (host and author, Personal Finance Expert)

It is better to have 50% of SOMETHING, than 100% of NOTHING.

In investing, we tend to cling so much on something even if admittedly we have committed a blunder.

If you buy a stock for $100, it only takes 50% drop to cut your investment into half (down to $50). But to regain its original value,  it will take 100% increase to bring it back to $100.

 

STEVE FORBES (President & CEO, Forbes Magazine)

If you want to get rich, start your own business.

If you invest, pay more than lip service to disciplined investing and long-term investing. Everyone is a disciplined and long-term investor until the market goes down.

WHAT TO DO IN THIS TIME OF ECONOMIC SLOWDOWN

 

If you’re a regular INQUIRER reader, you might have read this article. But, for those who haven’t, I suggest you find time, grab a cup of coffee and spend a little time reading this article. It’s a great ROUNDUP of articles that may help you go through 2009. Undeniably, 2008 was one of the worst years in the Financial History. So, let’s not make the same mistakes for 2009. Friends, protect your money and take charge of your finances. Happy Reading

 

ROUNDUP: Can’t Stop Talking About the Crisis

(Salve Duplito of Inquirer.net did a great job compiling all these articles)