Archive for April, 2010
Of Taxes and Wealth
Of Taxes and Wealth
by: Kendrick Chua, RFP, CIS, The Wealth Warrior
The BIR has published the largest taxpayers of 2008. Not surprisingly, topping the list are Manny Pacquiao and Willie Revillame. Pacquiao earns billions of pesos for every fight and Revillame is reported to earn at least a million pesos for every show of Wowowee. Other celebrities who made it to the list are Kris Aquino, Piolo Pascual and Micheal V.
One thing worth noting in the list is that none of the 10 richest Filipinos are among the top 10 largest tax payers! Surprising? Not really. The list is based on the income the individuals earned: talent fees, professional fees and other similar compensation. In other words, the tax is based on their active income. If the basis of the richest Filipinos is based on the tax paid, then we would totally have a different list for the richest Filipinos.
Pursuing Your Financial Dreams
Pursuing Your Financial Dreams
by: Kendrick Chua, CIS, the Wealth Warrior
I have always wanted to own my own Island; one that would top Sir Richard Branson’s Necker Island. I dream of escaping to the lush forest and pristine waters that would provide the tranquility from the stress of the metropolis. Then celebrities all over the world would come and get married on the island.
But I’m a realist and the dream of owning a private island is still just that—a dream. The next best thing I thought is to buy a beach-front property. I’d get to enjoy the lush forest and pristine waters at a fraction of the price.
Checking the Small Stuffs
Checking the Small Stuffs
by: Kendrick Chua, CIS, The Wealth Warrior
Spending habits spell a lot of difference between financial success and failure. A client of mine residing in the province, a self-made millionaire, once asked if it was possible to just email the mutual fund form she signed instead of faxing it. The reason: Email is free while fax transmission cost 30.00 pesos each page.
Rich people became rich because they also looked at the small stuffs. The discipline to check the littlest of expenses did wonders on their financial characters. It doesn’t mean they are stingy. They are just wary on how they spend their money. They save whatever they can save and spend on things they need to spend.
On the other hand, the average ones focus too much on the big picture. They’d cry for higher income or a hotter investment or both to get to their goal sooner. Higher income won’t happen overnight unless you’re due for raise the next day while a hotter investment may just burst the bubble. Review your Physics 101. Molecules when heated expand and too much expansion results to an explosion. Pray it’s not your money exploding.
It is wise to check the small expenses you are spending on.
10 Money Mistakes Every One Should Avoid
10 Money Mistakes Everyone should avoid
by: Kendrick Chua, CIS, The Wealth Warrior
We all make money mistakes once in a while and in my years of financial planning practice, I have come to realize the 10 Money Mistakes people often commit.
1.) Spending all income. I know of people who spend their income down to the last peso the day before their payday. It’s as if they can’t stand having the money carried over to the next payday. As a result, when a glitch in accounting system delayed the pay, the solution: cash advance or buy on credit.
2.) Spending more than you earn. What is worse than spending all your income? It’s spending more than what you earn. So if the cash runs out days before the next batch of funds come in, the result is incurring debt. You can always be a free-loader but then you won’t have any friends left.
The One-Day Rich Phenomenon
The One-Day Rich Phenomenon
by: Kendrick Chua, CIS, The Wealth Warrior
In one Pugad Baboy’s strip, the characters Bab and Igno were dining in an expensive restaurant. Bab had just won a bet in cock-fighting and they were celebrating. When Igno expressed doubts over their capability to pay for their orders, Bab explained that his prize money was P300,000.00 and they are entitled to splurge everything (note: everything).
The strip reflects the sentiment of the creator Pol Medina and I thought he captured the idea very well. Majority of the Filipinos love to do a one-day splurging and the strip was this representation. Not all will be fortunate to win in gambling but those who do usually spend everything rather quickly; treating the whole barangay to a drinking spree to celebrate his good fortune. After that, he goes back to either bumming around or doing his dreadful work and relishes on the good time he had the night before and hoping and praying he wins again.
