Investments and Investing: ACTIVE ENTREPRENEURSHIPS

My notes on ACTIVE ENTREPRENEURSHIPS
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Active Entrepreneurship is simply meant starting a business.

Starting a business is a sure way to earn big profits, however, the entrepreneur must bear in mind 3 things pointers...

Investments and Investing: OWNERSHIP INVESTMENTS

My notes for Ownership Investments...

In addition to Real Estate investments, there's another one for Ownership Investments-the STOCK MARKET.

Stock Market is the place where shares of a company are exchanges for the money of investors.

The companies raise money from the public to expand operations thru stock market. Take note that these companies do not guarantee that they will raise money for their investors.

Tips:
The goal of the investors is to profit or raise money on the shares they buy. Since there is no guarantee on the earnings, investors must ensure that they carefully select the companies they buy the shares of.

Buying and selling of stocks are thru stockbroker. One can choose a broker from Philippine Stock Exchange or thru its website: www.pse.com.ph

Investments and Investing: PASSIVE ENTREPRENEURSHIPS

My notes for "Passive Entrepreneurships" or simply put "Ownership Investments"

Real Estate is one form of "Ownership Investments."

Being into a real estate business can be a good one, however, the investor must be able to consider the ff:

• conceptualization of feasible projects
• selection of strategic and right location
• acquisition of the property at a good price
• security of proper financing
• completion of the project in the set timetable and budget
• sell the project within the set time frame and price
• administration of the selling and/or leasing of the property

With a hat that size, you'll have no trouble

Investments and Investing: BONDS

Here are my notes for BONDS...

Bonds are issued by the government and large corporations. Its purpose is to raise fund for specific projects.

Bonds offer a fixed of amount of interest (which is called the coupon rate) for a fixed period of time (this is the maturity date or due date) usually for a long period of time.

Note that at maturity date, the exact amount of the bond will be repaid to you and the interest payment stops.

More, interest rates on bonds are normally higher than the rates paid the banks.

Tips:
If you are nearing the or are in retirement years and your goal is "never or do not lose money," then a bond from a stable government is the best investment.

Pareto or 80/20 Principle Applied To Passive and Active Income

The Pareto or 80/20 Principle may also be applied to our Passive and Active Income.

Pareto or 80/20 Principle states that a small number or 20% of the causes are responsible for a large percentage or 80% of the effects.

It is suggested that we live within the 80% of our total income. Use this 80% to support all our basic needs such as food, shelter, clothing and all the necessary expenses to support our lifestyle and taxes.

We set aside the remaining 20% of our total income to fund in building our empire.

Tips!
This 20% may be invested in Treasury Bills or T-bills. T-Bills earn interest more than a bank offers. Maybe we roll them every 3 months or more.

Separating Needs from Wants

In today's economy, we must learn how to economize.

It is important that we define and separate our needs from our wants.

Needs are those supports our basic existence. While wants are those needs but bought/acquired extravagantly or expensively.

Example, say, we are hungry and we are in need of food, we can eat on budget of P100 per meal however we choose to savour foods costing us P1,000 per meal. Foods cooked at home are simple, yes! But it is also nutritious and coming from the labor of our loved ones who cooked for us.

Tips:
Before we spend what we earned, let's put in mind to set aside our savings first then expenses last. Simply put: Income less Savings = Expenses*


*Thanks to Mr. Colayco's idea

Manage Earnings! Divide Income by 3

Divide Earnings by 3?!

Yes!

Divide your income by 3.

Alot the first 1/3 for the expenses from the pay period you receive your income up to the day before you will receive your next pay.

The 2nd 1/3, set this aside and save it for the next 1 to 2 years basic expenses.

The last 1/3, set this aside, save and invest it to income generating assets/properties.

Maximization: Reduce Expense - Increase Income

Think of ways to cut or reduce expenses.

These ideas are...

• Choose a lifestyle

• Buy only when you need to, but buy the best you can afford

• Read all saving tips and follow good ones

One way to increase income is CONTINUE SAVING and INVEST YOUR SAVINGS to income-generating assets or properties.

Basics of Investments and Investing

Investments could be in paper-asset investing or real/estate investing.

Paper Asset Investments are...

• Government Bonds and Securities

• Corporate Bonds and Securities

• Bank Deposits

• Pension Plans

• Stock Market

• Pooled Investments/Mutual Funds

Real/Estate Investments are...

• Apartments

• Condominiums

• Real Properties/Estate Properties

Wise Money Borrowings

Remember it is not bad to borrow money.

Just that you have to study well your capability to pay the cost of your borrowings including the effective interest rates.

If you borrow, ensure you have the capacity to pay for them. Buy only for your needs and not just for a show off of what you bought to others.

Income Source: Internet Marketing

Internet Marketing is still young in the Philippines.

Very few do the marketing in the internet or in the world-wide-web.

Philippine companies still do not have marketing arms promoting in the world-wide-web.

Ask the marketing department of any company or any event organizers and be their internet marketer.

Announce and promote their events or whatever the companies wants you to promote in the forums and chat rooms.

Of course, before you do marketing in the internet, negotiate for your compensation first on how you are going to be paid.

Income Source: Blogging

Hey, bloggers!

Earn while blogging.

Create an account in bloggers.com and add Google Adsense banners in your blogs.

While you are sleeping, there are some insomniacs who kill time browsing the world-wide-web, once they spotted your blogspot in your bloggers.com account, Presto! Additional dollars are raining in your life.

Income Source: Sidelines

While we are actively or passively earning, we may add more income streams to our already growing empire.

On the side, we may do one or all of the following:

• Blogging

• Internet Marketing

First Things First: Know Your Financial Standing

Know these first...

• What are the assets and other financial resources you have now

• How much debts and other financial liabilities/obligations you have now

• How much is your networth now (Networth = Assets less Liabilities)

• How much earnings you are generating now

• How much are your spendings now

• How much you need to spend for the lifestyle you choose to live

Tips:
Prepare your master budget plan periodically.

Reflection: How We End Up With So Much Debt

How We End Up With So Much Debt?

Because of Unmanaged Credit Card Spendings.
How to get out?

• Sit down, talk with your family and discuss about family's financial standing.

• Use all the money you have in paying credit card debts but do not forget to keep enough for your basic needs.

• Tighten your belts, and avoid spending for the time being until you fully paid the credit card debt.

• Sell assets which are not so important to keep and use your proceeds to pay your credit card debt promptly.

• Negotiate with the credit card company. Surrender your credit card and request to reduce the payment.

• Do this and get out fast.

Every Master Was Once A Disaster

Every Master Was Once A Disaster
-T. Harv Eker

It is recession! Yes it is.

Probably, you lost your job or in the brink of losing your job.

Scary! Yes it is.

Look at the brighter side. No job. Meaning, it is our chance and explore the possibilities of becoming financially free.

Becoming rich is not as much about getting financially rich.

It is about growing and developing yourself.

Our outer world is the reflection of our inner world.

Our circumstances, events and conditions are the results of what is in our inner mind.

Our outside universe is the effects of our cause in our mental and spiritual universe.

Every Master Was Once A Disaster

Every Master Was Once A Disaster
-T. Harv Eker

It is recession! Yes it is.
Probably, you lost your job or in the brink of losing your job.

Scary! Yes it is.

Look at the brighter side. No job. Meaning, it is our chance and explore the possibilities of becoming financially free.

Becoming rich is not as much about getting financially rich.

It is about growing and developing yourself.

Our outer world is the reflection of our inner world.

Our circumstances, events and conditions are the results of what is in our inner mind.

Our outside universe is the effects of our cause in our mental and spiritual universe.

Accounting 101: How To Interpret Your Networth?

How To Interpret Your Networth?

One of the important things to remember in Accounting 101 is that we know how to read or interpret what the numbers are telling us.

Typically, it is a G-O-O-D sign when…

Our Networth are bigger than our Liabilities.

It spells D-A-N-G-E-R when…

Our Liabilities are bigger than our Networth.

The Basics of Income and Earner: Who Is A Passive Earner?

Who is a Passive Earner?


Passive Earners earn their income from the assets or investments they acquired or developed and/or on-going passive income they built.

New Story for Abundance (Part 3)

Continuation from New Story of Abundance (Part 2)...


I am aware of the absolute correlation between what I have been thinking and feeling about money and what is actually happening in my life experience. I can see the evidence of the Law of Attraction's absolute and unerring response to my thought, and I look forward to more evidence in response to my improved thoughts.

I can feel a powerful leveraging of Energy in being more deliberate about my thoughts. I believe, at many levels, that I have always known this, and it feels good to return to my core beliefs about my power and value and worthiness.

I am living a very abundant life, and it feels so good to realize that whatever this life experience causes me to desire--I can achieve that. I love knowing that I am unlimited.

I feel tremendous relief in recognizing that I do not have to wait for the money or the things to materialize before I can feel better. And I now understand that when I do feel better, the things and experiences and money that I want must come.

As easily as air flows in and out of my being--so it is with money. My desires draw it in, and my ease of thought lets it flow out. In and out. In and out. Ever flowing. Always easy. Whatever I desire, whenever I desire, as much as I desire--in and out.

End