Inflation
Is
a persistent increase in the general price level of goods and services in an economy
over a period of time. When the general price level rises, each unit of
currency buys fewer goods and services. Consequently, inflation reflects a
reduction in the purchasing power per unit of money – a loss of real value in
the medium of exchange and unit of account within the economya. The
inflation rate in Philippines was recorded at 4.20 percent in January of
2014. Inflation Rate in Philippines is reported by the National Statistics
Office of Philippines. Inflation Rate in
Philippines averaged 8.93 Percent from 1958 until 2014b. Ibig
sabihin nito kung nilalagay mo lang sa banko ang pera mo kung saan ang
pinakamataas na interest ay 4% lugi kapa ng .20% as of January
of 2014.
Fear of Risk
Most
of us want our money to earn something; the problem is we just want to invest
money we are not willing to learn. In investing we should invest first in
ourselves before doing something. According to Warren Buffet “It’s not the
investment that is risky it’s the investor itself”. If you don’t have the
proper knowledge most likely you will lose your investment. Overcome the fear of failure venture on small
investment first to hone our skills because failure is part on everything,
failure is an element of success a chance for improvement. Karamihan sa atin
naniniwala sa mga kaibigan kakilala na hindi naman eksperto sa mundo ng
investment. Look for a mentor kung baga sa basketball maghanap ka ng coach na
magaling sa basketball yung dating magaling na player.
Accumulating a Depreciating asset
Depreciation - the amount or
percentage by which something decreases in value over time, usually one year.
By that definition it is clearly not a good idea to hold such asset because you
are losing money. What are those things electronic gadgets, car, etc. REAL
Investments can either do two things: (1) increase your ability to earn or (2)
increase in value over time. If the answer to both questions are no, then it’s
not an investment but simply a long-term expense. We have to focus our minds to
needs avoid expending on wants to increase cash flow if we are serious of
improving our financial status.
Debt
“Those
who borrow are slaves of moneylenders” –Proverbs 22:7
Get
out of debt as soon as possible dahil sa mundo ng compounding interest kaibigan
mo ang panahon at inflation. Kung ikaw ay may utang kalaban mo ang mga nasabi.
Alamin ang effective interest rate, Buy out your debt to other financial
institution with lower interest rate.
Improper Cash Flow Management
Investment,
Assets at liabilities. Linawin natin Assets ay nag mga bagay na magpapasok ng
pera sa bulsa. Liabilities ay mga bagay na naglalabas ng pera sa bulsa. So
pagsinabing Bahay , condo, properties parehas Assets at Liabilities. Kung hindi
kumikita ang properties mo liabilities yan dahil sa tax charges mo or mortgage,
once na kumikita sya yun ang asset. Yung sasakyan mo kumikita ba? Ang point ng
Investment ay mag accumulate ka ng pera so mag invest ka sa maraming assets
pabilisin ang daloy ng cash.
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