STOCKS 101 | P/E Ratios by Industry (from PSE Data) - End of September 2015

Last August 2015, I released a mid-August Investment Guide tabulating the price-to-earnings (P/E) ratios of some public Philippine companies. It was also on that post linked above where I (somewhat po hehe) thoroughly explained what a P/E ratio is and does.

(I'm making this post extremely short para 'di na po kayo ma-bore hehe. Enjoy and have a good one!)

Today, I am posting an updated list of P/E ratios for several PH companies that are being traded in the market. It can be noted that since the one-day 7.20% loss in August 24, some stocks have managed to recover, while others continued their downward trend.

What I discovered is that almost all companies had their P/E ratios lowered which means, from a value investor and share price-point perspective, some stocks are less expensive (or in another sense, cheaper) than they were in August. So, how do these stocks' P/E ratios fare relative to its competitors in the same sector/category?

1. BANKS AND FINANCIALS

It must be noted, however, here that price-to-book (P/B) ratios are better indicators for banks because they have a lot of assets and liabilities that are constantly valued at market prices.

P/E Relatives

Cheapest: UBP, RCB

2. COMMERCIAL AND INDUSTRIAL

P/E Relatives

Cheapest: EEI, IMI, MWC

Some companies are a bit highly priced like media companies ABS and GMA7 because they know election is just several months ahead. And election means big bucks! ICT, if I remember, had a P/E of 30+. Now, it's nearing the 20-level, which means it has gotten a lot less expensive. PCOR, on the other hand, still possibly suffering from losses has a negative P/E. This may mean that investor currently value the stock at or pay 46 pesos for every 1 peso loss made.

3. CONGLOMERATES

P/E Relatives

Cheapest: FPH

FPH which holds shares in EDC and FGEN, if I am not mistaken, has the lowest P/E ratio in this list. Some PSEi listed companies like GTCAP, A, JGS, LTG, and SM all are priced higher.

4. CONSUMER

P/E Relatives

Cheapest:  DNL

It's a shocker that DNL is currently having a relatively low P/E (and is the cheapest) considering the fact that it was performing well (skyrocketing extraordinarily) in the past several months. It goes to show that the PH market's overall sentiment could not be estimated. Well, JFC and URC are again two of the most priced (or prized haha) jewels in the stock market. They're some of the investors' darlings; I can say; however, do notice their trends (via Wall Street Journal, PSE Edge, Bloomberg, or your online stock brokers' platform), 

Kids (and investors) just love Jollibee and junkfood, I guess hehe.

5. GAMING

P/E Relatives

Cheapest: RWM

The reduced confidence and potential in gaming firms (70% down, yep you're reading that right) in Macau may have had an indirect impact on investor appetite here in the Philippines. To where is the PH gaming industry headed?

6. MINING, POWER, AND TELECOM

P/E Relatives

Cheapest: NIKL (Mining), TEL (Telecom), EDC and FGEN (Power)

We got some extremes in the mining, telecom and power category. On one hand, NIKL is definitely the second cheapest stock in this guide. What has possibly lowered its P/E? Is it China's (a major nickel importer) slowdown? Meanwhile, EDC and FGEN, two power generating firms, are exposing their affordable value as they have the lowest P/E ratios in this power list. TEL, or PLDT, has just gotten a lot more cheap when it neared a 52-week low of 2,240 PHP last September 23.

6. PROPERTY

P/E Relatives

Cheapest: CPG, MEG, VLL

The property category boasts of the widest spectrum with CPG being the cheapest (on a P/E ratio) and real estate giants ALI and SMPH with extremely high P/E ratios. Again, it should be noted that P/E is not the only indicator out there. CPG has a low P/E ratio, but there must be something going on (or probably wala din) which is preventing investors from paying a higher price for that stock. Due diligence should be practiced at all times. Research, research, research. Hehe.

NOTE: 

This guide only shows the strength of P/E ratios relative to one another. (I only mentioned what  are obvious, P/E wise.) 

A low P/E ratio may suggest that at it's current value, it's priced as cheap. But it may also mean that investors aren't just upbeat on it and aren't willing to pay a premium (extra) to own part of the company. On an earnings perspective, a low P/E ratio may indicate that the company has had higher earnings to date which may mean it's a valuable stock for the future, fundamentally, although usually a higher earnings report leads to an increase in the stock price. 

However, earnings aren't just the only representation of a company's financial progress. Is a company piling huge debts? Was it involved in any tragedy? Is it hindered by certain legal processes (judicial proceedings, TROs)? Caveat!

STOCKS 101 | P/E Ratios by Industry (from PSE Data) - Middle of August 20

I used the Wall Street Journal online's data thinking that it's more updated than that seen on COL Financial, but I missed checking out on the more direct source of data for P/E ratios - the Philippine Stock Exchange, Inc.

That's why I've created another set of tables of P/E ratios by industry collated and provided by the online PSE portal, as of August 14, 2015, midway to AuGHOST month's end wherein investors may just continue their panic buying and selling.

Most P/E ratios are somewhat similar or near the values produced by The Wall Street Journal. I decided to give data from the PSE itself to achieve balance in reporting P/E ratios. Hope that from what you may have learned in my previous post, you now know a bit how to judge stocks based on P/E ratios.

1. Bank and Financials

Comparing the P/Es of companies in the financial sector, it can be deduced that UBP is cheaper compared to its peers. However, one has to note whether there's a current problem with UBP (probably in its books or loans) or whether investors aren't just as attracted to it as they are attracted to the banking giants BDO and BPI. Or whether UBP already released its earnings report and the higher earnings reported pushed down its P/E. Or other cases. So conduct due diligence; this advise also goes to decisions involving other stocks mentioned in this post.

 2. Commercial and Industrial

Election's fast approaching. Could it be the reason why ABS and GMA7 have relatively high P/E ratios? Or could it be because their earnings didn't meet expectations (if and when they already released their report)?

IMI, based on P/E, is pretty undervalued given the fact that it's operations are international; however, could this also be the reason why this stock is not priced the way it should be? Because the peso is weakening against the dollar?

PCOR, the smallest in the list of 30 blue chip companies, is on a negative P/E value. Recall that oil's price has been hardly managing to go up due to the unexpected surge in supplies internationally. EEI, on another note, is somewhat attractive, but what makes it not so catchy at all?

Again, research, research, research.

 3. Conglomerates

We see here FPH (First Philippine Holdings) which has stakes in power-generating companies EDC (Energy Dev't Corp) and FGEN (First Gen Corp) as an undervalued stock. Are there problems (impending loan payments? etc?) in it or is it just not spotted?

LTG (Lucio Tan Group) has a very high P/E ratio. I don't get it why, but pretty sure one has to view this stock's trajectory. Has its earnings been affected by the Sin Tax Bill? Is it on a rebound?

4. Consumer

One of the most priced sectors is the Consumer sector, wherein average P/E hovers near 25. Most Filipinos love anything locally produced, from JFC's chickenjoy to URC's junk foods, RFM's Selecta milk and EMP's brandy. And who wouldn't love to buy in air-conditioned markets like that of PGOLD and RRHI? As long as there is someone living, these companies will continue earning. But the sector's high value?

 5. Gaming

The gaming industry has lower average P/E compared to the other sectors possibly because of lower earnings reported (MCP took a loss) which lost investors' appetite and a government crackdown on corruption in China scaring gamers in Macau. What other factors may be attributed to this lower P/E despite casino operators getting huge revenues?

6. Mining, Power, Telecom

Businesses focusing on basic needs like texting, electricity, and internet may strive despite stiffer competition. GLO's Globe is overpriced probably because investors were upbeat when the company released it has been gobbling market share and continuously earning higher profit versus its rival PLDT in this telecom duopoly.

7. Property

The property sector has a mix of undervalued and overvalued stocks. There are certain factors that influence these ratios - investor confidence, earnings report, financial stability, market share, occupancy rate, margins, scandals, etc.

Notable companies with high investor confidence are market leaders ALI and SMPH.

STOCKS 101 | Mid-august Investment Guide featuring Current P/E Ratios by Industry

The Philippine stock market plunged -0.42% to 7,408.44 on the last day of week two of August - which some investors call AuGHOST month due to anticipated market selloff caused by investors who believe it's a bad month for equities. It's not only felt here in the Philippines, but also outside. In fact, USA Today has reported "why investors in the US expect 'August Angst' to come."

Local stocks reporters refer to the "ghost month" as a "period in the Lunar calendar when Chinese investors avoid making big-ticket investments or other big moves like getting married or moving to a new house". (Inquirer) Hence, it could mean that next week will be the actual beginning of this dreaded event. Still, the overlap of these periods might just mean one thing, stocks will possibly go down.

When most stocks turn red, it may mean stocks are being sold at discounted prices; however, it may also mean stocks are just adjusting from its overvalued prices. At such discounts, value investors hunt for good stocks to buy based on some metrics like price/earnings ratio (P/E), price-to-book ratio (P/B), debt-equity ratio, price/earnings to growth ratio (PEG), earnings per share ratio (EPS), and free cash flow.

I talked about value investors. Who are they?

Investopedia defines it as:

Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated. 

Typically, value investors select stocks with lower-than-average price-to-book or price-to-earnings ratios and/or high dividend yields.

We are now wading through the middle of AuGHOST month. And depending on each own's appetite, we could either be buying discounted valuable stocks or selling under-performing stocks. 

Hence, to help you partly decide which stocks to look out for, I took the initiative to collect the current P/E ratios of all companies monitored by the COL Financial through its investment guide. I obtained all P/E data, as updated last August 14 (today), from The Wall Street Journal online.

(If you wish to skip this short refresher, please jump to the bottom of this page.)

But why P/E? What's with it?

The P/E ratio is a measure of how attractive a potential stock (company) is relative to its competitors. It divides the stock's share price by its earnings  (kita) per share which tell us how much investors are willing to shell out for a peso (1 Php) of earnings.

So, kung mataas ang P/E ratio, it may mean na:

• With respect to the SHARE PRICE, in demand ang stock na ito for expected positive (good) results (usually higher profits and margins, lower expenditures, increased market share, removal of poorly performing CEO, acquisitions, etc), or
• Hyped lang ang stock (probably because of maling akala or too much trust in the company) which means it was overvalued, which could lead to the consequence in the next bullet,
• With respect to EARNINGS, mababa ang earnings kaya mataas ang P/E ratio or di mameet ng company ang earnings target, kaya ang result, some investors when they see na nag-exceed na sa ceiling P/E nila yung stock nila, they resort to selling.

Kung mababa naman ang P/E ratio, pwedeng:

• With respect to the SHARE PRICE, di siya pinapansin ng mga investors kasi baka lubog sa utang or baka may mga bad news siya before (scandals, accidents, etc.) na hindi pa makalimutan ng mga investors 
• With respect to the EARNINGS, surprising ang earnings ng company na na-exceed niya yung pace ng share price, which may possibly mean good to buy ang stock na ito. Example, stock A is trading with a P/E of 20 pero kanina lang nag-announce siya na nasurpass ng company yung earnings target, so automatically updated P/E for it would adjust to a lower than 20 kasi the denominator part of 20/1 (which is 1, may have increased to 1.2 or 1.4 or kahit ilan basta mataas). In this case, investors who spot stocks with low current P/E ratios and saw earnings to increase would usually buy these stocks.

Which leads me to these Tables of Updated P/E ratios of PSE companies by industry. Because we're in the middle of the selloff month, these tables may serve as guide in purchasing or selling stocks on the basis of the P/E ratio. 

Note, however, that due diligence must be practiced at all times when doing so...

....because a company's financials are not only measured by the P/E ratio. The P/E ratio has limitations and does not provide a complete insight for one to arrive at a decision. 

First, we can only compare P/E ratios of companies belonging in the same industry. Why? Because a mining company relying on mineral exports has a different way of earning versus a telecom company relying on broadband and landline subscriptions. We can't just assume their P/Es are comparable. 

Another important limitation is that the P/E ratio heavily depends on data provided by the companies themselves which may be prone to manipulation. The share price is highly dictated by the market; but, a company may choose not to disclose its poor earnings in an AuGHOST month for fear of investor panic or may do so para bara-bara na bagsak. There are many scenarios associated with P/E ratios, hence it's powerful, but just like any data, if COL Financial or any stock broker fails to update earnings info released by companies, the P/E ratios provided may seem unconvincing (kaya I made it a point to put in updated data as of August 14, 'cause I know some investors use P/E ratios as bases and it's a MEGA SALEEEEEE! Hehe!). This, however, urged me to make another post showing P/E ratios by industry but as provided by our very own Philippine Stock Exchange, Inc. to give you a balanced approach - one from foreign analyses, another from our very own exchange. You might notice that there may be some differences in the P/E ratios, which explains P/E ratio's limitations.

Lastly, P/E ratio is limited in that the companies with higher debt may be unattractive to investors, thus sometimes getting lower P/E. However, when the business is humahataw, the company with higher debt (lower P/E) may actually have won the industry over with more earnings as it took higher risks (probably due to speedy expansion and good fiscal management) which gave it higher returns. So, it's best to conduct wise judgment by studying the other basic metrics in investing. 

Now that you've learned a bit about one financial ratio which may serve important in arriving at a good investment decision, do take a look at the current mid-August P/E ratios per industry. I didn't add all companies listed in the PSE as I only chose what were highlighted by COL Financial in its own Investment Guide. Caveat!

1. BANKS AND FINANCIAL

Side Note:
(from Sir Mark Mataranas, Investment in the Philippines Market - Tips and Tricks)

For BANKS: 

Banks' balance sheets consist mostly of financial assets with varying degrees of liquidity, reason book value is a good proxy for the value of a banking stock. Assuming the assets and liabilities closely approximate their reported value, the base value for a bank should be book value. For any premium above that, investors are paying for future growth and excess earnings. Seldom do banks trade for less than book, but if they do, the bank’s assets could be distressed. Typically, big banks have traded in the two or three times book range over recently.. 

That's why comparing similar banks on a price-to-book (P/B) measure can be a good way to make sure you’re not overpaying for a bank stock. 

Of course there are other important factors/valuation to consider for banks like...

- ROE/ROA (kind of de facto standards for gauging bank profitability)

- net interest margin (looks at net interest income as a percentage of average earning assets. Virtually all banks report net interest margins because it measures lending profitability. You’ll see a wide variety of net interest margins depending on the type of lending a bank engages in, but most banks’ margins fall into the 3 percent to 4 percent range..

- Efficiency ratio (measures non-interest expense, or operating costs as a percentage of net revenues. Basically, it tells you how efficiently the bank is managed.)

- strong equity base (simplest metric to check is equity-to-asset ratio) and the ability to grow revenues at a steady pace.

- there are some more kaya P/E alone is less significant for banks. 

For banks, doing relative valuation with P/BV is a reasonable approximation of the value of the business compared to other industry..it's a good starting point for seeking out quality bank stocks. A solid bank trading at less than 2x BV is often worth a closer look..but there are banks that can trade above 2 or 3 like the big 3s (BPI/MBT/BDO usually commands above 2x BV..lower than that may mean a potential big bargain). This ratio is also a good approximation that you are not overpaying for a bank stocks.

Check for consistent solid ROE..also, not to low ROE (or too high ROE) from avg is good starting point. Above avg is good. 

There are other relevant data to check for detailed analysis but ROE & P/BV are a good starting point.

2. COMMERCIAL AND INDUSTRIAL

3. CONGLOMERATES

4. CONSUMER

5. GAMING

6. MINING, POWER, TELECOMS

7. PROPERTY

Disclaimer: 

I don't declare myself a stock market analyst nor do I believe that I am a mentor when it comes to stock investing. I am just a learning student trying to help in the best way I can, so that anyone can understand why some stocks perform greatly while others lag behind. I really wish you learned something from this post po. If you enjoyed this post, I would really appreciate it po if you like my humble blog hehe.

STUDENT FINANCE | How saving helped me chase one of my dreams

Probably one of my little accomplishments in life, which took so many years before it paid off, is having to pursue one of the dream hobbies I really, really wanted to do.

I think it was in Grade 4 - I was 11 years old - when I first realized how it feels to be punched in the stomach by extreme poverty. At that time, Mama only gave me 10 Php for the day. I was too shy (and very embarrassed) that I cannot join my peers in buying lunch at the cafeteria. I can recall our lunch meal was around 25 Php for a fried chicken meal. Worst, I had to eat only when I was about to go home as my kind bus-mates had excess snacks to share.

It was at that moment when it dawned on me to make every peso provided to me count and to assist my parents in our family's expenses. I aimed to be admitted into the best schools my intellect, strong will and determination can bring me. I learned to practice saving, hiding money behind picture frames, within the pages of the Bible, inside my drawers, and even underground (which at one point got me surprised and confused because when I dug it a few months later, I realized it was gone haha).

First Love

By the time I reached the ending year of high school, I realized I wanted to capture memories, to shoot for beautiful scenery, and relive moments at just one click. I wanted to become a photographer.

Unfortunately, SLRs at that time were very expensive. I looked up to people who had beautiful digital cameras and SLRs as if it was decoded in mind that they belonged to the upper echelons of society. Most of them looked fulfilled; others had it just for show. For me, photography was something internal; I didn't truly comprehend why it became an urge, but it was there. It was not a luxurious want, but a defying need.

"I will have that in time," I comforted myself during my high school graduation. It was a dare to myself.

College life began; it was my first time to be far away from home. I had to survive, on my own. Living in NCR was very hard for someone who was just weaned off his family's love and affection. I cried every night for the first two weeks of college out of homesickness.

Soon, I became more challenged. The funny thing is eventually you'd get the hang of it and just get tired of crying, projecting your need for love towards your new found friends.

Months passed by, I got to see more people having SLRs and better phones. To be honest, I envied them. It was my calling to join the world of photography. 

Every time my allowance (which was really just enough for my food and shelter) is sent, I only withdrew what I needed for the week which meant employing extra tight budgeting. There were cases I missed lunch or just ate crackers to fill my tummy, but that was because my class schedule was a bit full and intoxicating. You know, in our university there was a shortage of professors so there's very high demand for subjects, the last solution of which would be opening new slots that sacrificed lunch breaks. Eventually, I was able to adjust.

I was determined to keep money - first, out of the fear that Metro Manila life is scary when one doesn't have money, and second, out of the tethered longing to pursue photography. While most of my peers were busy eating at fast food chains and posh restaurants, I was satiated by food offered by carinderias (their homemade food were really yummy!). Occasionally, I'd join my friends to eat out as a reward (usually after exams).

To cut the story short, I graduated in college with a sigh of disappointment because I wasn't able to buy myself an SLR. At that time, my priorities changed. I let go for a while, with the thought that I might need the money in case of emergency. And so, my savings (just a few thousands) were left untouched in the bank.

But the longing didn't stop. It was my first love, some passion my heart was really yearning for. It was for me.

(RIGHT) Three years later, just this year, I accidentally found a post about a DSLR being sold in an online store at a bargain price. It was secondhand but had no defects and just a little less than 2k shutter count. I felt it was the right moment for me; I needed to give myself something I worked hard for and something that would motivate me more to succeed.

I bought it. I felt so elated, with that ounce of pride having been able to buy a DSLR out of more than six years of dedicated saving! Wohoo! I felt I responsibly decided for myself. It was something I wished to have since my teen days. I never regretted all the years of waiting; seemed like God told me, "take it, My child, it's for you."

No to worship of money, yes to frugality at best

Indeed, I got to buy a DSLR, but still retained a chunk of my savings. My hands were really excited to maneuver the buttons that glossed out of it.

One thing that didn't stick with me, all throughout the wait, was worship of money. I know money is somewhat important but it's not the most essential thing in the world. Bear in mind, though, that it could be some means to achieving happiness - for my case, I am happy I got to practice photography even if I had to wait for years. I was content I got to bond with friends even in just the most sketchy places (pero yun pala, the best eateries I dined into).

The thriftiness I acquired stayed. As you can see below, saving is petty much instilled in me. This is just to add pun to my post haha. It's funny because my coins don't even have their proper shelters (alkansya haha). 

Yep, I just laid them on the floor. I sometimes use some of my (non-bank) coin savings (from last year), which I taped by denomination, to buy load haha. The salesladies won't mind if I pay them piles of coins late at night hehe.

(LEFT) Another area where I place my current savings. I use these for my day-to-day living. I eat 50-peso meals, and just drink the cold water that the carinderia offers. Sometimes, though, I eat inside malls but only in the food court (where it's cheaper) haha. My phone is an obsolete, annoyingly malfunctioning Nokia which just got replaced when my friend lent me his secondary phone a few days ago.

Always take aim

What's more valuable to me is the realization that I can live life with that street-smart attitude and frugality I acquired throughout the years of independence and struggle in Metro Manila. One more important thing I set my mind into is to make sure that I don't step on anyone's shoes. Money can't buy class; I'm not yet rich, but I sure know how to empathize with people from any socioeconomic class.

Whenever I take photos of people in the streets, I  always ask permission from them and thank them for giving me the opportunity to render service to them.

(RIGHT) I also apply semantics - meanings hidden within frames. Whenever I take shots, I make it a point to convey something. To me, the mind can interpret a photo differently - to each his own.

I took a photo of a bull when I went to Rizal Park because it reminded me of the PH stock market. In addition to that, I feel bullish (hehe) I could learn so much more from established mentors in different finance-related groups of which I am a part.

I have survived the toughest financial difficulties in life and I know there are a lot more coming, but my outlook and character will always take me somewhere, evident of which is the achievement of this dream I long thought was impossible to have. Life will always give you surprises; sometimes they're pretty cool surprises, other times they're extremely mind-boggling and stressful. So, it's important to seek guidance from elders, friends, and even (in extra-rare conditions) enemies.

No man is an island; you can't live life on your own. A bull needs a matador in order to play its game. A matador sees a bull as integral to his life. 

There will be triumphs and defeats. It's up to your perspective, how you see things. Turn misfortune inside out; convert weakness as your strength. My longing for familial love became my strength to keep up with college life's pace. Financial debacles didn't hinder me from obtaining a DSLR; instead, it pushed me to strive harder.

I always believed in myself. I know I can surpass whatever stones life hurls toward me 'cause there are people out there who I can ask for support. And there's Someone who'd always catch me whenever I fall down. 

Just keep pushing forward; there will always be a way to solve a difficult problem. Anyone can be whoever you want as peg in life, or you can tread a different path and live uniquely. It's a matter of setting your eyes on the prize - on your goals, aspirations.

As Norman Vincent Peale once said, "Shoot for the moon. Even if you miss, you'll land among the stars." 

SCAM | Global InterGold (EMGoldex) and the 10 biggest scams of all time

Financial (investment) scams, that promise big returns in a few months' time, have been the topics of news agencies, forums, and social networks nowadays. But it's been widely popular by the backlash these are receiving from its victims and finance gurus.

Instead of uplifting the lives of all its members, these scams seem to give benefit to only a few, usually the ones on top.

EMGoldex, which the Securities and Exchange Commission warned the public about, has rebranded itself as Global InterGold, More OFW victims have emerged while news agencies continued its campaign to the public warning them not to invest in EMGoldex.

Looking back, what were the biggest scams of all time in the Philippines? Here's a list compiled by ABS-CBN News, gathered from financial adviser Salve Duplito.

10. Bancap scam - treasury bill scam ran by Marilyn Nite

Money taken: P900 million

9. FrankSwiss and DeutchFranks - high-yielding investment products marketed through the Internet from March to July 2007 that offered as much as 4.5 percent returns per day. The National Bureau of Investigation filed estafa charges against Eleazar Castillo, chief financial adviser of FrancSwiss.

Money taken: P1 billion

8. Swiss Mutual Fund International Scam - ran internationally for more than a decade before it hit the Philippines, offering high guaranteed returns.

Money taken: Not known

7. Royal Manchester Five Trading Corp. - currency trading program that promised a 4 percent per month guaranteed return to investors in 2008.

Money taken: P2 billion

6. Tibayan Group Investment Corp. - mutual fund scheme that guaranteed 3 to 5 percent a month for a six-month to 1 year lock-in period.

Known losses: P2 billion

5. Mateo Management Group - ran by couple Ervin and Evelyn Mateo who fooled at least 20 people for high guaranteed returns

Money taken: P4.3 billion

4. Performance Investment Products Corp. - alleged forex trading outfit which duped people who were blinded by the 10-15 percent guaranteed return being offered.

Money taken: P11 billion

3. Aman Futures Group - led by Aman Amalilio, this attracted over 100,000 families in Pagadian City in commodities trading investments which offered up to 80 percent profit in 20 days.

Money taken: P12 billion

2. Multinational Telecom Investors Corp. - duped more than 950,000 individuals in this investment scheme which offered 4 percent to 5 percent a month.

Money taken: P25 billion

1. Legacy Group - led by Celso de los Angeles, the group offered motorcycle loan and investment loan programs with guaranteed commission of up to P15,000.

Money taken: P30 billion

MONEY MATTERS: 5 Awesome Tips to Help your Parents in your Finances

Desperate times call for desperate measures. There will come a point in time where, in the middle of your juggling-of-academic-and-social-life stunt, you'll tell yourself "that's enough, I have to do something para mabawasan paghihirap magsumikap ng mga magulang ko for my education."

This came to my mind when one of my parents became unemployed which resulted in our family income plunging 55% - yes and I'm not overestimating here. It was sudden, and it was hard to adjust. I became depressed, at some point, because it was so tough I thought I might not be enrolling in the next semesters. But good thing, I did some actions in advance which helped kept us afloat, even now.

Now, would you have to wait for such tragic thing (as mine) to happen to yours? You wouldn't right?

How can a student, a teenager, or a young adult become less financially dependent of their parents? You may ask, how can I assist my parents in the middle of tuition fee increases, food price hikes, rental rate increments? What students don't know is that they can do A LOT to make life easier both for them and their parents.

Here are five (5) awesome ways I did in order to help my parents lessen the burden, while we were going through the financial black hole that was sucking us out into oblivion. And I'm definitely emphasizing saving here, hehe. 

1. Apply for scholarships. Study hard and smart.

Fact one. College-related and after-college expenses increase every year! Actually, the price for expenses will usually go up as we age! Don't forget that almost everything that has a price tag in it is becoming more expensive! Blame it on inflation. Books become more mahal. Internet shops make you their cash cow. Professors give you projects for additional credits. The list goes on.

One thing you can actually do, especially if you're such a smart *ss (or just an *ss), is to really focus and study hard! It's true there are just brighter students out there who come out of the top of the class, because their well-off parents nurtured them well. Now, here's the gist. If you think you're not that type of genius I've mentioned in the sentence prior this, it's not your fault, but it's your fault if you won't do something about it!

This will always be fact number two! Hardworking, diligent students most oftentimes level with, and in some cases outshine, bright students. I have known people who are definitely smart, but fail classes because they don't attend or fail to submit on time, or don't submit at all. Studying hard and smart is the key to getting a scholarship! 

You want a scholarship? Work hard to get it! :)

2. Save chunks of your allowances.

Admit it ('cause I do). It's hard to save, especially at this moment that iPhones and other smartphones plus other gadgets, add to that the hobbies that we happily immerse ourselves into (studying at tea shops, partying), lure us into spending more. But you have to realize, that even just by saving 50 Php everyday, you can already have money to pay for your books next month.

Here's an additional tip. We talk about chunks. Yes, you will save up, but please don't save up and then end up compromising your health because you're not eating well. You've got to be kidding me! Hilarious!

3. Get a part-time job! And save.

There are a lot of part-time jobs out there. You can become a baby-sitter, a tutor, a call center agent, or perhaps, a bartender at Starbucks! You just need to have the guts and the motivation. If you really want to help your parents, you know doing this is the right thing. And there's nothing wrong with it.

And remember, save up a lot - not too much that you won't have anything left for you to relax and enjoy. The earlier that you save, the earlier you're training yourself to spend less and be thrifty, the bigger the amount that you can chip in to take the burden of college education your parents are currently bearing.

4. Blog and earn! And save!

I started blogging when I was in my late years (nineteen, I think)). And I found out about Google ads during that same period. I have to be honest, it's hard to earn via blogging especially when you aren't that good of a writer whose articles can be easily searched on the web or whose topics are in demand - you know, professional bloggers call this SEO optimization. Mine isn't that optimized, but still I earned, in some way.

And tada! I just got my first paycheck from Google after years. :)) It's slow, but it's better to have earned (and waited for it) than never right? You have to make really good articles (via Blogger), and you have to build around you an audience that could stick with you all through out the year. It's tougher for me, 'cause I blog anonymously. I didn't want to subject my identity to the public, not because what I do is illegal (which isn't), but because I want people to know about my blog/s and not about the author behind the blog. I don't want to be known, but rather, I want my blog be known and share and influence change.

And, don't forget to save! Saving is compulsory if you really want to pay at least part of your tuition (or your daily expenses) or support yourself during the tough times.

5. Invest what you have saved!

Investing can come in a variety of ways. You can invest in a startup (or build one with your trustworthy friends!). You can invest in public companies via COL Financial. If you want to know how to invest in PH companies like Jollibee (JFC) and SM Malls (SM), visit this post. Also, here are reasons why I joined the stock market.

But where should you invest the most? What't the biggest investment? YOU. Invest big-time in yourself! Grow and learn in the best way you can! The world is just so awesome to live in, and it becomes more awesome with people who give out their best shot and invest in themselves!

See. You know, you don't have to wear the hippest brands just to be in. Or be loud about what you do - e.g. posting food trips all the time, going to the malls to buy new clothing for next month. Saving has always been, and always will be, one of the best cool things to do that teenagers and young adults sometimes fail to realize!

P.S. I made this short, given the fact that it will bore you if I post lengthy stuff. Hope this post helped some of you!

p.P.S. If you're interested in reading more life-based money stories, here are some of them:
Two financial lessons I learned from Mama and Papa when I was a kid

5 steps that may help students (actually anyone) become rich (Part 1)

5 steps that may help students (actually anyone) become rich (Part 2)

MONEY MATTERS: Two financial lessons I learned from Mama and Papa when I was a kid

If I were to be asked what two lessons on handling (cash, money) my finances I learned from my parents in the past, it would be that:

1. SAVING SAVES.

I was born to parents who had problems budgeting our monthly income before. 10 to 15 years ago, their spending habit was a bit "regularly overwhelming", enjoying the fruits of their labor after working their asse* all day long.

I was in third elementary grade then when I first observed what happens to a family when it runs out of cash - it's heartbreaking. At a young age, when the multiplication table was once one of my interests, I felt I needed to do something. Being the eldest, I knew I had to take responsibility for my brothers (and perhaps for my parents as well; it's kind of amazing you may say, but I don't know ganito lang talaga ako).

I thought what if one of my siblings gets sick? Where would they get the money? If my Papa, who contributes a bulk of the family's income, gets sick, where would we get funding for our tuition fees in school (back then, my parents knew education was key; they enrolled us in private schools)?

So, the simplest thing I could do was really to be thrifty (this word I didn't know of until I entered high school). I cut my baon (yes, elementary baon) and place what I saved behind picture frames, within the pages of the Bible (because back then, I thought the money would grow haha) and some magazines, inside jars and my alkansiya (flash forward to 5 years after, which was then stolen by our kasambahay).

There came a time that saving did save us from starving for a day! At that time, my parents' salaries (which were relatively low compared to what was then offered in Metro Manila counterparts) haven't been released yet, and we literally had nothing.

On that memorable day, my eagerness-to-save-the-day attitude hyped, and I told them not to worry 'cause I had a backup savings. I opened the back of the photo frame, and viola, my money brightened the day's mood. We were able to eat at that moment. Hence, from that day and on, saving became my happy habit. :))

There were even instances my Mama, Papa and siblings would be surprised that at just 9 or 10 years old, I was able to give them gifts on their birthdays.

At present, we're no longer having really deep financial struggles - just humps and bumps. In a few years' time, we'll be financially well-off, I hope - thanks to saving!

2. AS MUCH AS POSSIBLE, DON'T MAKE CREDIT (UTANG). 

The second thing I learned from them is not to owe money from someone or make credit; this is the reason why we don't have credit cards (except Papa when he has to purchase something asap and he has no cash with him). I'm not campaigning for a snub of credit cards; these can help too (only when you know you're capable of settling your financial obligations ON TIME).

I always made sure that I won't borrow money, if I have no money with me. Probably my shyness has helped me deal with extravagant spending hehe. 

Today, with no debt to worry, I still live below my means; living below my means doesn't mean I'm not eating well or what. It only means I make financially sound decisions when it comes to my finances. As a student, who has gone through algebra and the higher math, I should know my limits. And by knowing my limits, I can figure out ways to reach these limits, and set new ones. 

If I can't afford something right now, pretty sure that by not spending the money I have today or by not making utang, I'll be able to buy something that's way, way better in the future. :)

P.S. Hope you guys enjoyed reading this short post. If you did, please like Spotlight Philippines to get updated with what I do in life financially. :)

P.P.S. If you're interested in reading more life-based money stories, here are some of them:
5 Awesome Tips to Help your Parents in your Finances

5 steps that may help students (actually anyone) become rich (Part 1)

5 steps that may help students (actually anyone) become rich (Part 2)

MONEY TALK: 5 steps that may help students (actually anyone) become rich (Part 1)

So, last night I saw this post by a member of investment-related discussion facebook group Investing in the Philippine Stock Market - Tips and Tricks about the 5 S's to a successful, wealthy life. 

There's no guarantee that by following these you'd get rich like Manny Pacquiao (mag-boksing ka na lang hehe) or Mark Zuckerberg (learn to do programming or code!) but being a living proof of someone who's been observing and doing these 5 S's since I was in elementary, I think I can say that these 5 S's MAY help students - struggling financially or simply born with golden spoons - achieve a wealthy life in the future.

I may not entirely agree that doing these 5 's will lead you to success, as success is not wholly about money. Yes, money is important in this world, but it does not equate to success. 

Success, as I quote Jenny Garrison from the movie Fame, is:

There are some things success is not. It's not fame. It's not money or power. Success is waking up in the morning so excited about what you have to do that you literally fly out the door. It's getting to work with people you love. Success is connecting with the world and making people feel. It's finding a way to bind together people who have nothing in common but a dream. It's falling asleep at night knowing you did the best job you could. Success is joy and freedom and friendship. And success is love.

Now, back to the 5 S's of getting rich - err, richer than what you have in the past. :) It's funny because I had done these already when I was young and I am still continuing doing these up to now.

1. SAVE HARD. STUDY HARDER.

It's important that you save. Just think about this. Life is very fragile; you'll never know when something bad will happen to you or to someone close to you. 

Would you want that by the time you get admitted for dengue fever because of too many lamok in school, all your parents' savings have already been used up for hospital bills and medications? Would you want your parents to go approach their relatives and even resort to appealing to Philippine Charity Sweepstakes Office or to corrupt government officials, begging for financial support? Would you want to have to let go of someone because you can't afford the meds needed? Diba ayaw mo nun? 

Image Source: Trading Pub

Because seriously shit happens (in some place, at some time, a mother has lost her newborn child to sepsis/malnutrition because she didn't have enough money to bring her to the hospital or she didn't have enough to provide for her needs as a child-bearing woman), and this shit can happen to anyone. Diba ayaw mo ng shit?

Then why not join your parents in saving; or at least, if  they're not into saving, start from yourself? Start saving.

When I was young, a lot of health disasters have happened. My sibling was brought to the hospital for dengue; my papa had heart and respiratory problems. My mom turned out to be hypertensive. My brother had a skin disease.

These events scared the hell out of me; I was scared to lose them. I was scared that I won't see them when I become successful as a person. So, I did start saving - kahit piso-piso lang.

Starting to save is hard, lalo na maraming gadgets at lakwatsa hotspots ang uso ngayon, but mind you, these are just temptations. There will be time for gadgets (mabilis bumagsak presyo ng gadgets hehe) and lakwatsa; it's just there! In fact, it took me 7 years to finally get a  DSLR and pursue photography.

Just think, you are running out of time to save your loved ones from any bad thing that may happen. This is not about embracing the pessimistic  view of everything, but it's about doing your best to prevent what can be prevented and mitigate any untoward damages.

For now, save hard and study harder!

BUT, I'm not saying that you'd have to miss opportunities to bond with your friends. You can! Of course, it's important to socialize and meet new people, and maintain contact with them, 'cause we are social animals; we'll need someone, at some point in our lives. We need friends. So, enjoy hanging out with friends! Splurge into yummy cuisine every once in a while. Don't forget to continue saving. And of course, continue studying.

It's the best thing we can give our parents right now. Graduate, with or without flying colors, while having saved money, just in case of emergency. Siyempre, it's better din if we graduate with flying colors diba?

Teka ang haba na pala, I continued with Part 2 HERE (wala pa) hehe.

P.S. If you're interested in reading more life-based money stories, here are some of them:
Two financial lessons I learned from Mama and Papa when I was a kid
5 Awesome Tips to Help your Parents in your Finances

MONEY TALK: 5 steps that may help students (actually anyone) become rich (Part 2)

This is part 2 of my article "MONEY TALK: 5 ways that may help students (actually anyone) become rich". PART 1 (the shorter one) of the article is found HERE po.  I felt tired last night writing down my thoughts (I fell asleep ahaha, and continued when I woke up); they were rushing at lightning speeds I wasn't able to keep the pace.

So, aside from saving, ano pa nga ba ang pwede mong gawin bilang estudyante o di kaya'y nasa 20s or 30s gaya ko? Heto ang ilan pa sa mga S na pwede nating gawin para maging mas mayaman o makaahon sa hirap. Tandaan, mas okay na naghihirap ngayon kesa naman sa naghihirap pa din sa hinaharap (lalo na mas okay mga gadgets nun at mas cool ang mga lakwatsa areas hehe).

2. SETTLE YOUR DEBT (UTANG). OR DON'T MAKE UTANG (OWE SOMEONE) AT ALL!

In the world of finance, debt or utang is something, usually money or pera, that is owed or due. It means it's something that needs to be paid in time. So, in short, responsibilidad natng bayaran yun!

Hence, as early as possible, unless in case of emergencies should you owe money to someone, pay them, kasi 'pag nakakalimutan, dun talaga nagkakaproblema. Promise.

Settle your debt so that in the future, when the rich/er you meets your creditor (pinagkakautangan mo), di na mababawasan naipon mo (or mayaman ka na, you can throw  away money at his/her face, lol). Again, I'm reminding you; money is not everything. It could buy mansions, cars, jewelry, but not friends, not relatives, and not love.

As for me, I always made sure that I don't owe money from someone unless I really needed the money; I don't use credit cards because sometimes the interests when payment time's up are really cash-strapping. Sino ba pinayaman mo because of credit? Edi yung mga banks.

3. START YOUR OWN BUSINESS.

You may be young, or naive, but there's no excuse for you to begin this journey - starting your own business. Kahit gaano pa yan kaliit, basta you know how it's run. Printing business? Blogging? Mini sari-sari store? Pwede yan!! Baking? Selling old stuff  (Sulit lang?)? Repairing laptops/desktop computers? Push mo yan!

Anything that would help you earn money is better than doing nothing! Just make sure you know what you're doing and that you won't be put to danger by doing it.

I've read experiences of young people failing in their ventures or businesses; that's the reason for starting - to learn as early as you can, as fast as it  could be, and as much as you want. But, I've also heard of very successful young people, e.g. Mark Zuckerberg, who started from scratch and continued learning and committing mistakes until they mastered their craft, and where are they now? They're the biggest success stories of the decade. :D

The more money you have, the higher the possible returns! So, uulitin ko, start saving now hehe. A saving of piso a day or 365 pesos a year is better than having none at all, by December 31, right?

4. START INVESTING.

Investing has helped me managed my time wisely and do really intense research (of company stocks I wanted to own). Again, investing is never easy, but once you've learned a lot and made mistakes,

How do you start investing? Well, first you gotta have a lot of money - at least 5k PHP. Once you already have such amount, kindly message me thru spotlightphilippines@yahoo.com.ph and I'll teach you how. Or watch Pesos and Sense, before you join the stock market via COL Financial. As of this moment, you can choose your stocks on your own online or let a fund manager choose stocks for you (via mutual fund). :)

Or, or, or. You may search google, and type "how to invest in PH stock exchange". The steps are really easy. You just have to fill up some form, prepare the money, get a TIN (tax identification number) from the Bureau of Internal Revenue (BIR) office nearest you, deposit the minimum 5k to your account, and voila, you may start RESEARCHING your ideal stocks and INVEST. :)

At an early age, you can also protect your family from income loss by insuring your health so that when something bad happens to you, your dependents in the future won't have to suffer hard.

5. SHARE. GIVE BACK.

You may have all the money in the world, but what purpose does it serve if you're unable to help people or the younger ones reach their dreams right? I cannot say I'm already successful right now. I cannot say I am rich right now, because to be honest I am not; I'm still relying on my parents but at a very minimal cost. And I am continuously, with perseverance, doing the 5 simple steps to get to the path that only a few realize - the path to financial freedom.

By blogging about this post, I'm able to share my ideas and my realizations in the past. Money is important, but again, it's not all there is in this world. There's happiness, freedom, and again, love. However, the feeling is way better when you get the best of both worlds (material things and intangible memories hehe).

Apart from blogging, I also give back on my birthday by providing meals to street children. Shhh, now you know. But you don't know me, hehe. So, let's just say na may mga tao pa rin palang ganun; and mind you, maraming ganito ka kind na mga tao! Yes, you're right, faith in humanity is restored. :))

P.S. If you're interested in reading more life-based money stories, here are some of them:
Two financial lessons I learned from Mama and Papa when I was a kid
5 Awesome Tips to Help your Parents in your Finances