Milyonaryo na si Kaloy

Nagsimula lamang si Kaloy na isang pangkaraniwang mangingisda. Ang kaibhan nga lang siya’y nakapag-aral at may nalalaman na bagong sistema ng pangingisda na nagdudulot ng mas maraming huli. Sa lalawigan nila, si Kaloy lamang ang nakakaalam ng bagong sistema. Bagamat parating mas malaki ang huli ni Kaloy kumpara sa iba, hindi pa rin siya kontento. Gusto niyang yumaman, maging milyonaryo.

Isang araw naisip ni Kaloy ang isang raket kung paano siya yayaman. Naisip niyang magtayo ng isang samahan. Ang gagawin niya, ituturo niya ang bagong sistema ng pangingisda sa mga sasapi ng kanyang samahan. Pero mag-chacharge siya ng membership at training fees. At karagdagan doon may kontrata na kakaltasan niya ng ilang porsiento ang anumang kikitain ng mga na-train niya.

At yun nga ang kanyang ginawa. Nag-train siya ng tatlong tao, si Kulas, si Pepe, at si Toti. Naging hit ang kanilang samahan at lumaki ang kita nilang lahat. In fact, si Kaloy, hindi na kinailangan mangisda. Dun lamang sa mga training fees at porsiento ng kita nina Kulas, Pepe at Toti, buhay na siya. Kalaunan, napansin ito ni Kulas. So lumapit siya kay Kaloy at nagsabing: “Bossing ayaw ko na rin mangisda. Gusto ko katulad mo tambay-tambay na lang.”

“O sige”, sabi ni Kaloy. “Ganito ang gawin ninyo. Bawat isa sa inyo, mag-recruit ng tatlong tao na pwedeng mangisda para sa inyo. Bawat ma-recruit ninyo dapat magbayad din ng membership fee sa ating samahan at bibigyan din natin ng training sa bagong sistema ng pangingisda. Tapos kung ano man ang kitain ng inyong mga recruits, may porsiento kayo, at siempre meron din akong hati sa porsientong tatanggapin ninyo”.

Brilliant idea! Sa ganitong paraan, kikita rin sina Kulas, Pepe at Toti kahit hindi mismo sila ang nangingisda. Bawat isa sa kanila’y nakapag-recruit ng tigatlong bagong members. Nang maging productive yung mga recruits nila, pati sila sitting pretty na rin at di na nangingisda. Meanwhile, si Kaloy, lalong yumayaman. Nagpagawa pa ng bagong mansion. Napansin na naman ito ni Kulas at kinausap uli si Kaloy. “Bossing gusto ko rin magpagawa ng sarili kong mansion at yumaman na katulad mo”.

“O sige”, sabi ni Kaloy. “Ganito ang gawin natin. From now on every member must recruit 3 more members. And for everything a member earns, the person senior to them gets a small percentage. In other words, everyone more senior gets a small percentage, including me. And like everyone before, all new members pay a membership fee and receive training.”

And so started a business model known as Pyramid Scheme. Some companies use fancier terms like Multi-Level-Marketing or Networking, but in essence the method is the same. I.e. Become rich by recruiting more people and let the people below you do the work for you. In fairness, the scheme made a few millionaires, like Kaloy, Kulas, Pepe and Toti. But only a few. Most of the members have been promised that they too will become rich. Many years past, they are still waiting.

Fixed versus Variable, or Split

Isa na namang nagbabagang tip. Hindi, hindi po tip sa karera. Tip ito kung paano kayo makaka-menos sa pagbayad ng interest rates sa bangko sa inyong mga mortgages. Banks won’t tell you about this, unless you ask them, because it is not to their advantage.

When you borrow for a home loan, the bank will ask you what interest rate you prefer –variable rate or fixed rate. Kapag variable ibig sabihin paiba-iba depende sa prevailing rates. Sa kakalukuyan, 9.55% per annum ang prevailing variable rate. Bukas makalawa maari itong magtaas o magbaba depende sa market conditions. Kaya maaaring paiba-iba din ang dapat mong bayaran monthly. Mahirap mag-budget. Ang adbantahe naman pwede kang mag-advance payment anytime without penalties. Normally, variable rate is good if you have no intention of keeping the property longer than 6 months, because you can pay off the bank anytime with no penalty.

Most people, however, choose fixed rate. Fixed rate dahil nakapako yung rate within a given period. Sa kasalukuyan, eto ang fixed rates ng karamihang bangko.

1. Fixed for 6 mos 8.50%
2. Fixed for 1 year 8.40%
3. Fixed for 2 years 8.10%
4. Fixed for 5 years 7.75%

Ang advantage ng fixed rate, una, usually mas mababa siya sa variable rate. Pangalawa, fixed din ang payments mo, kaya madaling mag-budget. Pangatlo, may protection ka kung sakaling magtaasan ang bank rates, dahil di tataas ang amortizations mo. Flipside nito, kung magbagsakan naman ang mga rates, lugi ka, kasi di bababa ang payments mo. Fixed nga eh. Isa pang disadvantage, di ka pwedeng mag-advance payment ng lump sums without incurring a penalty from the bank.

Halimbawa, ang utang mo $200k. Karamihan sa mga bangko papipiliin ka lang ng isang rate. Looking at the above rates, 5 years ang lowest. Ok sana ito pero disadvantage naman nakatali ka sa 5 years contract. Kung sakaling bumagsak ang mga interest rates bago matapos ang 5 years, hindi ka makaka-avail ng bagong rates. Isa pa di ka basta makakabayad ng lump sum within the 5 year period. Kung pipiliin mo naman yung 1 or 2 years fixed, it means you'll be paying (unnecessarily) a higher interest rate.

The SOLUTION: Something your banks will NOT tell you about, is to SPLIT your loan into different rates. Halimbawa:

• $100k fixed for 5 years
• $80k fixed for 1 year
• $20k variable rate
  

What are the advantages of splitting?

Mainly, flexibility. You can take advantage of the lowest rate which happens to be the one for the 5 years fixed and at the same time by putting some money into variable or fixed for lesser number of years, you have the option of paying lump sums in advance and taking advantage of any lowering of interest rates. In the above split, maaring iniisip mo na kaya mong bayaran soon yung 20k. Eg. You expect to sell some properties overseas. Iniisip mo rin na after 1 year baka bumaaba ang interest rates. Therefore after 1 year kapag expired na yung contract for the $80k you can renegotiate for a lower interest rate.

Splitting your loan into different rates allows you to take advantage of the best possible combination of rates and gives you more flexibility to handle your repayments. Malinaw ba? Okidokes, split na muna ako.

Kwentong Pinoy sa Abroad

Si Esmi kausap sa phone yung salesman ng isang meat shop. Nagagalit kasi ayaw nang tumanggap ng cheque yung shop.

Esmi (galit): “HOW COME YOU WON’T ACCEPT MY CHEQUE? YOU NEVER HAD PROBLEMS WITH MY CHEQUES BEFORE, DID YOU?”

Salesman: “I’m sorry but that’s our new policy. We only accept cash or credit card payments now. Would you still want to go ahead with your order miss?”

Esmi (galit na galit): “AH FORGET ABOUT YOUR HOTDOGS. I’LL LOOK FOR HOTDOGS SOMEWHERE ELSE”, sabay hang-up ng phone.

Ako: “wisheart, di ba "sausages" ang tawag nila dito, hindi "hotdogs".

Esmi: “ay oo nga ano? Mali! Hihihihi”

Hay naku, si Esmi talaga, lakas pa man din sumigaw sa phone. Wrong use of words naman. Hehehe.

*****************************************************

Kausap ko sa phone ang isang Kiwi. Tinatanong ng Kiwi ang direction papunta sa bahay namin.

Ako: “…turn left to Mt.Wellington Highway. Then when you reach the second stop light, turn left again.”

Kiwi: “Sorry. What light?”

Ako: “The stop lights at the corner of Penrose Road”

Kiwi: “Sorry, still don’t know what you mean by stop light.”

Ako: “STOP LIGHTS! ...Grrr! You know red for stop, green for go, yellow for go faster. Hehehe”

Kiwi: “Ahh ya mean traffic lights, mate?”

Ako: “Yiiis!” (namputsa naman tong mga Kiwis o. ”stop light” lang di alam. Hmmp!)

Esmi: “O kitam, di ikaw rin pala nagkakamali!”

Ang mga kwentong ito ay hindi kathang-isip lamang. Anumang pagkakapareho sa mga tunay na pangyayari ay sinasadya ng may akda.

It pays to pay off your mortgage early

Hi KU,

Kabibili lang namin ng bahay. Ano ba ang pwede namin gawin para mabayaran namin kaagad ang utang namin sa bangko? Ayaw naman namin umabot ng 60 at nagbabayad pa rin ng utang. Masarap di ba ang mortgage-free na sa ganong idad?

Sinsirli yors,
Ano ni Mouse

---

Mr. Ano ni Mouse,

Madali lang ang problema mo. Holdapin mo yung bangko. Corneeh! Hindi, seriously ganito yon, let me give you a short lesson about mortgage loans. Buti na lang present ako nung itinuro ito sa class. Don’t worry, madali lang.

For example, you borrowed $100k from a bank at 8% annual interest for a term of 20 years. Unang tanong, how much money would you have paid at the end of 20 years? Para madali ang computation, assume na lang natin na once a year ka kung magbayad. The answer to the above question and the calculations are shown in the table below.

Year 0, 100k ang utang mo. End of year 1, 8000 (8% ng principal) ang interest. Nagbayad ka ng 10185. Kaya end of year 1, 97815 (= 100000 + 8000 – 10185) na lang utang mo. So on and so forth until end of 20 years, wala ka ng utang.

If you continue paying $10185 yearly (except for the last year which is $10 more), you would have paid your loan in 20 years. If you add up all the payments, the total amount you would have paid will be (drum roll please) $203710. Which is about twice the amount of the loan! In other words kumita ang bangko ng $103k from you.

Going back to your question, ano ang pwede mong gawin para mabayaran kaagad ang utang mo? The answer is to minimize the interest payments. You can do this by paying a little bit more yearly. How much? It doesn’t matter how much as long as it is more than the minimum repayment. The table below shows an example where you pay $14903 yearly or around 50% more than the minimum repayment of $10185.

Adding up all the yearly payments, the total repayments will be (drum roll again) $149029, or a savings of $54681 compared to the previous $203710. Not only did you save $54k, you also paid off your loan in only half the term, sampung taon lang. Ang maganda pa, after the 10^th year, you don't have to pay $14903 anymore. It's like having extra cash na pwede mong gastusin sa ibang bagay. Yheey, bakasyon na!

Ako naman ang magtatanong sa yo ngayon Mr. Ano Ni Mouse.

1. How much should your repayments be if you want to pay off the loan in only 5 years at magkano ang mase-save mo?
2. If you pay 8000 yearly, how many years will it take for you to pay off your loan?

O, ayan ang homework mo. Tanong ka nang tanong eh.

An "Elitist" List of Schools

NZ Immigration uses a points system to assess an applicant's suitability to migrate to NZ. The system awards points to a number of factors. One of which is an applicant's college education. For example, if you have a doctorate or masters degree you get 55 points. A bachelor’s degree gives you 50 points.

However, before you can claim points, the school where you graduated from must be in the list of recognized schools by NZ Immigration. The NZ Immigration website maintains a list of recognized schools in the Philippines.

Here’s the current list they have (as of Aug 2006):

• Ateneo de Manila University, Manila (1959)
• De La Salle University, Manila (1911)
• University of Philippines Diliman (incl. attached regional campuses (colleges at Baguio City, Cebu City, Clark Air Base & Tacloban City)) (1908)
• University of Philippines Los Banos
• University of Philippines Manila
• University of Santo Tomas, Manila

• Assumption College, Manila
• Ateneo de Davao University, Davao City
• Ateneo de Naga College, Naga City
• Ateneo de Zamboanga College, Zamboanga City
• Cebu Central Colleges, Cebu City (see University of Cebu)
• Central Luzon State University, Neuva Ecija
• Central Philippines University, Iloilo City
• College of the Holy Spirit of Manila, Manila
• Divine Word University of Tacloban, Tacloban City
• Far Eastern University, Manila
• Mapua Institute of Technology, Manila
• Maryknoll College Foundation Inc (see Miriam College)
• Mindanao State University, Marawi City (& General Santos City)
• Miriam College, Quezon City (formerly Maryknoll College Foundation Inc)
• Pamanasan ng Lungsod ng Manila, (University of the City of Manila)
• Pamantasan ng Xavier (Xavier University), Cagayan De Oro
• Philippines School of Business Administration
• Phlippines Normal College, Manila
• Saint Louis University, Baguio City
• Saint Paul College of Manila, Manila
• Saint Scholastica's College, Manila
• Saint Theresa's College, Cebu City
• San Beda College, Manila
• Silliman University, Dumaguete City, Negros Oriental
• University of Cebu (formerly Cebu Central Colleges)
• University of the City of Manila, (Pamanasan ng Lungsod ng Manila)
• University of the East, Manila
• University of the Philippines in the Visayas (Iloilo City)
• University of San Agustin, Iloilo City
• University of San Carlos, Cebu City
• University of San Jose-Recoletos, Cebu City
• Visayas State College of Agriculture, Leyte
• Xavier University (Pamantasan ng Xavier), Cagayan De Oro

If your school is not in the list, you can still claim points but in a more difficult way. You have to submit your transcript as well as a prospectus from the school to a NZ agency called NZQA who will then make an assessment and final decision as to how many points you can get. More often than not, it is zero points (I hope people who've gone through NZQA can correct me if I'm wrong). Which means that if your school is not in the list, it's practically sorry for you.

Whatever the case may be, in my opinion, having a list of recognized schools is kinda “elitist”, un-PC (politically correct) in an indirect way. For who can afford to go to the schools listed above? It’s mostly the well-to-do, middle to upper-class I’ld say. Therefore having such a list is tantamount to excluding other Filipinos who graduated from lesser known schools but who may otherwise be just as intelligent, if not more intelligent.

I believe that NZ Immigration can improve their selection process by NOT only limiting applicants from a recognized set of schools. They could do so by granting suitable points to any board-exam passer, or anyone who has passed tests/evaluations given by the national government or reputable private institutions, regardless of the school they graduated from.

For example, the case of computer programmers. The best programmers do not necessarily come from Ateneo, UP, La Salle and the like. In fact, one does not even need a degree to be a good programmer. Mr Gates, was a university drop out, wasn't he?

So instead of recognizing only computer science grads from selected schools, NZ Immigration can give out points also to those who passed certification exams given by Microsoft, Oracle, SAP, Sybase, or a national body such as the National Computer Center (NCC).

I know it’s not a perfect solution because some professions don’t have regulatory board exams. But at least it widens the playing field a bit by providing a window of opportunity for the equally bright but underpriviledged who also have dreams of going to NZ.

Ang kuro-kurong ito ay hatid sa inyo ng "Boy Bawang Kornik" at ng "Jaja's Spicy Longganiza - It's so good, you can taste it all day!"

4/5 + 1/5 - 1 is not 0

Isa na naman formula ito na pagkaka-kwartahan. Hehe. Unlike the previous 1+1-1 formula, mas madali pagkakitaan ng pera itong scheme na ito. Yun kasing 1+1-1 kailangan mo pang pahinugin ang investment mo bago ka kumita. Dito sa scheme na ito, maiksing panahon lang pwede ka nang kumita and requires a smaller investment too.

4/5+ 1/5 - 1 stands for: Buy a “do-up” house (kaya 4/5 lang), renovate it (add 1/5) , then Sell (-1). You don’t have to buy a really run-down house. Find a house that is structurally sound with no major defects or deficient only in minor things like cleanliness and aesthetics. Yun bang konting pahid lang ng paint at palit lang ng mga carpets magmu-mukhang bago na. O kaya mabaho lang siya dahil kulang sa linis. Sabi nga ng iba, the more smelly the house, the better. Dahil alisin mo lang ang smell, pera na. What others see as a neglected house, can be a potential goldmine!

If you are handy in fixing things yourself, got a good eye for redecorating, and some free time, this scheme is perfect for you. Make the house tidy and appealing both inside and out. Tidy up the lawn and driveway. Put plants, flowers in strategic locations. They help camouflage imperfections. Hang framed paintings and put basic furnitures para mukhang very liveable. Yun bang unang kita pa lang ng would be buyers, feeling nila they want to move in na.

After just a few days of renovation and redecorating, you should be ready to sell the house. A $300k house you bought initially, plus a renovation cost of even below $10k, should easily sell for $350k plus. Between $30k-$50k return is attainable.

Imagine, magawa mo lang ito dalawa o tatlong beses sa isang taon … you won’t need to work the rest of the year! No wonder lots of Kiwis keep moving from house to house. Buy, renovate, sell. Buy, renovate, sell....

A word of caution: If you do this as your main source of income, you will have to declare the profit as income and therefore need to pay tax.

Sweet at 16

(Fidez, at 12 yrs old)

Babatiin ko ng maligayang kaarawan ang aming one and only dawter, unica hija sa araw na ito. Happy Birthday! Sweet 16 siya sa araw na ito. The past 15 years were very memorable. Ang bilis talaga ng panahon. Parang kailan lang...

Nung ilabas ka ni Mama, two weeks kang premature. Kaya napakaliit mo’t napakagaan. Kalbo ka pa noon. Mahigit isang taon ka na nga, manipis pa rin buhok mo. Kaya naman parati kang sinusuotan ng head band ni Mama noon.

Nung baby ka paborito mo iyong kinikiliti at nilalandi ka. Tawag mo doon “landian”. Ang problema nung may nagtanong sa iyo kung ano ang ginagawa ni mommy at daddy, ang palagi mong sagot “landian”.

Nung pumasok ka sa pre-school, mag-dadalawang taon ka pa lang. Saling-pusa ka pa lang sa school, pero paborito mo nang laro ang mag-titser-titseran. Gusto mo ikaw parati ang titser. At nung pre-school graduation nabigyan ka ng award na “Most Delightful”.

Nung pagkatapos mong napanood yung pelikulang “Home Alone” nagiiyak ka, imbes na magtatawa ka. At nung tanungin ko kung bakit, sabi mo “awa ko sa boy kasi iwan siya mommy at daddy niya”.

Nung ilang beses ka namin isinugod sa emergency clinic. Una nung hating-gabing nilagnat ka at tiningnan ni Mama ang iyong temperature. Pagbasa niya sa thermometer, nasa 100 ang iyong temperature. Eh ang alam namin kapag 40 mataas na. Kaya naman nag-panic kami at nilusob ka sa emergency. Yon pala Fahrenheit yung thermometer, hindi centigrade. (100F = 37.8C)

Nung mahulog ka sa trampoline at mabali at sinemento ang iyong kaliwang kamay. Tapos tumalon ka naman sa pader at paa naman ang mabalian. Minsan kumakain ka lang ng cereals at napalaki yata ang buka ng bibig mo, lock-jaw naman. Pagkatapos minsan mag-swimming, pinasukan ng tubig ang isa mong tenga. Kung ibang bata yon, isang araw lang wala na yon. Pero bakit ba naman sa yo, 2 weeks na bingi ka pa rin? Naglalaro ka ng cricket at ipapasa lang ang bola, na-dislocate naman ang isa mong balikat.

Joskopo naman anak, ba’t ba napakahilig sa iyo ng disaster? Kinakabahan tuloy ako kapag tinuturuan kitang mag-drive.

Kahit maraming disaster, marami rin naman kaming kinatutuwa at kinagigiliwan sa iyo. Siempre ang pagiging consistent na mataas na mga grado sa school. Kahit mahal ang bayad sa matrikula, alam namin na sulit naman.

Lalo na nung manalo ka ng $100 na award sa regional science fair dun sa science project mo na pinagtulungan nating gawin. Sinundan pa nang magkasunod na taon na first prize sa speech contest sa school niyo. Mana ka talaga, kay Mama…Madaldal.

Sana maging masaya ka sa araw na ito at sa mga darating pang araw. At kapag ika’y tumanda pa nang ilang taon at tuluyan nang mawalay sa amin, at kami'y matatanda na at puti na ang aming mga buhok, nawa’y huwag mo kaming itapon sa resthome iyo ring balik-balikan ang mga magandang alaala ng ating pagsasama... ikaw, ako at si mama.