OFWMoney sept2007

8/3/2019 OFWMoney sept2007

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2 September 2007 I OFW Guardian YOUR MONEY

Peso-Dollar Rate

OPEN45.730

HIGH45.770

LOW45.550

VOLUME$667.5 M

September 20, 2007 Closing

45.570Source: BSP

PesoEquivalent

38.7803123.060845.820864.87045.95630.39940.049912.369430.741639.26611.401112.632193.39546.389

Uni tDollarDinar

DollarEuroDollarYenWonRial

DollarFranc

Nt DollarDirhamPoundDollar

Count ry

AustraliaBahrainCanadaEUHongkongJapanKoreaSaudi ArabiaSingaporeSwitzerlandTaiwanUAEUKUnited States

Equivalentof 1 US$

0.83592.6528

0.98771.39840.12830.00860.00100.26660.66260.84640.03020.27232.01331.0000

Equivalentof 1 Euro

0.59781.89700.70631.00000.09180.00610.00070.19060.47380.60530.02150.19471.43970.7151

CURRENCIES

Save Your Money

Spend Wisely

MONEY BASICS

P.O. BOX 13840, Ortigas Center Post Office1605 Pasig City

Editorial BoardEDGARDO G. LACSON

Chairman

JOSE RAMON ALBERTMANUEL AYALA

LEONARDA CAMACHOFERDINAND DIAZ

Fr. ARNOLD ERAMIZEMMANUEL MERCADO

DANTE TIGA, JR.

JESUS B. VARELAPublisher

JOHANN FREDERICK CABBABManaging Editor

ARTHUR M. CERDEADesign Director

DONNA INOSANTO-PAHIGNALOGERALD DEL VILLARPublishing Assistants

VLADIMIR JONES IIIROHN ROMULOContributors

SUIEE SUAREZContributing Photographer

MALOU TAYAGANN N. TAMONTEMarketing Services

Business

ISKO CATIBAYANMarketing Director

MARIANNE MIRANDAAdministration

FREDERICK CRUZCredit & Collection

REUBEN RAVAGOTechnology Advisor

INFORM, INSPIRE, INVOLVE

www.o fwguard ian .comemail: [email protected] Why You Need a Personal Budget

n todays world there are very few

people who take the time to create apersonal budget. A good budget

takes into consideration: 1) the amount ofincome being received, 2) how much debtyou need to pay, and 3) all necessary majorexpenses (utilities, insurance, an emer-gency fund, etc.).

A personal budget is important for threereasons:1. A budget limits impulse purchases. Itis worth pointing out that the number ofworldwide personal bankruptcies hasreached an all time high. People havereached a point in our society where theybuy on impulse with no thoughts on theconsequences. One of the best tools tohelp an individual accomplish thisbehavior is the personal budget. Expenseson food, utilities, and even recreationalexpenses should be monitored. Having abudget for necessary expenses and stickingto it reduces the possibility that you wouldspend a lot of money on something youdont need.

2. It tracks where your money goes.Many people have no idea exactly whereor how they spend a good portion of their

money. Many times it is difficult to

remember how exactly you spent themoney, and often times this money iswasted on frivolous purchases. A budgetwill help prevent this from happening bymaking a person accountable for themoney that they spend.

3. It tells you how much you haveleftover to spend. Another great benefitis that a budget portrays an accurate ideaof how much an individual can actuallyafford to pay for various consumer items.

Whether its a house, a car, or a new TV, aperson will be able to determine whetheror not a certain purchase will fit withintheir monetary constraints. This acts as asafeguard against getting in over yourhead financially.

It is important to realize that simplycreating a budget is not enough. This inand of itself will do a person absolutely nogood if he does not discipline himself tostick to it. However, the long termbenefits of financial freedom, debt freeliving, and a comfortable retirement far

outweigh any potential difficulty.

For more Money Basics, visitwww.ofwguardian.com.

I

Philippine AirlinesCommission on Filipinos Overseas

Department of Foreign Affairs AWARE Foundation

Overseas Workers Welfare Administration

Distribution Partners TheOFWGuardian

is a FREE monthly newsmagazine serving the overseasFilipino worker. Our mantra is to inform, inspire, and involve each OFWto

become an integral part in nation building. Feel free to email us with your

comments, questions, and inquiries at [email protected]. You can also

write to us at P.O. BOX 13840, Ortigas Center Post Office, 1605 Pasig City.

As of September 20, 2007 Source: BSP
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3September 2007 I OFW Guardian

PagIBIG
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4 September 2007 I OFW Guardian COVER STORY

oney is a source of power and the ability to spend itmakes a person feel good. The good feelingsbrought about by spending money, however, maybecome an addiction. Impulse buying is fueled by

the uncontrollable urge to spend money, most often onunnecessary items. It can develop into a compulsivebehavior where the act of spending money becomes thereward for the spender regardless of whether they can

afford the purchases. In such a case, the material itemsbought on impulse are more a product of the desire tospend, and usually are not as important to the spender.Believe it or not, many stores count on impulsivespenders and actually arrange their products accordingly.The fact that stores encourage impulse buying makes iteven important to discipline ones spending habits. Impulsebuying can become a serious addiction, and can land aperson in financial trouble. Recognizing tendencies to buy onimpulse can help a person control the urges before theybecome serious.

Thinking about your purchase, therefore, can help youdifferentiate between a bargain you should not pass up versus

a useless purchase. Before buying anything, it makes sense toask yourself the following questions:

1. Why am I buying this? Reflect on your own thoughts.What motivates you into buying this item? Is there a realneed for the product or is an advertising slogan going throughyour mind? Is the purchase going to be useful to you in someway? Are you buying it because it makes you feel better?

2. Do I need to buy this today?Except for food and gaspurchases, asking yourself this question is really helpful. If youdont need it right away, theres a possibility that you dontneed it at all. If you still believe you need it, however,purchase it only when you have enough cash to pay for it.

3. Is this in the budget? Every successful business has abudget. Think of yourself as a business that is trying to makemore money than it spends. This means you have to plan.Youll have to make a shopping l ist of things you need, andstick to it. If you have two similar items, compare them, and

St ret c hing Your Budget :

5Tips to Make your MoneyGo a Long Way

decide which oneis a more worthwhilepurchase. This can reducecosts further.

4. Will there be a long term benefit orsimply a short term moment ofhappiness? A business buys an itembecause it helps the business to prosperover a period of time. You should see a long term benefit fromthe purchase for you and your family. If there is no benefit,then this is really a purchase you could delay or evencompletely do without.

5. What are the advantages and disadvantages of buyingthis item? Think about the good things the item willproduce in your life. Then think of the less pleasant sideeffec ts. A car, for example, enables you to move aroundmore efficiently but would result in additional expenses (eg.parking, gas, repairs, insurance, etc.). Consider the benefitsand disadvantages from both a short term and long termperspective. Really think about these effects and decide ifthe item is in your best interests.

M

inancial planning is the process of manag-ing ones resources to achieve long-termfinancial independence. The failure to

develop a sound personal financial plan is duemore to a lack of effort and discipline rather than a

lack of resources. If you have a regular income, you

should be able to save and achieve financial security byfollowing OFW Guardians four golden rules.

1. Build a Strong FoundationReview your personal spending and money managementhabits. You should recognize that decisions made today(from buying an expensive cell phone or making sure topay off your credit card debt) affects your personalfinances over the long-term. Helpful tips include: Pay off high interest debt, such as credit card debt.High interest debt is a useless drain on financialresources. Check if your necessary expenses are reallynecessary. How much insurance coverage do you haveas opposed to how much do you really need? When wasthe last time you checked your utility and phone bills? Isit possible to find ways to lower these? Lessen consumption in favor of more investment.How often do you go out to eat at expensive restaurants?Would your lifestyle change if you save just a little bitmore and consume a little bit less?

Remember that saving and investing should becomepart of daily life. Develop a money regimen similar to anexercise regimen. Try to automatically dedicate anamount out of your monthly paycheck for your savings.Remember that the more you save, the more wealth youcreate.

2. Implement Winning StrategiesAn individuals investing strategy should be determinedby his income level, risk tolerance and personal needs.While investing styles could vary, there are time provenstrategies that are good guides to every individualsfinancial plan.

Avoid collectibles. Jewelry, art, antiques and othercollectibles (whether they be stamps or memorabilia) arenot proper investments. These have very little intrinsicvalue since their price is determined purely by howmuch other people are willing to pay for them. Do not put all your eggs in one basket. Invest indifferent asset classes (see box story). Diversificationreduces your risk without substantially lowering yourreturns. Avoid emotional investing. Do your research. Baseyour investment decisions on information rather thanemotion. Invest rather than speculate. Dont fall for fadinvestments or those relying heavily on marketing andadvertising gimmicks.

3. Have Reasonable ExpectationsIn life, nothing is certain. Hence, no investment is risk-free. Anyone who tells you otherwise is either lying orstupid. Having reasonable expectations prevents youfrom taking sizeable risks with your money or buying intoinvestment fads, scams, and other disreputable invest-ments that claim extraordinary returns.

4. Take a long-term view.Life is a marathon and not a sprint. It is important for

individuals to take a long term view with regards tosaving and investing. When it comes to money matters,remember that slow and steady always wins the race.Note that: You should start saving and investing early in life. Bydoing so, you could achieve your financial objectiveswithout taking on substantial risks. Develop a sound,steady investment strategy consistent with your personalrisk profile and stick to it over the long-term. Monitor your investments regularly. Review yourportfolio especially after major events in your life. Asyour needs change over time, your portfolio shouldchange along with it. You can afford to take more risks

when you are single, for example, as opposed to whenyou are married with children.

Financial SecuritFinancial SecuritFinancial SecuritFinancial SecuritFinancial Securityyyyy

F

The OFW GuardiansFourGoldenRules for Financial Security:

Financial SecuritFinancial SecuritFinancial SecuritFinancial SecuritFinancial Securityyyyy

Tips to Make your MoneyGo a Long Way

5


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COVER STORY September 2007 IOFW Guardian 5

Make a ListThe list you draw up will help keep you focused. Shoppingwith a list will reduce your impulse buying and will keep

you to just your needs.

Choose the Right StoreFor basic grocery needs, many grocery stores now offerexcellent product and price selection. Some even havefrequent shoppers programs. However, for bulk buying, youmay want to purchase from warehouse clubs or superstores.Non-perishable items are often at unbeatable prices inthese types of stores.

Shopping at the Right Time Saves MoneyIts not frugal to shop whenever you just feel like it. Plan asmany of your purchases as you can. The frugal rule is to

look far enough ahead to beat the rush, or far enoughbehind to catch the things the retailers need to get rid of.Pay attention to the weather, too.

Eat First!Stores know the power of the enticing smell of freshlycooked food. Having a full stomach before you shopmakes sure that you dont spend extra on food.

Take Your TimeGive yourself enough time to shop. This will allow you tocompare items and prevent you from just grabbing the first

item that you see.

Check Labels and CompareTake a moment to read those labels and compare similaritems. Also, be certain to check expiration and use bydates for the freshest products.

Buy in QuantityCheck the per-unit or per-volume pricing on store shelveswhen comparing items. Buying things on sale or in bulkwill help reduce your overall costs.

Store Brands - Try Them

Do not be afraid to experiment with buying store brands. If youfind that the product meets your standards, you can save a lot.

Beware of Marketing StrategiesAvoid marketing ploys designed to draw your attention toa particular product. Knowing some of the tricks of thetrade will ultimately save you money. Beware of end-of-the-aisle dump bins, island displays,recipe related itemplacement, andmiddle-shelf items. This is typicallywhere higher priced and impulse products are placed.

Watch the ScannerBe alert! Sometimes items have been tagged with the

wrong price. Sometimes items are erroneously countedtwice.

ow do you cut down on your grocery bill? It isnt ashard as you think it is. Try these simple shopping tips

from the OFW Guardian.

SimpleSimpleShopping Tips

1. Create a budget and stick to it.The monthly budget is the cornerstone of every financialplan. A comprehensive budget gives you an idea of whereyour money is going. Without it, huge chunks of moneymay disappear. Note that:

No matter how you do it, budgeting is the first real steptowards taking control of your finances. Youll find outwhere your money is going and you can identify ways totrim your spending without much suffering.

Your goal should be to spend less than you earn so thatyou can save money. Many people think they dont makeenough money to begin and maintain a budget. However,when these individuals consider the amount of money

they may earn over their working lifetime, they wouldappreciate the value of learning to budget wisely on amonthly basis. This is especially true since small amountsof money can be turned into huge sums if one investswisely.

It is important to be thorough when drawing up abudget. Keep a monthly record of your expenses. Only byrecording when and what you bought and how you paidfor it will you find out how and where you spend yourmoney. You would then be able to identify possible sourcesof savings.

2. Watch your cash.Aside from setting-up a budget, individuals should alsofind ways to manage their cash in a smart way. Weve puttogether some guidelines that should prove helpful.

Open a checking account. A checking account willhelp you track your expenses. Moreover, balance yourcheckbook after each transaction. It will help stick to yourbudget and avoid overdraft fees.

Dont go overboard at the ATM. ATMs can be yourfast track to financial problems because its so easy towithdraw money. In addition, it makes sense to includeand balance all yourATM withdrawals in your checkbookregister.

Pay cash for items. Do not use your credit card to payfor a toothbrush you will be financing for several years.Also, remove the temptation of making impulse purchasesby carrying less cash and leaving the credit card orcheckbook at home. Plan your cash withdrawals. You canavoid multiple ATM fees by withdrawing what you needdirectly from your bank. You can also switch to a bankthat will not charge you a fee.

Check your bank statement to determine the adminis-trative fees your bank is charging. Change financialinstitutions if the fees are too much. There may be banksand other financial institutions that have fewer fees.

3. Have an emergency fund.Creating a family emergency fund is a vital part of aninvestment program. An emergency fund can providemuch needed money in a family crisis. Many financialprofessionals indicate a family should stash away at leastsix months of income into an emergency fund. However,three to four months of income is more realistic anddoable. One of the best ways to calculate the appropriate

size of an emergency fund is to review your budget. Thiswill indicate how much liquid capital you may need to

Shopping TipsH

Basic Money Management Strategiessupplement your lifestyle in time of need. If you currentlydont have an emergency fund in place, the simplest wayto get one started is add the heading of Emergency Fundto your budget. This new account should be funded on amonthly basis. Once you have three months of income inthis account, your emergency fund is in place.

4. Consolidate your household accounts.From a financial point of view, it makes sense for familymembers to consolidate their bank and investmentaccounts. This is especially true if the individual accountsdont amount to much separately. There are severalreasons for this:

Firstly, it is easier to manage one big account than

several small accounts. Just the paperwork alone would bedifficult to manage if you keep several accounts. Consoli-dating accounts save time and effort.

Consolidating accounts can also save you money.Banks and investment firms generally offer better returns(or lower fees) to investors who are able to place largersums of money.

Last but not least, consolidated accounts allow you tohave more options as an investor. This, in turn, providesinvestors with a higher quality of asset diversification.Diversification allows for the spreading out of risk while

also limiting the possibility that investment objectiveswould be duplicated.


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6 September 2007 I OFW Guardian ENTERTAINMENT

by Rohn Romulo

JerichoRosales

OFW ALERT

alos mag-iisang taon ding nawala sa primetime siJericho Rosales, na nakilala dahil sa kahusayan niyabilang aktor.At matapos nga ng kanyang pagla-lie low sa pagda-

drama, at asikasuhin ang pagiging singer, heto at muli siyangnagbalik sa Pangarap na Bituin ng ABS-CBN 2.

Before ako nag-break sa showbiz, sabi ko rest muna

talaga. Wala akong idea kung gaano katagal ang ten monthsto one year.

Noong dumating na ang ten months, after promotingmyself as singer sa pamamagitan ng album kasama ng bandako na Jeans, biglang may offer na soap, ito ngang Pangarapna Bituin na napapanoood na ngayon.

E, namumurublema ako dati dahil sa pagmamahal ko samusic at ayaw kong bitawan. Ang problema ko kasi pag nag-soap ako na three times a week, technically, ubos na angaraw ko, so mawawalan ng time sa banda.

Pero sabi nila na twice a week lang ang taping, so I haveweek ends. May isa pang good news, kasi its about singing at

kasama ko pa ang banda.Kaya okey na okey, parang naka-three points ako, kayatinanggap namin ang project na ito, na-comeback ko saprimetime, mahabang paniwala ng mahusay na aktor.At dahil sa pagkawala niya ng ilang buwan, naramdaman baniya na bumaba ang kanyang popularity?

Well, expected ko naman yun, sabi niya.Meron naman akong mga desisyon na kayang-kaya

kong gawin. After a while noong medyo na-enjoy ko angsarili ko sa music industry, na-realize ko na hindi rin pala

ganun kadali na i-penetrate, para ding showbiz.Pero okey naman, dahil tumayo naman kami kahit na

gaano kahirap. At ngayon nga, dumating itong offer atkasama ko nga sila, kaya mas okey.

No regrets talaga sa ginawa kong desisyon, dahil maraminaman nadagdag sa akin na sa tingin ko kailangan ko ringma-achieve.

Kasi that time, ibinigay ko talaga kay Lord yungdesisyon ko na magpahinga, whatever happened. Tapos,timing talaga ang pagdating ng soap na ito.

Nag-ask kasi ako sa Kanya, ibinigay naman Niya angrequest ko na magkasama ang acting and singing, kaya walana akong mahihiling pa.

Bago ang comeback niya sa ABS-CBN, may bali-balitanoon na lilipat na siya kasama ang girlfriend na si HeartEvangelista sa GMA-7.

Ano nga ba ang nangyari at hindi ito natuloy?Ang loyalty kasi namin ni Heart, nasa ABS-CBN pa rin,

maagap niyang sagot.May magagandang offers at sobrang thank you kami sa

lahat na gusto kaming makasama sa trabaho.Pero mahirap lang talagang iwanan ang sariling

kapamilya, kaya nag-stay pa rin kami.Kaya katulad ko, may sariling soap na ginagawa si Heart,

and hopefully kaming dalawa naman ang magkasama sasusunod na soap opera.

Going back sa kanyang comeback teleserye, hindi ba siyanagkaroon ng pangamba na baka hindi na siya suportahan ngkanyang mga tagahanga?

Wala naman fears na ganun, kasi ang kasama ko ditomagagaling na artista like Cherry Pie Picache, Joel Torre, mayspecial apperances pa sina Christopher de Leon at Bembol Roco.

Tapos kasama ko pa ang three hottest female stars ngABS-CBN na sina Rica Peralejo, Maja Salvador at SarahGeronimo.

This is singing, this is something new, my comeback and Imvery excited. Im giving my best, 100% talaga sa show na ito.

I dont think na may mali, parang tamang-tama na anglahat ng timpla. I hope na sana ang success nito ay ganun dinsa tagumpay ng Pangako Sa Yo o Sanay Wala NangWakas.

I mean, si Sarah, sunud-sunod ang success ng mga showsniya, nagpa-platinum ang mga albums niya. I hope makitanila ang chemistry naming apat.

And thank you ABS-CBN for this project, sanamatanggap uli ng tao, bigyan nila ako ng second chance,sana suportahan nila ang pagbabalik ko sa soap opera,pagtatapos ni Jericho Rosales.

H

Global OFW Deployment to Reach 1M, Remittancesto Approach $14b in 2007

The Department of Labor and Employment (DOLE) todaysaid that the global deployment of overseas Filipinoworkers (OFWs) is expected to reach and breach the 1-million mark, while total OFW remittances are expectedto approach the US$14 billion level by December this year.

Labor and Employment Secretary Arturo D. Brion saidthat as of mid-year 2007, OFW deployment had alreadybreached the 0.5 million mark in more than 190 destina-tions worldwide.

He expressed confidence that at this growth rate, total

deployment figures will reach if not surmount the onemillion level worldwide this year.Brion earlier indicated that from January to July this

year, the deployment of OFWs in the new hire categoryincreased in several host destinations including Canada,Italy, Cyprus, New Zealand, and New Caledonia due tothe demand for Filipino skilled workers in their indus-tries.

Amidst the development, he bared that major banks inthe Philippines have now joined hands to develop adistinct and more affordable global remittance systembenefiting the OFWs in linkage with the Department ofLabor and Employment, particularly its newly established

National Reintegration Center for OFWs (NRCO)."I laud BSP for ensuring global remittance services, in

effect making it more convenient and efficient for OFWs

to remit their earnings," Brion said, adding that thesynergy between the NRCO and banking institutions willboost reintegration of the country's modern day heroes tothe economic mainstream on their return. (DOLE)

VP Noli Listens To OFWs PetitionVice President Noli Kabayan De Castro, also the presidentialadviser on overseas Filipino workers, listened yesterday to theproposal made by a group of OFWs regarding the establishmentof a special Exchange rate exclusively for migrant workers.

The group, comprised of the Center for Migrants Advo-cacy (CMA) together with the V-Team Advocacy and

Community Service, visited the Office of the Vice Presidentto personally handover to De Castro a letter proposal ad-dressed to President Gloria Macapagal Arroyo seeking for afixed 10% premium above the exchange rate prevailing in themarket or a flat rate of fifty pesos to one dollar to be given tolegitimate OFWs.

The letter-proposal is attached with around 15,000signatures from OFWs around the world signifying theirsupport for their proposition.

The groups senior action officer, Ronnie Abeto, recom-mended the following mechanisms in order to be able toimplement this special exchange rate project: for the government to put up a stabilization fund to

address exchange rate fluctuation; entering into a collective Forward Contract or CurrencyOptions with financial institutions;

Vice President Noli Kabayan De Castro receives a letter proposaladdressed to President Gloria Macapagal Arroyo from a group of Cen-ter for Migrants Advocacy (CMA) together with the V-Team Advocacyand Community Service.

For his part, De Castro explained to the group that hewould endorse their letter to the President and will monitorthe progress of their request.

De Castro added that he will look into the feasibility ofthe groups second alternative of entering into a ForwardContract or Currency Options with financial institutions.The viability of this proposal depends on the volume of thetransaction and their ability to organize themselves.

The Vice President also noted that as early as last year, hehas been pushing for plans to alleviate the plight of OFWs byurging the Bangko Sentral ng Pilipinas to study his proposal tolower bank charges on OFW remittances.(OVP)

Takinghis

SecondChance


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7September 2007 I OFW Guardian
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8 September 2007 I OFW Guardian

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