NU IDEA #2 by AJ Guinto

NU IDEA #2 Saving VS. Spending Wisely I have been thought by my parents and everyone else around me to make sure that I save money. There's this traditional savings that whatever you get, you take a percentage of it as savings, for others, not even touch the money unless you really need it. But from my experience and how I realized it, it is better to spend wisely than save money. And When I say spend money, is that you really spend money even if you have no savings left (This only works when you're young and has a stable cash flow). Here's my take on Savings, Forget about it! unless you know you can actually save a significant amount that can change your life. Otherwise, spend it, spend it to expand your knowledge, spend it to build your network, spend it to build your confidence, spend it to gain more experience. I'll give you an example, so you're earning a good 50k php a month for a start-up employee, great! So you actually have an above average salary. And you would be tempted to buy phones? jewelry? Travel? And people would tell you to hold on it and save 30%? 10%? 20%? Save what? 5 to 15 thousand pesos? And in a year you save how much? 150 thousand pesos? How can that change your life? It may be ridiculous but here's my take on this. Spend for a 50 thousand peso watch, or a handbag for women, so the next time you go into a meeting you can present yourself better, believe it or not but expensive accessories actually brings more confidence to a person and not because you're wearing it, it's because you're letting the other person know you have it. Spend for Travels, in that way you can share your experiences to every small talk conversation, nobody wants to talk to a boring person, whether you like it or not your going to talk of something else other than the business at hand, and if you're not prepared for it, it can be that one thing that takes you from closing a deal and losing it. Spend to party, attend gatherings, The more people you know, the more opportunities it brings you, The better possibilities that one can take. The bottom line of this Idea is, Invest in yourself, and really invest in your self, because these opportunities can give you income more than you can imagine and if that happens, that's the time you start saving.3 Alvin James B. Guinto

Nu12 #11 By Marta Fretheim -frugality

NU #11 New attitude
"use what you need and not what you can"         

Pollution is a great problem world wide, and someone will haveto pay for it sooner or later.  Attitudes needs to change and actions needs to be done. It needs to start with a change of attitude, and then this will follow into a change of behavior. I think selfishness and greed is causing unnecessary high-energy usage and littering. Especially in the westerly countries a lot of people don't think twice before they purchase a new product. If you feel like having something you just buy/eat/use or take it, without thinking twice. You might not even be hungry or need what you are having, but you want it, so you get it. Here are some examples of unnecessary consumptions:

-       Leaving the air-con on cause you want the room to be chilled when you get back, it would imply a higher electricity bill but you can afford it.

-       Buying extra food though you know it is too much food and probably have to throw away some.

-       It can be taking/giving one plastic bag for every category when you go shopping, though you can fit everything in just one bag (or preferably you bring your own reusable bag).

-       Getting one big dispenser of shampoo instead of many small portion one-time-use packages, all the small packages are creating a lot of litter.  

-       Not eating endangered species, and just eating what you need and not what you can.

-       Does the shower really need to be that hot and the pressure that strong?

-       Have you turned off ALL the lights in your house? Even the one on the third floor (Even if you are in a hurry, this would only take seconds).

We should not continue littering and polluting and expecting others to do the collection. Saving energy is also beneficial, as it will cut your monthly energy-bill. By changing our attitudes towards a more eco-friendly profile with minimal wastage, the actions will change in favor to the environment. 3

 by Marta Fretheim

NU 12 # 3 by Analiza G Mendoza - investing in foreclosed houses

ANALIZA G. MENDOZA

AUG. 13, 2012

NU12 #3

SPENDING HABITS

"Spend whatever is left after saving" a popular advice from Warren Buffet.

As a child, my father instilled to us the value of saving for rainy days. When I first got a job, my father reminded me again to save as much as 40% from my salary. And diligently I did. While my officemates would treat themselves to Starbucks or to Jollibee or Mcdonalds on a salary day, I would politely decline and go home. Every cent is that important to me. One of the reasons why probably at 30 I was able to buy a house and a car is because of how well I handled my finances. Coming from a poor family in the province of Bacolod taught me to value money. I told myself that I will never let myself be poor again. I know how it feels to beg your relatives to borrow or ask money.  It was humiliating.

For four years, I was able to pay the monthly amortizations of the house and the car. I was able to budget our income for all our obligations. But what I discovered is that after paying the amortizations, it did not increase my savings. Why? Because I was busy rewarding myself with material things that I deprived myself of from the start. We finally got what we need and I thought that was okay. My family have a house we call our own and my daughter is studying in a good school.

It was reading Millionaire Next Door and Go Negosyo (reference books of the course) that I realized something is wrong with me now. What happened to my spending habits? I think I have to go back to the basics. Live simply and save 40% of my income just like before. Things are not permanent, my work and our business. I have to do something. Since I don't have monthly amortizations to pay now, my goal next year is to invest in foreclosed houses. This I will later develop and turn it to a profitable business by having it rented. I have to make a choice between investing in the things that I want, buy material things that I consider investment or invest in something that will give financial security. I would rather choose the last one. I cannot just rely on saving my money because I end up spending it. If I buy an investment like a house, I would be obliged to pay the monthly amortization. I realized that people and Iam among them, without pressure and goal become too relaxed with life.  While stile early, I want to save more and invest more. Forget about the material things. They are temporary. Yes it will give me prestige and status but I will lose retiring comfortably if I don't change. 4

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Ana G. Mendoza

Millisys Distribution Inc.
Tel no. 927-7063 loc 108

Some Simple Innovation Could Earn/Save You a Bundle

"Innovate or DIE"

On a personal level, I have seen how some innovations helped me save a lot of money:

l.  The cable of a brush cutter costs hundreds to replace from spare parts store of the company carrying the brand.  But it could be replaced with a bike cable costing only Pl5.00.

2.  I replaced an accelerator cable of e30 BMW costing P700.00 with a Pl5.00 bike cable.

3.  I saved myself the burden of disassembly and lube bike post, head set, and bottom bracket by wrapping the area that are rain prone with velcro wrap arounds.

4.  A BMW alternator failed.  The casa wanted a complete replacement costing P25,000.  I had the alternator repairman replace the stuck bearing with P700.00 bearing and P300.00 labor for him.

5.  A hard to find alternator for Range Rover was replaced with a Toshiba Japanese alternator.  Same function, different brand.

6.  The lug nut of Land Range Rover costs maybe P400.00@.  But an Isuzu truck lug nut costs P70.00.  What a savings!!

7.  Again for BMW, a plastic radiator costs P25,000.00.  But you can fabricate a copper radiator from a discarded Isuzu elf radiator by turning it sideways.  Costs:  junk radiator P3t;  labor Plt.  Still a lot of savings,. 

If you go for the original, you spend a fortune.  Learn to be frugal.  Necessity is the mother of innovation/invention.

Yesterday, I had interior of the bike patched up.  I saw that vulcanizing man had a great way of vulcanizing the wheels of the motorcycles;  they do not remove the wheel assemblies from the motorbikes.  They remove the outer and the interior right in the bikes;  bring the  leak tester and the vulcanizing heater right next to the motorbike.  It saves a lot of time in removal of hubs from the motorbikes and makes the vulcanizer  do his work faster and  earn more.  How ingenious!!
 





"New ideas create more and better new products and services; create more wealth."