Trivia Of Substance

Philippines Customs Tax Calculator

2010-08-01T15:28:00.006+08:00

A lot of Pinoy eBayers, including myself, have asked for help from the experts on how to compute for tax/duties for imported products or items delivered from abroad. Based on information from an eBay thread (thanks to katana_hunter, tamed_8souls & v.carter), I created a calculator for this purpose. It's a little crude, but hopefully it becomes handy for those who have items to be delivered to the Philippines.

Disclaimer: This is meant only as a tool to estimate customs fees. This is in no way meant to be an official computation. Please use the calculation as guidance only.

Input fields are in yellow.

For corrections or suggestions for improvement, just leave a comment.

YouTube Picks: Amazing Time Lapse Videos

2010-07-27T23:34:00.001+08:00

Following The Herd

2010-05-08T13:32:00.002+08:00

In the past months i saw a lot of surveys & polls but noticed essentially two disparate results: the kind where Noynoy and Villar leads...

SWS: Binay now tied with Mar; Noynoy widens lead

Erap tied with Villar in new Pulse Asia survey

And the kind where Gordon and Gibo is at the top...

Gordon, Roxas, Santiago top UP mock polls

Pic your President

If I didn't have enough time to analyze the candidates, and had to resort to consulting what the populace thinks, I need to decide which crowd is smarter (and therefore more attuned to what this country needs), then pick whomever is on top of its polls.

How do you know which one is smarter? Simple: Look where Erap is miserably failing in the rankings. Any poll that doesn't put Erap in the top three has a more sane set of voters, I think everyone would agree... I'd rather be influenced by this crowd.

By all means, we should make an independent and impartial choice, but if for some reason you can't make a principled choice and just have to follow the herd, at least follow the smarter herd.

How To Pick A Candidate

2010-03-13T22:52:00.007+08:00

Ask a man which way he is going to vote, and he will probably tell you.
Ask him, however, why, and vagueness is all.
- Andrew Lack

This quote reminds me of school exams. Everybody loves multiple choices but never problem solving questions. The reason is quite obvious: with multiple choices, you’re allowed to be lazy and still have a chance of getting it right simply by guessing an answer. Solving problems however require a lot more deliberate effort called thinking, and when you don’t know what to do, it really shows.

It’s election time once again. In the midst of traditional mudslinging, melodramatic political ads and motherhood statements, have you picked a good candidate? And if so, how did you make a choice? A.) The candidate has the most powerful ads, B.) Looked at the surveys and followed the herd, C.) The candidate is the cousin of your officemate’s neighbour... Obviously, it’s easy to make a choice for all the wrong reasons.

The real question is, can you justify your choice with confidence?

What then is a good way to select a candidate that would fit the job best? How does one pick? Hmmm... Eureka! Beauty pageants?

We need to establish a basis for selection—a criteria for judging: 30% beauty, 30% personality, 20% talent, 20% intelligence. Yeah, that could work...

So here's a rating system that works the same way, but applies to judging politicos (anyway, an election is nothing but a pageant of ugly people making us believe they’re beautiful, right?). What I like most about this system is it tries to make the process quantitative and balanced, removing as much subjectivity as possible.

Here goes...

Step 1: Set the criteria – This is first and foremost. What qualifications are we looking for? Do not pick a candidate just by looking at one facet. The whole package must be considered, all angles inspected.

Example:

Leadership	20%	Observed influence, role-modeling.
Character	20%	Observed integrity, credibility, fairness, objectivity.
Accomplishments	30%	Actual accomplishments, competency, experience.
Platform	15%	Specific and attainable action plans to achieve goals.
Forums/Interviews	15%	Observed intelligence, show of experience and communication skills.

There are of course other criteria out there, so feel free to make up your own based on what you think should be good measurements. Just be sure they have value and are balanced. Next is to put weight on each of these qualities (the more important the factor is, the bigger the percentage you assign to it).

Remember, be objective: wipe out the names of the candidates from your head as you build these criteria, else you might make it biased and that won’t make this exercise effective.

Step 2: Research about the candidates – It’s time to pick them apart. List down the candidates and gather as much info related to the criteria as you can. Thanks to the Internet, we got news, candidates’ web sites, blogs and forums to grab these data from. Write them down or put everything on a spreadsheet. This is where the bulk of the work is done, but it should be all worth it.

Step 3: Rate the candidates – After digesting what you’ve researched, it’s time to rate the candidates. I used a 5-level system to keep it simple (20, 40, 60, 80, 100) and rated them per criterion (horizontally). In the table below, Candidate B and D have the best showing of leadership so they were both given a 100; next is Candidate C (80); then Candidate A last (60). Do the same for the other criteria, and you would have something like this:

Again, be objective as much as you can. If you’re putting perfect scores on one candidate, you know you’re showing favoritism. Get real!

Do not continue to the next step until you’re fully satisfied that you've been objective about your ratings.

Step 4: Sum up the scores – First, multiply the ratings against the weights and put it on the blank columns.

Then, sum up the candidates’ scores.

From this example, Candidate B is the best choice.

Whether you agree or not with the result, is a matter of discipline and personal deliberation. Like I mentioned in Step 3, do not proceed with tallying up the scores until you’re convinced that you’ve rated objectively. If you have, then you should agree with the outcome with conviction.

What this demonstrates is that there are quantitative ways to make an independent and impartial choice. This is much better than simply being swayed by a politician’s flattery, by surveys and by the crowd.

Now, when somebody asks why you picked your candidate, you can be confident and say that you did some decent research and analysis.

Be a good judge... Vote intelligently!

Attachment: Criteria Scoring Spreadsheet.

Farewell, Conan

2010-01-24T23:03:00.007+08:00

It's a sad day in late night comedy. Conan O'Brien finally had his last day in "The Tonight Show", after just a short seven months of being handed the reins.

Conan O'Brien leaves NBC in 45 million dollar deal: reports

Conan O'Brien has left NBC in a reported 45-million-dollar deal, it was confirmed Thursday, ending an ugly public feud surrounding the fate of US television's long-running "The Tonight Show."
NBC Television said in a statement it had reached a settlement with O'Brien and later confirmed that the funnyman's predecessor Jay Leno would return to host the show he helmed for 17 years until he stepped down seven months ago.
"NBC and Conan O'Brien have reached a resolution of the issues surrounding O'Brien's contract to host 'The Tonight Show with Conan O'Brien,'" the statement said, adding O'Brien would be free to work elsewhere after September 1.

What would comedians do in the middle of a big controversy as this one? Well, what anybody else would. Fight it out. Here's how the funniest comics do it, and see how they're trashing their home network in the face:

Kimmel was heartless, Leno was speechless.

A $1.5 million comedy bit!

Too bad I wasn't able to catch the last episode so I'm scrapping for videos. This was the best I found: Conan's final 'Tonight' tops Friday ratings

See you in September, Coco!

CES 2010 Picks

2010-01-10T14:39:00.006+08:00

The Consumer Electronics Show has just concluded and, as always, came up with a good roadshow of what's up and coming in electronics and high tech gadgetry. This is the ultimate peep show to what's going to be ubiquitous in two or three years time (well, if the products succeed).

Here are some cool finds:

Minority Report user interface - We'll probably see widespread use in five years... I can imagine our grandkids saying, "What's a keyboard?"

3D high-def TV - Your very own 3D theater at home. 3D games next?

Slate PCs - This is the second attempt to introduce tablet PCs in the consumer market. Nothing new really, as this was introduced in the early 2000s. But since more innovative interfaces like multi-touch have sprung up, slates might have more success this time.

USB 3.0 - 10 times faster than 2.0! Enough said.

And enough salivating.

YouTube Picks: Action-packed

2009-11-04T09:34:00.003+08:00

Reality is more action-packed than fiction...

Here's our 80s favorite...

...and see what the next gen has to offer...

Project 10 To The 100

2009-10-03T22:46:00.007+08:00

Last year Google ventured into an altruistic project with Project 10^100. It's goal is to release $10 million for top ideas out there that would most benefit the world.

The idea is so simple, you'd wonder why nobody has thought about it way back.

There are just a few important premises: one, that the world has problems (no doubt about that!); two, that there are thousands of ideas out there; and lastly, that in order for an idea to make a far-reaching impact, you have to know our greatest issues. That's where we come in.

The search giant has solicited thousands of ideas since last year, and now it's time to cast votes to decide which idea will get funding.

What's so neat about this is, we get to become part of it even while we're just sitting back at home or from our favorite coffee shops.

Go and vote here! Quick, quick, coz deadline is October 8, 2009!

PS: If you get dizzy about the choices, let me help you out with an article. Caution, this is a little geeky, but it was surprising to find out that we'll get more bang-for-the-buck benefits when we focus on health issues... vitamins. The Top Ten Solutions to the World's Biggest Problems

And yeah, note too that your biggest personal problems are most likely not in the Top 10... so be grateful. ;-)

I picked "Make government more transparent". You?

YouTube Picks

2009-07-25T23:28:00.002+08:00

You can't top this wedding entrance... and some ads.

YouTube Picks

2009-03-15T22:19:00.003+08:00

Sharing some great finds on YouTube.

Pinoy In CNN Heroes

2009-03-15T21:44:00.006+08:00

CNN has started its campaign of CNN Heroes that features selfless ordinary folks doing big things for society. Early in the running is one of our own, Efren Penaflorida. His story is very inspiring, and somehow it made me feel how little our lives seem when we don't do something important for others.

Pushcart classes help break gang chain

CAVITE CITY, Philippines (CNN) -- At 16, Rhandolf Fajardo reflects on his former life as a gang member.
Efren Peñaflorida's Dynamic Teen Company offers Filipino youth an alternative to gangs through education.

"My gang mates were the most influential thing in my life," says Fajardo, who joined a gang when he was in sixth grade. "We were pressured to join."

He's not alone. In the Philippines, teenage membership in urban gangs has surged to an estimated 130,000 in the past 10 years, according to the Preda Foundation, a local human rights charity.

"I thought I'd get stuck in that situation and that my life would never improve," recalls Fajardo. "I would probably be in jail right now, most likely a drug addict -- if I hadn't met Efren."

When the voting starts, please vote if you think his personal crusade deserves merit.

Just when most of us are at our desks, complaining about everyday life and bad politics, some people are actually in the streets doing something to make society better.

Dear Miriam

2009-01-17T23:55:00.004+08:00

Forgot where I found this one, but it's one of the wittiest I've seen.

I'm Gonna Miss Bush

2009-01-16T23:28:00.007+08:00

Saw this reading through an old-fashioned newspaper. Couldn't pass it up.

World bids farewell to 'Bush-isms'

Agence France-Presse
First Posted 12:57:00 01/15/2009

Filed Under: Personalities

WASHINGTON -- US President George W. Bush may be passing out of the White House and into history, but he has bequeathed to the nation and the world volumes of unforgettable quotes.

Herewith are some of the more memorable "Bush-isms:"

JUST A TEXAS COWBOY

"They misunderestimated me," -- Bentonville, Arkansas, November 6, 2000

"There's an old saying in Tennessee -- I know it's in Texas, probably in Tennessee -- that says, fool me once, shame on ... shame on you. Fool me -- you can't get fooled again," -- Nashville, Tennessee, September 17, 2002

"I want to thank my friend, Senator Bill Frist, for joining us today ... He married a Texas girl, I want you to know. Karyn is with us. A West Texas girl, just like me," -- Nashville, Tennessee, May 27, 2004

...
"Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we," -- Washington, August 5, 2004
...
"For a century and a half now, America and Japan have formed one of the great and enduring alliances of modern times," -- Tokyo, February 18, 2002
...
"Thank you, Your Holiness. Awesome speech," -- Washington April 16, 2008 to Pope Benedict XVI.

"I remember meeting a mother of a child who was abducted by the North Koreans right here in the Oval Office," -- Washington, June 26, 2008

ECO-BUSH

"I know the human being and fish can coexist peacefully," -- Saginaw, Michigan, September 29, 2000

UITF Performance, Balanced Funds (Year 2008)

2009-01-07T00:00:00.003+08:00

What a year that was. The year of the rat was a sure pest for the global economy. Hope '09 fares better being the year of the ox. Ox? Bull? Maybe that bodes something... Happy New Year!

PNB Mabuhay Prestige: 3.20
BPI Balanced Fund: -27.08%
Metro Capital Growth Fund: -28.58%
BDO Balanced Fund: -41.37%

Source: UITF Online

UITF Performance, Balanced Funds (First Half, 2008)

2008-07-18T00:46:00.002+08:00

With a gloomy market, the first half results is almost the exact reverse of the standings for the year 2007. BPI stays at second.

PNB Mabuhay Prestige: 1.47%
BPI Balanced Fund: -20.19%
Metro Capital Growth Fund: -20.26%
BDO Balanced Fund: -26.92%

Source: UITF Online

PERA Is Getting Closer!

2008-07-17T23:27:00.004+08:00

The Philippines has one of the lowest savings rate for a nation. Poverty is a clear excuse but even those who are getting paid well seems to be not taking it seriously either. Based on this article, only one of out 10 Filipinos are preparing for retirement. That means, if I say that YOU have a low financial IQ, I have a 90% chance of being right. That's not a pretty sight.

Don't feel too down though. Senator Angara is trying to pass a bill called PERA (Personal Equity and Retirement Account) that will significantly improve the savings culture of Pinoys.

I'm crossing my fingers on this one.

PERA bill to hike savings rate, says lawmaker

MANILA, Philippines - The country’s savings rate is expected to increase once the bill allowing tax-free personal retirement accounts from taxes becomes law, a lawmaker said.

Senator Edgardo J. Angara said the country’s savings rate would go up to about 30% of gross domestic product (GDP) from 19-23%. He noted that the country’s savings rate is among the lowest in the region, with Malaysia, Singapore and Vietnam at 34-40% of GDP.

"[The Personal Equity and Retirement Account or PERA] is one of the best ways to accumulate savings. It will greatly augment Filipinos’ retirement plan," Mr. Angara told a briefing Friday.

The PERA bill was approved by a bicameral conference last June 10. Mr. Angara, who heads the Senate Committee on Banks, Financial Institutions and Currencies, said the law will likely take effect within the year after the Bangko Sentral ng Pilipinas and the Department of Finance come up with implementing rules.

PinoyMoneyTalk thread: Do we have a retirement plan like in the US called 401(k)?

UITF Performance, Balanced Funds (Year 2007)

2008-03-02T11:16:00.004+08:00

Just sharing performances of Balanced Funds UITFs, year 2007.

BDO Balanced Fund: 18.93%
BPI Balanced Fund: 12.16%
Metro Capital Growth Fund: 14.36%
PNB Mabuhay Prestige: -0.02%

There are other balanced funds out there, but these are the only ones available at UITF Online.

NBA Millionaire Gone Broke?

2008-02-15T15:21:00.005+08:00

If a former NBA superstar can start pulling out his dreadlocks as he faces foreclosures, just imagine how much panic that can subject average income earners like us who have families to feed.

Ex-NBA star Sprewell sells $1.5 million yacht, home could be foreclosed

MILWAUKEE -- Former NBA star Latrell Sprewell's home is up for foreclosure and his yacht sold at auction to help pay off the $1.3 million he owes on the boat, according to court filings.

Sprewell, who once turned down a three-year, $21 million contract extension saying, "I've got my family to feed," has apparently fallen on tough times.

RBS Citizens NA, or Citizens Bank, filed a foreclosure suit last week in Milwaukee County for the $405,000 home Sprewell bought in the Milwaukee suburb of River Hills in 1994.

In court documents, the bank said Sprewell owed $295,138 in outstanding payments plus interest.

I think it's important to learn at least two important lessons here, so we don't fall into the same trap. One, living beyond our means is never a good idea. I don't know how common sensical enough that is. Two, I guess out of so much money he was able to amass during his glory days, he never spent time to being financially literate; or maybe he has a financial planner that he just didn't pay attention to. A "Rich Dad, Poor Dad" book only costs less than $20.

Please take these two lessons to heart. It could be all that Latrell needed to have prevented him from being in this rut.

As they say, "It's not the money you earn, it's the money you keep." I'd rather be financially literate with little money, than be financially stupid with a winning lottery ticket.

Philippine Time Deposit Rates (February 2008)

2008-02-15T14:43:00.008+08:00

I asked around for current TD rates, with a minimum placement of P100,000 on a 90-day term. These are not comprehensive, just sharing what I was able to research:

First Country 8.25%
China Bank 3.88%
PBCom 3.75%
The Real Bank 3.50%
Planters Bank 2.75%
BPI 2.50%
BDO 2.25%

There were some concerns on First Country Rural Bank (and perhaps rural banks in general), so please refer to the PMT thread "First Country Rural Bank" for some background. There's also a "Peso Time Deposit Rates" thread you might want to check out.

Hope this helps.

New Journey Vocalist Comes From The Zoo

2008-01-11T00:44:00.000+08:00

This guy's unbelievable! I'm a fan of Steve Perry's high pitches, but finding a Pinoy out there to match his vocals was just stupefying. Listen closely to the clip around 4:20...

I have no idea where he gets his wind... There's some unwelcome feelings from some hard-core Journey fans in the US (issues on maintaining the image of "an American band", his shortness and accent), but you just can't ignore this talent.

Here's the news from Inquirer.net: Filipino rocker hits global stage

Speaking of Filipino talent, a 15-year old made waves in the Ellen Degeneres show last month. She got two standing ovations, nothing serious.

If these didn't get you goosebumps, get your ears checked!

All the best, Arnel and Charice!

Paris, A Simpler Life

2008-01-11T00:06:00.000+08:00

Paris Hilton's "A Simpler Life" reality TV might turn out closer to becoming a reality after all. Her grandfather, Barron Hilton, pledged to donate a big chunk of his wealth to charity. Given Paris' high profile misadventures, I think any granddad would've done the same.

Paris Loses Out; Hilton Fortune Pledged to Charity

U.S. hotel heiress Paris Hilton's potential inheritance dramatically diminished after her grandfather Barron Hilton announced plans on Wednesday to donate 97 percent of his $2.3 billion fortune to charity.

That wealth includes $1.2 billion Barron Hilton stands to earn from both the recent sale of Hilton Hotels -- started by his father Conrad in 1919 when he bought a small hotel in Cisco, Texas -- and pending sale of the world's biggest casino company, Harrah's Entertainment.

That money will be placed in a charitable trust that will eventually benefit the Conrad N. Hilton Foundation, raising its total value to about $4.5 billion, the foundation said in a statement.

Barron Hilton, chairman of the foundation, intends "to contribute 97 percent of his entire net worth, estimated today at $2.3 billion, including the created trusts, at whatever value it is at the time of his passing," the foundation said.

Ooh... that's hot!

Too Old For Christmas

2007-12-24T15:23:00.000+08:00

Don't you have that yearly feeling that, when Christmas season comes around, you don't get excited about the holidays anymore than when you were younger? Does it have something to do with age? Or maybe times are getting tougher? Or do we get too busy with our careers we don't have time to slow down and feel the holidays anymore?

After all, what's an adult to look forward to when there are no more toys being opened on Christmas eve, no more going from street to street caroling for small bills and change into our pockets, no more "Mamamasko po" and Santa Clauses dressed like ninongs and ninangs, lolos and lolas, titos and titas, no more being taken out by parents for small outings and carnival rides...

Boring... the price of being an adult. But, hey, if you're feeling that way, then you must be an adult.

And you might just be onto the biggest reality check of your life... That is: Christmas is for kids!

Yep, no need to worry then. It's your turn to wear Santa's hat and make the kids around you feel the season of giving. Your turn to give and share, and make it your business that they have fun throughout the season. Make your kids, nephews and nieces feel special. 'Cause you know, one day too, that they'll be missing that feeling the same way we adults do.

Spread love and happiness... Have a wonderful Christmas, folks!

Get-Rich Formula

2007-12-07T12:30:00.000+08:00

Here's another nice article about compounding:

The World's Greatest Get-Rich Formula
By Brian D. Pacampara December 5, 2007

You should be highly skeptical of any and all get-rich schemes ... except for the super-simple formula I'm going to show you below. Because this one really works.

It works so well that it's been used by the world's billionaires -- from moguls of yesteryear such as Rockefeller and Ford to today's tycoons Carlos Slim and Warren Buffett.

Though it's a little more "mathematical" than my previous blog about compounding, it drives the same point: that the factor of time is very important. You have to start now, because time waits for no one.

Gratitude Journal

2007-11-27T22:23:00.001+08:00

A little bit late for a Thanksgiving thought, but better late than never...

Belated Happy Thanksgiving to folks in the US. I was just wondering whether this holiday is exclusive to the North Americans. Wouldn't it be a nice idea to have an International Thanksgiving Holiday? For one, I'd be thankful that I wouldn't have to go to work.

But seriously, having a personal thanksgiving habit I think is good for the soul. I once watched an episode in Oprah as she talked about the idea of having a gratitude journal. The idea is simple: get something to write on, and everyday find at least three things you are grateful for, then write it down. They don't have to be something spectacular; sometimes it's the small things we take for granted that would make up the list. The point in the exercise is being able to see, in spite of the daily stress, what good things you've received for the day. It gives us a chance to realize that we're actually more fortunate than others; that it's just that we're too tired and distracted with worry that we fail to see the nice things done for us, and around us.

Sadly I don't practice what I'm preaching here, but I think I should start setting aside some time for it (probably like every Mondays, or every first day of the month). A good time would be during the commute to the office. What's in it for us? A happier, more grateful and positive disposition no less. And I bet the person I say thanks to would also appreciate it.

Let me start a quick one:

I'm grateful for my industrious wife for the best homekeeping work ever. I virtually don't have to do a thing at home!
My pretty daughters who dance my stress away.
My parents and family for an always wacky and feastful get-together.

There, that felt good! Try it out some time... if you're not too busy.

Oh, and in case you feel you're way behind financially, you bet you are! Check this out.

In our daily lives, we must see that it is not happiness that makes us grateful, but gratefulness that makes us happy. --Albert Clarke

Thank you for reading.

Buffett's Philanthropy

2007-11-12T00:32:00.000+08:00

This was a story of last year, but it keeps resonating in my head whenever the name comes up.

Buffett donates $37bn to charity

Warren Buffett says he was "wired at birth to allocate capital"

Billionaire investor Warren Buffett has said he was waiting for decades to make a huge charitable donation.

He said he was overjoyed as he spoke for the first time since revealing he would donate about $37bn (£20bn) to Bill Gates' charitable foundation.

"This has been coming for 50 years," Mr Buffett said. "There's never really been any other plan in terms of where the money should go."

The donation is thought to be the largest charitable gift ever in the US.

We've seen Forbes' world's richest, but wouldn't it be a better idea if they publish "The World's Biggest Givers"? I think it's time to give more credit to those who have the biggest of hearts. Secondly, if a wealthy guy is in the richest list but not in the top givers' list, wouldn't he feel obliged to give away more to charity?

If you can't take it with you, you might as well buy yourself immortality. The rich are admirable, but philanthropists are sublime.

Now, I got fresher news (as fresh as June 2007), but before that, allow me a brief intro... When we talk about bridging the gap between the rich and the poor, the answer seems very simple: just distribute wealth more evenly. I think that's the concept that socialism is built upon (if kids ruled the Earth, that would be called "sharing"). For capitalist economies, however, that couldn't be done. Capitalism says, to be fair we must reward the smart and the hardworking. Unfortunately, such a system has a downside: it promotes wealth inequality.

So, why not higher taxes for the rich? Robin Hood legitimately taking money from the rich to give to the poor? Not really exactly new.

But what's more interesting is, Mr. Buffett seems to have found some flaws in US tax laws which uncovers that the average Joe seem to be paying at higher rates. If you're in the Forbes 400, you will hate the following article. If you're not, you probably won't like it too. Looks like the playing field isn't that level.

Warren Buffett: Tax the Rich!

Warren Buffett's cry of 'tax the rich!' is being heard across the Atlantic. Warren Buffett Watch highlighted his comments to CNBC's Brian Shactman the other night, in which he said the gap between the 15% tax rate for public partnerships and the 35% rate for public corporations seemed "illogical." (That's become one of the more contentious issues in Washington following Blackstone's big IPO.)

In his appearance at Hillary Clinton's fund-raiser later that same night, he spoke more generally, in effect complaining that he, and very rich people like him, should be paying a higher percentage of their income in taxes.

You really have to admire Mr. Buffett's altruism.

A Crystal Ball That Predicts Your First Million

2007-11-02T18:43:00.003+08:00

So you like magic and mysteries, fantasies and fairy tales, eh? Sorry, but this blog is nothing about the sort. But when it comes to talking about having one million, it never fails to bring anybody to enter into some dreamy state. Imagining the places you can go to, stuff you can buy and whatever else you can do with it, who wouldn’t want one million? A short while later, you snap back to reality and get back to your job. The scene is just too familiar.

Nothing wrong, of course, with this habit of daydreaming. After all it’s a nice way to motivate yourself to keep on doing, or being better at, what you do. But one practice that’s probably being overlooked along with this habit is asking yourself one important question… “How do I get my first million?” (Is that a blank face?)

There are lots of answers out there, but what I’m going to explain here is probably the most simple, yet most powerful tool you’ll ever come across. It’s called compounding. (Rich folks are laughing at us, 'cause this concept is like the alphabet to them.)

This is how Webster defines it:

to pay (interest) on both the accrued interest and the principal

Don't be too scared, it’s less complicated with an example. Say you have 100 and deposit it in a savings account that earns 10% per year. For three years, this is what you get:

100 x 1.10% = 110 (first year)
100 x 1.10% = 110 (second year)
100 x 1.10% = 110 (third year)
Total interest: 30

With compounding, you put back your interest or profits so that it helps increase your deposit amount. Here’s what it looks like with compounding:

100 x 1.10% = 110 (first year)
110 x 1.10% = 121 (second year)
121 x 1.10% = 133.1 (third year)
Total interest: 33.1

Can you see that difference?! With the same 100, compounding generates far better profits than you could ever imagine. Unbelievable!

OK, that really shouldn’t convince you just yet. To demonstrate how powerful compounding really is, I made an Excel sheet where you can put in your current age, how much you can save monthly, how many years you want to save and how much annual interest you can get.

In the example below, a 25-year old who commits to saving 2,000 monthly for five years at an annual interest of 10% can reach his million by age 50 (without compounding, at age 67). With just a measly 2,000 with consistent effort for just five years, it's written in the stars that you're going to be a millionaire by age 50!

And if you came late in the game, say at age 35, all you need to do is double your monthly savings and you’d be a millionaire too at about the same age.

This is so simple, why hadn't I known this before?!

So if that got you curious as to when you’ll get your very own million, feel free to download this crystal ball compounding calculator (virus free, but scan it nonetheless). Play with it and see what age should you start, how much should you save monthly and for how many years for you to reach that goal.

For those who are familiar with pension plans and other insurance products, this is the same concept why you get a significant amount of money at the end with the little contribution that you make.

There’s really no magic, just math folks doing a trick with numbers.

When you’ve downloaded the calculator, try this one: monthly savings = 0, annual interest = 50%. You get very neat results.

So start saving, investing and compounding now! If I had embraced this concept ten years ago, imagine what difference that would’ve made. Well, daydreaming is over… Plan your future accordingly!

Please check these other articles about compounding:

The Power of Compounding Interest
The Power of Compounding

For where you can get high interest rates, there are available bank deposits and mutual funds around where you can invest in. Check these PinoyMoneyTalk threads for some info:

About PESO TIME DEPOSIT accounts

Best Time to Invest in MFs/UITFs?

Get On The Bandwagon

2007-10-16T10:13:00.000+08:00

Do you have savings or time deposits sitting to make 2-5% profit a year? Don't be too excited, with the current year's inflation at 2-3%, you're really not taking home a lot.

Stock market pays for experts, amateurs
By Alcuin Papa, Elizabeth Sanchez-Lacson
Inquirer
Last updated 02:03am (Mla time) 10/14/2007
MANILA, Philippines -- The profits they make in the stock market on a weekly or even daily basis can easily equal, if not rival, most monthly salaries of fairly high-level corporate executives.

But Danny Go and Bonner Dytoc, middle-class blokes who are not even 40 yet, consider themselves no different from the rest of us. Except for the fact that they are smiling all the way to the bank.

The mass of Filipinos may not yet be feeling the effects of the new highs in the Philippine Stock Exchange Index (PSEi). But market traders like Go and Dytoc have been making a killing since the local market started rising around a year ago.

If you want to get serious about making your money grow, please invest them. For the young ones new to the word investing, it's a way of making your money grow without you having to lift a finger. Or, at least not that much. There are a lot of instruments around that can make that happen for you, from bonds, mutual funds and stocks. Your choices will just depend on how much "reward" you want to get.

Have you heard of NAVs, UITFs, portfolio, diversification and asset allocation? If these are too foreign, how about "taking profits"? Now, we're talking... To put it simply, those are but a few words that go along making passive income.

If you're a little anxious, don't worry. There's a crowd of investing newbies and experts that are grazing the PinoyMoneyTalk forums, sharing knowledge and ideas about financial matters. The threads are very inspiring and informative. Here's to share a few:

How to budget money, manage time and maximize your money-making experience
Malaki na ba ang makaipon ng P1M by age 30?

I hope everybody takes time to sit in the forums and educate themselves. A lot of what you'll learn here are stuff they never teach in school. Get out of the rat race and be prosperous, Pinoys! Don't be left behind!

Myanmar Unfolding

2007-10-13T23:46:00.001+08:00

You probably heard already what's going on in Myanmar...

Myanmar: Nine dead in crackdown

YANGON, Myanmar (CNN) -- Nine people have been killed in a crackdown on anti-government protests in Myanmar, after attempts to clear demonstrators from the streets of Yangon on Thursday, authorities say.

The dead include eight protesters and a Japanese man, Myanmar authorities said, adding that another 11 protesters were injured.

An American witness told CNN soldiers waded into a crowd of protesters in Myanmar and beat several of them mercilessly, at least one of them to death

"All of a sudden, the police and military guys started coming toward the crowd, and all of a sudden started beating them and running after them," said the woman, who witnessed the incident from atop a nearby building.

"And in one corner they got around, maybe, five or seven people, and they started beating them so bad for almost five minutes, and then they took them and put them in trucks.

"And there was this one guy, laying down on the floor, and he was dead. And then these same police came a few minutes later and picked him up and took him to the police station."

Red-robed Buddhist monks who had led several days of marches were largely absent from the streets Thursday after soldiers raided monasteries the night before. Monks reportedly were beaten and taken into custody or confined to the monasteries.

It was just a few weeks ago when I saw Jim Carrey at YouTube, not his usual comic self, trying to raise awareness in Myanmar and Aung San Suu Kyi's pro-democracy crusade. Now, it has caught the eyes of the international community.

Philippine history of not too long ago would probably bear the closest semblance to these events, and I don't think Filipinos would have a hard time relating to the Burmese people. Napagdaanan na natin yan, di ba? Somehow I can't help but feel fortunate that we've dug ourselves out from the same predicament (at least, to some degree).

How bad is it over there that the military junta has to govern from hidden headquarters? If you have a few minutes to spare, check this site out and know the answer.

No one would be willing to trade places and liberties with the Burmese. Ninety percent of the population is living under just one dollar a day.

"Please, use your liberty to promote ours." - Aung San Suu Kyi