Tuesday, February 24, 2015

How the Law of Attraction Drives This Working Pinay Into Sharing Stories of Investing

A while back, and a couple of weeks before Valentine's Day, the Water Sprite was very busy attending to her responsibilities as a full time employee, which means "wearing the hat she always wear". There were paper works she needed to accomplish, and because sometimes she couldn't act like the "goddess" she ought to at work, the effect of procrastination and time mismanagement got in her way as she was cramming, grasping the last minute syndrome to meet the deadline. That is why there was a relatively long silence here at the CPGI (Cute Pinay Goes Investing) blog during that period. Then both pessimism and doubt tried to lodge on her head too; on how to pursue the CPGI brand and acquire more popularity of this blog site, after being in the cyber space for about 3 months already.

It is a challenge to reach out to the right audience in this niche, but it looked like the site was lonely because its target audience never left a short note to say something. Some youngsters say they only got to read up to first half of those pieces of articles here. Ooouuuuch!

Full time job coupled with personal turbulence slows down the drive to blogging. Thankfully, the hero in Water Sprite's life wrote a piece of article in her absence: Valentine's Day!! And Investing? Despite of that, the feeling of losing interest (in telling stories) was like a pit upon her feet. She could be falling down even more, stop for a while and come back when comfortable. Yet of course she wanted to regain enthusiasm, soon for sure!

Related Story: Valentine's Day!! And Investing?

The need to find inspiration arose, and then the Law of Attraction went glistening. Such law implies the saying,
"Where your intention goes, your energy flows"...
and also means you attract what you are and that which you concentrate upon. The Water Sprite internalized the Law of Attraction, set her frequency once more to personal financial management and investing.

Now, does that law has something to do with adding enthusiasm to continue updating this blog? Please follow this story...

It was payday. The Water Sprite broke her best practices during paydays and she needed to withdraw most of her money from the bank  (because there was a major expense at home, few days before payday, due to a malfunctioning appliance). On her way to the automatic cash dispenser, she met Rommel, a student at the school where she works. She asked Rommel to escort her to the bank, and so he went with her. After the bank transaction happened, this became the conversation:

Rommel: Why does the cash dispenser never release money lower than the hundred peso bill?

Water Sprite: Because the machine was only designed to release paper currency, so we only get hundred and thousand peso bills. There's no hole to give us coin. Also, it's the bank's advantage when every bank depositors leave those small money, even though those were just cents. If you add up each depositor's cents, it could worth huge sum of money. That way, the bank is able to either invest (in stock market for instance), or lend it to bank borrowers.

Rommel: Then what? Are we (depositors) entitled to gain earnings out of that?

Water Sprite: Well, if you left just as small as hundred pesos, you will not be entitled to gains. There is a required minimum balance (daily average) for some accounts before a depositor can earn interests. It depends on your type of account...

Rommel: Oh that's not good.

Water Sprite: It isn't. If you are after gaining interests on your savings deposit, leave your account balance lots of thousand pesos (5-digit) but, the interest you will be earning is only less than 1% monthly. Very small, or you will be tempted to withdraw your money so you will have something to spend to date a girl. Time deposit is another thing, but we are talking about savings account like I have for this ATM card.

Rommel: I see.

Water Sprite: That's how the bank works as  it's a commercial institution. They need us as depositors, and so we lend the banks our money. They benefit from our deposits but we gain just very insignificant amount from them. Let's only think of one advantage: we deposit our money just for safe keeping.

Rommel: What happens when I deposited my money and then after a while the bank decided to close its operation?

Water Sprite: In that case, your deposit is protected by PDIC (Philippine Deposit Insurance Corporation). They will be able to send back your money.

Rommel: Aaaahhhhh.....

Water Sprite: Imagine you have hundred thousand pesos and you just left your money in the bank for many years, probably earning only about 0.75% annually. Will you be contented on that? I guess not. You will lose in terms of inflation. I hope you know what inflation means.

Rommel: Yes, i think i know inflation...

Water Sprite: Well, I am glad, Rommel that you are concerned about saving your money instead of spending it. There is another way besides depositing it in the bank. Try to learn the way of investing thru stocks. There is a greater chance to earn there, but you need to be knowledgeable.

Rommel: What will happen to my money?

Water Sprite: Stock investing involves picking out a good business institution and consider buying several of their shares. I am introducing you now the PSE (Philippine Stock Exchange). It is where companies register so that the shares will be available to the public. Jollibee (ticker JFC), SM (ticker SM), PLDT (ticker TEL or TLII), Cebu Pacific (ticker CEB), and hundreds more sell their shares via PSE. Take note that those companies registered in the PSE are all Filipino businesses only. McDonalds, Microsoft, and Google are not in the PSE so there is another stock exchange for those. Foreign stock exchanges include NASDAQ (US), NYSE (US), HKEx (Hong Kong), SZSE (Shenzhen in China), and a lot more, but such are offshore which means you will be bringing out your money outside your own country, the Philippines.

Rommel: Ok...

Water Sprite: When you buy stocks thru the PSE, consider yourself as part owner of the company, Jollibee for example. But unlike bank deposits, your investment is not covered by the PDIC.

Rommel: Does that mean I will get discounts when I buy food from Jollibee?

Water Sprite: No, haha... When you buy stocks from Jollibee, you are investing. Investing involves both gains and risks. When the company gains, you gain also. When it losses, you loss as well.

Rommel: With Jollibee, it's sure win...

Water Sprite: Well, this time, yes. And in the coming years, I guess. But you must be very knowledgeable on what you are doing. You need to monitor your stock performance and decide what to do when it rises, when it falls. There are strategies on how to handle and easily grow your fund in stocks, you will find that out. I am just about to start on this myself. You have access to Internet so I hope you will read about stock market, the buying and selling of shares. I can discuss the basics of investing in stocks when you are ready. Just read something first.

Rommel: Yeah I will!

Water Sprite: One day soon you will thank me for having sharing you this idea. I hope this really will stay on your mind. Good luck!

Related Story: The Bachelor's Best Practices During Paydays

That was the closest conversation, between the Water Sprite and the young man, as they walked back to the school where the Water Sprite works. Out of the blue, she got a chance to tell someone of good financial habit. It was such an easy introduction while at the same time, it stimulated higher feelings towards sharing stories or knowledge about banks, money, stock exchange, and investing and so this article was written. The Water Sprite just has to condition her mind and be reminded of the Law of Attraction, as she once again smiles and says...


Related Story: Pamumuhay na Walang Utang, Unang Hakbang sa Pag-invest

1 comment:

  1. Admin, if not okay please remove!

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