Investing in Experiences: Stock Market Challenge

Hi guys!

Today, I want to talk about JCFAP's Stock Market Challenge, a national wide portfolio challenge. The mechanics are simple. Participants must make a team of 3 and trade using the Investagrams platform. Each team will be given PHP 100,000 (virtual money, of course) to trade with. The goal of the competition is to get the largest profit from your portfolio starting October to December 2016.

At first, I was excited and optimistic in playing. My teammates and I have been investing for quite sometime and so we pretty much know the basics. However, trading is different from investing and this challenge made me realize that I'm not a good trader (at all). The challenge for us students is that, university demands a lot of projects and outputs from us that, in all honesty, it is hard to find time to monitor the market movement. 

We were mostly busy with activities, exams, and reviews. Sometimes, we tend to forget to check our Investagrams portfolio. Although we have enjoyed some gains, there were more losses than what was expected. This is also due to the current market condition - The US Presidential elections and other local government uncertainties greatly affected the short term volatility (or the price movements) of the market even though the company's are actually doing well.

The competition is still not over and we will still be playing with the SMC, but I realized that investing is the strategy that would work best for me. I would rather stay in the market for the longer term as this suits my financial needs more.

How about you? Are you a trader or an investor?

Disclaimer: This are my personal thoughts about the competition. Credits to JCFAP for the image above! :)

The Investing Perspective: Should students join a "Paluwagan"?

What is "Paluwagan"?

      Paluwagan is a Filipino term for a saving or investment method commonly practiced in the Philippines. Paluwagan comes from the root word "luwag" which means loose or allowance.

How does it work?

      It starts with a group of people who will pool a fixed amount each week. This amount will be given to 1 member of the group and that will be his income from the paluwagan. On the next week, the group will be giving the same amount in the pool and this amount will be given to the next person on the list. How much you earn from the paluwagan depends in how many yo are in the group and how much you put in it each week. most of the time, the main person in-charge keeps track on who and when someone will be getting his share and will inform that person.

Is this a good investment option?

     Some analysts or advisers might tell you that paluwagan isn't a good investment option since it doesn't really have a clear sense of the time value of money and, that because the pool will be given to different persons each week, it would seem that the first money will be benefitting the most.

   

     But to me, I don't like to think of it as an investment because it's NOT! It won't be sufficient for you to finance your goals and if you only have a paluwagan as your investment then you've got to think of other ways to grow your money.

    I like to think of it as more of a saving method than an investing one. The money you put on the pool will be  keep for safekeeping and in a few weeks time it will be returned to you. If your give 100 pesos of 10 weeks in a paluwagan, you will be getting 1000 pesos on the 11th week. in that case, you don't really earn anything instead your only saved the 1000 pesos from getting used for you current whims and wants.

When should students join a paluwagan?

   Paluwagans aren;t necessarily a bad thing, but what students should understand is that before joining anything that involves your finances, make sure that you have gather all the important details such as how much you will be needing to contribute and when or how you will be getting the income. The most important tip that I can give you is only join a paluwagan if you have SPARE MONEY or SPARE ALLOWANCE. 

   Don't join one just because everybody else is doing it. Join for the experience, yes, but don't venture on something that you can't commit to. Remember that this involves a group of people and they are dependent on your contribution as you are with theirs.

Disclaimer: This post is based on my options only. The images is from google and from a site called onlinepaluwagan.blogspot.com so credits to them! :)

Investing in Experiences: UP INVST Updates | The Investing P.O.V.

Hi guys! Hope you're having a great week!

This past few weeks have been so hectic with schoolwork, extra-curriculars, and lastly competitions. And speaking of contest, my friends and I got into the top 10 teams for the UP INVST which is an annual research and valuation competition. We are so delighted to have come this far and are pushing our gears to get to top five. 

It's really a challenge because we were given 2 weeks to value BDO Unibank. It's a bit complicated than normal manufacturing or retailing companies but with a little bit conviction we will sure be able to make an awesome valuation.

That's all for this week. Sorry for such a short post. The deadline for our paper is on November 21, so now is definitely our crunchtime. I hope that you guys are doing well with academics as well. and take the opportunity to join competitions it will be a great experince.

For more info about this event: 

When in Manila http://www.wheninmanila.com/up-jfa-intercollegiate-valuation-and-strategies-competition-invst/

UP INVST FB Page: https://www.facebook.com/UPJFA.INVST/?hc_ref=PAGES_TIMELINE

Disclaimer: Credits to UPJFA for the poster. 

Investing in Experiences: How to be a Better Public Relations Officer? | The Investing P.O.V.

I had my fair share of PR or Public Relations duty when it came to events but I can't say all of them went smoothly from me. So many factors came to play but at the end of the day, it's the experience that matters.

I'm an accountancy student which meant that most of my knowledge if rooted to accounting and finance. If I talk to guest  with this topics, i'm good. But what happened was I was assign to PR for advertising and marketing professionals. It was quite an experience. A pretty mixed one at that too.

So what can you do to be a good PR?

1.) Do your Research
Before the event itself, make sure that you have done your fair share of homework about the industry and the speakers you will be meeting with especially if your not keen to their field. This will help you answer their questions and will let you engage on casual conversation with them while, let's say, waiting for their turn to talk to the audience.

2.) Be Observant
Being a PR also means that you'll be taking care of them while they're at the event. From the time they arrive until they depart for the vicinity. You have to be observant and attentive to their needs. Initiate an offer of food and beverages or may a bottle of water. The little things will be much appreciated.

3.) Be Bold
If you've done your research and if your observation skills are on point, then, the final step would be to just be bold. Speak up! engage with them. I mean, sure their respected people from the industries but their also humans. Just make sure that you stay respectful and polite. 

That's all for this week! I hope you guys can apply this on your next PR assignment! :)

Disclaimer: Found the image on Google images; originally from http://plaidswan.com/proving-pr-works/

The Investing Perspective: The Not-So Perks of Overspending | The Investing P.O.V.

Hi guys! Welcome back to my blog! I hope that you are all spending a blessed All Saint's day here in the Philippines and are having an awesome Halloween on your country as well!

Today, I want to talk about Overspending. We'll tackle what it really means, why it happens and how to stop it.

What is Overspending?

Basically, overspending means living outside of your means. You are spending more than what you really have. If you were given Php 500 allowance for the week, you most likely have spent Php 600 causing you to either ask for more allowance or borrow money from a classmate or friend.

Why do we Overspend and How do we stop it?

1. Misconception of having lot of money
This happens especially to those students that are given monthly or weekly allowances. At the begin of the month or week, there's this feeling that you have so much money to spend with! (which is obviously not true) And so, he/she might be tempted to use it on unnecessary things. You need to pause and remember that this will be your allowance for a span of time and assess first how much you'll need everyday, making sure you've covered it first before spending that rest on what you want.

2. You don't have a clear Budget to begin with

For me, this is the number 1 reason why a person overspends. I get my allowance on a monthly basis and before the start of every month, I would manage that allowance by making a budget (see: How I budget my Allowance) to make sure I can cover all my anticipated expenses, use a portion of it to save and invest, and the rest goes to my daily expenses. I will always save first before spending.

3. You have a Budget but it's not correct
I'm guilty with this one on a few occasions, you might have not anticipated correctly or underestimate/overestimated you budget. It's important to update your budget regularly so that you can be sure it really works for you!

4.Need to keep up with the current trends

Maybe, there's a new phone coming out? or a new game console? Maybe it's because there's a new fashion trend and all your friends are starting to wear it. Keeping up with the trends, make a person, especially, young adults feel like they belong to their group or circle but it's not necessary to do so. Trends will most like come and go, and by the end of the month you'll find yourself buying the next big thing. Sure, if you can afford to do so, then that's good, however, if you know that this is beyond your budget then you better think twice! 

5. It's Human nature?
Mr. Edric Mendoza of ANC addresses this as, people always wanting for MORE. When a person has means they would start a cycle of greed and end up wanting more. However, we also have a capability to change that way of thinking and focus more on what we need rather what we want. 

For me, overspending isn't just a situation a person faces, it could also be a lifestyle for other people. It's important to break from it while we're still young, that way, we are surely one step closer to financial freedom!

Thanks for tuning in! What financial concept would you like to talk about next time? Comment them below and see you next Tuesday!

Note: Found that cute little piggy bank image from Google, credits to its owner!