Salve Says: A beginner's guide to investing in stocks

The stock market is fraught with risk, so it is important to arm yourself with investing smarts before you part with your hard-earned cash.

When you buy a share in a company, you become a part owner without worrying about running its daily operations.

You make money when the company earns a profit. However, you also lose money when the company does.

You can make a profit from the stock market by selling your stocks when the market prices them higher than when you bought them, Marvin Germo, a registered financial planner told ANC's "On The Money."

Share prices fluctuate every trading day depending on how the company performs. When there's negative news about a company, like when it reports a loss instead of a profit, its share price can go down.

An investor can also earn through dividends, which the company pays existing shareholders at specific periods.

"If you're a person who wants to be more passive, you want to get dividends, the more shares you accumulate, the more blocks you get, later on, the more dividends you will get also," Germo said.

The first step in investing in equities is to open a brokerage account and choose the right stock broker, said Salve Duplito, resident financial adviser of "On The Money,"

A directory of stockbrokers is available on the Philippine Stock Exchange (PSE) website.

Duplito said investors should find a broker whom they trust and works for a well-managed brokerage house that will allow them to transact easily online, which can be cheaper.

source: www.abs-cbnnews.com

When should you sell your stock shares?

When the PSE market has gone from 8,000 to 6,800 level in a span of around five months, there are bound to be nervous investors. On The Money's resident financial adviser, Salve Duplito, talks to a viewer who has one foot in and one foot out the door.

-- ANC On The Money

source: www.abs-cbnnews.com

Can you claim from two car insurance companies?

Car troubles are expensive. But with insurance companies covering the damages in fender benders, owners can get a relief with his or her own claim.

Yet, if a car owner at fault is willing to cover the other's damages, can one still claim his or her own car insurance over the same incident?

Find it out in this advice, as well as the requirements and other terms in claiming a car insurance.

- ANC, On The Money, October 11, 2015

source: www.abs-cbnnews.com

TIPS: Protecting your finances when selling a business

MANILA – There comes a time when entrepreneurs are faced with the tough decision of whether or not to sell the business or allow a major investor to buy a big slice of the pie.

According to John Bly, a managing member of LBA Haynes Standard, entrepreneurs should prepare their personal finances when facing mergers and acquisition opportunities.

To prepare for mergers and acquisitions if you are a small business owner, Bly suggests preparing enough reserves aside, putting yourself in a good credit position, and be ready to leverage your balance sheet.

“Your personal finances should be in order, make sure that you are ready for the transaction, that you have enough reserves, that you have enough capital, and that your bank supports you,” he told ANC’s “On The Money.”

Financial adviser Salve Duplito, meanwhile, advises entrepreneurs to “think cash.”

“Whether you are buying another business or being bought, being in a position where you either have your own cash or can easily raise it allows you to get more out of mergers and acquisitions,” she said.

Duplito said if you are being bought by another firm and your books clearly show them you are cash-strapped, you will be vulnerable.

“If you are an entrepreneur, conserve cash now and build your reserve funds more aggressively,” she said.

Duplito also suggests guarding your credit worthiness fiercely.

“This doesn’t mean don’t borrow, in fact, it means quite the opposite. Banks find it more palatable to lend to someone they know and have a good track record of payment,” she said.

Entrepreneurs should also know to how to determine the value of their business, or if you are buying a business, not to overpay.

According to Bly, when valuing a company, make sure you have the right advisers.

Choose advisers based on their capability, track record and credibility, not the size of their professional fee.

Bly explained that valuations are affected by continuous cash flow, recurring revenue and growth opportunity.

“The Philippine market is going to be hot in the next 10 years because of the growth opportunity. It’s a young population, it’s a growing population, and it’s education-based. The faster the opportunity for growth, the higher the valuation because as the buyer, you are buying future growth and future earnings,” he said.

Aside from numbers, Bly said entrepreneurs should also look out for other red flags in mergers and acquisitions, such as culture, bad accounting records, personnel files that are not up to date, and bad state of equipment.

source: www.abs-cbnnews.com

How to deal with rising cost of education

MANILA – The rising cost of education has tapered a bit over the last decade but it is still huge.

The Department of Education (DepEd) has been making some headway in improving the public school system but this is a long struggle, according to financial adviser Salve Duplito.

“Public schools now are still crowded, lack well-trained teachers and funding for technology,” she said on ANC’s “On The Money.”

Duplito noted that the rising cost of education presents a harsh reality, and eventually, only the very rich will be able to afford quality education in the country. The rest of the population will likely go into debt, sell assets, or forego investing for their own retirement to afford quality education.

Citing a study by Pathways for Higher Education, Duplito said some public schools provide quality education, allowing its students to beat those from the country’s top private schools in national examinations.

There are three factors for quality education, the study said: very good principal, good teacher trainings, and committed parents.

“When choosing a school, don’t just go for the ones with the best names. You can look for high quality, low cost education by considering public schools with the best principals and those that train their teachers well,” said Duplito.

To deal with the rising cost, Duplito shared these strategies:

1) Create a sinking fund for education expenses

Set up a separate account dedicated solely for tuition expenses, and transfer money monthly from your expense account to this account.

2) For future education expenses (at least 5-year horizon), put your money in a low-cost mutual fund or unit investment trust fund

Go for index funds with no entry fees and a management of at most 1.5 percent.

3) If you know how to pick stocks, look for 10 stocks that are not overpriced

Choose companies with good management, who are transparent and accountable, and whose products and business model can survive the test of time.

“The worst thing that parents can do is to depend on current income to pay for education costs. Anything can happen to us. The ‘bahala na’ strategy is the worst strategy for paying for education costs,” said Duplito.

She added that education is an investment, and its rewards are far greater than the cost of tuition.

source: www.abs-cbnnews.com

When is the right time to sell stocks?

MANILA – When is the right time to sell stocks?

A study by a chartered financial analyst showed that if momentum has been going on for around five months, stock investors should be careful.

“What I did is I did a study where I looked at all stocks across Asia and tried to identify how many months of continuous momentum before it started to slow down,” Andrew Stotz told ANC’s “On The Money.”

Stotz studied around 7,500 stocks across Asian markets except Japan, and then looked for investible stocks with a market capitalization of at least $500 million, reducing the total number of stocks to 1,200.

Tracking performance from December 2003 to June 2014, Stotz discovered that only 56 percent of investible stocks in Asia rose 5 to 7 consecutive months at least once in the past 10 years.

Forty-six percent of the time, prices were going up, but 48 percent of the time, stocks dropped.

Only 21 percent of stocks continued to give positive return for a second month while only 10 percent gave positive returns for the third month straight.

Only 5 percent gave positive returns for four consecutive months.
Financial adviser Salve Duplito explained this means there have been more losing months than winning months in the past 10 years in Asian stock markets.

The study also showed that long-lasting momentum is rare, and only 10 percent of the time does momentum last for more than four months.

“What you end up with is, let’s say about 4 to 5 months, is the period of time when momentum is fresh. But after 4 to 5 months, momentum gets stale,” said Stotz.

Stotz warned that because stock prices are rising, newcomers are at risk of crashing because they don’t know how to sell.

“The Philippines has been going on such a great run, that anytime we get great runs in the market particularly when it really starts to go [up], that attracts newcomers into the market,” he said.

To prevent crashing in the stock market, Stotz advised investors to look at fundamentals, valuation, risk and momentum.

He also advised to avoid cheap stocks that never move, and to take advantage of opportunities to make money in the market.

“If you’re into momentum investing, you’re hardcore. This is an investment style that is high risk, and if you don’t do it well, you can lose a lot of money,” said Duplito.

“Investing styles are very personal strategies, finding your own style that works with your own quirks takes time. Be patient and don’t be afraid to try new ones,” she added.

source: www.abs-cbnnews.com

5 'money-sucking loopholes' you should avoid

MANILA – There are financial loopholes that people often overlook but can potentially give their financial condition a massive jolt.

Financial adviser Salve Duplito said these financial loopholes originate from people’s “soft spots” like desserts, perfumes, or gadgets.

If left unchecked, these soft spots can turn into “money-sucking loopholes,” she said.

Here are five hidden loopholes in finances:

1) Bank charges and interest charges on credit cards and loans

Duplito said charges such as the P7.50 fee charged by banks for other bank withdrawal can amount to a large figure if overlooked.

“Don’t be fooled by the seemingly small amounts like the P7.50 ATM fee for withdrawing from another bank’s ATM,” Duplito said.

At only six transactions per week, the P7.50 ATM fee costs P45 per week, P180 per month, and P2,160 per year.

Interest charges and late payment charges on credit cards can also cause a huge dent on finances if left unchecked.

“When you pay your bill in full every due date, you don’t pay any interest charge at all. It’s like having free cash on some days of the month. But one you miss your due date or don’t pay in full, you become a borrower. That means interest charges start piling up the moment you swipe your card again,” said Duplito.

2) Installment costs of tuition, large appliances and other similar fees

In most schools, the cost of opting for monthly or quarterly tuition payments can range from P3,000 to P8,000 every year.

To reduce installment expenses, Duplito suggests saving up for tuition fee a year before you need to pay it.

She said that assuming tuition costs P100,000, the first step is to open an account in your bank and name it tuition; and then instruct your bank to automatically transfer P8,500 a month every time you receive your salary.

“You don’t think about, you don’t worry about it. The only thing you have to do is make sure you spend only what remains in your main account. By the time you need to pay your tuition, the money is right there,” said Duplito.

She said the same strategy can be applied to appliances, noting that if you are paying additional installment cost to have that item now, that’s not financially smart.

“Save first, then buy,” she added.

3) Cost of gourmet food

Duplito said expenses may take a hit if you have developed a habit of eating gourmet food.

She said that if your budget doesn’t have space for gourmet food, simple food will do.

“The cost of simple home cooking and a meal in new restaurants everyone is raving about is as far from each other as the opposite sides of EDSA on a Monday. But they all fill the stomach the same way, no matter what your Facebook friend’s post says,” she said.

4) Recurring tech expenses
Duplito warned that expenses used for technology may give birth to more expenses like apps, games, and SMS charges.

“Gadgets are pricey and in many cases, they are more expensive than buying the minimum allowable number of shares of a good company,” she said.

Duplito advises to constantly review your tech expenses and adjust when you feel like you are overspending.

5) Missed tax deadlines

Duplito said that if you look at your books in the last five years, the biggest expense is probable tax.

“That means if you miss your deadlines, your late payment fees and surcharges will be huge as well,” she said.

“Hunt those little loopholes without mercy. That’s a habit that can save you a lot of money,” said Duplito.

source: www.abs-cbnnews.com

What to do if your credit card bill has errors

MANILA, Philippines -- The first thing you should do when you get your credit card statement is to carefully check it against your records.

But what do you do when you find a "charge" that you didn't make?

ANC On The Money's resident financial adviser Salve Duplito said to contest your credit card billing, just call your bank's hotline and make a complaint.

The bank will investigate your complaint by looking at the signature used in the transaction. If the investigation showed there was indeed a fraudulent transaction or a system error, the bank will reverse the charges.

Alex Ilagan, executive director of the Credit Card Association of the Philippines, said most banks would temporarily reverse the charges as soon as you complain. This would mean you will not incur any interest and penalties while the investigation ins on-going.

Banks' investigations usually take some time. One possibility is another bank processed the transaction, which means your bank would need to coordinate with the other bank.

Duplito said the process can also become more complicated if the charges were incurred overseas.

She also reminded cardholders not to delay their complaints, or else the window where they can contest the charges will close.

"You must call the bank within 2 weeks after the statement date. Most cardholders get their billing statement a week after the statement date, so you only have effectively around a week to make sure your statement is accurate," she said.

Duplito said she did an informal survey and found most people don't check their credit card billing statements.

"What's alarming about this is the anecdotal increase in credit card fraud recently. If you were victimized by fraudsters and you didn't check your billing, you just keep on paying for their shopping sprees and not know it," she said.

Ilagan said it is every cardholder's responsibility to double check their bills and correct tghem if there are any errors.

He said the most common problem of cardholders is failing to recognize the company name on credit card bills. Some merchants use a different company name in billing statements, which add to the confusion.

Duplito suggested cardholders create a "budget tracking system" to keep track of their expenses, including credit card transactions. This will make it easy to double-check the accuracy of your billing statement at the end of the month.

However, it's a different case if you lose your credit card and charges were made before you discovered this and reported it to the credit card company.

"Card companies must simply waive charges for all errors and fraudulent transactions even before a card is reported as stolen. After all, they reversecharges from a card victimized via skimming. That's almost teh same as somebody stealing your card from you physically," Duplito said.

Most of these problems are likely to lessen when credit card companies shift to a chip-based or EMV cards, but this will happend in 2017.

She noted hybrid-EMV cards are still be vulnerable to fraud, so the only way to go is purely EMV cards.

"Closely watch which banks and merchants truly walk the talk of valuing their customers. Those are the companies that will put their money where their mouths are and be the first to shift to a purely chip-based card," she said.

source: www.abs-cbnnews.com

Little-known trick to get more out of your credit card

MANILA, Philippines - Credit cards can be your downfall, but it can also be a fantastic financial tool. But it depends on you if you maximize the card's use.

ANC On The Money's resident financial adviser Salve Duplito said if you know how to use your credit card, you can make money out of them.

She revealed a little-known trick: taking advantage of your credit card's billing cycle.

However, she warned this trick is not for those who are having budget problems.

"If you know how to use this trick, you can use your credit card to buy something today, enjoy it or make money off it for 40-45 days, and not have to pay for anything in cash," Duplito said.

She noted that every credit card company gives you about a month to use your card before it starts billing you for your purchases.

"The credit card company gives you around 20 days to pay for it, after the billing cycle ends to pay for the purchases within the cycle. If you swipe on July 1, that's 44 days of virtually free cash," she said.

The key is whether you can keep the end of your billing cycle in mind.

"If you make your purchases just after the cycle ends, you lengthen the 'free float' and take the advantage of free money from your credit card," she said.

The timing of the transaction would matter a lot.

Duplito said if you can delay your purchases to make it on the first few days of your billing cycle, then you are really taking advantage of this financial tool.

"Unfortunately since most people don't pay close attention to the fine print, very few know how to take advantage of this feature inherent in all credit cards," she said.

This trick would work only if you don't run a balance on your credit cards, and if you pay your credit card bill on the due date.

"The moment you become a 'revolver' (in bank speak, this means you're someone who doesn't pay your credit card bill in full) or a 'borrower,' the 'free float' disappears," Duplito said.

Another thing to keep in mind is if you fail to pay your credit card bill in full, the credit card company will start charging you interest on the first day of your billing cycle.

"Assuming you failed to pay in full, if you bought an item on the first day of your billing cycle, the credit card company will start charging you interest on the day you make the purchase, not during your payment due date, not during the end of your billing cycle. Interest starts ticking like a taxi cab meter," she said.

For those who are having budget problems, Duplito noted one of the reasons why you are paying too much interest is that your credit card payment is due when your salary is almost depleted, like the 17th or 27th.

Duplito suggested calling the card company to adjust your due date, so it falls right before you get your salary.

However, she warned this is just a stop-gap measure. "Nothing beats swiping only when you have the cash to pay for an item. Always remember, credit cards can be your best friend but only if you know how to use it wisely," she said.

The government will soon have a way to aggregate all credit behavior into a single database that all financial institutions can access.

"All your good behavior, as well as mistakes, will be visible to all lenders. Your credit score can either cause you to have better and cheaper access to credit. But it can also cause a nightmare if you credit record is not clean," Duplito said.

source: www.abs-cbnnews.com

What kind of investor are you?

MANILA, Philippines – In the easy language of the markets, those who buy and sell stocks can claim the title “investor.”

But according to financial adviser Salve Duplito, there is a thin line between being an investor and being a speculator.

To know the difference between the two, Duplito said you should answer this question: When do you buy a new stock?

If the answer to this question is when you think its price is about to go up, when it has started to go up, or when you hear about its great returns in the past years from a friend, then you are probably more a speculator than an investor, Duplito said.

She noted that researching and reading annual reports are practiced by investors because they calculate what a stock is worth based on the value of its businesses, rather than gamble that a stock will go up in price because someone will pay more for it.

“Taking the time to read reports shows you’re serious about investing as opposed to making a quick buck,” she said on ANC’s “On The Money.”

Vandermir Say, a shareholder at Berkshire Hathaway, agreed with Duplito, saying taking the time to do research is what makes an investor.

“If one is honest to oneself, it’s not that hard to figure out. Like reading annual reports, it’s either you’re reading them or not. If you’re not, it’s hard to call yourself an investor,” he said.

“You can’t call someone who engages in numerous one night stands as a sentimental guy, that is being applied to speculators,” he added.

Salve also noted that there are two types of investors, one who is committed to giving time and attention to investing and acknowledging that good research will increase returns or one who is content in being a passive investor enjoying possibly less return but putting in lesser time and work as well.

“Most of us want to enjoy high returns with less work or no work at all. Hence, the search for hot tips,” she said.

source: www.abs-cbnnews.com

What are the daily habits of billionaires?

MANILA, Philippines – The world’s richest and most successful people also get 24 hours a day, but what do they do in those hours that define their success?

ANC’s financial advisor Salve Duplito said the world’s richest man, Microsoft’s Bill Gates, uses most of his hours reading the Wall St. Journal, New York Times and the Economist.

The 58-year-old Gates also reads at least 100 emails per day.

His net worth is estimated at $76 billion, according to Forbes.

Carlos Slim, the second richest man in the world, wakes up early every day to drive himself to work.

The Mexican business magnate also personally makes daily phone calls to his associates.

His net worth is valued at $72 billion.

Zara’s Amancio Ortega, meanwhile, goes to the same coffee shop everyday, wears simple clothes, and eats lunch with his employees in the company canteen.

Like Slim, American billionaire Warren Buffett also drives himself to work everyday, and at 83 years old, he still arrives at his desk like clockwork at 8:30 a.m.

Duplito, citing Thomas Corley’s book Rich Habits: The Daily Success Habits of Wealthy Individuals, said although the wealthy come from widely different backgrounds, studies show that they have common habits that separate them from those living in poverty.

Among these habits are waking up early, reading, and writing down goals.

According to Corley’s study, 44% of the wealthy wakes up 3 hours before work while only 3% of the poor do so.

Reading is also a habit of the wealthy with 86% of them reading reams of information on a daily basis compared to only 26% of the poor.

Most wealthy and successful individuals spend their reading time of at least 30 minutes or more each day for education and career.

Wealthy people are also more goal-oriented, studies show, with 81% of them maintaining a to-do list compared to only 19% of the poor.

Eighty percent of the wealthy and successful are also focused on achieving a single goal compared to 12% of the poor.

Corley’s study also showed that most wealthy people avoid watching reality TV compared to 78% of the poor that do.

Duplito noted that this is an indication that “the huge divide between the haves and the have-nots is not money, but the mindset.”

“Mindset is also the one thing that can help a poor person get out of poverty. If a person knows how not to live poor even when he doesn’t have cash, eventually success and wealth will be well within his reach,” she added.

source: www.abs-cbnnews.com

Paying bills using credit card? Here's how to avoid debt

MANILA, Philippines – Paying monthly bills using your credit card may provide convenience to some, but others find themselves more in debt.

Financial advisor Salve Duplito said there are dangers in automatic bill payments because it gives the illusion that you can spend cash on hand without worrying about monthly expenses.

“It gives you until the end of the month or more than that to settle your utility bills, that means you get a false sense of spending leeway,” she said on ANC’s “On The Money.”

She said there is also a risk of getting a monthly “bill shock” if you fail to monitor utility rates.

“When electricity rates go up suddenly, or you get a busted pipe without knowing it, you are likely to get bill shock,” she said.

Being unable to pay credit card bills in full every month also poses as a problem because interest piles up.

To avoid being in debt while maximizing the benefits of automatic bill payments, Duplito advised to be clear on how much your total utility budget should be.

She said reviewing credit card statements in the past year and adding up all utility bills in a month will help.

That amount should be then given a buffer of 20 percent, and should be put aside as a “no touch utility money.”

Duplito added that it should be a habit to check your credit card balance every day if possible, or every week of your schedule is really tight.

“This is a must, if you can access your Facebook account, you can check your credit card account. It won’t take more time than checking your News Feed,” she said.




For automatic bill payments to work, Duplito also suggested spending only a small fraction of your monthly income and be conscious of how much you are spending at any time.

If you find yourself in debt because of credit card payments, pay off as much of that debt as soon as possible by getting a lower interest bearing loan like a salary loan with the Social Security System.

She also said one should cash in any investment you may have and pay off your debt.

“No investment can earn a guaranteed 42 percent per year. That’s why it makes sense to pay off debt first before investing,” she said.

source: www.abs-cbnnews.com

Top 3 financial moves you should make in 2014

MANILA, Philippines – As rising interest rates and global financial issues loom in 2014, financial advisor Salve Duplito said there are top three financial moves that Filipinos should consider making in the new year.

Rebalance your investments

Duplito said shifting funds to other investments and cash saving instruments depending on your needs is a good idea to start the year.

“If you have short-term needs like tuition, shift your money into cash or near cash instruments like money market funds or time deposits,” she said on ANC’s “On The Money.”

“Make sure you have cash reserved for buying assets when the opportunity looks right,” she added.

Pay off consumer loans

Duplito said paying off consumer loans should be prioritized because now “is the worst time to be in debt.”

“For long-term loans, lock in at the lowest rate possible as interest rates may be on the uptrend,” she said.

Duplito also noted that one of 2013’s black smudge is credit card debt. As of June 2013, Filipinos spent P150 billion using their credit cards.

Make sure you are not under-insured

Lastly, Duplito said you should protect yourself with insurance before investing your money.

But she also stressed to think twice before subscribing to an investment-linked insurance at the danger of under-insuring yourself.

“Rethink your strategy, protection should come first before investing,” she said.

source: www.abs-cbnnews.com

How students can maximize their daily allowance

MANILA, Philippines – Students spend a bulk of their allowance on mobile phone load, food and transportation, but a financial adviser said there are a number of smart ways to maximize their daily allowance.

On ANC’s “On The Money,” Salve Duplito said maximizing a daily allowance takes effort and discipline, and may require small changes in your daily routine.

To avoid spending much on prepaid load, for instance, Duplito advised sending emails or using the landline instead of sending text messages when you are at home.

“If you have Wi-Fi at home, email instead of sending text messages. Use the landline, don’t let your fingers spend all your money. Small expenses bunch up to big nightmares over time, spend more time talking to your friends face to face rather than on the phone,” she said.

Messaging apps that allow free text and calls are also useful when trying to cut down on expenses.

For food, Duplito suggested bringing cooked food instead of buying meals. She said even Makati yuppies have adopted this practice to save on their daily spending.

Commuting to school also costs time and money to students, and Duplito suggests that time management and planning play important roles for more efficient travel.

“Wake up early and plan well so that you have plenty of time to take public transportation,” she said.

Duplito said there are two ways to make a big impact on finances: increasing income or reducing expenses.

“If you want to maximize your allowance, you have to do both,” Duplito suggested.

She recommended tracking down weekly expenses on a notebook to monitor the items bought, cost per item, and time it was purchased.

“At the end of the week, your notebook should tell you exactly how much you are spending and on what, and what time you are most vulnerable to frivolous expenses,” she said.

source: www.abs-cbnnews.com

Want to make your first million? Here are some tips

MANILA, Philippines – Students planning for their future should not only start saving, but should also consider investing their money.

On ANC’s “On The Money,” financial planning expert Salve Duplito stressed the power of compounding, saying that while saving up is important, there are bigger rewards in investing.

Savings as little as P25 every day from daily allowances can make earning that first million possible before the age of 50 if it is invested.

“If you start saving P25 every school day starting today and invest that at an 8% return every year, your little savings will grow to a million by age 49,” she said.

Putting money in individual stocks of companies that you are familiar with should also be considered.

“If you invested P25,000 in Jollibee in 2003, your money would be worth around P234,882 by early September 2013,” she said. This amount does not include dividends paid out by Jollibee over the period.

“This historical returns in no way guarantee that you will enjoy the same earnings in the future, but they show you what can happen if you study investing and not afraid of losing some money while learning,” said Duplito.

She noted that students are in the best position to invest because they have the luxury of time to learn, to make mistakes, and to recover.

Students with huge savings and are not breadwinners of the family can also benefit from the power of compounding.

For instance, a student with P200,000 savings can invest half of the amount in direct investments in blue chip stocks or equity funds.

The amount of P50,000 can be placed in a time deposit or money market account, while the remaining P50,000 can be used to start a business.

Duplito advised that personal and business finances should be separated.

“This way, you won’t spend money on gadgets you suddenly think you need. When you do that, you cannibalize your own business and at the same time, you can also avoid putting all your money into the business and forget to save for your future,” she said.

When eyeing that first million, Duplito suggested laying out figures on an Excel worksheet to figure out how much to invest every month and what kind of returns to target to reach the goal.

“Let interest from your investments earn interest and you will see the miracle of compounding by the time you reach 30,” she said.

source: www.abs-cbnnews.com

Is losing weight linked to gaining wealth?

MANILA, Philippines – Is there a correlation between weight loss and wealth gain?

On ANC’s “On The Money,” co-host and finance planning expert Salve Duplito said losing a little weight does nothing to wealth but those who have lost significant weight showed a significant increase in their net income, citing a study in the US.

The study, conducted by Jay Zagorsky of Ohio State University’s Center For Human Resource Research, said “individuals who lose small amounts of weight experience little change in net worth, but those who lose large amounts of weight have a dramatically improved financial position.”

Duplito, however, believes more studies are needed to find the direct correlation between biology and economics.

“This study alone does not in any way indicate that those who have weight problems are in debt or have financial trouble, and those that are thin lead perfect lives,” she said.

Despite this, Duplito said there are similarities in the process of losing weight and gaining wealth, saying both take time and taking shortcuts may bring disastrous results.

“Fad diets hurt our wealth while being greedy and getting into scams hurt our wallet. Exercise won’t make us thin in a day. Investing, at least legally, won’t make us rich in a day,” she said.

She also said “consistency counts” in trying to lose weight and in trying to build wealth.

Duplito said losing weight and gaining wealth are simple to do, but noting that “simple” and “easy” are not the same.

“It takes a lot of discipline…If you can lose weight, you can dig deep with the same discipline to control your spending and keep investing regularly,” she said.

source: www.abs-cbnnews.com