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ANC On The Money
As I watch the BLOODBATH that is happening to my stocks portfolio, I can’t help but remember my first introduction to financial planning way back in August 2007 – in the thick of the Asian Financial Crisis and with every single stock in the market sinking so low – when I blindly (but with faith) invested in a BDO Balanced UITF.
I had doubts during those days. My daily NAVPU ( Net Asset Value Per Unit) kept falling every single day!
After five years though, I was able to register a gain of 46%. I would have gotten double had I invested in equity, but I was okay with that.
Now, I understand why Bo Sanchez is insisting that these are glorious days and if I keep buying each month, I will seriously
earn big time in the future! (Hey, it happened before!)
(If you want serious advice on how to invest in the stock market, click TrulyRichClub.com – Do You Want to Gain Financial Wealth and Spiritual Abundance at the Same Time?
Have you heard of the Kurot Principle?
I haven’t.
Like I posted before, I have seriously mishandled my finances for years.
Shopping made me happy! (It still does!)
The mall was my second office and if it had a bundy clock, I would have perfect attendance!
The following is an excerpt from the book “Kontento Ka Na Ba Sa KaPERAhan Mo?” by Vic and Avelynn Garcia which opened my eyes to how I seriously mismanaged my money.
I got this book (along with “Kasusweldo Pa Lang, Ubos Na and “Diary ng Panget” – wala lang-no relate lol) at the National Bookstore.
Please read and hopefully, makurot ka!
Ano ‘yung Kurot Principle?
Ay, ang ganda nitong Kurot Principle na ito.
To better understand this, I will tell you a story of a person na balak bumili ng cellphone worth P1,000.
Nagkataong mayroon siyang P100,000 na savings. Puwede ba siyang bumili ng cellphone?
Puwede, kasi yung P1,000, kurot lang ‘yon sa kanyang savings.<
May pangalawang taong balak bumili ng cellphone. Ang bibilhin niya ay worth P1,000 din.
Mayroon siyang savings sa bangko na P1,000. Bumili siya ng cellphone.
Anong tawag dun?
Dakot na ‘yun! Dinakot lahat ang pera niya!
May pangatlong tao, balak bumili ng cellphone, pero walang savings.
P1,000 lang naman ‘yung bibilhin niya. Bumili siya.
Anong tawag ‘dun? Utang na ‘yun!
Ang tanong: ano’ng prinsipyo ang ginagamit mo sa buhay mo? Kurot, dakot, o utang?
Magtataka pa ba tayo kung bakit tayo naghihirap o baon sa utang?
Ang gagaling nating dumakot!
Ang gagaling nating umutang!
Gusto mong yumaman? Starting today, matutong kumurot.
Kapag may bibilhin, dapat kinukurot lang!
Nagkakaintindihan ba tayo? Kapag ginawa mo ito, pangako, yayaman ka.
Pag-aralan nating muli ang mga pinakamayayaman sa Pilipinas, ang Chinoy.
Again, bakit sila mayayaman? Ang gagaling nilang… kumurot!
Tayo ang gagaling nating… dumakot!
Sasampolan kita…
May dalawang negosyanteng nagsimula ng kanilang negosyo, isang Pinoy at isang Chinoy.
Ang capital nila pareho ay P100,000.
Sa unang buwan, si Pinoy, kumita ng P10,000.
Ano ang iniisip bilhin? Cellphone.
Si Chinoy, kumita rin ng P10,000. Ano ang gagawin niya? Idadagdag niya sa puhunan.
So magkano na ngayon ang puhunan ni Chinoy? P110,000! Si Pinoy, P100,000 pa rin, pero may bago siyang cellphone. Ang ganda!
Ituloy natin.
After a few months, maganda ang takbo ng negosyo. Si Pinoy kumita ng P50,000. Ang Pilipinong may P50,000, ano ang balak bilhin? Bibili siya ng home theater, DVD, at LCD TV!
Si Chinoy, kumita rin ng P50,000. Anong gagawin niya? Idadagdag uli sa puhunan niya. Magkano na ang puhunan niya? P160,000 na!
A few months later pa, ang Pinoy kumita ng P150,000! Ang Pilipinong mayroong P150,000, ano ang balak bilhin? Second-hand na kotse o pang-downpayment sa bagong kotse.
Ang Chinoy, may P150,000. Ano’ng gagawin niya? Idadagdag sa puhunan! Magkano na ang puhunan niya? P310,000!
Buwan-buwan, si Pinoy kumikita. Dagdag siya ng dagdag ng gamit. Magkano ang puhunan niya? P100,000!
Si Chinoy, buwan-buwan kumikita. Ano ang ginagawa niya? Dagdag ng dagdag sa puhunan niya.
One day, Chinoy was able to save P1 million! So ginawa niya, he approached one supplier and said, “Supplier, kung bibili ako sa‘yo ng worth P1 million, bibigyan mo ba ako ng discount?”
Hulaan mo kung ano ang sasabihin ng supplier. “Of course, ang dami mong bibilhin, kaya bibigyan kita ng additional 5% discount!”
Ngunit naisip ni Chinoy, “Hindi naman yata maganda na sa akin lahat ang 5%. Ang gagawin ko, bibigyan ko ang customers ko ng 3% discount at sa akin na lang ‘yung 2%.”
Ibig sabihin, bababa ang presyo ng kanyang mga ibinebentang produkto.
It just so happened na magkatabi ang tindahan ni Chinoy at ni Pinoy. Pareho sila ng mga produktong ibinebenta.
Given the situation, kanino kayo bibili?
Kay Chinoy, because it’s cheaper.
Ano ang mangyayari sa negosyo ni Pinoy? Malulugi na. Kasi mas mahal ang kaniyang produkto.
Ano ang gagawin niya? Ibebenta niya ‘yung kotseng nabili niya ng P150,000.
Sino ang bibili? Siyempre, ang maraming pera, si Chinoy.
Tatawaran pa ni Chinoy ang kotse ng P80,000. Dahil gipit na si Pinoy, kahit palugi ay ibebenta na rin niya. Si Chinoy ngayon ay nagkaroon ng kotse na murang-mura lang!
After a few months, mauubos din ang P80,000 ni Pinoy.
Ano ang susunod na gagawin ni Pinoy? Ang home entertainment niya ay ibebenta na rin.
Magkano? P20,000 na lang.
Sino ang bibili? Si Chinoy. Darating ang araw na pati ang cellphone ni Pinoy ay ibebenta na niya. Magkano niya ibebenta? P2,000 na lang!
Isang araw, magsasara na ang negosyo ni Pinoy. Ano ang gagawin niya? Malamang, magtatrabaho na lang siya kay Chinoy.
Ito ang kuwento ng bansang Pilipinas!
Naalala mo pa ba noong araw, mas mayayaman ang mga Pinoy kaysa sa mga Chinese.
Bakit nagbago?
Ano ba ang problema natin?
Dakot kasi tayo ng dakot! Sila, kurot lang ng kurot!
Mayroon kaming naging participant before na nagsabi, “Sir, hindi naman totoo ‘yan! I know a Chinoy,
he drives a BMW. That’s a P5 million car! Kurot ba ‘yun?”
Malamang kurot ‘yun!
Noong binili niya ‘yun, mayroon na siyang P100 million na savings! So kurot lang ‘yun! Nandiyan ka pa ba?
Isang Kahig, Isang Tuka
Saan ka makakakita ng mga taong isang kahig, isang tuka? Saan? Sa squatters area? Magtigil ka!
Gusto mo’ng makakita ng mga taong isang kahig, isang-tuka?
Sa Ortigas, sa Makati, may makikita ka.
What do I mean?
Kapag hindi ka sumuweldo ng isang buwan, mabubuhay ba ang pamilya mo?
Kung wala kang credit card, kung mawalan ka ng trabaho ngayon, ilang araw ang aabutin para mabuhay ng matino ang pamilya mo? Kapag nawalan ka ng suweldo, patay ka!
Ang mga Chinoy, kahit hindi muna kumita o magnegosyo, mabubuhay ng maganda. Bakit po? Kasi many years ago, kumahig sila ng kumahig at tumuka lang konti. Kaya marami sa kanila ngayon, tuka na lang ng tuka.
Maraming Pinoy, kapag hindi tayo kumahig, wala tayong tutukain.
Ito ang masakit–sometimes, kahit matanda na tayo, kahig pa rin tayo ng kahig.
Gaano karaming Pilipino ang 60 years old na ay trabaho pa rin ng trabaho?
Puwede ba, simula ngayon, kumahig ka nang kumahig at iwasan munang tumuka.
I-deprive ang sarili ng kaunti.
Ang pinakamasakit sa lahat ay ito–one day, you want to work, but you cannot work.
You are already old. Why? Nagpakasasa ka kasi noong bata ka pa. Inubos mo na lahat ng lakas at kalusugan mo sa bisyo.
Tanong: Masama ba’ng bumili ng mahal?
Sagot: Hindi! Basta kinukurot lang! Kapag nakakita ka ng kasamahan mong naka-Nike shoes, huwag mong husgahan kaagad iyong tao! Malay mo, kinurot lang niya iyon.
At the end of the day, what is happening to other people is not important. What’s more important is what is happening to you.”
So from now on, I will only spend ng pa-kurot.
What about you?
You might also want to read “ARE YOU LOLA PENNY OR LOLA PILAR?”
or one of my financial blunders (I will write about another blunder about me getting into HYIPs and losing bad in the future.) – “MY BROKEN iPAD AND MY MONEY MISTAKE”
This is great post, now I know the difference.. I would infidelity go for Kurot principle. Thanks for sharing:)
So hard to do the kurot principle ano? I was at the mall kanina and I was actually going inside a favorite store (kasi naka-sale 20% off ) when I stopped myself. Hayy, but the regret when I got home ha-I was imagining myself using the shirt I decided not to buy! But I will get over it and hopefully, if I still like it so bad and would go back there, nabili na and out of stock na siya haha
Do you notice how there are only 2 letters that separate 'kurot' from 'kurakot'? I think the most infamous Chinoy today got the financial advice mixed up. LOL
Haha auntie, I know. And btw, I have been around those kinds (every day?) too hehe
Ah. so timely. Just when I needed an advice to handle my finances. It gave me an idea to start a business…I pray with God's leading I could start my own. Thank you so much Mari, this is a God given post. God bless!
I dream of having a business too someday Glenda. I just have a lot of fixing up to do because I seriously mishandled my money in the past years.
Hello again,
Glad to be back.. I've never heard of Kurot Principle but if it works and people are able to save money then go for it. I used to be a big shopper but in this tough economy, we have all learned the heard way… I'm glad you are taking care o your financial future. Kudos!
Eliz
I've heard that from Francisco Culayco (if my memory serves me right), an economist. I am always trying to practice it but sometimes, I am always tempted to use my savings..
Hay naku, i've made very bad choices recently. Kahit na more financially aware na ako these days, I still make a lot of mistakes. Pero the difference I am more quick to catch it. Eventually, sana less and less na ang mistakes.
I've got a question sis, do you have JFC stocks? Are you keeping it or selling it now? Don't know whether to cash out now kasi parang di naman bababa enough para makabili ng dagdag or bumababa na ba sya significantly para ibenta ko na at ibili ng iba. I didn't renew my TRC subscription so i'm not sure what Bro Bo has to say about it. hehe.
JFC is not included anymore in Brother bo's SAM pero I think maganda naman siya.How is your port? nega ako sis, hayyy…Try this FB group https://www.facebook.com/groups/pinoyinvesting/ Sometimes so eager ang mga members sinasabi ang mga recommendation sa TRC and pati Citisec.
Dahil sa JFC hindi pa ko nega. Pero kumita na ko sa kanya (pero di naman ganun kadami nabili ko dati). hindi na ko makabili kasi sobrang taas na ng presyo nya. hehe. thanks for the link 🙂
Natamaan ako dito ah! Though I refrain from shopping now, natamaan ako because our payment for our house's equity deducts a big percent from our income. Soon, though, pagkatapos ng 11 more months of equity, parang kurot nalang yung amortization. I want to follow the footsteps of the Chinoys! Talagang it's true that's why they're so successful!
I have read this before and I still love to read it over and over again. We always try to be frugal un nga lang medyo nanaig pa din ang wants. But unlike before nakakaya ng magtimpi. Nagiisip talaga kami ng maraming beses if talaga bang kelangan na. I want to work at home but I need to build an emergency funds muna. Tama nga naman ideprive muna ang sarili because it will pay off later naman.
I've read about this in my friend's facebook wall. The kurot is really a challenge but a very wise financial management.
This is very helpful and it's truly wiser to practice this principle than to make utang in the end!
Ah yes, in short, di dapat ubos biyaya. May mga taong one day millionaire talaga. Ako marami din gustong bilhin…I have the money…pero am thinking, after ko mabili, what now? Pag nagipit ako, where would I get money? I've experienced my financial low some years ago kaya now, bago bitawan ang pera, kailangan worth it talaga or pwede pagkaperahan hehehe…
I can see that my husband follows more of the kurot principle. I'm not the same but I do follow his lead because I understand his point.
Wow this is soo relatable.. I'm not getting any younger and I know I need to save up for my future? I need to do this KUROT thing LOL.. Thanks for sharing tita! It's an eye opener !!!! gotta stop impulsive buying!! and too much shopping!
Very useful post! Simple yet it resonates well. What my husband and I would often use is "May and Must Buy." 😀