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Showing posts from March, 2017

Golden Rules of Investing by Peter Lynch

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Peter Lynch is an American investor and a mutual fund manager. He managed the Fidelity Magellan Fund from 1977 to 1990 from $20 million to $14 billion. He reportedly beat the S&P 500 index benchmark in 11 of those 13 years. http://www.investopedia.com/university/greatest/peterlynch.asp At the end of his book, "Beating the Street", he wrote his golden rules of investing: Investing is fun, exciting and dangerous if you don't do any work. Your investors edge is not something you get from experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you understand. Over the past three decades, the stock has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd. Behind every stock is a company, find out what it's doing. Often, there is no correlation between the success o…

Basic Bookkeeping for Non-Accountants - Part 2 Using the Books

Now we discuss how to use the books. There are 5 kinds of books usually being used - general journal, general ledger, cash receipts, cash disbursements and sales journal. To better illustrate how to use the books, let's have an example. Juan wanted to open an office supplies store. These are his transactions: January 25 - Completed all registration with DTI, BIR and other necessary permits amounting to P6,000. January 26 - Opened a bank account with a starting capital of P10,000.January 27 - Paid printing of official receipts (OR) and sales invoices amounting to P1,500.January 27 - Purchased his inventory amounting to P30,000 (Use only one account but have to be broken down into details such as bond paper, pencils, pen, crayons, writing pad etc.)January 27 - Purchased stands, tables etc. for his store totaling to P10,000.January 27 - Purchased company signage, flyers, calling card costing him P3,000.January 29 - Paid laborers to fix and clean his store costing him P5,000.January…

Basic Bookkeeping for Non-Accountants - Part 1 Understanding the Basics

Before we discuss how to use the kinds of books of accounts, let us first understand the basics of accounting. 
Accounting Equation
In accounting, there's the equation Assets + Liabilities = Equity (A+L=E). The equation is also useful in personal finance when preparing your net worth or net equity, just deduct liability instead of adding it. Assets refer to things or resources that the business owns and which are acquired either through debt (liabilities) or your own money (equity/capital). Example of assets are cash, properties, investments etc.
Chart of Accounts
This is a listing of all accounts to be used by the company. This is more specific like cash, building, loans, capital etc.Chart of accounts usually consists of the following:
Assets - current & non-current Current assets - includes cash, accounts receivables, inventory and other assets which are readily convertible into cash within one year. Cash - can be classified as on hand and in bank. Accounts receivable - these a…

Life Insurance: Policy Types

Basically, there are three types of life insurance policies (Term, Whole life, Endowment) or we call it as the traditional life insurance. But now, insurance companies began offering a non-traditional life insurance (VUL). 
Term Insurance
A term policy is a pure life insurance covering a specific period of time. The face amount of the policy is paid to the beneficiaries only in the event of death within the stated number of years. If you outlive the policy, your coverage ends and you get nothing back. Why? Because it has no savings. There is no cash value.
A term insurance is right for you if you cannot afford a whole life plan or if you think, you just need it temporarily  especially when you have debts or loans.
Whole Life Insurance
Whole life insurance covers the insured's entire lifetime. Hence, as to premium payments,  you have to pay your entire life. Some insurance companies offer some policies where premiums are payable only for a specified number of years but the coverage …

Paano Gumawa ng Stock Monitoring sa Excel?

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Katulad ng pag-bubusiness, ang stock market ay kelangan mo din ito imonitor. Bakit? Di ba kaya ka nag-iinvest ay para paluguin ang iyong pera? Pano mo malalaman kung lumalago ito kung hindi mo imonitor? Pag meron ka neto, mas maiintindihan mo yung mga mali mo. Dito mo din makikita kung malapit mo ng ma-hit yung target mo. Sa akin, ang stock monitoring ko ay may 5 sheets. Stock Ledger - actually cash ledger yan. Dito ko tinatally kung pareho kami ng broker sa natitirang buying power. Pwedeng wala na ito. Ganito sa akin: Stock Sched - eto yung mas detailed na schedule. Naka-filter ito para pag nabenta ko na ang isang stock, hinihide ko lang sya sa schedule. Nakakatulong din ito para malaman ko kaagad ang average price ko kung magdadagdag ako or ang gain/loss ko if I cut at a certain price. Stock Summary - same sya pag chinecheck nyo yung portfolio nyo. Pero monthly sa akin so alam ko kelan up ang portfolio ko at kelan down. Malalaman ko din ditto magkano ang unrealized gain/loss ko. Ga…

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