The 21 Absolutely Unbreakable Laws of Money by Brian Tracy (Summary)

1. The Law of Cause and Effect: Everything happens for a reason; there is a cause for every effect.

2. The Law of Belief: Whatever you truly believe, with feeling, becomes your reality.

3. The Law of Expectations: Whatever you expect, with confidence, becomes your own self-fulfilling prophecy.

4. The Law of Attraction: You are a living magnet; you invariably attract into your life the people, situations and
circumstances that are in harmony with your dominant thoughts.

5. The Law of Correspondence: Your outer world is a reflection of your inner world and corresponds with your dominant
patterns of thinking.

6. The Law of Abundance: We live in an abundant universe in which there is sufficient money for all who really want it
and are willing obey the laws governing its acquisition.

7. The Law of Exchange: Money is the medium through which people exchange their labor in the production of goods
and services for the goods and services of others.

8. The Law of Capital: Your most valuable asset, in terms of cash flow, is your physical and mental capital, your earning
ability.

9. The Law of Time Perspective: The most successful people in any society are those who take the longest time period
into consideration when making their day-to-day decisions.

10. The Law of Saving: Financial freedom comes to the person who saves ten percent or more of his income
throughout his lifetime.

11. The Law of Conservation: Its not how much you make, but how much you keep, that determines your financial
future.

12. Parkinsons Law: Expenses rise to meet income.

13. The Law of Three: There are three legs to the stool of financial freedom: savings, insurance and investment.

14. The Law of Investing: Investigate before you invest.

15. The Law of Compound Interest: Investing your money carefully and allowing it to grow at compound interest will
eventually make you rich.

16. The Law of Accumulation: Every great financial achievement is an accumulation of hundreds of small efforts and
sacrifices that no one ever sees or appreciates.

17. The Law of Magnetism: The more money you save and accumulate, the more money you attract into your life.

18. The Law of Accelerating Acceleration: The faster you move toward financial freedom, the faster it moves toward
you.

19. The Law of the Stock Market: The value of a stock is the total anticipated cash flow from the stock discounted to
the present day.

20. The Law of Real Estate: The value of a piece of Real Estate is the future earning power of that particular piece of
property.

21. The Law of the Internet: The Internet is a tool for rapid communication of information of all kinds.

Life has a lot hidden that knowledge unlocks, knowing means you wont learn from your own mistakes. Open your
mind, pick-up as much as you can and use it to build the person you want to be.
 PHILIPPINE FINANCIAL SYSTEM

What are Financial Systems?

The 'financial system' is a term used in finance to describe the system that allows money to go between savers and
borrowers.
Nature and Importance of Financial Systems
Spend more than they earn
Spend less than they earn
Allocate or match the supply of savings in the economy to the users of those savings in a safe and efficient
manner

Elements of a Financial System

Financial institutions
These are organizations that offer financial services.
Financial Market
The system that allows people to buy and sell goods and services to each other.
Financial Instruments
These are assets belonging to a person or company. This can include cash, bonds, or other assets; such as
property or items of value.
Financial services
Are offered by financial institutions. These include such things as banking, insurance policies, loans and
mortgages, as well as pensions.
Financial Practice
A sort of guideline around how the financial institutions should operate their services.
Financial transactions
These are the actual exchange of assets for goods or services - paying for a new car, or a loan, for instance.

These six elements work together to create a healthy financial system, which in turn builds a strong economy. No one
element is more important than the others - they simply represent different mechanisms within the system that allow
it to function.

Components of Philippine Financial System

The Philippine financial system consists of:
1. Banksand,
2. Non-bank financial Intermediaries.

What are the roles financial institutions?

1. Term transformation
2. Economies of scale and diversification in the use of funds
3. Technical Expertise

The major types of financial institutions in the Philippines are the commercial banks, rural banks, thrift banks,
specialized government financial institutions, offshore banks, insurance companies and non-bank financial institutions.
The first four types of financial institutions take deposits from public. Because of this, the Bangko Sentral ng
Pilipinas supervises them. The last three types are intermediaries with non-deposit sources of funds.

Key services provided by Financial System

Risk Sharing
Liquidity
Information
Barriers to matching Savers and Borrowers
Asymmetric information and information cost
Adverse Selection
How to reduce adverse selection?
1. Screening
2. Monitoring

Moral Hazard

What are Financial Markets?

How does the economy benefit from financial markets?
Increased production
Increased welfare

Philippine Financial Market

Money Market
Money market instruments:
1. Negotiable Certificates of Deposit.
2. Short-Term and Long-Term Commercial Papers.
3. Banker's Acceptances.
4. Treasury Bills, Notes and Bonds.
5. Repos and Reverse Repo

Participants in the Philippine Money Market

BSP
Commercial Banks
Brokers
Corporates and
Institutional Investors
Foreign Investors

Capital Market
Primary Market
Secondary Market
Bonds Market

Types of Instruments:
Government Bonds and
Corporate Bonds

Issuers and Investor in the Local Bond Market

Issuers:
BSP
National Government
Commercial Banks

Main Investors:
Banks
Insurance companies
Corporation and Institutional
Investors