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September

2007

I OFW

Guardian

YOUR MONEY
Closing

INFORM, INSPIRE, INVOLVE

www.ofwguardian.com email: info@ofwguardian.com P.O. BOX 13840, Ortigas Center Post Office 1605 Pasig City

Editorial Board EDGARDO G. LACSON Chairman JOSE RAMON ALBERT MANUEL AYALA LEONARDA CAMACHO FERDINAND DIAZ Fr. ARNOLD ERAMIZ EMMANUEL MERCADO DANTE TIGA, JR. JESUS B. VARELA Publisher JOHANN FREDERICK CABBAB Managing Editor ARTHUR M. CERDEA Design Director DONNA INOSANTO-PAHIGNALO GERALD DEL VILLAR Publishing Assistants VLADIMIR JONES III ROHN ROMULO Contributors SUIEE SUAREZ Contributing Photographer MALOU TAYAG ANN N. TAMONTE Marketing Services Business ISKO CATIBAYAN Marketing Director MARIANNE MIRANDA Administration FREDERICK CRUZ Credit & Collection REUBEN RAVAGO Technology Advisor Distribution Partners
Philippine Airlines Commission on Filipinos Overseas Department of Foreign Affairs AWARE Foundation Overseas Workers Welfare Administration

45.570
September 20, 2007

Peso-Dollar Rate

MONEY BASICS
OPEN 45.730 HIGH 45.770 LOW 45.550 VOLUME $667.5 M

Why You Need a Personal Budget

n todays world there are very few people who take the time to create a personal budget. A good budget takes into consideration: 1) the amount of income being received, 2) how much debt you need to pay, and 3) all necessary major expenses (utilities, insurance, an emergency fund, etc.). A personal budget is important for three reasons: 1. A budget limits impulse purchases. It is worth pointing out that the number of worldwide personal bankruptcies has reached an all time high. People have reached a point in our society where they buy on impulse with no thoughts on the consequences. One of the best tools to help an individual accomplish this behavior is the personal budget. Expenses on food, utilities, and even recreational expenses should be monitored. Having a budget for necessary expenses and sticking to it reduces the possibility that you would spend a lot of money on something you dont need. 2. It tracks where your money goes. Many people have no idea exactly where or how they spend a good portion of their

Save Your Money Spend Wisely

money. Many times it is difficult to remember how exactly you spent the money, and often times this money is wasted on frivolous purchases. A budget will help prevent this from happening by making a person accountable for the money that they spend. 3. It tells you how much you have leftover to spend. Another great benefit is that a budget portrays an accurate idea of how much an individual can actually afford to pay for various consumer items. Whether its a house, a car, or a new TV, a person will be able to determine whether or not a certain purchase will fit within their monetary constraints. This acts as a safeguard against getting in over your head financially. It is important to realize that simply creating a budget is not enough. This in and of itself will do a person absolutely no good if he does not discipline himself to stick to it. However, the long term benefits of financial freedom, debt free living, and a comfortable retirement far outweigh any potential difficulty.
For more Money Basics, visit www.ofwguardian.com.

Source: BSP

CURRENCIES
Country Australia Bahrain Canada EU Hongkong Japan Korea Saudi Arabia Singapore Switzerland Taiwan UAE UK United States Unit Dollar Dinar Dollar Euro Dollar Yen Won Rial Dollar Franc Nt Dollar Dirham Pound Dollar Peso Equivalent 38.7803 123.0608 45.8208 64.8704 5.9563 0.3994 0.0499 12.3694 30.7416 39.2661 1.4011 12.6321 93.395 46.389

Equivalent of 1 US$ 0.8359 2.6528 0.9877 1.3984 0.1283 0.0086 0.0010 0.2666 0.6626 0.8464 0.0302 0.2723 2.0133 1.0000

Equivalent of 1 Euro 0.5978 1.8970 0.7063 1.0000 0.0918 0.0061 0.0007 0.1906 0.4738 0.6053 0.0215 0.1947 1.4397 0.7151
Source: BSP

As of September 20, 2007

The OFW Guardian is a FREE monthly newsmagazine serving the overseas

Filipino worker. Our mantra is to inform, inspire, and involve each OFW to become an integral part in nation building. Feel free to email us with your comments, questions, and inquiries at info@ofwguardian.com. You can also write to us at P.O. BOX 13840, Ortigas Center Post Office, 1605 Pasig City.

September

2007

I OFW

Guardian

PagIBIG

September

2007

I OFW

Guardian

5
M

Stretching Your Budget:

Tips to Make your Money Go a Long Way

COVER STORY
1. Build a Strong Foundation Review your personal spending and money management habits. You should recognize that decisions made today (from buying an expensive cell phone or making sure to pay off your credit card debt) affects your personal finances over the long-term. Helpful tips include: Pay off high interest debt, such as credit card debt. High interest debt is a useless drain on financial resources. Check if your necessary expenses are really necessary. How much insurance coverage do you have as opposed to how much do you really need? When was the last time you checked your utility and phone bills? Is it possible to find ways to lower these? Lessen consumption in favor of more investment. How often do you go out to eat at expensive restaurants? Would your lifestyle change if you save just a little bit more and consume a little bit less? Remember that saving and investing should become part of daily life. Develop a money regimen similar to an exercise regimen. Try to automatically dedicate an amount out of your monthly paycheck for your savings. Remember that the more you save, the more wealth you create. 2. Implement Winning Strategies An individuals investing strategy should be determined by his income level, risk tolerance and personal needs. While investing styles could vary, there are time proven strategies that are good guides to every individuals financial plan. Avoid collectibles. Jewelry, art, antiques and other collectibles (whether they be stamps or memorabilia) are not proper investments. These have very little intrinsic value since their price is determined purely by how much other people are willing to pay for them. Do not put all your eggs in one basket. Invest in different asset classes (see box story). Diversification reduces your risk without substantially lowering your returns. Avoid emotional investing. Do your research. Base your investment decisions on information rather than emotion. Invest rather than speculate. Dont fall for fad investments or those relying heavily on marketing and advertising gimmicks. 3. Have Reasonable Expectations In life, nothing is certain. Hence, no investment is riskfree. Anyone who tells you otherwise is either lying or stupid. Having reasonable expectations prevents you from taking sizeable risks with your money or buying into investment fads, scams, and other disreputable investments that claim extraordinary returns. 4. Take a long-term view. Life is a marathon and not a sprint. It is important for individuals to take a long term view with regards to saving and investing. When it comes to money matters, remember that slow and steady always wins the race. Note that: You should start saving and investing early in life. By doing so, you could achieve your financial objectives without taking on substantial risks. Develop a sound, steady investment strategy consistent with your personal risk profile and stick to it over the long-term. Monitor your investments regularly. Review your portfolio especially after major events in your life. As your needs change over time, your portfolio should change along with it. You can afford to take more risks when you are single, for example, as opposed to when you are married with children.

oney is a source of power and the ability to spend it makes a person feel good. The good feelings brought about by spending money, however, may become an addiction. Impulse buying is fueled by the uncontrollable urge to spend money, most often on unnecessary items. It can develop into a compulsive behavior where the act of spending money becomes the reward for the spender regardless of whether they can afford the purchases. In such a case, the material items bought on impulse are more a product of the desire to spend, and usually are not as important to the spender. Believe it or not, many stores count on impulsive spenders and actually arrange their products accordingly. The fact that stores encourage impulse buying makes it even important to discipline ones spending habits. Impulse buying can become a serious addiction, and can land a person in financial trouble. Recognizing tendencies to buy on impulse can help a person control the urges before they become serious. Thinking about your purchase, therefore, can help you differentiate between a bargain you should not pass up versus a useless purchase. Before buying anything, it makes sense to ask yourself the following questions: 1. Why am I buying this? Reflect on your own thoughts. What motivates you into buying this item? Is there a real need for the product or is an advertising slogan going through your mind? Is the purchase going to be useful to you in some way? Are you buying it because it makes you feel better? 2. Do I need to buy this today? Except for food and gas purchases, asking yourself this question is really helpful. If you dont need it right away, theres a possibility that you dont need it at all. If you still believe you need it, however, purchase it only when you have enough cash to pay for it.

decide which one is a more worthwhile purchase. This can reduce costs further. 4. Will there be a long term benefit or simply a short term moment of happiness? A business buys an item because it helps the business to prosper over a period of time. You should see a long term benefit from the purchase for you and your family. If there is no benefit, then this is really a purchase you could delay or even completely do without. 5. What are the advantages and disadvantages of buying this item? Think about the good things the item will produce in your life. Then think of the less pleasant side effects. A car, for example, enables you to move around more efficiently but would result in additional expenses (eg. parking, gas, repairs, insurance, etc.). Consider the benefits and disadvantages from both a short term and long term perspective. Really think about these effects and decide if the item is in your best interests.

3. Is this in the budget? Every successful business has a budget. Think of yourself as a business that is trying to make more money than it spends. This means you have to plan. Youll have to make a shopping list of things you need, and stick to it. If you have two similar items, compare them, and

Financial Securit y
The OFW Guardians Four Golden Rules for Financial Security:
inancial planning is the process of managing ones resources to achieve long-term financial independence. The failure to develop a sound personal financial plan is due more to a lack of effort and discipline rather than a lack of resources. If you have a regular income, you should be able to save and achieve financial security by following OFW Guardians four golden rules.

COVER STORY Basic Money Management Strategies

1. Create a budget and stick to it. The monthly budget is the cornerstone of every financial plan. A comprehensive budget gives you an idea of where your money is going. Without it, huge chunks of money may disappear. Note that: No matter how you do it, budgeting is the first real step towards taking control of your finances. Youll find out where your money is going and you can identify ways to trim your spending without much suffering. Your goal should be to spend less than you earn so that you can save money. Many people think they dont make enough money to begin and maintain a budget. However, when these individuals consider the amount of money they may earn over their working lifetime, they would appreciate the value of learning to budget wisely on a monthly basis. This is especially true since small amounts of money can be turned into huge sums if one invests wisely. It is important to be thorough when drawing up a budget. Keep a monthly record of your expenses. Only by recording when and what you bought and how you paid for it will you find out how and where you spend your money. You would then be able to identify possible sources of savings. 2. Watch your cash. Aside from setting-up a budget, individuals should also find ways to manage their cash in a smart way. Weve put together some guidelines that should prove helpful. Open a checking account. A checking account will help you track your expenses. Moreover, balance your checkbook after each transaction. It will help stick to your budget and avoid overdraft fees. Dont go overboard at the ATM. ATMs can be your fast track to financial problems because its so easy to withdraw money. In addition, it makes sense to include and balance all yourATM withdrawals in your checkbook register. Pay cash for items. Do not use your credit card to pay for a toothbrush you will be financing for several years. Also, remove the temptation of making impulse purchases by carrying less cash and leaving the credit card or checkbook at home. Plan your cash withdrawals. You can avoid multiple ATM fees by withdrawing what you need directly from your bank. You can also switch to a bank that will not charge you a fee. Check your bank statement to determine the administrative fees your bank is charging. Change financial institutions if the fees are too much. There may be banks and other financial institutions that have fewer fees. 3. Have an emergency fund. Creating a family emergency fund is a vital part of an investment program. An emergency fund can provide much needed money in a family crisis. Many financial professionals indicate a family should stash away at least six months of income into an emergency fund. However, three to four months of income is more realistic and doable. One of the best ways to calculate the appropriate size of an emergency fund is to review your budget. This will indicate how much liquid capital you may need to supplement your lifestyle in time of need. If you currently dont have an emergency fund in place, the simplest way to get one started is add the heading of Emergency Fund to your budget. This new account should be funded on a monthly basis. Once you have three months of income in this account, your emergency fund is in place. 4. Consolidate your household accounts. From a financial point of view, it makes sense for family members to consolidate their bank and investment accounts. This is especially true if the individual accounts dont amount to much separately. There are several reasons for this: Firstly, it is easier to manage one big account than several small accounts. Just the paperwork alone would be difficult to manage if you keep several accounts. Consolidating accounts save time and effort. Consolidating accounts can also save you money. Banks and investment firms generally offer better returns (or lower fees) to investors who are able to place larger sums of money. Last but not least, consolidated accounts allow you to have more options as an investor. This, in turn, provides investors with a higher quality of asset diversification. Diversification allows for the spreading out of risk while also limiting the possibility that investment objectives would be duplicated.

September

2007

I OFW

Guardian

Simple

Shopping Tips

ow cut down your grocery bill? It isnt as H thedoasyouGuardian.is.onTry these simple shopping tips hard you think it from OFW Make a List The list you draw up will help keep you focused. Shopping with a list will reduce your impulse buying and will keep you to just your needs. Choose the Right Store For basic grocery needs, many grocery stores now offer excellent product and price selection. Some even have frequent shoppers programs. However, for bulk buying, you may want to purchase from warehouse clubs or superstores. Non-perishable items are often at unbeatable prices in these types of stores. Shopping at the Right Time Saves Money Its not frugal to shop whenever you just feel like it. Plan as many of your purchases as you can. The frugal rule is to look far enough ahead to beat the rush, or far enough behind to catch the things the retailers need to get rid of. Pay attention to the weather, too. Eat First! Stores know the power of the enticing smell of freshly cooked food. Having a full stomach before you shop makes sure that you dont spend extra on food. Take Your Time Give yourself enough time to shop. This will allow you to compare items and prevent you from just grabbing the first item that you see. Check Labels and Compare Take a moment to read those labels and compare similar items. Also, be certain to check expiration and use by dates for the freshest products. Buy in Quantity Check the per-unit or per-volume pricing on store shelves when comparing items. Buying things on sale or in bulk will help reduce your overall costs. Store Brands - Try Them Do not be afraid to experiment with buying store brands. If you find that the product meets your standards, you can save a lot. Beware of Marketing Strategies Avoid marketing ploys designed to draw your attention to a particular product. Knowing some of the tricks of the trade will ultimately save you money. Beware of end-ofthe-aisle dump bins, island displays,recipe related item placement, andmiddle-shelf items. This is typically where higher priced and impulse products are placed. Watch the Scanner Be alert! Sometimes items have been tagged with the wrong price. Sometimes items are erroneously counted twice.

September

2007

I OFW

Guardian

Jericho Rosales
H

Taking his Second

ENTERTAINMENT
Kasi that time, ibinigay ko talaga kay Lord yung desisyon ko na magpahinga, whatever happened. Tapos, timing talaga ang pagdating ng soap na ito. Nag-ask kasi ako sa Kanya, ibinigay naman Niya ang request ko na magkasama ang acting and singing, kaya wala na akong mahihiling pa. Bago ang comeback niya sa ABS-CBN, may bali-balita noon na lilipat na siya kasama ang girlfriend na si Heart Evangelista sa GMA-7. Ano nga ba ang nangyari at hindi ito natuloy? Ang loyalty kasi namin ni Heart, nasa ABS-CBN pa rin, maagap niyang sagot. May magagandang offers at sobrang thank you kami sa lahat na gusto kaming makasama sa trabaho. Pero mahirap lang talagang iwanan ang sariling kapamilya, kaya nag-stay pa rin kami. Kaya katulad ko, may sariling soap na ginagawa si Heart, and hopefully kaming dalawa naman ang magkasama sa susunod na soap opera. Going back sa kanyang comeback teleserye, hindi ba siya nagkaroon ng pangamba na baka hindi na siya suportahan ng kanyang mga tagahanga? Wala naman fears na ganun, kasi ang kasama ko dito magagaling na artista like Cherry Pie Picache, Joel Torre, may special apperances pa sina Christopher de Leon at Bembol Roco. Tapos kasama ko pa ang three hottest female stars ng ABS-CBN na sina Rica Peralejo, Maja Salvador at Sarah Geronimo. This is singing, this is something new, my comeback and Im very excited. Im giving my best, 100% talaga sa show na ito. I dont think na may mali, parang tamang-tama na ang lahat ng timpla. I hope na sana ang success nito ay ganun din sa tagumpay ng Pangako Sa Yo o Sanay Wala Nang Wakas. I mean, si Sarah, sunud-sunod ang success ng mga shows niya, nagpa-platinum ang mga albums niya. I hope makita nila ang chemistry naming apat. And thank you ABS-CBN for this project, sana matanggap uli ng tao, bigyan nila ako ng second chance, sana suportahan nila ang pagbabalik ko sa soap opera, pagtatapos ni Jericho Rosales.

by Rohn Romulo

Chance

alos mag-iisang taon ding nawala sa primetime si Jericho Rosales, na nakilala dahil sa kahusayan niya bilang aktor. At matapos nga ng kanyang pagla-lie low sa pagdadrama, at asikasuhin ang pagiging singer, heto at muli siyang nagbalik sa Pangarap na Bituin ng ABS-CBN 2. Before ako nag-break sa showbiz, sabi ko rest muna talaga. Wala akong idea kung gaano katagal ang ten months to one year. Noong dumating na ang ten months, after promoting myself as singer sa pamamagitan ng album kasama ng banda ko na Jeans, biglang may offer na soap, ito ngang Pangarap na Bituin na napapanoood na ngayon. E, namumurublema ako dati dahil sa pagmamahal ko sa music at ayaw kong bitawan. Ang problema ko kasi pag nagsoap ako na three times a week, technically, ubos na ang araw ko, so mawawalan ng time sa banda. Pero sabi nila na twice a week lang ang taping, so I have week ends. May isa pang good news, kasi its about singing at kasama ko pa ang banda. Kaya okey na okey, parang naka-three points ako, kaya tinanggap namin ang project na ito, na-comeback ko sa primetime, mahabang paniwala ng mahusay na aktor. At dahil sa pagkawala niya ng ilang buwan, naramdaman ba niya na bumaba ang kanyang popularity? Well, expected ko naman yun, sabi niya. Meron naman akong mga desisyon na kayang-kaya kong gawin. After a while noong medyo na-enjoy ko ang sarili ko sa music industry, na-realize ko na hindi rin pala

ganun kadali na i-penetrate, para ding showbiz. Pero okey naman, dahil tumayo naman kami kahit na gaano kahirap. At ngayon nga, dumating itong offer at kasama ko nga sila, kaya mas okey. No regrets talaga sa ginawa kong desisyon, dahil marami naman nadagdag sa akin na sa tingin ko kailangan ko ring ma-achieve.

OFW ALERT
The Department of Labor and Employment (DOLE) today said that the global deployment of overseas Filipino workers (OFWs) is expected to reach and breach the 1million mark, while total OFW remittances are expected to approach the US$14 billion level by December this year. Labor and Employment Secretary Arturo D. Brion said that as of mid-year 2007, OFW deployment had already breached the 0.5 million mark in more than 190 destinations worldwide. He expressed confidence that at this growth rate, total deployment figures will reach if not surmount the one million level worldwide this year. Brion earlier indicated that from January to July this year, the deployment of OFWs in the new hire category increased in several host destinations including Canada, Italy, Cyprus, New Zealand, and New Caledonia due to the demand for Filipino skilled workers in their industries. Amidst the development, he bared that major banks in the Philippines have now joined hands to develop a distinct and more affordable global remittance system benefiting the OFWs in linkage with the Department of Labor and Employment, particularly its newly established National Reintegration Center for OFWs (NRCO). "I laud BSP for ensuring global remittance services, in effect making it more convenient and efficient for OFWs

Global OFW Deployment to Reach 1M, Remittances to Approach $14b in 2007

to remit their earnings," Brion said, adding that the synergy between the NRCO and banking institutions will boost reintegration of the country's modern day heroes to the economic mainstream on their return. (DOLE) Vice President Noli Kabayan De Castro, also the presidential adviser on overseas Filipino workers, listened yesterday to the proposal made by a group of OFWs regarding the establishment of a special Exchange rate exclusively for migrant workers. The group, comprised of the Center for Migrants Advocacy (CMA) together with the V-Team Advocacy and Community Service, visited the Office of the Vice President to personally handover to De Castro a letter proposal addressed to President Gloria Macapagal Arroyo seeking for a fixed 10% premium above the exchange rate prevailing in the market or a flat rate of fifty pesos to one dollar to be given to legitimate OFWs. The letter-proposal is attached with around 15,000 signatures from OFWs around the world signifying their support for their proposition. The groups senior action officer, Ronnie Abeto, recommended the following mechanisms in order to be able to implement this special exchange rate project: for the government to put up a stabilization fund to address exchange rate fluctuation; entering into a collective Forward Contract or Currency Options with financial institutions;

VP Noli Listens To OFWs Petition

For his part, De Castro explained to the group that he would endorse their letter to the President and will monitor the progress of their request. De Castro added that he will look into the feasibility of the groups second alternative of entering into a Forward Contract or Currency Options with financial institutions. The viability of this proposal depends on the volume of the transaction and their ability to organize themselves. The Vice President also noted that as early as last year, he has been pushing for plans to alleviate the plight of OFWs by urging the Bangko Sentral ng Pilipinas to study his proposal to lower bank charges on OFW remittances.(OVP)

Vice President Noli Kabayan De Castro receives a letter proposal addressed to President Gloria Macapagal Arroyo from a group of Center for Migrants Advocacy (CMA) together with the V-Team Advocacy and Community Service.

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2007

I OFW

Guardian

September

2007

I OFW

Guardian