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The year past was marked not only with peaceful elections but record-setting levels in the country's stock market. The benchmark Philippine Stock Exchange Index (PSEi) posted a gain of 37.62 percent to a historical level of 4,201.14.

"And with the great outlook for the new year, we certainly have something to look forward to and a fresh and positive start far 2011/' Janice Marie P. Fernando, managing director and chief of distribution for wealth manager Rampver Strategic Advisors (RSA), said.

Likewise, mutual funds also reached record levels of over P95 billion in assets, surpassing the previous high of P88 billion recorded in 2007.

Fernando however said that while it is good to celebrate the new year by making resolutions and rebalance one's portfolios, it is aslo important to make decisions swiftly but wisely.

"Let us not fall into the traps of procrastination to delay savings and investing. Begin the year right by diversifying some of your hard-earned money into reputable investment instruments with proven track records," the managing director added.

Practically all mutual funds managed by different fund managers recorded positive gains year-on-year, be it fixed income or bond funds, equity funds (darling of the crowd), balanced funds, or foreign-currency denominated bond funds.

To prove her point, Fernando cited the case of Mr. Investor A who started investing in November 2006, reaching an accumulated total amount of P500,000. It was placed in a peso-denominated bond fund. "As of Feb.l this year, its value is now P622,714.44 or roughly 24 percent higher," she pointed out.

Meanwhile, Ms. Investor B started investing in a balanced fund in 2006, and likewise reaching an accumulated P500,000. It is now roughly valued at P788,665.32, or a 58-percent increase in earnings in four years.

Preferring higher return albeit higher risks, Mrs. Investor C invested in an equity or stock fund with P10,000 as an initial placement. Religiously adding to her portfolio, it reached P500,000 and it now grew by over 72 percent to P857,462.73.

The Rampver managing director stressed that like Mrs. Investor C (the three cases are real accounts) one need not invest a sizeable amount but instead make regular placements. It could be as regular as monthly or whenever there is disposable or extra earnings.

Mutual funds are a pool of in-vesments made by individuals and institutions, wherein their investments are valued in redeemable shares called net asset value per share or NAVPS. The fund is overseen by professional fund managers, backed by research teams focused on seizing market opportunities.

"The pooled funds enables it to spread in various securities resulting to greater propensity to warn more and spreads the risks across the different securities," Fernando explained, adding that earnings from mutual funds are excluded from items classified as taxable income.

She further explained that the mutual fund industry is highly regulated by the Securities and Exchange Commission (SEC). Moreover, securities are kept with a custodian bank separate from the management company. The shareholder records are with the transfer agent, and an external auditor oversees financial issues. - TPT

The Philippine Star

A Cebu homegrown optical shop makes history by being the first optical shop to go into franchising in the Philippines.

"We believe the best way to expend is through franchising," said Dr. Jose Enrique De Las Peñas, an optometrist and one of the owners of De los Reyes Optical.

"We have expertise and the technology but we lack the manpower to reach out to different locations.  So when we met Rudolf Kotik, he suggested we venture into franchising," he explained.  "We have served over one million patients already, but to reach far flung areas, we decided to share our optical business."

De los Reyes Optical is family-owned business that was started in 1950 by Dr. Sally De Los Reyes-De Las Peñas.  Even being one of the pioneers in the industry, they were able to ride the changes of times with modern equipment and technology.
According to De Las Peñas, aside from keeping up with the latest in technological advancements, one thing that makes them undefeated in business competition in Cebu is their personal touch for customer service.

"We go extra mile for the customer satisfaction and we give the best price."
De los Reyes Optical has been true to its commitment offering total patient satisfaction with the following exclusive privileges for free for every purchase of complete eyeglasses:  eye exam, glaucoma test, color blindness test, eyeglass adjustment, nose pad replacement, screw replacement, eyeglass cleaning and lens wiper.

Expertise

De Las Peñas also surmises that their success is also due to the expertise of their family who are composed of optometrists and ophthalmologists.  An optometrist diagnosis and treats vision problems, eye diseases and related conditions, and prescribed eyeglasses, contact lenses, and medications to treat eye disorders; while ophthalmologist is a physician who specializes in the medical and surgical care of the eyes and visual system in the prevention of eye disease and injury.

When one goes to De los Reyes Optical, he or she can be prescribed with eyeglasses or if there is already and eye disease; he or she can see an ophthalmologist for medical consultation.

Leading the optometrist is Dr. Jose Enrique De Las Peñas while for the ophthalmologists is his brother, Dr. Glenn De Las Peñas.

New Look

De los Reyes Optical also recently re-opened its Sm City Cebu branch after undergoing a massive renovation.  It unveiled a very modern and trendy store that has more capacity for a wider selection of frames.

The De Las Peñas researched about the different new looks of the optical shops abroad and incorporated what they learned in their store.

Because nowadays optical businesses are more than just eye care but also a fashion forward, De los Reyes Optical carries exclusive brands like Lacoste and offers more than 1,000 frames in their stores to cater to their very broad market.

As they say if you can please the Cebuanos, you can survive anywhere else and De los Reyes Optical with more than six decades of servicing the Cebuanos is confident they can make it anywhere else, too.

Sun-Star Cebu, Plus & Special - Page S2
Emily Jade Valero

To increase customer loyalty and attract more clients, a homegrown optical store is upgrading its facilities and expanding its products and services.

De los Reyes Optical re-opened its SM City Cebu branch last week after a month-long renovation that turned the outlet into a "boutique" type establishment. The newly opened store houses a wider selection of frames.

The management has scheduled the renovation of its Ayala Center Cebu branch in the last quarter of this year.

"We have to upgrade and be at par with world standards. Our aim is to establish an eye for excellence," said ophthalmologist-optometrist Glenn de las Peñas, who handles the training of the company's staff of optometrists.

Despite the global economic crunch, de los Reyes Optical said the company strives to keep up with new technologies and equipment in the field of ophthalmology and optometry to be able to offer better services to clients.

The optical store reported having served more than a million customers from all income brackets since it was founded in 1950.

De las Peñas noted a growing number of patients visiting the optical shop. He attributed this to the company's "value-for-money" product offerings.

De las Peñas said customers who purchase complete eyeglasses at de los Reyes Optical can avail of free eye exam, glaucoma test, color blindness test, eyeglass adjustment, nose pads replacement, screw replacement, eyeglass cleaning and lens wiper.

"Unlike other optical stores, we do not only sell eye frames, we teach our customers how to take care of their eyes," he said. He added that this is de los Reyes's way of helping control the blindness rate in the country, which is increasing.

De los Reyes has branches in downtown Cebu City and in Lapu-Lapu City.

The company is finalizing its franchise system as part of their plan "to expand to other places they cannot go."

Sun-Star Cebu, Business Section - Page 22
Nancy R. Cudis

THE International Marketing Group (IMG) cites major breakthroughs in their efforts at educating Overseas Filipino Workers (OFWs) in the value of wealth management as the group enters its fourth year of operations in Hongkong. IMG CEO Noel Arandilla said, 'It is very important for OFWs to learn how to manage their finances. We have seen many cases of domestic Filipino workers in Hongkong who planned to work for a period of two years only, to save specific amount of money, but end up working in Hongkong for 10-20 years, and come home broke."

Arandilla added that these workers simply need guidance on how to invest properly and what traps to avoid.

IMG Hongkong has trained in the past four years more than 5,000 OFWs about the benefits of wealth management with courses that include Practical Wealth/Financial Management, The Rule of Money/How Money Works, Creating Multiple Streams of Income-Generating Assets, Financial Check- up & Analysis, Fundamentals of Investment/lnsurance/Hearthcare, among others.

Hundreds of OFWs already improved their financial situation by adopting the financial concepts & principles found in IMG.

IMG offers wealth management courses not only in Hongkong but al-so in all its branches worldwide.

Cebu Daily News
Vol. 11 No. 700

CEBU CITY - Financial education is deemed necessary for overseas Filipino workers (OFWs) nowadays in the wake of the looming global economic meltdown, officials from a marketing group said. Jose Enrique de las Peñas, Interna-tional Marketing Group (IMG) president, said he believes that financial education, especially among OFWs that are lucky to still have jobs abroad, helps them offset the fears brought about by the ongoing financial crisis.

"What OFWs and Filipinos, in general, need right now is financial education. They have to increase their knowledge on the right way of savings and on how to take care of their finances and reduce the risk of losing what they have," he said. De las Peñas underscored the huge significance of financial education for Filipinos, "where everyone seems to be in fear of the negative prospects of the future."

IMG, a marketing company dedi-cated to serving the financial needs of individuals, has close to 20,000 OFW members nationwide who have availed themselves of their free financial educa-tion seminars. Majority of these OFWs are working in Taiwan, Hong Kong, Middle East and Europe. IMG Chief Executive Officer Noel Arandilla said the common miscon-ception of financial education is that it should only be limited to the elite or the well-educated.

"Everyone has their equal rights to be wealthy but the masses are afraid to go out of their comfort zones and be edu-cated on how to increase their finances. The lack of education is keeping some of us unequipped to the possible effects of the crisis," Arandilla said. IMG seminars, facilitated by their own financial advisers, are now starting to at-tract people from different professions including doctors, engineers, teachers, factory and office workers, among oth-ers, Arandilla noted.

"A lot of businesses are already facing fears and signs that their companies might not survive the crisis. They ask our help to educate them and help them build their financial foundation," said De Las Peñas, adding a significant interest among cor-porations seeking their advice. He said that at the height of today's financial turmoil, many companies from industries such as information technolo-gy, electronics and education have sought their financial guidance as these sectors have been hit hard by the crisis.

"Fear of the uncertainty of the econ-omy could be battled through financial education. With this, you can take posi-tive, proactive and informative actions and will not be in a panic mode wherein you cannot do right decisions," De las Peñas said.

Manila Bulletin
Vol. 434 No. 8

FINANCIAL education is deemed necessary for over-seas Filipino workers (OFWs) nowadays in the wake of the loom-ing global economic meltdown, of-ficials from a marketing group said.

Jose Enrique de las Peñas, International Marketing Group (IMG) president believes that financial education, especially among OFWs that are lucky to still have jobs abroad, helps them offset the fears brought about by the ongoing financial crisis.

"What OFWs and Filipinos, in general, need right now is financial education. They have to increase their knowledge on the right way of savings and on how to take care of their finances and reduce the risk of losing what they have," he said. De las Peñas underscored the huge significance of financial edu-cation for Filipinos, "where every-one seems to be in fear of the nega-tive prospects of the future."

IMG, a marketing company dedicated to serving the financial needs of individuals, has close to 20,000 OFW members nationwide that have availed of their free financial education seminars. Majority of these OFWs are working in Taiwan, Hong Kong, Middle East and Europe. IMG Chief Executive Officer Noel Arandilla said the common miscon-ception of financial education is that it should only be lim-ited to the elite or the well-educated. "Everyone has their equal rights to be wealthy only that the masses are afraid to go out of their comfort zones and be ed-ucated on how to increase their finances. The lack of education is keeping some of us unequipped to the pos-sible effects of the crisis," Arandilla said.

IMG seminars, facilitat-ed by their own financial advisers, are now starting to attract people from dif-ferent professions including doctors, engineers, teachers, factory and office work-ers, among others, Arandilla noted. "A lot of businesses are already facing fears and signs that their companies might not survive the crisis. They ask our help to educate them and help them build their financial foun-dation," said De Las Peñas, adding a significant interest among corporations seek-ing their advice. He said that at the height of today's financial turmoil, many companies from in-dustries such as informa-tion technology, electronic; and education have sought their financial guidance as these sectors have been hit hard by the crisis.

"Fear of the uncertain-ty of the economy could be battled through financial education. With this, you can take positive, proactive and informative actions and will not be in a panic mode wherein you cannot do right decisions," De las Peñas advice. IMG has 30,000 members across the country. It is one of the big-gest and fastest growing fi-nancial distribution com-panies in the US, Canada, Taiwan, Hong Kong, and the Philippines.

Cebu Gold Star Daily
Vol. 1 No. 118

In today's crisis-laden economy, common people face the difficult uncertainty of their future and fear starts to settle in. However, through saving and financial education, an international marketing firm advocates simple but long term solution to survive any crisis and to build up a more promising future.

"Saving has to have a long term perspective. The important step in financial education is through mind setting, with a proper mind set, people can increase their financial knowledge and will have the right information to plan for their future," said International Marketing Group (IMG) president and CEO Jose Enrique R. de Las Penas.

He said that the main reason that most of the Filipino population remains poor is the lack of financial education that will trigger them to really save up for their future. "In a millionare's mind, the thought that always run is how to grow and manage the money at hand. Savings is not something you put big amounts of money immediately. It has to start small and it has to get bigger, you just have to be consistent and be disciplined," he said.

de Las Penas said that to achieve a sound financial status; everyone should know what they want and know how to get what they want. "You will need financial check-ups and evaluation so that you will know your assets, debts and savings and so you can adjust your goals and improve your long term finances," he said.

He said that savings must really be a top priority but this also requires an environment that will urge one to really go on his or her way and build up savings for the long term. "Most people want to save but they just don't know how to do it. To do so, you must not think that it will be big suddenly. The lack of education also gives out a misconception that onlly the rich can save, which is really wrong because if you really want to save you can," urged de Las Penas.

He also said that one reason why most overseas Filipino workers (OFW) end up getting broke even after years of working abroad is the lack of financial education and a strong concept of saving. "OFWs usually come home with debts and not savings. Even their families left here spend tremendoulsy without thinking of the future. If you don't have plans for your money, eventually it starts to dimmish," he said.

He said that cureently IMG has already started tapping OFWs based in Hong Kong, Singapore and Macau and now 50 percent of those who have become their members are now working as part-time financial advisers.

Right now, they have 3,000 members in Hong Kong, 1,000 affiliates in Macau and they are also starting to penetrate Dubai and Milan and the Middle East who has a huge OFW population.

"We train them to financial advicers and so they can continue to earn even if they are no longer working overseas or employed by their employers. We must educate them, so that they will not be left out," he said.

de Las Penas said that in their trainings, they usually educate a person first and then help them build or create their own financial strategy.

The Freeman
Vol. 43 No. 202

Teaching people how to save and manage money remains a challenge in a developing country like the Philippines, a top official of a marketing group said. Jose Enrique de Las Penas, president of the International Marketing Group (IMG), said the obstacle lies in changing the misconception that only rich people can afford to save and that minimum wage earners have nothing to save.

What is lacking, he said, is the financial education and the right attitude for low-wage earners to save for the rainy days. de Las Penas said the right mindsed will help people survive the global economic crunch which has left thousands of Filipinos jobless. "The fear will always be there but if you look at it in a short-term level, nothing will happen to you," he told reporters in a press conference last week at the Cebu City Sports Club. de las Penas said the country's financial health is still sound and stable as a result of the experience during the 1997 Asian financial crisis. He said IMG conducts financial education seminars in its offices at the Ayala FGU Tower and Salinas Drive in Cebu.

He said an increasing number of companies sought their assistance in holding financial literacy programs with the onset of the global financial meltdown. At least 20 companies have asked IMG between late 2007 to 2008 to hold financial education seminars, said de Las Penas.

IMG chief executive officer Noel Arandilla said the misconception that only big companies conduct these seminars for employees is yet another serious misconception. "Financial education does not happen overnight. It's continuous because the market changes. You need real updates from a company like us," he said.

de las Penas said IMG is also running a program where they train overseas Filipino workers (OFWs) to become financial advisors after they finish contracts abroad. He said this will ensure that the OFWs still have jobs and they and their families receive a sound financial education. Close to 3,000 OFWs were tapped by IMG as financial advisors. But there are still over 100,000 OFWs in Hong Kong, which the company seeks to tap, de las Penas said.

IMG is present in key provinces in the country including Baguio, Bicol, Makati, Manila, Bacolod, Dumaguete, Ormoc, Iloilo, Tacloban, Cagayan de Oro, General Santos and Cotabato. It also has international operations in Hong Kong, Macau, Taiwan, Singapore, Malaysia, UAE, Norway, Spain and Italy among others.

IMG products range from healthcare, life insurance, investment, insurance and real estate.

Cebu Daily News
Vol. 11 No. 717

As threats of a looming global economic recession now conies close to reality, an international marketing company believes that financial education for all is the key to counter these threats. International Marketing Group (IMG), a marketing company dedicated to serving the financial needs of individuals believes that financial education will offset the fears brought about by the ongoing financial crisis.

IMG president and CEO Jose Enrique R. de Las Penas underscored the huge significance of financial education most especially in today's global economic volatility when everyone is in fear of the negative prospects of the future. "What people need right now in these times of financial turbulence is financial education. They have to increase their financial knowledge so that they will not be affected so much by fear of the uncertainty," said de Las Penas.

He stressed that it is a misconception that financial education should only be limited to the elite or the well-educated. "Everyone of us has their equal rights to be wealthy. Without proper financial education one will commit a lot of mistakes in his or her life. The lack of education is keeping some of us unequipped to the possible effects of the crisis," he added.

He said that their seminars and their membership is not only limited to the upper class segment of the population, in fact they have a mixed group of individuals from doctors, engineers, teachers, to regular employees in their membership base.

De Las Penas said that after the issues about the current financial crisis broke, they have noted a significant increase of their business, which shows that people now start to look for better financial guidance. He said that at the height of today's financial crisis, many companies from industries such as IT, electronics and education have sought their financial guidance.

"A lot of businesses are already facing fears and signs that their companies might not survive the crisis. They ask our help to educate them and help them build their financial foundation." said De Las Penas.

IMG CEO Noel A. Arandilla on the other hand said mat in the conference, most noted that there is no reason to fear even amidst this current global crisis. "Fear of the uncertainty of the economy could be battled through financial education. With this, you can take positive, proactive and informative actions and will not be in a panic mode wherein you cannot do right decisions," he added. Arandilla also underscored the value of saving as an effective way to assure one's future especially in today's crisis.

"You have to make sure that you have plans on how you save your money because there are people who have plans to get your money. There has to be a long term perspective of saving. We want to build a new industry here in the Philippines. We want to help Filipinos become more aware of financial education so that they can weather whatever problems that will occur," he said.

International Marketing Group currently has around 30,000 members. It is one of the biggest and fastest growing financial distribution companies in the US, Canada, Taiwan, Hong Kong, Philippines and going worldwide and it had established agreements with many of the world's leading financial services companies to a broad array of financial products & services.

The Freeman
Vol. 43 No. 199

THE global financial crisis is encouraging people to save money, observed an independent representative of the International Marketing Group (IMG), a marketing company directed at serving the financial needs of individuals and families. In order for one's savings to grow, Jeoffrey Escala said the public needs the right financial information and education which, he noted, is lacking in the country.

He said that while IMG has a "system and guide" to help Filipinos save, they should have the discipline. IMG is an international financial distribution company with branches in the United States, Canada, Taiwan, Hong Kong and the Philippines, among others. Its product portfolio includes retirement strategies, mutual funds, peso and dollar investments, long-term health care, pre-need plans, life insurance, investment adviser services, mortgage insurance, business insurance and estate preservation.

IMG's product providers are Kaiser International Health Group Inc., Prudential Plans Inc., Prudential Optima Funds, Malayan Insurance, Grepalife, Medicard and Cocolife, among others.

Local IMG representatives, in a regular financial seminar last Saturday, stressed the need for people to build a solid financial foundation and understand the basic concepts involved, in investment, health care and debt management, among others. IMG urged participants to increase their income and fulfill their aspirations with its help. NRC

Sun-Star News
Vol. 27 No. 40

THE International Marketing Group (IMG) cites major breakthroughs in their efforts at educating overseas Filipino workers (OFWs) on the value of wealth management as the group enters its fourth year of operations in Hong Kong. IMG chief executive officer Noel Arandilla said it is very important for OFWs to learn how to manage their finances. "We have seen many cases of domestic Filipino workers in Hong Kong who planned to work for a period of two years only, to save a specific amount of money. But they end up working in Hong Kong for 10 to 20 years, and come home broke," he said. He cited a mother of three who left the country in 1986 to work as a domestic helper in Hong Kong. She got a two-year work contract in Hong Kong, earning P20,000 (HK$ 3,000) per month. She thought she would be able to save up P480,000 in two years as she has no need to spend since she lived with her employers.

She had a good plan on what to do with her P20,000 monthly salary - P8,000 for savings would mean P192,000 in two years. She sent home another P8,000 to supplement her husband's income in the Philippines. Her monthly expenses in Hong Kong is P4,000 per month - P1,000 per week during dayoff every Sunday which brought her expenses to P96,000 in two years. Even then, her expenses reached P480,000 in four years. She finished the two-year contract but cannot figure out why she accumulated debts of more than P100,000. She renewed her contract for another two years to pay off her debts, but after renewing her contract nine times (she worked for 18 years in Hong Kong), she still could not figure out why her debts exceeded her savings. Arandilla said that OFWs need guidance on how to invest their money. In the past four years, IMG Hong Kong has trained more than 5,000 OFWs on the benefits of wealth management. It offers courses like practical wealth/financial management, "The Rule of Money/How Money Works," "Creating Multiple Streams of Income-Generating As sets," financial check-up and analysis, fundamentals of investment/insurance and healthcare, among others.

With the help of IMG, hundreds of OFWs improved their financial situation. IMG offers wealth management courses not only in Hong Kong but also in all its branches worldwide - Barcelona. Rome, Milan, Greece, Dubai, Macau, Taiwan and the Philippines. (PR)

Sun-Star News
Vol. 27 No. 36

We met at a most unlikely place – inside an airplane. I was bumped up to business class and he was seated right beside me. Since then, Jose Enrique (Joen) de las Peñas became my mentor in investing.

Joen has a mission: to change the adage that "the rich get richer and the poor get poorer." He believes that "the average person, even the poor, has an equal chance to become wealthy if given the right information."

Joen certainly knows what he's talking about. He is a registered financial planner and has more than 12 years of financial management experience. He sits as the president and chairman of the board of International Marketing Group (IMG) Insurance Brokers Corporation.

Joen is certainly one guy I learn so much from every time I talk to him.

Bo: I still remember your dialogue. You said, "I like your book." I think you read Simplify and Create Abundance. And then you said, "Can I share some more to you?" In other words, you were trying to say, "You still lack some knowledge." But I truly appreciate all the financial knowledge that you have shared with me all these years.

Joen: That's true. I read a lot of your books. It's always been my dream to meet you so I could tell you a bit more about financial services, about the mission that we do. I know that you can help spread what we know, so it was a good chance to let you know all the things that we know.

Bo: Can you share with us this mission, this crusade in your heart that's been driving you for the past 10 years?

Joen: It's about the statement "the rich get richer and the poor get poorer." Our mission is to change that. The rich get richer, it's good. But the average person also has the right to become wealthy and I know that with the right information, he will have the same opportunity as the wealthy people.

Bo: That's wonderful. So the rich, yeah, they can get richer, so long as they share their riches. But you're saying now that the average person can become rich as well.

Joen: Yes, if the average person understands what the wealthy people are doing, if he understands the right financial vehicles, then there is no reason to be poor. Sadly, the average person focuses on different things while the wealthy people focus on how to become wealthy and successful.

Bo: Can you give some specifics?

Joen: If I ask the average person, "What is the rate of return on your savings?" most of the time he does not know. But ask him about the rate of return on his debt, he'd know. It's always at the back of his mind. But the wealthy people – they know the rate of return on their savings, when it will double, how much their money will be in so-and-so years.

Bo: You know, just yesterday I went to my bank and they gave me this leaflet on new interest rate. I was so shocked – it was 0.75% for a year! I thought it was at least 1%.

Joen: And that's still gross. You still have to deduct 20% withholding tax. What a lot of people do not understand is this: that the bank is a good vehicle for business; but for your own personal savings, there are lots of other financial vehicles that you can use.

Most people think that by saving they're already doing something right. But the fact is, you could save the right way and save the wrong way. And saving the wrong way, at the end of the day, will not change anything.

Bo: That's a very important point. You know, Joen, my role is to give people the capacity to have a vision. I give them the capacity to dream. I remove their limiting beliefs – that I can't do it, that I'm poor. So you're absolutely right. People don't have a vision of doubling their money.

Joen: A lot of people are like that – they do not understand that with a meager rate of return on their savings, they will never have a chance to become wealthy. But I can show you a way that, even if you save P20,000 for six years with a total of P120,000, over the years as it compounds, it can be P9.5 million.

Bo: Wow. So you're saying, Joen, that if the average Filipino can save P1000 or P2000 a month, they can become a millionaire over time? But they need to know how to save, where to save.

Joen: Yes and at the same time they should have a vision where their money is going and how exactly their money can grow. All of us work hard for the money. But eventually if we know how to handle money, money can actually work for us. We can be the boss of our money and not the other way around.

Bo: OK, you're saying, don't put it in a bank, use the bank for business as loans, maybe business loans. But tell us, what vehicles are you talking about that can make one a millionaire over time?

Joen: One of the widely used financial vehicles right now, even is the US and Europe, is the mutual fund. In a mutual fund, your small amount of money becomes part of a very big fund. If that fund earns 12% or higher, whatever savings you have there will have an equal rate of return as the whole fund. Many people think that the mutual fund is for the wealthy. But in fact it was created for the average persons to earn equally with the wealthy people.

I look at a lot of Filipinos and they're very focused on how to make money but that's only 50% of the equation. The other 50% is learning how to let their money go back to them much faster.

Bo: That's true. Is it safe to invest in a mutual fund?

Joen: A mutual fund is regulated by the government and managed by a professional person to let the money grow. It's one of the safest vehicles to let your money grow and to have the best rate of return. They have what you call asset allocation. The fund is spread correctly and all that the fund manager does is to think how to let the fund grow. And because of regulation, it's a very safe vehicle.

Bo: I'm sure we could go on and talking about this wonderful topic. One last thing before we end. You said that in the US, 20% of the people there put their long-term savings in the bank, but 70 or 80% put their money in mutual funds already. In the Philippines, it's the opposite. Not even 1% of our people invest their money in mutual funds. And so you have a long way to go.

Joen: Yes, there are a lot of things to be done. But I believed that with the right information we can actually become like the US and there will be more money in mutual funds compared to the regular savings in the bank.

Kerygma
Vol. 18 No. 217

She's one of my financial mentors who taught me the way to financial freedom. In fact, Aurora "Ojing" Osana is the National Marketing Director of one of the biggest and fastest growing financial distribution companies in the U.S., Canada, Taiwan, Hong Kong, Dubai, Barcelona, Milan, Athens, Malaysia, Philippines and other parts of the world.

But Ojing wasn't always the financial whiz she has become today. Like most of us, she also had money problems and struggled to pay one credit card debt after another. Ojing was caught in a cycle of debt that gobbled up all her earnings. No matter how hard she worked or how high a salary she received or what business on the side she established, still there wasn't enough money for Ojing and her family. Then, while visiting a home for the aged and having witnessed the sad condition the old people were in, Ojing came to a life-changing realization. She promised herself that she will not end up this way – old, abandoned and destitute.

Though her current job, Ojing learned the art of earning money, saving it and making it grow the right way. Armed with these tools and having survived a financial meltdown, Ojing embarks on a mission to educate fellow Filipinos on the proper way to manage their finances.

I took all that Ojing taught me to heart and used it in my financial life. I pray that you will, too.

Bo: My good friend, Ojing Osana, and I have a mission – to educate people financially. We want to educate people in their finances because we're financially stupid.

Ojing: You will agree with me that it's a scenario, Bo, to end up like the old people in homes for the aged. To be hones, I don't want to reach the stage na mapunta ako sa home for the aged.

Bo: Ojing, tell me your story. Were you always financially in the know?

Ojing: No, I was so stupid before, Bo. It's different now. I didn't want to touch my savings but I kept on incurring debt through my credit cards. The reason why I work so hard for the money is to buy what I want, to go to places where I want to go. That's all. Saving money wasn't part of my vocabulary before.

Bo: You had a good job before, right?

Ojing: Yes. I was working with an oil company before – taong grasa so to speak. I was handling marine lubricants at that time. It's an international company so the pay and the benefits ware good. I traveled a lot. But at the end of the month, wala pa rin e. The money I earned still wasn't enough. I didn't know where my money went and how much I really earned that time.

I qualified for pre-approved credit cards because of the company I was employed in. I thought that with the credit card, I could just sign and sign for my purchases, pay every now and then. I came to a point where I could afford to pay only the minimum amount due every month. I didn't know about compounded interests applied to the unpaid balance of your bills. Then I realized my debt had piled up and I could no longer pay.

Bo: Just one word to our readers – we're not blaming credit cards and saying it's bad. The credit card is basically a tool, and if you use it well, it saves you from bringing so much money and at the end of the month you have a list of your expenses reflected on the bill. It's a great help in keeping track of expenses. Then what happened, Ojing?

Ojing: I realized what I did was stupid. Then I learned through my present company that there is really a right way of doing things. The company taught me how to spend wisely, save the right way, and make my money grow.

Bo: I've heard so many accountants say that they cannot apply what they do professionally in their personal finances.

Ojing: Exactly. I could balance finances to the last centavo for the company. But ironically, I cannot account for my finances. I guess it's really like that. When I had my financial check up, I realized that I was living way beyond my means.

Bo: how did it feel to have debts?

Ojing: It was like having a nightmare: a nightmare because I could no longer manage my debts. The credit card companies would call me, one after another. It was like having a smorgasbord of demands to pay from credit card companies. I'm sure there are many people who can relate with what I've experienced.

Bo: What then is the best thing to do on this kind of situation?

Ojing: You have to face your creditors. Talk to them and honestly tell them what you cannot pay for or what amount you can afford to pay monthly. You can even apply amnesty so that you can pay off the balance without the interest.

I had to cut off my expenses – talagang walang gastos. I really didn't know where to get the money. So, I put a flower shop in the hope that the business could help augment my income. The business did not prosper because I wasn't a businesswoman to be with. I just enjoyed arranging flowers. There are also many factors to consider in a business. Actually, you need to be on top of your business, 24-7. there were times when I couldn't keep track of the collections because I was still employed in a company while running the business.

Bo: What woke you up?

Ojing: I reached my turning point when I went to a home for the aged like Anawim. I saw how the old people there were being taught how to take a bath using a water hose. I saw that the volunteers did not care enough for the elderly. I told myself I did not want to end up like this, that after working so hard, I'll just live my old age in a hospice. That's when I applied the X curve, a powerful financial concept. It teaches you to save now, to build your assets and make your money work for you so that you'll be prepared for any kind of emergency and most of all your old age. The X curve is really your financial life story.

Bo: The X curve really helped me a lot. Sometimes we don't know what illness we have, so we go to a doctor for a diagnosis. It's the same with your finances – you need to go and have a financial diagnosis, look at what's happening in your life and then you'll know what you can do.

Ojing: I started listing down all my expenses. That way, I saw my expenses for the week and for the month. Then I computed my total monthly income and all other income I expected to receive. I realized that my expenses were really more than my income. I also realized that most of my expenses were not necessarily what I really needed. I had to learn how to separate my "needs" from my "wants."

Bo: Wonderful. And then you started saving, you paid all your debts.

Ojing: But you can't pay your debts in one go. You have to do it gradually. Let's put it this way – set aside 20 to 30 percent of you income to pay for your debts.

Bo: When you think about it, some people say you have to be greedy to be a multi-millionaire. Not at all – Ojing is such a wonderful, generous woman even if she has become a multi-millionaire. From a woman who had so much debt, she is now where she is because of financial education. And that's something we want you to experience as well.

Ojing: You don't need luck to become wealthy. All you need is the right information and know the right vehicle.

Bo: You need the right vehicle. There are cars towards wealth. You just have to learn what they are. Thank you, Ojing, for teaching me. It has helped me a lot.

Source: Kerygma June 2008 | An interview By Bo Sanchez

Kerygma
Vol. 17 No. 211