May 14, 2010
Investment advice for a seaman's wife
Dear Mrs. Colayco,
I am a wife of a seaman and he sends me money regularly. Every month he sends me about Php75,000. After the expenses for the house and our son, I have about Php50,000 left over. He expects me to save the money in the bank but I feel that I can do more with it. I am not a business graduate and I do not understand the stock market. How can I maximize the money he sends me so that it does not sit in the bank forever and depend on the interest only?
—Joanne of Las Piñas
Mrs. Colayco replies:
You are definitely on the right track! Your husband, knowing that you do not have business knowledge is also prudent in giving you instructions to keep your money safe in the bank. He is working so hard far away from you and your son that he wants to make sure that his hard work will not go to waste.
Your husband is so very lucky to have a wife like you who:
• saves 65 per cent of your income and obviously does not waste his hard earned money.
• plans on how to grow the savings.
• looks for good advice.
You have to be very careful about your desire to help him precisely because of your lack of business expertise. In fact, the stock market may not be the best option for you to maximize your money because you don’t understand it. There are many other options and it is only possible to share these if you have some basic understanding and information available to you. It is important to spread your risks depending on your personal circumstances.
Here are some steps you must take:
1. Make your personal Statement of Assets and Liabilities (SAL) and your Personal Income and Expenses Statement (PIES).
2. Having these you can move forward to making your Personal Financial Plan.
3. Consult with a financial coach on how you can move forward.
To do this, you can learn in a very simplified manner especially because you have the right attitude. Our team at the Colayco Foundation will give you the basic information through the following ways:
1. Read and study carefully our publications. These are available to you at big discounts directly from us. These books teach you point by point how to make the SAL and PIES I mentioned earlier.
2. Join our Pisobilities Seminar (next one is on May 29) to give you basic information on saving and growing your savings plus info about the Kapatiran sa Kasaganaan Service and Multipurpose Cooperative (KsKCoop) where you can invest some of your savings together with other members in long-term businesses. The KsKCoop now owns a Chow King franchise in Cebu and the Rural Bank of Cavite City.
3. Pera Palaguin Workshop (next one is on June 12) to help you actually make your SAL and PIES if you do not feel confident doing it alone.
4. Investability Seminar in partnership with the Philippine Stock Exchange. This gives a simple explanation of the stock market and the best options you have to benefit from it.
5. One-on-one Financial Coaching. We will be committed to guide your financial journey—you set the goals, the strategies and the actions you take with the encouragement and advice of your Financial Coach. None of our financial coaches sell financial products, so you don’t have to worry about being pushed to avail of investments or insurance.
Yes, all of the foregoing will entail some very reasonable fees. However, if you diligently go through the exercises and study advice given:
1. You will know enough of personal business finance and together with the use of your common sense, you can make good educated decisions on growing your money.
2. You will be given good options available for your level of financial risk with the pros and cons explained to you to help you reach your decision.
3. These are exercises you can go through with your husband, even if he is away, with the help of the internet.
Please contact us at info@colaycofoundation, visit our website www.colaycofoundation.com or call (632) 637-3731 or 637-3741. Ms. Rhea for the books and seminars and Ms. Guita for the financial coaching.
Mary Anne B. Colaco is a happy wife, fulfilled mother of three beautiful ladies, helpful mother-in-law of two handsome gentlemen, doting grandmother of two adorable girls and the diligent President of Colayco Foundation for Education (CFE). For over 40 years, Mabsi, short for MAB-C, was in executive-level finance-related positions, as well as general management positions in Ayala Corporation subsidiaries (then, Pure Foods and Globe Telecom among others) and also served as a Commissioner of the Energy Regulatory Commission.
She joins her husband, author-entrepreneur Francisco J. Colayco in their common advocacy of teaching financial literacy to income-earning Filipinos. Herword.com draws from Mabsi’s wealth of life experiences in giving advice on personal money management.
If you have any questions about personal finance, e-mail feedback@herword.com.
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