That gave me the idea to blog about pyramiding schemes as opposed to multilevel marketing because many times, people view these two as one and the same. Not quite.
Where they look similar
Both pyramiding schemes and multilevel marketing (MLMs) have a similar triangular structure where the base gets wider as each new recruit tries to recruit other members so that they earn from their recruits.
But there are more areas where they differ…
Taken from https://godshotspot.wordpress.com/2014/11/18/gospel-pyramid-scheme/
In September of 2013, I discovered a new microblogging platform. My friend Noemi was using it and introduced me to the person in the Philippines representing Bubbly, an audio platform that allows you to record 90 seconds of voice. It also allows others to listen to you and if you are on a Premium account (like I am), you get people who subscribe to you.
I immediately fell in love with Bubbly. More than just an expressive outlet of my thoughts, I discovered that it was a great platform to draw people with disabilities into social media because of its audio feature. I had visually impaired followers and they were so happy to engage on Bubbly with me!!!
Disclaimer: I have not been paid by BDO to write this post. I am simply presenting one product that I think can be useful and relevant to my readers. This post may not contain all the details about the product so I recommend that anyone interested should contact the bank directly.)
Randell spoke of the Philippines’ low savings rate – 16% in 2003 – the lowest in Asia. If Filipinos saved only 16% of their income, it meant that so many are not saving or not saving enough. In the workshop, Randell also mentioned that if all extra money is placed only in savings or time deposit, it earns at a lower rate than inflation. Purchasing power then is being eroded by inflation as it cannot keep up with the higher inflation. The only way to keep purchasing power ahead of inflation is to put one’s savings into higher-yielding products. Trust products are the popular investment channels available now to most people Problem is that while the minimum placements have gone down considerably to allow more people to invest in these, it is still not low enough.
I remember a time when the minimum investment amount in Unit Investment Trust Funds (UITF) was around PhP 1 million. That meant only the already rich could invest in these types of products. Everyone else had to be content with a savings or time deposit product. Over the years, however, the minimum trust investment started coming down to Php500,000, then PhP100,000 and eventually, as low as P10,000. A sponsor of the workshop happened to be Banco de Oro (BDO). During the workshop, the executives of BDO’s Trust Department, introduced a new trust product called Easy Investment Plan or EIP.
For only P1,000 a month, you can already join the ranks of those who have access to higher-yielding products.
Whether you’re still in school, in your prime or about to retire,
You need financial peace to live a happy life.
And there is no time to begin but NOW.
Highly sought-after financial planning consultant, Randell Tiongson, who also happens to be a dear friend, invited me to his workshop recently, Steps to Financial Peace. The opportunity to attend and listen to the counsel of someone known for his know-how in investments was too good to pass up. And truth to tell, there was a little voice inside me saying that maybe blogging was another way to share stored-up knowledge from almost two decades in the corporate world.
Randell Tiongson
Some Things to Keep in Mind
When you invest, your goal is to earn at a rate higher than inflationary trends. If all of one’s extra money is in savings or time deposit, which at the moment hovers in the range of less than 1% to 2%, depending on which bank you use, your money is really losing value while it is sitting there because your purchasing power is being eroded by an inflation rate that is higher than the interest rate you get.
80% of what is needed for investing is BEHAVIORAL. People need to get into an investment mindset. Randell mentioned that even those who are themselves in the financial industry are not spared from financial woes. Many know how to preach but do not apply the principles to themselves.
There is what is known as a Filipino vicious cycle — the parents spend everything they have on the kids, ending up with no savings of their own. Then when they are old and medical issues begin to crop up, they become fully dependent on the children to support them. And the cycle continues. Some will say but that is because we are family-oriented and that supporting elders is a natural obligation. This mindset, however, results in generations of people who have no financial peace.
55% of families in the Philippines do not own their own homes. Many have been renting for decades with nothing to show for the money spent.
If you are holding a credit card, you should be aware of its terms and conditions so you can use it responsibly and minimize any risk that could make you financially liable.
I realized I had to write this post after I read a new addition to my Citibank credit card terms and conditions.
Something caught my eye when I recently printed out my statement to pay my bill. A box at the end of my statement caught my attention: “Please be informed that effective immediately, should your credit card exceed the credit limit, Citibank has the discretion to approve any requested credit card transaction depending on your credit standing with the bank.”
Wait a minute! So the bank can approve transactions on my behalf even if that transaction causes me to exceed my card limit?
Seems convenient? Under some situations (like a sudden medical expense or foreign travel) when we need more than the usual credit limit, it may seem so. But medical emergencies don’t happen every day. And we don’t take foreign trips all the time, do we? Remember, all credit card terms apply to us for as long as we continue using the card.
In my case, Citibank’s new terms and conditions made me somewhat uneasy. Here’s what the actual new section says:
“5. DISCRETION (Effective June 2011)
Without giving any reason or notice, and without prejudice to the other provisions hereof, the Bank has the absolute discretion…(b) to approve any proposed Card transaction which may cause the card account to exceed its credit limit;… (d) to increase or decrease the Regular Credit Limit, Combined Credit Limit or Special Installment Limit;…”
