How can you invest 10 pesos per day?

Brens wrote me an email to say that puede na palang maghulog ng PhP10 per day. Brens said that he has set aside PhP10 per day for one month now. Since there is no bank or financial institutions that will accept PhP10 every day from a person, Brens will just have to keep his savings in a “piggy bank” until it reaches PhP1,000 or more depending on the bank’s minimum requirement for a savings account. The savings account will not give much interest, only 1% per annum, which is almost nothing. But it is a start for him to be able to keep the money from tempting him to spend.

Actually, it is only when your savings reach PhP5,000 that you can actually invest your savings in an instrument like Government Securities (Treasury Bills/Bonds) and Mutual Funds.

Government Securities (Treasury Bills/Bonds)
Government securities are certificates of indebtedness issued by the national government with a promised yield that is backed up fully by the state. GS are classified as the safest investment instrument because it is guaranteed by the national government. It is also the most liquid as you can sell it at any time and there are always buyers. The most popular government securities are Treasury Bills (T-Bills) and Treasury Bonds (T-Bonds).

T-bills are certificates of indebtedness that mature within one year or less. T-bills come in the following tenures: 91-day, 182-day, and 364-day.

T-Bonds, on the other hand, are certificates of indebtedness that mature beyond one year. T-Bonds come in the following tenures: 2, 5, 7, 10, 15, 20 and 25 years. There are different kinds of T-Bonds: Retail T-Bonds targeted for the retail market; Dollar denominated T-Bonds; Progress Bonds, among others. During the Erap administration, the government introduced the Small Investors Program (SIP), which reduced the minimum amounts for T-Bills and T-Bonds to as low as PhP 5,000 per investor. This gave rise to what is known as the Small Denominated T-Bills, T-Bonds and T-Notes.

If you want to invest in GS you can go to any of the 47 GS eligible dealers accredited by the Bureau of Treasury. These are mostly banks. The rates offered for these securities, once they are already in the secondary market vary. Banks will always buy back your GS whenever you need to sell them. You must also remember that there is a 20% tax on income on GS.

Once in a while, Retail T-Bonds are issued by the Bangko Sentral ng Pilipinas for a minimum denomination of PhP5,000 but unfortunately these issues were easily sold out. Banks that have T-Bonds usually require a bigger amount of PhP100,000 or even more as a minimum investment. It is only the government issued Treasury bills/bonds that are risk free because the government can always print money even if the actual value. But the returns on T-Bills/T-Bonds are much lower and most of the time, just closer or a little over the inflation rate. Unless, you invest in long-term T-Bonds, which have interest are higher than the inflation rate.

Other than T-Bills/T-Bonds, Mutual Funds and Unit Investment Trust Funds (UITF) accept PhP5,000 as a minimum and you can add PhP1,000 each time you want to add more savings.

Another issue that Brens brought up is the closing down of institutions that accept money for the purpose of growing it. He brought up the case of companies that closed down and could no longer located. It is true that there have been and there will continue to be companies that will close down for one reason or another. Some of them would be because of bad management and others would be due to reasons beyond the control of management. Nobody can really foresee if a company will continue to be viable to grow your money. But there are ways of lowering the risks. And of course, there are scams. Those are what you have to completely avoid. Scams are get-rich quick schemes that have no real products to offer. We can talk more about all these and Mutual Funds and UITFs in future columns

About the Author:
Francisco J. Colayco is an entrepreneur, a venture developer and financial advisor. He is the Chairman of the Colayco Foundation for Education and the Author of Four Publications, Three of which are Bestsellers: “Wealth Within Your Reach” (Awarded 2004 National Book of the Year, Business and Economics by The Manila Critics Circle), “Making Your Money Work” (Nominated 2005 National Book of the Year, Business and Economics by The Manila Critics Circle), “Pera Palaguin Workbook≤ and just off the press, ≥Money For Kids.

He is available for talks, seminars, and workshops. Learn more about his advocacy at www.colaycofoundation.com or email info@colaycofoundation.com. The books are available in the Philippines at National Bookstores, PowerBooks, 0917-8537333, 02-6314446 and www.colaycofoundation.com, in Hong Kong at Shop 367 Worldwide Plaza 19, Des Voeux Road, Hong Kong and in Japan at Global Growth Management Inc. (GGM) 9-1, Suite 201, Hirakawa-cho, 1chome, Chiyoda-ku, Tokyo 102-0093, Japan Tel: +81-3-3264-0441 Fax: +81-3-3264-6960 Cell: +81-90-2423-7065 E-mail: ito@ggm.co.jp. In other areas, please contact info@colaycofoundation.com or the publisher of this article.

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Comments

good day sir,pls teach me to stablish my hardware busness,how can start my busness.

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cimrf stnw mefpxu rtesk rgayqoh ruftim dcwf

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To Mr Francisco J. Colayco:

Sir good afternoon, can you help me find specifically the name of the banks who are offering Government Securities at Php. 5,000.00?

Thank you.

Rey

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Joris Reply:

Sir ang alam ko po sa Metro Bank nag oofer sila ng mutual fund. Balak ko din kasi mag invest for long term securities…

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To Mr Francisco J. Colayco:

Sir good afternoon, can you help me find specifically the name of the banks who are offering Government Securities at Php. 5,000.00?

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gud day sir! Nais po sana naming mag-invest sa “mutual fund”. Ano po ba ang nararapat naming gawin. Napanood po namin ang inyong guesting sa Full-Time Moms at kami po ay nasiyahan sa inyong ibinahagi sapagkat matagal na din po kaming nagnanais na magkaroon ng ganung klaseng investment. Maraming salamat po.

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Sir,

Magandang araw po sa inyo, Nabasa ko po ang inyong libro na ” Wealth w/in ur reach” at ako po ay nasisiyahan, seaman po ako at nais ko pong mag invest sa GS T-bills/bonds at mutaual funds,UITF, ano po ba ang gagawin ko?

Gusto ko po rin sanang mag attend ng mga seminar nyo about finanial at investment planning, pero hindi ko po alam ang inyong mga skedyul. Maari po ba na masagot nyo ang aking mga katanungan?

Maraming salamat po at God Bless!!!

Mark

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gud day sir!gusto ko po sanang maging bahagi ng inyong coop. mapapalago po ba ang aming maliit na pera kung mag iinvest po kami sa inyo.paano po ba kami makakasali sa inyo?ano po ba ang dapat namin gawin?maraming salamat po.

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God”s morning sir.Matagal ko na po gustong mag invest sa mutual fund., paano po ba? Paano din po mag invest sa ten pesos a day. please help me po. Thank you po and God Bless

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Gud day po sir, Ako po ay na sa Riyadh K.S.A., interested po akong maginvest sa Retail Treasury Bond, Mutual Fund at Unit Investment Trust Fund(UITF) ng Government Securities. Mayroon po bang Accredited Bank na available dito sa Riyadh na pwede akong magsubscribe para magkaron po ng account or certificates. Ganun din po na makapagdeposit ako every salary specially, sa offer ninnyo sa UITF & Mutual Fund. Give me also the the Term & Condition of the following contract, if in case there is an accredited bank in Riyadh, Batha Center. Thank u very sir for your assistance.
More power and God Bless,

Mike

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good day sir,im an ofw.i just want only to asked some important question regarding how to invest money safely.i heard T bond,mutual fund and UITF.which of them can i invest and can give me a higher interest.how much the initial savings?and besides what is the starting bussiness with the amount of 300t.thanks and more power.godbless.raquel

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I bought your book “wealth within your reach. Very striking sa akin ang chapter 7 dahil marami akong naging realization. And one of this is to join your coop.just wanna ask kung ano po ang qualification para makasali. Nais ko po kasi sanang palakihin ang maliit na tindahan na sinimulan ko kamakailan???
I’m married. As the usual mom, nasa bahay lang po. At may isang anak. Ang tindahan namin ay sentro sa palengke.. Magandang lugar pero kulang po ako sa kapital…Thankyou and hpoing to hear from you soon.

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sir good afternoon gusto ko pong mlman kong anong name ng bank ang may government securities php. 5,000
at kong pano makaka ating ng siminar ninyo. pls answer thank you.

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iam interested to buy t bills..can yu give me the list of
the banks that i can buy t bills?..and how much is the required amount? good day sir!!

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gud day sir!tagasubaybay nyo rin po ako sa inyong column sa bulgar.Saan po bang government bank ako pwedeng bumili ng T-bond?

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Sir,good afternoon po paano ba ako makapagumpisa mg invest saan po ,ako po ay retired employee

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sir, good pm po paano ba ang mginvest at saan ,Im a retired emloyee

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Good day! i watch your guesting @ GMA News TV with Rhea Santos and i’m interested to your suggestion for GS T-bond. Can you please e-mail me the List of Banks that accept a minimum of Php5,000 deposit for the T-Bond this will be a great help for me & my family.

God Bless & more power

Jarrid

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Dear Sir,

I’m Andres D.Maghanoy Working here in Saudi Arabia.I just only Asking how much the inetial Investment and how to start?

Thanks,

Andres D.Maghanoy

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Good day po!I have watched you at “on call” with Ms.Rhea Santos.I just want to ask for some tips how to handle our finances wisely. My husband is an ofw. I just want to be educated for me to help my husband. Thank you! And more power. Godbless!!!

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dera sir san po ba pwede mag gst-bond?

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nais ko po mgpatulong sa investment ng T-bills/T-bonds and othe rmutal funds. isa po akong OFW d2 sa gitnang silangan. salamat po!

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anu-ano pong banko pwede at safe i-invest and UITF at GS bonds
me phobia po kasi ako sa scam ng isang bank na nabalita sa educ. plans na maybe they are one of the banks offering this kind of investment.

Please inform us the accredited/safe banks.
thaks po….

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sir, good pm po paano ba ang maginvest at saan ,Im a retired emloyee.May kaunti po akong ipon pero hindi ko po alam kung paano ako mag start ng business or saan ako puwede mag invest.
Salamat po.

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Dear Sir,

Seaman po ako at interesadong mag-invest sa Government Securities (Treasury Bills/Bonds) and Mutual Funds pero wala akong idea kung paano mag-uumpisa.

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SIR,

What are banks offering government securities at a minimum of 5,ooo.oo.

Also, is it safe to invest on stock market?

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Gud day po sir! Pls. Send me the list of. accrideted bank,that offering for t- bond. Thanks

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In terms of Liquidity. May i ask, in the event that the GS issued certificate is physically damaged by fire, water etc beyond repair or if it was lost etc,…can the investment still be recovered / redeemed?

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gud day po sir,Im just an ordinary employee with a minimum salary.mulat sapul po gusto ko na tlaga mkapag ipon ng pera para sa pamilya ko kso po ntutukso ko pong gamitin.gusto ko po sana na mkapag ipon ng pera na hindi ko magagalaw,ano pong mas maganda at malake ang interest?time deposit po ba o mutual funds?pwede nyo po ba kong bigyan ng list ng banks na ng ooffer nang 5,000 deposit sa bonds?wala po akong alam sa pag iinvest pero ng nbasa ko pa ang libro nyo tlagang ang dami ko pong natutunan..29 na po ako,may 3kids..sa palagay nyo po ba my chansa pko mg ipon?6,000 a month po ang sweldo ko at my kaltas pa po yon.sa tingin nyo po mga mgkano po ang dapat kong i save every month para ma reach ko po yung target retirement ko kung abutin po ako ng 60 years old…maraming salamat po and more power po sa inyo…

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Sir, gud p.m. po… Ask q lng po kung pano mksali s mutual fund? nandito po kami s prov. ng bicol at d kmi mkkatend ng cminar, ano po ang dpt nming gwin? Kung pwede po sna malman nmin kung mgkno ang reg.pra mksali.

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Sir, gud pm po… ask ko lang po kung magkano ba ang kailangan para maka pag invest sa mutual fund at anong bank.

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Good day po Sir!

Napakinggan ko po ang interview ni Ms. Korena Sanchez sa bago nyang programa sa DZMM. Gusto ko pong makapag attend sa mga seminars nyo or consultation to manage my financies. Saan po ba ako puedeng pumunta or ano po ang dapat kung para maka pag pa kunsulta sa inyo. Maraming salamat po sa pag bigay ng time na masagot ang katanungan ko.

Victoria King of Tagaytay City

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sir paano po ba mag invest sa mutual fund? nakatira po ako sa bicol. isa na po akong biyuda at gusto ko pong magkaroon ng security ang konting naiwan sa akin ng aking asawa. ano po ba ang dapat kong gawin?

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sir gud pm po..matagal ko na pong gustong makapag ipon ng pera pr po sa future ng mga anak nmin..ofw po ang asw ko at isa p pong iniisip ko ay mahirap pong wlng ipon lalo na’t pauwi po ang husband ko this yr at diko po alam kong gaano cya katagal mag stay d2 sa pinas bago makaalis ulit..so interesado po ako malaman kung saan po ako pwede attend ng mga seminirs ninyo at kung saan po ba ako pwede magsimula mag invest..gusto ko po kasi tumubo ang perang maiipon ko,,wl po akong alam sa pag iinvest..25k po ang pinapadala lng sakin ng asw ko frm abroad..so magkno po kaya ng dapat na itinatabi ko??sana po ay matulungan nyo ako..salamat po god bless

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Okay din pa lang mag-invest sa t-bonds then puwede na rin pala ang 5000. good news po iyon!

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hello good morning sir,i would like to enquire how to join, im watching sharon show and im quiet enteresting about the topic,nandito po ako sa uk resident n po ako dito with my family tama po kayo sir luho at pag tulong sa pamilya kaya until now walang ipon pls.give me advice kasi gusto ko talagang makaipon thanks..god bless

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sir gusto ko pong mgkaroon ng business..anong pwede ko maging business..kasi mayron akong special na anak na hindi ko pwede maiwan lang ng aming katulong.mayron sana akong konting kapital kaya lang hindi ko alam,paano mg start ng business.hindi rin pwede ang sari sari store kasi marami na dito sa paligid namin.salamat

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sir sobrang gusto ko pong ma invest yung pera ko sa tamang mutual fund para po sana sa education ng anak ko sana po matulungan nyo akong mabigyan ng advice tungkol sa mutual fund at sa t-bonds…thanks po in advanced

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good morning po sir. may husband and i would like to invest on GS with starting 5000 pesos investment. please share how or please let know kung saan bank kami pupunta. thanks.

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sir,goodpm po giusto ko po sanang mag invest sa mutual fund ano po ba ang first step na ga2win ko andito po ako sa saudi arabia at pauwi na ngayong december,gusto ko din sanang umattend ng semiar niyo pwede niyo po bang malaman yun saan ang location niyo?taga makati lang po ako!!tnx Sir in God Bless!!!

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Nice investment po…starting at 5thou….pwede po ba akong mg invest plz po pkcontact po ako…..as soon as possible

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nais ko din po n maka pag ipon ng pera n pinapdala ng husband ko ..ofw po ang asawa ko.at gusto ko n may mapag lagyan ng ipon namin n mg iinters po …

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gud day sir…napapanuod kopo kayo sa mga guestings nyo.at gusto ko po sana mag invest hal.po ung sinabi nyo n 5000 pesos lng pwede n mag invest …wala po ksi ako idea tungkol dto at gusto ko po sanang makapag simula para sa mga anak ko salamat po.at sana matulungan nyo po ako.gusto ko rin po umattend ng seminar nyo

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gudpm po sir.matagal ko n po gustong mag invest kahit n mag umpisa lng po ako sa maliit n capital.gusto ko po sanang mapag aralan ang tungkol dito saan po ba pwede mag seminar at saan po pwedeng tawagan bago po ako pumunta.salamat po madami pa po kayong matutulungan.

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To Mr. Francisco J. Colayco;
Sir good day, can you help me or recommend
to me the specifically the name of the banks
who are offering Government Securities..Thanks
and More power!!!!!..

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