I only have admiration for people who try to educate themselves on financial planning or how to manage their money. When I wrote about Mariannet early this week, I was amazed at those who responded – many of you have come from similar (or even worse) but have managed to lift yourselves by your bootstraps and are, in fact, doing well!

One of you who commented on that post was right: you are a testament that poverty does not have to be a widespread problem. The answer lies within each of us.

In fact, Dr. Noet Ravalo’s column yesterday talked of real-life stories of two drivers who were from the similar backgrounds, but have very different strategies on saving money.

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While looking at Moolanomy’s blog the other day, I stumbled on an intriguing post that illustrates why it’s hard to break that P1-million net worth mark.

It’s not just the persistence and focus needed to make your first million. Moolanomy correctly points out that it’s also mathematically challenging.

“If a person invests $15,000 per year starting at age 25 and the investment gains on average 10% a year, he can get to $1 million mark by 45. The first million took 20 years! But if you keep going down the table, it only takes…

6 more years to get to $2 million at 51
4 more years to get to $3 million at 55
3 more years to get to $4 million at 58
2 more years to get to $5 million at 60
2 more years to get to $6 million at 62
2 more years to get to $7 million at 64
1 more years to get to $8 million at 65

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This just out on Forbes’ Rich List in the Philippines:

Factory worker’s son joins Philippine billionaires

Agence France-Presse
Last updated 03:36pm (Mla time) 10/18/2007

MANILA, Philippines — Andrew Tan, the son of a poor immigrant factory worker from China, has reportedly become the newest addition in more than a decade to the ranks of billionaires in the Philippines.

After restructuring his holding company Alliance Global, Tan’s net worth more than doubled to $1.1 billion from $480 million, Forbes Asia magazine said in its 2007 Philippine Rich List published Thursday.

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A career in financial advisory services appears to be a hot move these days. I used to be a bit unenthusiastic about this because of how lopsided income distribution is in this country. Read: there’s too many poor people for every Lance Gokongwei or Jaime Augusto Zobel de Ayala.

I even asked a couple of bank staff who have to comply with HSBC’s quota for wealth management services, if it’s hard to find people who have at least P3.6 million ($80,000) to play with. “You would be surprised,” they said, looking at each other quite conspiratorially, I thought. Hmm.

In various interviews, industry leaders are saying while the Philippines still has to play a catch-up game with China, Taiwan or South Korea, banks are definitely growing their wealth management services in the Philippines.

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Philippine Long Distance Telephone Co. (PLDT) is slashing its workforce. More than 500 employees will be forced to retire with P1.1 million by September 15. PLDT says that’s the average compensation of the employees the company needs to let go.

If you suddenly find yourself out of a job, has skills in telecommunications traffic operations, fleet services and network, and suddenly holding P1.1 million in your hands, what are you going to do with it?

Food for thought on a very slow news day.

Jumper Kim Hopwood is seen as he leaps from the top of the 421-metres Kuala Lumpur Tower, during the International Tower Jump 2007, 24 August 2007. (Photo from Agence France Presse)

Here’s something I picked up from my interview with Francis Kong, veteran entrepreneur, public speaker and writer:

“Taking risks is good.”

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It’s a tag party and I’ve been invited “PF” style . Thanks Digerati Life  for including me in your tag list. What a great community of personal finance bloggers! I’ve found quite a number that should be included in my daily reading regimen.

It’s comical how this question has hounded me over the weekend. I thought about it while writing about other things, while walking to the mall, while preparing lessons for kids, while I was getting ready for bed! If I were asked to give just one — just one personal finance advice — what would it be?

Here goes: Enjoy your money! But use a plan and stick to it.

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When I was in my early 20s, I longed to retire at 30. Now that I have reached that marvelous age (plus several years), I realize I need more time. Besides, I can’t imagine not doing what I’m doing now. I would probably be lost without my writing that constantly defines and affirms every day who I am and what are the little things I can do to leave my little mark in this world.

A retirement survey by HSBC called The Future of Retirement in fact showed that many Filipinos would like to work even after they retire.

Boy Javier, an advertising executive, on the other hand, decided to get off the train early. And he is having the time of his life, according to this MoneySense article in the personal finance section of INQUIRER.net.

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Whew, I don’t know about you but I need a break from watching the market. This Lego doll knows how to relax! hehe…

Photo from Agence France-Presse with caption:

NETHERLANDS, Zandvoort : A huge Lego-doll of about 2,5 meters is seen at the beach of Zandvoort, 07 August 2007. Owners of a beachpub discovered the toy this morning. Nobody knows where the toy comes from, the Danish Legoland says they do not miss the Lego piece.

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I haven’t. Honestly. Is that good or bad? There is a lot of things in my reading list right now that includes updates on local and global financial news. I’m sure I will be a nervous wreck when I’m done reading. Media can do that to you! (Ouch, is that you INQUIRER.net?)

Trying to keep a good perspective here, though. I chose the funds I would invest in carefully. I know that my mutual fund is invested in blue chips and not speculative and risky stocks. The fund managers are experts in their fields and have performed well in volatile periods. I think I made a good asset play and I’m saving for the long-term anyway. I have no individual stock investments, that is why stock picking is not a particular headache for a small player like me. The best thing to do for me is to stay my course.

I spent the whole morning collecting data on the stock market so I can show everyone the historical returns of the Philippine composite index. Special thanks to Efren Cruz, chairman and president of Personal Finance Advisers Phils. Corp. for sharing his data. Bloomberg is also another source for PSEi year-end closing figures. Note that the lowest point of the index after the 1997 crisis is still a gain over 1987 levels.

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