How Investing in Equity Funds Curbed My Spendthrift Tendencies

-
The Dollar Stretcher

I admit I used to overspend as a teenager. Eventually, I started helping out in our family business, made some bad decisions typical of young people, and I admit I've got the tendency to overspend. I started to invest in time deposits and invested in treasury bond (which is loans for government and retail companies), and I was initially discouraged from stocks because of the volatility. My first bond was sold and I decided to reinvest the money. Right now, I wonder what I'd do with the money when it matures plus I still have a long-term negotiable certificate of deposit (LTNCD) due two years from now. I thought about the bear market and realized Warren Buffett would advise buying the dip with an index fund. Before that, I decided to get into AXA's Chinese Tycoon Fund which invests in blue-chip companies by Filipino-Chinese businessmen (read here). I wanted to increase my coverage but found out my short attention span can be a real killer.

Before the pandemic, I got the AXA Chinese Tycoon Fund. Having to lay aside PHP 3,000.02 per month made me think to focus on my needs than my wants. It would be a good idea to focus on getting my needs over my wants. I do want a lot of stuff but I've got to be careful with my impulsive spending. Laying all that aside made me think about long-term investing. Sure, I've got a 2.5% per annum fee (due to active management is also involved). However, it's for the long-term and the stock market may go from bull to bear and bear to bull within a given timeframe. 2023 would mark the fifth year of my AXA Chinese Tycoon Fund. I decided not to pull it out because the PHP 3,000.02 allocated per month during a bear market means there are more units bought than during a bull market. Still, the principle is cost averaging with AXA to minimize losses. Though, I want to also do value cost averaging--that is buy a bit more during a bear market and buy less during a bull market. 

I wanted to do value averaging and I felt helpless. Fortunately, I decided to get GCash so I could order some food. It's kinda stupid really but GCash has the GInvest feature. Sure, I want to open Seedbox but I think GInvest will do for now. GInvest allows certain products such as stock index funds, feeder funds, and bonds. I decided to invest small amounts to rebuild my investment muscle. However, I realized that it might be better to lay aside PHP 1,000.00 to PHP 2,000.00 per month (or quarter) to the stock index funds and the feeder funds. The Philippine Stock Index Fund is more on passive management while the Philippine Smart Equity Index Fund combines the best of active and passive. The ATRAM Global Consumer Feeder Fund and the ATRAM Global Technology Feeder Fund will allow me to invest in global stocks without having to open an account abroad.

The principle of investing is to invest what you don't need now. I still find the idea of investing only what you can afford to lose to be very self-defeating (read here). I prefer to think about investing in what I don't need now. In short, I'll keep some emergency cash on hand, maybe invest only every quarter, or not invest at all (for a short period especially during a bull market) if the minimum has been met. I would think the best way to do it is that some of the money I set aside for wants gets invested. Money set aside for needs should stay. What happens is it becomes amusing to see myself trying to make every penny last. Fortunately, I don't desire luxury goods which is why my spendthrift tendencies aren't that bad. Still, I want to curb them as much as possible.

The objective here so to be thrifty, not stingy. That's why I wrote an article where I explain why being stingy isn't a good thing (read here). The aim isn't penny-pinching either. I want to achieve a thrifty lifestyle. Buying those equity funds when I can (and holding on to my AXA equity fund) has been helpful in making me reject a luxurious lifestyle. It's been one of the ways that one could stop spending on what doesn't matter to focus on what truly matters in finance. 

References

"Buying the dip: Is this a good strategy when markets are falling?" by James Royal (May 26, 2022)

"Philippines Feeder Fund What It Is And How To Invest"

"What Is an Index Fund? An Easy Way to Enter the Stock Market" by Kevin Voigt (March 20, 2021)

Popular posts from this blog

The "Kahit Konting Awa" Attitude Wouldn't Help Alleviate Anyone from Poverty

-
Image
  As the countdown to Christmas continues--it's easy to expect the toxic Filipino trait that I'll dub as "Kahit Konting Awa". The literal meaning is "Just a Little Pity". I named it after that song by Nora Aunor, the theme song of The Flor Contemplacion Story . I wasn't a bit surprised when the hit movie was uploaded on VIVA Films' YouTube page last 2013 (read here ). Back on the topic, I noticed it's easy for people to desire to reconcile because it's the Christmas season. The Philippines has the longest Christmas season. However, people love to do last-minute Christmas shopping presumably due to their poor budgetary habits. Ever heard of the one-day paycheck pandemic in the Philippines? It's a common abusive trait in the Philippines to have that "Kahit Konting Awa" attitude. There's the problem of "Utang (debt) is life." It's no surprise that financial literacy is that low in the Philippines. A not fun fact a
Read more

The Philippines 60-40 Equity Scheme Doesn't Prohibit FDIs But It's Still VERY DISCOURAGING for International Business

-
Image
First and foremost, I'd like to tell people that I don't believe that the Marcos Years were the "golden years". I still agree with economist Cielo Magno that land ownership isn't a factor, since some countries without equity restrictions, don't allow foreigners to buy land. In contrast, inflation and the like were rampant during that time. However, we need to realize that any gains after EDSA 1986 weren't realized. As I was looking at Facebook, a page called Punch the Lies by Atty. Mike Navallo stated this:  FACT: The 1987 Constitution does not prohibit entry of global investors into PH. What it regulates is foreign investment in areas deemed critical such as public utilities; exploration, devt and use of natural resources; and certain investments as determined by Congress. (Art XII)   Public utilities (water, electricity, petroleum distribution, seaports, PUVs) are considered vital to socio-economic devt that's why they're subject to foreign owner
Read more

The Irony the Philippines Starts the Christmas Season in September BUT Many Filipinos Love Last-Minute Christmas Shopping

-
Image
  Uproxx As Christmas is just around the corner--I feel more stress coming in! It doesn't help when people try to use the late Andy Williams' "It's the Most Wonderful Time of the Year" to try and skip the problem. It's already known that most Filipinos love to start Christmas in September . However, the irony is that Filipinos start Christmas early but do their Christmas shopping late. If they began the Christmas Season early, shouldn't they think about what to do before December strikes?  Two years ago, I wrote a post discussing last-minute Christmas shopping . Many Filipinos tend to do last-minute Christmas shopping. They had all of November (when the Christmas sale usually begins) but why do the Christmas shopping in December ? One of the things I blame is the one-day paycheck lifestyle (see here ). It can be observed that many Filipinos never learn to prioritize more important things . One can get their stars when they see their paychecks. However, the
Read more

If You Want to Make the Philippines Better, Study... HARDER?

-
Image
I grew up complaining and complaining about stuff. I always looked at the Philippines as a hopeless case. I hated studying the Tagalog subject--which was mandatory by the DepEd. I was told, "Look lazy bum! If you want to make the Philippines a better place--study harder!" In college, I began to apply myself more seriously even if I didn't graduate summa cum laude. I felt a sense of achievement when I won a commerce award for making an outstanding difference. What I never thought was that during the practicum--it was working smart and not working hard. Sure, hard work is there but smart work allows more hard work to be done at a better pace. Not long after, I took my MBA course but it was also at that time, I was scammed . I discovered I wasn't alone in being scammed--many MBA students were scammed during the same time I was scammed! However, what I discovered was the problem of saying, "Your grades will determine your future!" It was typical in Philippine sc
Read more

Hussam Middle Eastern Restaurant: A Trip Into Authentic Syrian Cuisine At Ayala Center Cebu

-
Image
  The last time I ate at a Hussam Middle Eastern Restaurant branch last year, I couldn't give a good assessment. I haven't been to Hussam's main branch at Il Corso, so I didn't formally meet its owner, Hussam Alfakeh Alkourdi. The branch I ate was in Ayala Center Cebu instead. This is the interior of the restaurant. Ayala Center Cebu has Persian Palate on the third floor, above Timezone. Hussam is near one of the entrances of Ayala Center Cebu--near a Chinese restaurant. Persian Palate was my entry point to Middle Eastern cuisine.  Hussam serves authentic Syrian food. There are dishes similar to those from the Persian Palate. They serve Syrian bread, different from my favorite Pita bread served at Shawarma Gourmet (read my review here ), a Lebanese restaurant. So far, I tried their mixed meat platter with Syrian bread. My second dish there was actually baked Arabic rice with grilled beef kebab. I love their tomato sauce (which I mistook for ginger sauce) and garlic sauc
Read more

The Philippines will NEVER Get Richer by Blaming Its Richer Asian Neighbors

-
Image
iStock It would be nice to talk about the typical blame game in the Philippines. I could rememeber that, as a child and a teenager, I had this habit of blaming people I dislike that I failed an exam. The reasons are mostly imagined. What I remembered in my later college years was when I met a couple of super irresponsible students. They had this attitude to say something like, "My parents don't care if it'll take me 20 years to finish my bachelor's degree." Some people even say something like, "It's the fault of the rich that we are poor." It was a backfire when I told such people, "Isn't it any wonder why your finances are down? It's because your parents don't even value the money when they don't care if it'll take up to 20 years to finish college!"  Understanding the blame game and why it feels so good Psychology Today presents this on why some people will always blame others . These findings can help understand the st
Read more

Can Diehard 1987 Constitution Defenders Prove Their Claims to the Lee Kuan Yew School of Public Policy?

-
Image
It's not enough to say something. The question is, "Where's the substance or the empirical evidence?" When I start quoting from the late Lee Kuan Yew, these diehard 1987 Constitution of the Philippines defenders start diverting the topic by pointing out my errors to spite me than to correct me. They would ask if I know the Deming Theory of Management which talks about quality management in the company culture. Okay, that was something worth asking but as said, can these people really understand the problem of the Philippines has been more systemic (that is, within the system ) than just the people running the system? What allowed the legislative to be filled with people who know-nothing anyway? That's why I didn't want to vote for Senator Robin Padilla (who ironically understands the need for reforms, read here ). Unfortunately, so many Ad Hominem attacks have been done.  A past article I wrote was Should you  listen to either Davide Jr. or Kishore Mahbubani
Read more

My Experience With Delicious ITealicious' Filling in the Milk Tea Demand in Cebu City

-
Image
It's been some time since I did a food review, right? Back then, I remembered how my first love with Taiwanese milk tea was Chatime. Though. when I went to Chatime--I usually ordered fruit tea since I was trying to lose weight. I ended up trying Tiger Sugar which ordering something without sugar doesn't make sense. So, another milk tea I decided to try (via delivery, haven't gone to the branches yet since the pandemic) is ITealicious. ITealicious is founded by Taiwan-born Yuwen Chiu (who's also a Chinese teacher in Cebu Eastern College). It was founded in 2018--the time when I was so devoted to weight loss that I didn't try it until I lost some pounds. In trying to renew my driver's license--I discovered I went from 85 pounds to 79 pounds since I've been doing a lot of cardiovascular exercises during the pandemic. I decided to give ITealicious a shot after I had tasted the food at Jolly Bubble. Jolly Bubble is pretty much the ideal place to get a delicious m
Read more

It'd Be Stupid to Continue Using Obsolete Chinese Language Textbooks to Teach Mandarin Chinese

-
Image
I remember writing about how to make Mandarin Chinese more accessible in the Philippines . I remembered the day when I ended up not liking school not because I didn't want to learn. I was eager to learn. Science and history are interesting subjects. However, mathematics is taught in such a way that it's almost irrelevant. "You just need to study it, it's required by the DepEd and you can't graduate without it!" was the only reason. You're not allowed to think, just be a robot, and then parents get mad about why their children have almost no initiative and need to be programmed like robots. It's because the school system kills initiative and nobody does a robot's job better than a robot .  Bahay Tsinoy, museum of Chinese life in the Philippines I just found this photo shared on Facebook. It was the picture of childhood trauma that I'd like to talk about. The standard Chinese textbook. At first, I was excited to learn Chinese but that excitement
Read more

Red Lizard: Wrestling With Your Taste Buds With Delicious Mexican Food

-
Image
During the late 2010s, I remember one of the greatest things I got into was Mexican food. I remembered a delicious Mexican restaurant opened in I.T. Park Cebu but it was later closed down. From what I heard, the owner closed it down out of grief and I don't blame the person for it. Years later, there was El Taquito at SSY which I also enjoyed. However, El Taquito is now located on Governor M. Roa Avenue in Cebu City. I would like to talk about the Red Lizard--Taqueria which has branches in SM Cyberzone, IT Park (where I usually get my deliveries), and Ayala Center Cebu.  I had quite a wild imagination thinking the restaurant was founded by a retired wrestler. I thought Red Lizard was a real luchador or Mexican wrestler. On the contrary, the character of Red Lizard is as fictitious as Jollibee's mascot, an anthropomorphic bee named Jollibee. Further research showed that Red Lizard belongs to the Abaca Group of Companies founded by Jason Hyatt and his Chinese wife Anna (whom he m
Read more