Its 2230 hours and its almost 2009. I am always optimistic that despite the recession happening, big opportunities still awaits us this coming year. As always i am making a list of milestones i am hoping to achieve, allow me to share some:
1. Start my first major business by middle of the year.
2. Read at least 5 financial literacy books before the end of the year.
3. Learn the ropes of stock market investing.
Please be free to post your own milestones and hope we will achieve it :)
Wednesday, December 31, 2008
Saturday, December 27, 2008
Rule of 72 derived
I first learned about the rule 72 was during a financial literacy seminar in one of the insurance companies here in cebu. I can't help but wonder how was this discovered thus i endeavored to get the bottom of this. Hmmmm besides this is in a way a blog with the Rule of 72 as the primary theme then it would just be fitting to check out how this was derived
Let’s start with Php 1 since it’s naturaly easy to work with.
Assuming we have Php 1 and a yearly interest rate (R). After one year we have:
1 * (1+R)
where R is the interest per year
Thus if we are going to derive for the 2nd year, the equation would now look like :
1 * (1+R) * (1+R) = 1 * (1+R)^2
and for the 3rd year we get:
1 * (1+R) * (1+R) * (1+R) = 1 * (1+R)^3
while for the 4th year we get:
1 * (1+R) * (1+R) * (1+R)* (1+R) = 1 * (1+R)^4
Extending to N years we get the equation of:
1 * (1+R)^N
Whew...so far we are still half of the journey.Lets proceed:
Since we are looking for how long it would take to double which is 2 php we then get the equation of:
1 * (1+R)^N = 2
Lets proceed in simplyfying above:
a.) 1 * (1+R)^N = 2
b.) (1+R)^N = 2
Hmmmm lets work on using log here:
c.) ln( (1+R)^N ) = ln(2)
d.) N * ln(1+R) = .693
e.) N * R = .693 [For small R, ln(1+R) ~ R]
basically we just assumed that ln(1+R)~ R because actual results comes really close.
however as we use bigger rates, accuracy becomes worse.
f:) N = .693 / R
multiplying by 100 to clean up the formula:
N = 69.3 / R
There you go...our magic number is 69.3...hmmm maybe because 72 is divisible by many wide array of such as 2,3,4,6,7,8 and 9numbers thus is its a preferred number to use.
whew... this blogged is giving me a headache with all this numbers....
hope you enjoyed guyz..
Let’s start with Php 1 since it’s naturaly easy to work with.
Assuming we have Php 1 and a yearly interest rate (R). After one year we have:
1 * (1+R)
where R is the interest per year
Thus if we are going to derive for the 2nd year, the equation would now look like :
1 * (1+R) * (1+R) = 1 * (1+R)^2
and for the 3rd year we get:
1 * (1+R) * (1+R) * (1+R) = 1 * (1+R)^3
while for the 4th year we get:
1 * (1+R) * (1+R) * (1+R)* (1+R) = 1 * (1+R)^4
Extending to N years we get the equation of:
1 * (1+R)^N
Whew...so far we are still half of the journey.Lets proceed:
Since we are looking for how long it would take to double which is 2 php we then get the equation of:
1 * (1+R)^N = 2
Lets proceed in simplyfying above:
a.) 1 * (1+R)^N = 2
b.) (1+R)^N = 2
Hmmmm lets work on using log here:
c.) ln( (1+R)^N ) = ln(2)
d.) N * ln(1+R) = .693
e.) N * R = .693 [For small R, ln(1+R) ~ R]
basically we just assumed that ln(1+R)~ R because actual results comes really close.
however as we use bigger rates, accuracy becomes worse.
f:) N = .693 / R
multiplying by 100 to clean up the formula:
N = 69.3 / R
There you go...our magic number is 69.3...hmmm maybe because 72 is divisible by many wide array of such as 2,3,4,6,7,8 and 9numbers thus is its a preferred number to use.
whew... this blogged is giving me a headache with all this numbers....
hope you enjoyed guyz..
Friday, December 26, 2008
Confucius baby steps (Level 1) search for my first peso
A Journey of a thousand miles begin with one step
Search for my first peso (Php 1 = 0.02 USD)
It was Confucious the great Chinese guru who first said the famous line " A journey of a thousand miles begins with one step". Officially im starting this game today and search for my first Php 1. Though i did started the game already at the istorya.net forum, i am restarting it again for the sake of this blog.
Though i am still 21 steps away from my first million, i am very much optimistic in reaching it. Why? because i believe that the world is in abundance and everything is being provided for us. I may be crazy in believing that this is doable but then again i would say just dream big guyz..
Game Plan:
Hmmmm looking for the first peso could be a difficult task. I will try doing some housekeeping during the day and see if i could pick up some coins and proceed to the next level.
Search for my first peso (Php 1 = 0.02 USD)
It was Confucious the great Chinese guru who first said the famous line " A journey of a thousand miles begins with one step". Officially im starting this game today and search for my first Php 1. Though i did started the game already at the istorya.net forum, i am restarting it again for the sake of this blog.
Though i am still 21 steps away from my first million, i am very much optimistic in reaching it. Why? because i believe that the world is in abundance and everything is being provided for us. I may be crazy in believing that this is doable but then again i would say just dream big guyz..
Game Plan:
Hmmmm looking for the first peso could be a difficult task. I will try doing some housekeeping during the day and see if i could pick up some coins and proceed to the next level.
ground rules-where it all started
Actually, i came across a thread by smurky at www.istorya.net initiating a game intitled "doubling your way to a million". I have to give credit to this guy coz i said to myself, why i didnt think of that. The game is challenging, tough, and very exciting since a lot have participated and are inticed to join.. I am adapting the same set of rules as smurky have posted except for rule # 2 below. If one is able to double or tripple your money in a single transaction then this game allows advancing to the next applicable level.
Here is smurky's thread: (THIS is a really CRAZY game!!! got this concept sa Entrepreneur magazine website. im putting it here sa istorya to stimulate our "business" side.
No, this is not a get-rich-quick scheme or a pyramid scam. And no, this is not a joke This is an exercise of the mind, and your ability to make a MILLION pesos from nothing. Sounds too good to be true? Then pay attention, mga higala. The GAME is simple, but fun and educational (and if you're good, then it's profitable). You start by finding a single peso from the street. (in this game, you're not allowed to use your own money). Use your wits to double that peso to two pesos. Try doubling that two pesos to four, then four to eight, and so on. If you still know your math, in just twenty steps you'll be doubling that booty to exactly P1,048,576 pesos.
1. You are NOT allowed to use any of your own money, not even a single centavo. You must only rely on your stake money in doubling the amount. No borrowing, no using your own money, nada.
2. If you are able to generate more than double the amount you should have at any one stage, you should spend the extra on yourself, and keep the exact double for the remainder of the game. (nice! if you have P50 extra, ipalit og Jollibee meal) If you make less, you can use the additional profit to reach the target amount ...but again, pls refer to Rule Number 1.
3. You can use multiple transactions to make your money double.
4. You must keep a diary or logbook of your progress. Record the date and time of when you are able to double the amount, and what actions you took to get there.
5. You will need several strategies to make that money double. Remember, the effort you put in doubling 5 pesos to ten is not the same as doubling 500 thousand to a million pesos. The higher your booty becomes, the smarter you should be.
6. You will definitely be tempted to break the chain and spend some of the money when it's big enough (to meet some of your needs). RESIST IT! You've already gone this far, why not go all the way to the top? Remember, there's a level of education that you acquire the bigger the amount, so don't lose that in favor of getting immediate gratification. (Get a job or a sideline business to support your needs, but keep that booty to stay in the game!)
7. You must TRADE, not work, to make the money double. Using it to gain work is not the objective. The objective is to make you use your entrepreneural neurons to TRADE that money and make it double. Employment is not an option!
8. Lastly, if you fail in any one step (like lose some money in the process), go back to the previous step where the money you have is right now. Example, if you are in Step 5 (P32) and in the process of the game, you lose P8, then the remaining P24 should make you start again at Step 4, P16. Spend the excess P8 and then start again. Of course, this is just a game, but if you can discipline yourself to do so, you'll be certified (and rich) Entrepreneur in no time!
There you go..the 8 golden rules...those interested to join are all welcomed to post their comments and share their experiences. Game na!!!!
Here is smurky's thread: (THIS is a really CRAZY game!!! got this concept sa Entrepreneur magazine website. im putting it here sa istorya to stimulate our "business" side.
No, this is not a get-rich-quick scheme or a pyramid scam. And no, this is not a joke This is an exercise of the mind, and your ability to make a MILLION pesos from nothing. Sounds too good to be true? Then pay attention, mga higala. The GAME is simple, but fun and educational (and if you're good, then it's profitable). You start by finding a single peso from the street. (in this game, you're not allowed to use your own money). Use your wits to double that peso to two pesos. Try doubling that two pesos to four, then four to eight, and so on. If you still know your math, in just twenty steps you'll be doubling that booty to exactly P1,048,576 pesos.
1. You are NOT allowed to use any of your own money, not even a single centavo. You must only rely on your stake money in doubling the amount. No borrowing, no using your own money, nada.
2. If you are able to generate more than double the amount you should have at any one stage, you should spend the extra on yourself, and keep the exact double for the remainder of the game. (nice! if you have P50 extra, ipalit og Jollibee meal) If you make less, you can use the additional profit to reach the target amount ...but again, pls refer to Rule Number 1.
3. You can use multiple transactions to make your money double.
4. You must keep a diary or logbook of your progress. Record the date and time of when you are able to double the amount, and what actions you took to get there.
5. You will need several strategies to make that money double. Remember, the effort you put in doubling 5 pesos to ten is not the same as doubling 500 thousand to a million pesos. The higher your booty becomes, the smarter you should be.
6. You will definitely be tempted to break the chain and spend some of the money when it's big enough (to meet some of your needs). RESIST IT! You've already gone this far, why not go all the way to the top? Remember, there's a level of education that you acquire the bigger the amount, so don't lose that in favor of getting immediate gratification. (Get a job or a sideline business to support your needs, but keep that booty to stay in the game!)
7. You must TRADE, not work, to make the money double. Using it to gain work is not the objective. The objective is to make you use your entrepreneural neurons to TRADE that money and make it double. Employment is not an option!
8. Lastly, if you fail in any one step (like lose some money in the process), go back to the previous step where the money you have is right now. Example, if you are in Step 5 (P32) and in the process of the game, you lose P8, then the remaining P24 should make you start again at Step 4, P16. Spend the excess P8 and then start again. Of course, this is just a game, but if you can discipline yourself to do so, you'll be certified (and rich) Entrepreneur in no time!
There you go..the 8 golden rules...those interested to join are all welcomed to post their comments and share their experiences. Game na!!!!
Wednesday, December 24, 2008
merry Christmas
Its December 25 and its a wonderful Christmas morning. We are all having a good laugh to my sister's crazy jokes in the food table while feasting on my mother's special spaghetti. Merry Christmas to all of you guyz and a blessed year ahead. Godbless
Begin with the end in mind
In any journey to partake, one would always need a roadmap to ensure reaching one's destination. As for this case i would use the rule of 72. Strategy is to look for ways to double my money and re-invest it again and again until it reaches to my very 1st million.
Here are the 21 steps to my very first million or roughly USD 20,000 (using the conversion rate 1USD :50 Php)
Level
| 1 | PHP 1.00 |
| 2 | PHP 2.00 |
| 3 | PHP 4.00 |
| 4 | PHP 8.00 |
| 5 | PHP 16.00 |
| 6 | PHP 32.00 |
| 7 | PHP 64.00 |
| 8 | PHP 128.00 |
| 9 | PHP 256.00 |
| 10 | PHP 512.00 |
| 11 | PHP 1,024.00 |
| 12 | PHP 2,048.00 |
| 13 | PHP 4,096.00 |
| 14 | PHP 8,192.00 |
| 15 | PHP 16,384.00 |
| 16 | PHP 32,768.00 |
| 17 | PHP 65,536.00 |
| 18 | PHP 131,072.00 |
| 19 | PHP 262,144.00 |
| 20 | PHP 524,288.00 |
| 21 | PHP 1,048,576.00 |
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