Tuesday, November 22, 2011

What is Compound Interest?

Many of us do not understand or we take too lightly the enormous power of compound interest. Because we lack this understanding of its value in wealth building, it is one of the reasons why most of us are impatient and not motivated to save.

Investopedia explains that compound interest is interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage of only the principal amount. It is defined simply as interest earned on interest.

To illustrate, let us have this example:

You have a P20,000 investment that earns 10% interest every year.
Find the compound amount and compound interest on the principal P20,000 invested at 10% annually for 10 years.

Those who are not familiar with compounding will compute it this way:

Interest for 1 year ----------- P20,000 x 10% = P2,000
Interest for 10 years --------- P2,000 x 10 years = P20,000
Total after years ------------- P20,000 + P20,000 (interest) = P40,000

P40,000 would be the correct answer if you use "simple interest" in the computation. But thanks to compound interest, your money will actually be P51,874 after 10 years. The total interest earned is more than P31,874 instead of just P20,000. This is because the interest earned each year will also earn interest in the succeeding years. 

Compound Interest + Time

The difference between P40,000 and P51,874 may not seem much. That’s only because we limited our computation to 10 years. Had we extended our calculations to 30 years, the difference would be about P269,000. For you to gain the enormous benefits of compound interest you need to give it lots of “time” to perform its job. The more time you give to make it work its magic, the bigger your
money grows. As the old saying goes “time is money” and the story of Aida, Lorna and Fe, will show you that it’s a lot of money. Read their story here, page 8.

By the way, that book Kaya mo Pinoy! 12 Steps To Build Wealth On Any Income taught me a lot about personal money management. It is written in plain English and Filipino and it offers easy to understand and easy to follow advice on how you can accomplish your financial goals and fulfill your dream of a brighter future regardless of how much you are earning now.

I am not sure if this book is available in bookstores but I purchased mine online at P345. If you are interested, just check out their website at http://www.pinoysmartsavers.com/kayamopinoy.html. There was some delay on the delivery but it was okay. I texted the number posted on their website and the author, Mr. Alvin Tabanag is quite friendly and even encouraged me to ask questions about investing.

I let a friend borrow it and I hope he'd share what he'll learn to others.

Before I forget, the table below shows how the original P20,000 principal grows each year. Notice that the interest earned every year is increasing and not fixed at P2,000. So let's start investing now! Don't procrastinate!

Year 1
P 20,000
P 2,000
P 22,000
Year 2
P 22,000
P 2,200
P 24,200
Year 3
P 24,200
P 2,420
P 26,620
Year 4
P 26,620
P 2,662
P 29,282
Year 5
P 29,282
P 2,928
P 32,210
Year 6
P 32,210
P 3,221
P 35,431
Year 7
P 35,431
P 3,543
P 38,974
Year 8
P 38,974
P 3,897
P 42,871
Year 9
P 42,871
P 4,287
Year 10
P 47,158
P 4,716
P 51,874

P 31,874

Wednesday, August 17, 2011

The E-Kawayan Technology

Bamboo is a plant known for its many uses. It has become the best substitute for wood in the furniture, handicraft, and construction industries, not withstanding other benefits as a source of food, biofuel, and for environmental protection. In the Philippines, natural bamboo stands are luxuriantly growing along farm boundaries, roadsides, riverbanks, backyards, and hilly areas. There are about 65 known species of bamboo found in the country but the most commercially exploited species is Bambusa bluemeana Shultez locally known as kawayan-tinik.

Kawayan is a general term for all species of bamboo in the Philippines. It regenerates fast, hence, can be harvested in three years. One mother pole can reproduce more than one shoot. It is the best substitute for wood because its strength properties are comparable with mahogany and other medium hardwood species. Likewise, bamboo and its related industries have provided income, food, and housing to over 2.2 billion people worldwide. In 2000, bamboo contributed $3.81 M to the Philippine economy.

In Region 1, the income registered amounted to P40M in 1999 from sales of bamboo poles and butts alone.


The engineered kawayan (e-kawayan) is an advanced form of bamboo products produced by shaping the round bamboo pole into slats and glued/formed together to the desired sizes.

The principle of engineered bamboo is based on the concept that logs when converted into lumber, can be designed to suit specific uses. Bamboo poles when processed into bamboo tiles can be made into various products.

The Mariano Marcos State University (MMSU) introduced the technology through the development of the Kawayan Tile Maker (KTM). The tile machine can convert kawayan poles directly into slats of different sizes of 20-30 mm width by 10 mm thickness by 20 cm to 2 m long. From the kawayan tile machine, the sawn pieces can be made directly into parquet, composites and laminated boards. The butt and middle portions of the bamboo pole, approximately 6 m, are used in producing the tiles.

There are already available technologies generated through the years and now being commercialized. These are:
  • Kawayan Technology which delves in planting material production
  • Kawayan Technology on production of poles and shoot or also called as the PoPeYe technology which stands for Pole Per Year
  • Production of e-kawayan tiles and laminates
  • Develop of e-kawayan machines

The technology features the following:
  • Design and construction of tile processing machines
  • Establish of processing plant
  • Design construction of laminated products
  • Finishing and packaging
  • New product designs for bamboo and marketing
  • Bamboo industry situationer
  • Feasibility of tiles and laminates products manufacturing
Economic and Social Benefits
  • Developed new machines for bamboo
  • Increased utilization of bamboo
  • Increased farmer's income
  • Provided employment opportunities
  • Provided new market opportunities
  • Developed new linkages with LGUs and NGOs
Equipment and Other Requirements

Kawayan Pole Maker

Power requirement - 2hp 220V

Approximate weight - 80 kg
No. of operators - 1 operator + 1 helper
Width of strips - 25 mm
Length of strips - 0.3 m to infinity
Output/day (max) - 1,150 pcs @ 25 mm x 2 mL
Area equivalent/day - 57 sqm
Work space requirement - 6 sqm
Price - $1500

Kawayan Tile Maker

Power requirement - 2hp 220V

Approximate weight - 90 kg

Machine Dimension - 1 m x 1.5 m x 1.5 m
No. of operators - 1 Thickness of strips - 10 mm
Length of strips - 0.3 m to infinity

Output/day (max) - 741 pcs @ 25 mm x 10 mm T x 2 mL

Area equivalent/day - 37 sqm
Work space requirement - 4 sqm
Price - $2500

Bamboo Pole Cutter

Daily max output - 400 cuts

Power requirement - 1hp 220 V
Approximate weight - 60 kg
Machine dimension - 1.5 x 0.75 x 1.5 m
Space requirement - 9 sqm
Price - $750

For more information, please contact:
The Consortium Director Ilocos Agriculture and Resources Research and Development Consortium (ILARRDEC)
Mariano Marcos State University (MMSU)
Batac, Ilocos Norte
Tel (077) 792-3402 / 792-3688

Fax (077) 792-3699 / 792-3187 / 792-3191 / 792-2547

Email: ilarrdec@laoag.net; mmsuop@laoag.net; ilarrdec@digitelone.com
Web: http://www.pcarrd.dost.gov.ph/ilarrdec

Dr. Patricio S. Faylon
Executive Director
PCARRD, Los, BaƱos, Laguna
Tel (049) 536-0014 to 20; 536-5907

Fax (049) 536-0016/536-7922

Email: pcarrd@pcarrd.dost.gov.ph

Web: http://www.pcarrd.dost.gov.ph

source: http://www.dti.gov.ph

Monday, August 15, 2011

How to Start a Glass Recycling Business

Glass never wears out -- it can be recycled over and over again. Most bottles and jars contain at least 25% recycled glass. This article will show you how to start a glass recycling business.

For every business there is always the planning stage. Know the business fully well. Invest in trainings, buy books, and talk to people who know this industry better than you. Know your options and most especially do you have enough funds for this kind of business. If you think that you do then I don’t think that you can not succeed in this kind of business venture. There is a saying that there is money from wastes. This is so true. Empty glass or jars are categorized as trash and recycling glass is one profitable business venture you may to try to invest in. You can start by recycling glass bottles or jars.

Glass bottles are classified as non biodegradable so it will stay in its present condition for millions of years in the landfills.
Instead of throwing them where it will just take so much space in our mother earth why not start a business that collects, clean and resell the glass bottles or jars. You can offer the cleansed recycle bottles to those who are making home made jams or you can also search the web for possible customers who are interested in purchasing recycled glass.

You may also consider doing glass aggregates. This is made from recycled glass. You need to invest in machines that produce glass aggregates. There are machines that can fit in to your empty space at home such as your garage or you may also want to invest in a bigger machine but you will enough space for this. Glass aggregates are being used in the making of concrete pavers, terrazzo floorings, tiles for countertops and the likes. This is a lucrative business as this is the latest in the construction industry nowadays. It also used in landscaping, for aquariums and fire pits. Indeed there is a big demand for recycled glass.

You may also want to branch out in making stained glasses out of recycled glass. Stained glass windows look very attractive. There are also several crafts that you can make out of stained glass like picture frames. Materials that you will need in making any crafts out of the recycled glass are glass cutter, emery paper, glass grinder, pliers, and paints.
There are several other businesses you can come up with once you are well versed in the glass recycling business. For the meantime focused on just one and try to master it before jumping into another one.

Glass Facts:
  • Over a ton of resources is saved for every ton of glass recycled -- 1,330 pounds of sand, 433 pounds of soda ash, 433 pounds of limestone, and 151 pounds of feldspar.
  • Producing a ton of glass from 100% raw materials creates 384 pounds of mining waste. Using 50% recycled glass cuts this waste by about 75%.
  • Recycling glass reduces air pollution by 14-20% and saves 25-32% more energy than making glass from virgin raw materials.
  • Recycling one glass bottle saves enough electricity to light a 100-watt bulb for four hours.
  • Glass containers were recycled at a rate of 38% in 1996.
source: http://www.startupbizhub.com; http://www.lehighcounty.org; photo http://www.hardrainproject.com

Wednesday, July 27, 2011

World Food Expo Free Seminars

One of the country's largest and most comprehensive industry events, the World Food Expo 2011 (WOFEX) slated from August 3 to 6 at the World Trade Center and SMX Convention, will offer free demonstrations and seminars for the aspiring food entrepreneur.

On its 11th year, WOFEX continues to showcase the best in the food industry with its combination of established companies and sampling of the latest technology and products.

Free seminars include lessons in cake decorating, food safety and marketing innovations to name a few. There are also seminars charging a fee for those wanting to go into the food business like lessons on how to be a canteen concessionaire. Seats are limited and are on a first-come, first-serve basis.

For the full list of seminars and venues, check out the WOFEX events page here.

source: http://entrepreneur.com.ph; photo: http://filsites.com/wofex-11/index.htm

Friday, July 8, 2011

BPI 24/7 Online Banking

I've been doing electronic payment with BPI for quite sometime and they really provide great service esp for people who has no time falling in line on long queues just to pay bills. With just a few clicks, I do banking transactions instantly without the need to travel unlike before. I also find their employees really friendly and professional (unlike other employees from other banks). Anyway, this is about online banking so I'll just stick with the topic :)

Here are the things you can do with BPI online banking:
  • View real-time balances of your Deposits, Consumer Loans, Credit Cards, Investments and Express Cash Accounts.

  • Transfer funds between your own deposit accounts enrolled in BPI Express Online and to the accounts of your family members, relatives and friends.

  • Pay your utilities, loans, insurance, ISPs, country club fees and a host of other bills online.

  • Reload your own or someone else's Globe Handyphone or TM prepaid phone.

  • Apply for a deposit account, auto or housing loan, credit card, E-Credit, or Express Cash accounts online.

  • Request for a Stop Payment order of issued checks real time.

  • Re-order checkbooks, request for copies of financial documents and other credit card related services.
To discover more products and services featured in BPI Express Online, you can take a quick look at their Online Tour.

Truly BPI 24/7 Banking gives you the freedom to make the widest range of banking transactions anytime, anywhere.

I just love BPI!

Thursday, July 7, 2011

Scrap Price (July 2011)

Buying Price of Big Junkshops in La Union as of July 06, 2011:
  • Karton- P6.00/kilo
  • Newspaper - P4.00/kilo
  • White paper - P11.00/kilo
  • Waste paper - P2.25/kilo
  • Bakal - P18.00/kilo
  • Lata - P8.00/kilo
  • Tapa - P15/kilo
  • Yero - P11.75/kilo

Saturday, June 25, 2011

Domain Portfolio

According to Bill Gates, domain is an internet "real estate". Just like its traditional meaning, their value tends to go up. Setting up domain names is relatively easy. I started last June 2009 and I was able to sell some of them.

I have 3 minisites and 2 parked domain names and they are all for sale. Yesterday, I received an offer for junkshopbusiness.com. I get a lot of traffic from this site and so far, it is my highest-earning domain (thru google adsense). I wish I could post updated scrap prices to attract more visitors.

Anyway, here's my list:

JunkshopBusiness.com - minisite with logo and contents
Creation Date: July 29, 2009
Expiry Date: July 29, 2011
Registrar: Name.com

Bekimon.com - minisite with contents
Creation Date: July 31, 2010
Expiry Date: July 31, 2011
Registrar: Internet.bs

LetsPrettify.com - minisite with logo and contents
Creation Date: July 17, 2010
Expiry Date: July 17, 2011
Registrar: Internet.bs

PokersClub.net - online poker
Creation date: June 26, 2009

Expiry date: June 26, 2012
Registrar: Name.com

SpoonTalk.com - A good domain name related to food reviews, dining, culinary, recipes etc.
Creation date: July 23, 2009
Expiry date: July 23, 2011
Registrar: Internet.bs

Creation date: August 31, 2009
Expiry date: August 31, 2011
Registrar: Name.com

If you're interested, you can just email me at lilywhite168 [dot] gmail [dot] com

Thursday, May 26, 2011

Ube-Macapuno Salad

I'm going to try this simple ube-macapuno salad next week (I hope). I still have this persistent cough for over a week and the doctor advised to stay away from sweets and cold drinks for the mean time.

  • 1 cup ube jam
  • 1 pack instant gulaman
  • 1/4 cup (300ml) Alaska condensed milk
  • 1 cup water
  • 1 cup macapuno preserve
  • 1/3 cup toasted pinipig
  • remaining Alaska condensed milk
  • 1 pack Alaska Crema


To make the ube gulaman cubes, place ube jam, Alaska condensada, gulaman powder and water in a pan. Cook over low heat until gulaman is totally dissolved. Pour in a rectangular mold and let it set. Cut into cubes.

In a bowl, blend Alaska condensada and Alaska crema. Toss in ube gulaman cubes and pinipig. Chill until ready to serve.

Serves 8.

Saturday, May 14, 2011

Scrubs for Women

Five years ago, I took up a short-term course in Medical Transcription. Our instructor was great and I enjoyed every activity we had. On our second month, we were required to wear scrubs and I was very excited to have one. I always admired people with medical training wearing scrub suits. They really look neat! Aside from that, scrubs are loose-fitting, comfortable clothes. It's like wearing your pajamas while working!

I bought mine at a local store. The designs were very limited though. I didn't have other options. That time I didn't know that cheap scrubs could also be bought online. We were lucky to have our on-the-job training at one of the clinics nearby. They impose color-coded scrubs on their employees/volunteers to differentiate positions. We were wearing maroon scrubs though I'd prefer pink scrubs for women like the photo posted above.

Anyway, if you are working at a doctor's office or hospital , you may want to check scrubs for women here, http://www.blueskyscrubs.com/categories/Scrubs/Scrubs-for-Women/

Saturday, May 7, 2011

My Pimple Cure

Not everything works for everybody but I just want to share what I discovered lately. I found a natural, inexpensive and effective way to treat my pimples --> Apple Cider Vinegar (acv). It gets rid of redness and dries up pimples really quick!

Here's what I do:
Wash face then dab the pimple with acv (yes, I use pure acv since I have very oily skin). Pretty harsh huh! It might sting a bit, just be careful on how long you hold this to your pimple because it will dry out your skin. I usually let it stay for 2 minutes. If you have dry skin then I think it would be better to mix it with water. Rinse. Then moisturize. :)

Friday, May 6, 2011

LC shares

This morning I bought a few shares of Lepanto Mining (LC) at P0.74/share but sold it too early at P0.79...tsk tsk tsk. It closed at P0.81! I ended up buying again at that price :D

Last Thursday, May 5, the PSE announced that PX acquired 5% interest in LC/LCB at P0.66/share. According to Mr. Gus Cosio, LC/LCB had the richest mineral reserves among Philippine mining companies and Gold Fields was very serious in their quest to see if the reserves were in fact a bankable mining project.

I remember last June 2009, I think it was trading at P0.21/share. Could this become the next PX? Let's wait and see.

Some say there's much more money to be made in mining stocks than bullion.

With that said, I will try to be an investor on this particular stock, not a trader. Kaya? hehehe :))

Wednesday, May 4, 2011

Inabel Blankets

Handloom abel weaving is a process where thread that makes up the warp and weft are interwoven in an upright wooden handloom (pag-ablan) by one or two weavers. Ilocano blankets or Ilocos blankets (also called inabel) are made from yarns of cotton, polyester, acrylic and rayon. The different colored yarns are arranged in a wooden handloom (pag-ablan) to create varied and unique designs. The process is intricate and labor-intensive so weavers must master synchronizing the movements of their hands and feet to properly use the wooden handloom.

Not many people know that the century-old tradition of weaving wider Ilocano handloom-woven blankets is produced in Bangar, a sleepy town in La Union (Northern Philippines). For many years, our town has been the main producer and supplier of these inabel blankets and has been known to be the weaving center of Ilocandia. Wholesalers from other regions come to our town and buy these handwoven pieces.

With the ready availability of cheap machine-made fabrics and the migration of the youth away from Bangar, the abel tradition is in danger of dying out and that makes me sad most of the time. I really can't blame them because the pay is really low compared to the work involved. There are some loom operators who offer fair wages to their weavers but not everyone of them :(

Late last year, I put up an online store selling our handloom-woven products. I was so thrilled when I got an inquiry for the first time! That first buyer was from Laguna. I hope to meet wholesalers and retailers thru my online store. It is my dream to keep this craft alive and for people to know that these handmade blankets are produced in Bangar, La Union. Of course, my prices are higher because I don't haggle these handwoven pieces from the source. When I buy directly from the weavers, I offer higher buying price. When I buy from the loom operators, I offer additional incentive to the ones who worked for that inabel piece. Aside from that, me and my team also do quality control which is very important for any handwoven product.

By the way, aside from adult blankets and bed sheets, hand woven bath and hand/kitchen towels, shawls, pillowcases, we also have baby blankets, woven wraps and yoga towels.

Balay ti Abel also carries other types of inabel products from the different parts of Ilocos. We also have the famous penilian abel iloco fabric which can be made into clothing, table covers, bed runners, curtains, pouches and bags, material for footwear etc.

Before I forget, let's just make a distinction between the two italicized words here because they are used interchangeably: abel is the Ilocano term that refers to the process of weaving, while inabel is the final woven product.

We, at Balay ti Abel, continue to introduce modern design with age old production techniques, partnering with incredible and talented loom owners and weavers of our town and in the Ilocos region to revive and promote the beauty of abel weaving. When you choose inabel items, you not only receive a beautiful handwoven product, you know you have directly empowered and supported the communities of people who have lovingly produced each piece.

Monday, April 18, 2011

5 traits of a successful lifestyle-product exporter

Filipino design has received acclaim and accolade all over the world. Each year more local designers and entrepreneurs are looking at the export market. But what does it take for a neophyte in the home and fashion lifestyle export sector to make it big?

Rosvi C. Gaetos, executive director of the Center for International Trade Expositions and Missions, shares the secret traits of successful global entrepreneurs.
  • Passionate. "Do not lose steam. A lot of new designer entrepreneurs who venture into the export market easily lose hope when they face challenges, a little bump here and they opt to close down. You will only survive if you have the passion to push through for your dreams even when times are rough."
  • Creative. "It is a very competitive industry and the competitive edge of Philippine design is the creativity. A lot of successful designers would think out of the box. Creativity plays an important role in the success of the business."
  • Innovative. "This industry is all about innovation. Either you innovate or die. You have to have the flexibility to use non traditional materials or non traditional techniques in developing your products."
  • Skillful. "Filipino artisanship is recognized worldwide as one of the best. No other country in the Asia-Pacific region can lay claim to that."
  • Business-savvy. "At the end of the day, it is still a business that you have to run--do accounting, inventory, and sales. You need to have a business sense in order to succeed. You must know your market and know what it needs or want."
source: http://www.entrepreneur.com.ph

Introducing the All-new Samsung Galaxy S8 and S8+

The Samsung GALAXY S8 (5.8") and S8+ (6.2") is offered on Lazada thru pre-order only from April 17 to April 29, 2017. It comes w...