I Rejected The Auto Loan

The teller in my bank has been kind enough to offer me an auto loan. I think that 5% per year on the interest of the loan is a good deal. And it makes it hard for me to reject the offer.

The thing is, although I want a car, I don't have any good use for it at the moment. I like walking and commuting and using my sister's "endless love" korean style bike. Its funny and I like to use it.

More than anything, any loan will only deduct the amount of cashflow I will have per month. The loan will cost me P15,000 a month of expenses which I really don't want to commit to.

Instead of getting the loan. I realized, I should be learning how to lend properly. Because of the incident of one of my borrowers did, I took a seminar about private lending. Some legal aspects, risk management and knowing the ins and outs of lending to a private person or small business.

My Very First Problem with Lending

Ok. I think, the time has come for me to encounter a problem with lending. Only the first month, this person is hinting that he's not gonna pay the money he borrowed. It might have been my fault for lending him money. And I think I know where I made a mistake.

He was a friend of a friend and a desperate one at that. I should have not lend money to people who are desperate. Only to people who will have a rock solid reason for borrowing. Like expanding a business, or expense to go abroad. If only I could have seen the sign. The good news is, I lowered the money he's allowed to borrow from P10,000 to P5,000 because I was unsure of him at first. And the bad news is, I have to do the dirty job of collecting his dues.

Just a note to my future self. Businessmen, good. Desperate guy, bad.

The Long Awaited Correction of PSE & Cashflow Update

The market is falling!.. Not quite. The long awaited correction is here. Its time to unleash all my extra savings to ride the waves. The correction is brought by traders and investors who are cashing in with the pse market. For me, it means an opportunity.

Cashflow Update

Cashflow is up +P2,250. Total NET Passive income is P41,164... Yes! I'm almost there to financial freedom. Another P9,000 of passive income and I'm free.

Cashflow Update March 2013

My current passive cashflow is now net after tax P38,914 per month. This is due to bonds and increasing dividend payouts by companies owned. I'm waaaaay beyond schedule by 1 year and I'm almost at the next milestone of P40,000.

The cashflow is not yet permanent as most of it is from lending. When the borrowers paid the principal, I'll be back to 15,000 per month. But that is probably a good thing as well because by that time, I would then have more money to invest in stocks or bonds to up that cashflow again. So I guess P38,914 might as well be a permanent one, now that I think about it.