DollarSpicE

These days, it seems the ATM is not anymore a free benefit afforded to bank customers. Indeed most, if not all, banks now
charge clients whenever they use ATMs to do withdrawals or even a simple balance inquiry.
The good thing is, these service charges are still waived whenever clients use their own bank’s ATM. But if the customer decides to use another bank’s ATM to do those transactions, the customer may be charged up to P15.00 per transaction.
Recently, several of the country’s biggest banks, including Metrobank (MBT), Bank of the Philippine Islands (BPI), Banco de Oro (BDO) and Security Bank (SECB) announced that they are increasing their ATM service charges for withdrawal and balance inquiry transactions.

New ATM withdrawal fees
Metrobank, for example, disclosed that effective October 1, 2013, their cardholders will pay P15.00 whenever they use other banks’ ATM to make a withdrawal. Previously, the charge was P11.00 for the said transaction.
Metrobank, however, will not increase the fee charged to customers who withdraw using the ATMs of Philippine Savings
Bank. The ATM withdrawal fee, whenever Metrobank clients use PSBank’s ATM, remains at P7.50.

Security Bank, meanwhile, announced that there will be an increase in the withdrawal fee for card holders of Security Bank CashLink, CashCard, GiftCard and its co-branded card variants whenever withdrawals are made from any ATM belonging to other banks. Previously the fee is P10.00 per transaction but will rise to P15.00 per withdrawal effective October 15, 2013.

Banco de Oro (BDO), for their part, will be charging ATM debit and cash cardholders withdrawing through any of the ATMs of BancNet, ExpressNet and MegaLink a fee of P15.00 per transaction starting November 4, 2013.

New Balance Inquiry fees
The Bank of the Philippine Islands (BPI), meanwhile, announced that they will hike the Balance Inquiry fee charged to BPI clients whenever they transact using Bancnet, Expressnet or MegaLink ATMs.
The new fee is P2.00 per balance inquiry, up from P1.50 previously.

The increased fee will take effect starting November 2, 2013.
Both banks reiterated that if their clients use the bank’s own ATM for any transaction, no fee will be charged.

With the increase in service charges, we now update our ATM Service Charges table which we posted back in May 2013.

This table summarized the ATM withdrawal and balance inquiry fees currently charged by Philippine banks.

ATM Service Charges of Philippine Banks

	Bank / Card	Withdrawal Fee	Balance Inquiry Fee
1	Allied Bank	P 10.00	P 1.00
2	Asia United Bank (AUB)	P 11.00	P 2.00
3	Banco de Oro (BDO) Cash Card	P 15.00	P 2.00
4	Banco de Oro (BDO) Debit Card	P 15.00	P 2.00
5	Banco de Oro (BDO) Smart Money	P 15.00	P 2.50
6	Bank of Commerce	P 11.00	P 2.00
7	Bank of the Philippine Islands (BPI)	P 15.00	P 2.00
8	BPI Family Savings Bank	P 15.00	P 1.50
9	Chinabank Savings	P 10.00	P 1.00
10	Chinatrust	P 12.00	P 2.00
11	Citibank Philippines	None	None
12	Citibank Savings	None	None
13	Development Bank of the Philippines (DBP)	P 10.00	P 1.00
14	East West Bank	P 10.00	P 1.00
15	Land Bank of the Philippines (Landbank)	P 10.00	P 1.00
16	Malayan Bank	P 12.00	P 1.00
17	Maybank Philippines	P 11.00	P 2.00
18	Metrobank	P 15.00	P 2.00
19	Philippine Bank of Communications (PBComm)	P 10.00	P 1.00
20	Philippine Business Bank	P 11.00	P 1.00
21	Philippine Savings Bank (PSBank)	P 11.00	P 2.00
22	Philippine Veterans Bank	P 10.00	P 2.00
23	Planters Development Bank	P 11.00	P 2.00
24	Rizal Commercial Banking Corp (RCBC)	P 12.00	P 2.00
25	RCBC Savings Bank	P 12.00	P 2.00
26	Robinsons Bank	P 11.00	P 2.00
27	Security Bank	P 15.00	P 1.00
28	Standard Chartered Bank	P 10.00	P 1.00
29	Sterling Bank	P 10.00	P 1.00
30	Unionbank of the Philippines	P 12.00	P 2.00
31	United Coconut Planters Bank (UCPB)	P 11.00	P 2.00

Update (September 26, 2013): The Bangko Sentral ng Pilipinas (BSP) ordered banks to indefinitely suspend the implementation of the ATM fee increase. The BSP said further study will be conducted first before a final decision is made to allow banks to increase their ATM fees.

This is good news for now. We wait until the BSP issues the final directive in the future.
 

The only things certain in life, they say, are death and taxes, but there are several countries in the world where you won’t have to worry about personal income taxes.

The list below identifies a few countries that do not impose income taxes among its people. Scroll down to find out where they are and perhaps you can decide to move there in case you want to escape the burden of paying any income tax.



Nine (9) Countries that Do Not Charge Individual Income Taxes
1. Bahamas
This wealthy Caribbean nation derives income primarily from tourism and financial services. In 2012, the country’s GDP per
capita is $31,000. Tourism accounts for over 60% of the Bahamas GDP, but provides jobs for more than half the country’s workforce. Financial services account for more than 15% of GDP.

The Bahamas does not charge income tax, corporate tax, capital gains tax, value-added tax (VAT), or wealth tax. About 70% of government revenue comes from duties and tariffs on imported goods. The country also has a property tax of up to 1%. Although there are no individual income tax, employees are deducted 3.9% of their salary, up to $26,000 annually, for social security benefits. The employer counterpart is 5.9% of a worker’s salary. Self-employed individuals are charged 8.8% for National Insurance.


2. Bahrain

Like most Middle East nations, Bahrain relies on oil for income. Petroleum production and processing is the country’s most lucrative industry, accounting for 60% of total exports, 70% of government revenues, and 11% of the country’s GDP. In 2011, Bahrain’s GDP per capita is $27,500.

There is no income taxes imposed on individuals, but Bahrain charges indirect taxes such as stamp duty on real estate transfers of up to 3% of the value of the property. Foreign expatriates are also required to pay a 10% municipal tax to rent a residence in Bahrain.

Citizens contribute 7% of their salaries for social security benefits, while expatriates pay 1%. Employers’ counterpart contribution is 12% of a citizen’s income for social insurance and 3% for expatriate employees.

3. Bermuda

Bermuda is is a British Overseas Territory located off the east coast of the United States. Its GDP per capita is one of the highest in world, reaching $97,000 in 2009. It is a popular offshore banking destination and is usually chosen by multinational companies as place of registration for tax avoidance purposes.

There are no personal income taxes in Bermuda but revenues come mainly from indirect taxation. Individuals relocating to the country are charged 25% for goods they bring. Property tax of up to 19% is charged on the annual rental value of a real estate property. A documentary stamp tax also applies to inheritance/estates from 5% to 20% depending on the value of the real estate. Low taxes may entice workers to relocate there, but the government charges $20,000 for a 10-year work permit in Bermuda.

4. Cayman Islands

Cayman Islands are a British Overseas Territory located in the western Caribbean Sea. It is one of the world’s wealthiest sovereign states, recording a high GDP per capita of $43,800. The Cayman Islands’ primary industries are tourism and the financial services. The state holds the fifth largest banking center in the world, with banks in Cayman Islands holding more than $1.5 trillion in deposit liabilities.

There is zero income tax, capital gains tax, value added tax, or government sales tax in the Cayman Islands. There are also no deductions to an employee’s salary because social security contributions are not mandatory. Employers, however, are required to provide pension plans for their employees, including expatriates who have been working for at least nine (9) months in Cayman Islands.

The islands generate income primarily from indirect taxation. Duty is levied against imported goods, and the tax rates is between 22% to 25%. All tourist accommodations are charged a 10% government tax, in addition to the $25.00 airport departure tax that all airline passengers pay. The government also receives income from the license fees of financial institutions that operate in Cayman Islands. Foreign expatriates also pay work permit fees to the government in order to work there.

5. Kuwait

According to the Kuwaiti constitution, all natural resources in the country and associated revenues are government property. Thus one could expect that Kuwait’s oil industry will be the country’s primary source of revenue. Indeed, revenues from oil account for almost half of Kuwait’s GDP which reached $164 billion in 2011. This translates to a GDP per capita of $58,000. More than 90% of export revenues and 80% of government income are derived from oil.

Kuwait does not charge personal income taxes, but individuals are required to contribute 7.5% of their salaries for social security benefits. Their employer counterpart is a contribution of 11%. Only 7% of Kuwaitis work in the private sector, the majority work in oil companies owned and managed by the government.

6. Monaco

Monaco, a sovereign city-state located on the French Riviera in Western Europe, is one of the wealthiest countries in the world with a GDP per capita of $132,000. Its main revenues are derived primarily from the tourism and gambling industry. It also has a fluorishing banking sector that boasts of over €100 billion worth of funds.

Monaco does not charge any personal income taxes to all residents of any nationality, except French citizens whose residency started after 1957. The French citizens are required to pay French income tax.

Despite the absence of personal income taxes, Monaco charges steep taxes on other fronts. Corporations are imposed a 33% tax rate, unless shown that three-quarters of company revenues is generated within the confines of Monaco. Residents also pay a 19.6% VAT on all goods and services. Employees contribute 10%–14% of their salaries to social insurance, while the employer’s contribution is between 28%–40%.

7. Oman

Oman’s GDP per capita in 2012 is more than $29,000 — around 7 times bigger than the Philippines’ GDP. Like most countries in the Middle East, Oman relies on crude oil, not income taxes, for its revenues.

Revenues from oil alone account for nearly 70% of Oman’s total revenues, reaching more than $13.7 billion in 2011. The country’s natural gas reserves are estimated at 849.5 billion cubic meters, ranking 28th in the world. Its proved petroleum reserves amount to around 5.5 billion barrels, the world’s 24th largest.

Although the country does not impose individual income or capital gains taxes, citizens pay 6.5% of their monthly salaries towards social security benefits.

8. Qatar

Qatar is one of the world’s richest countries, with a GDP per capita of $102,943 in 2011. It does not charge its citizens income taxes, but that’s not all. It also has zero taxes on dividends, royalties, profits, capital gains or property.

Similar to the UAE, Qatar relies on income from oil and gas. It owns the world’s third largest reserves of natural gas and charges companies in the oil and gas industry a 35% corporate tax rate. Citizens of Qatar, however, do pay 5% of their income for social security benefits, while employers contribute 10% for the fund.


9. United Arab Emirates

The United Arab Emirates (UAE) is one of the countries in the world that do not charge personal income tax or even capital gains tax. This is because it is one of the world’s richest sovereign nations, recording a high per-capita income of $49,000.

The country relies on money from oil companies that pay up to 55% in corporate taxes. Being the world’s seventh-largest source of crude oil and natural gas, they are bound to earn a lot already from these oil companies. Around 30% of the country’s gross domestic product is directly based on oil and gas output.

The corporate income tax rate for foreign banks is 20%. The UAE aso charges high sin taxes, 30% tax on alcohol and an additional 50% sales tax on alcohol sold in Dubai.

Sources: KPMG, MSNBC, Wikipedia

In order to facilitate a money transfer or funds pick up, you first need to visit a Western Union agent. Agent locations may be in supermarkets, grocery stores, check cashers, mailbox centers, drug stores, travel agencies, depots, and other retailers. In some countries, they may be in banks, travel agencies, post offices, airports, train, and bus stations, and currency exchange offices.
To search for a Western Union agent in the Philippines and worldwide, click here.

SENDING MONEY

How do I send money via Western Union?

Fill out the “Send Money” form. Then present your form, identification card, and cash to the Agent clerk. In addition to the money you’re sending, you must also pay transfer fees. Sign the receipt. Your receipt will have the MTCN (Money Transfer Control Number) that will allow you to track the status of your money transfer online.

What IDs can be used?

Any current government-issued ID such as Passport, Driver’s License, Social Security ID, GSIS ID, NBI Clearance, OFW ID, etc.

How will I know if my money transfer has been paid?

Visit the Western Union website and go to the Tracking section. Find out the status of your transaction by typing in the Money Transfer Control Number (MTCN).

RECEIVING MONEY

How do I pick up a money transfer?

First, complete the “Receive Money” form. This will ask for the transaction’s MTCN, full name of the sender, city and country the money was sent from, the amount sent, and your contact details. Then present the form and identification card to the agent. Review and sign the receipt that the agent will you. The agent will then give you the money that was sent to you and a copy of the receipt.

What IDs can be used?

Any current government-issued ID such as Passport, Driver’s License, Social Security ID, GSIS ID, NBI Clearance, OFW ID, etc.

How will I know if my money transfer is ready for pick up?

Visit the website WesternUnion.com and go to the Transfer Status section. You’ll need the name of the person who sent you the money and the MTCN.

How does Western Union pay out money transfers?

Generally, payments are in the form of cash but, in some cases, a money transfer may be paid out in check or pay out card. Cash paid may be in US Dollars or local currency.

We’re now living in an “instant” world.

There’s instant coffee for the early riser’s caffeine fix. There’s instant noodles for the person who’s too lazy to cook at home.

And if we want to talk to a friend, he’s usually just an instant messenger away.

We’ve gotten used to getting things immediately – such that if something tests our patience, we begin to think we’re probably wasting our time.

Take my friend, for example.

He wanted to lose weight. So he enrolled in a gym and started a diet plan.

But despite his best efforts, he did not see significant results in his first three months of working out and eating less. In fact, all he lost was just 5 pounds during that time.

At that point, he began to lose interest in going to the gym and began looking for other ways to lose weight. A few weeks after, he ditched his gym membership and got himself on an expensive “lifestyle diet” that promised faster weight loss.

Fortunately, the program worked for him and he was able to achieve his ideal body weight in just a few months.

However, it’s interesting to note that he’s now back to the gym, and have restarted his original diet plan because apparently, it’s the only way to maintain his ideal weight.

The weight-loss program he spent on gave him instant results, but the long-term solution to his problem is actually his original plan. If he were patient enough, he would have achieved the same results over time.

But I can’t blame him, he wanted to lose weight “instantly” and I respect his decision.



I have nothing against instant coffee and instant noodles. And I am purely neutral on those instant weight loss programs.

However, I realize that because these “instant solutions” exists, most of us have started to believe that there’s always an “instant fix” to life’s every problem.

And this unhealthy mindset is what causes us to disregard the fact that some things don’t have a quick and easy fix.

Getting out of debt, building profitable a business, retiring rich – these are just a few of the things that have no instant solutions.

And yet, many are still trying to convince themselves that an instant solution exists.

So they go out and play the lottery, marry for money and get involved in get-rich-quick schemes (which are mostly scams).

But here are some personal statistics:

People I’ve met who became rich through hard work and discipline: too many to count
People I’ve met who actually won the lottery jackpot: 1

Couples I’ve met who became rich by working together on a business: 20+
People I personally know who married for money AND are happy with their decision: 3

Entrepreneurs I’ve met who became rich by working on their own business: 50+
People I’ve met who became a millionaire through a get-rich-quick scheme: zero

With these numbers, I am led to believe that the instant solutions that many people believe in turn out to be not so instant at all because I’ve met more people who became rich faster through hard work.

And all those “instant fixes” are nothing but distractions that prevent us from doing it the right and sure way to become rich, and that is through old-fashioned work.

Do you agree? I certainly hope so.

Less than two months to go and it will be the start of another year.

And if you’re the type of person who makes New Year Resolutions, then you should know that now is the best time to start working on them.

Do you want to save more money next year as your resolution?

Then take those “baby steps” today, so when the calendar year ends, you’ve already made that change into a habit.

And to help you save money, one of my readers has generously shared below twenty things which she did that allowed her to pocket some extra cash for investing.

Her journey hasn’t been easy, but the rewards has definitely been worth it.

Let’s read what our guest blogger, Helen, has for us today.



A few months ago, while I was looking at PSE building, I realized that my interest in investing (buying stocks) is still there.

So I checked my savings account and planned how to come up with the money I need to start investing because my savings is shamefully low.

I also started asking friends and family for investing tips, banks for their investment products, stock brokers about their services and the ever reliable Google, to search about investing.

Like any other investing article in the internet, saving tips is one of the links under “You may also want to read” section. Naturally, I clicked one of them.

As I read one article to another, I became hooked and decided to study savings and investments further.

Armed with the knowledge from powerful investors like Warren Buffet to a mother who is trying to make both ends meet, I decided to follow these money savings tips to find out if it will also work for me.

1. Use LED bulbs.
They are way expensive than the other kind of bulbs but you’ll save more in the long run. Our electric bill used to be around four thousand pesos but after changing two of our bulbs (those that we usually use and often forget to turn off) to LED, our electric bill went down first to three thousand then two thousand.

2. Unplug appliances and turn off lights if you’re not using them.

3. Sell your desktop and buy a laptop or notebook.

4. Use environmental-friendly mobile phones, like Sony Ericsson’s Greenheart line. Not only they are environmentally friendly, but also energy efficient.

5. Save all your coins and deposit them to your bank at the end of the month or to pay your bills.

6. Save one hundred to two hundred pesos every week and deposit them to your savings account.

7. Pay yourself first.
Ask your bank if they can automatically transfer money from your payroll account to your savings account so you won’t miss your money and you’ll be happy to see that your money is growing. If you’re interested in investing, try BDO’s UITF where you can start investing for as low as one thousand pesos.

8. Open an account in banks that gives higher interest rates.
So far, BPI Family Bank has the highest interest rates I found.

9. Walk. Not only it will make you fit and relax, you will also save money.

10. Bring your own lunch.
If you’re like me working in Ortigas, where there is no “karinderia” and a single meal cost around one hundred pesos, it is really wise to bring your own lunch. Aside from saving money, you’ll also save time going to and fro the nearest fast food or restaurant.



11. Minimize eating out.

12. Avoid spending too much on coffee and alcoholic drinks.

13. Subscribe to sites like Free-eBooks.net for free ebooks.

14. Subscribe to airfare sites like Cebu Pacific Air for their latest low rates.

15. Make reading a habit, not watching T.V.

16. Sell your old stuff instead of letting them collect dust.

17. Cut your landline and stick to your mobile phone.

18. If you don’t need high speed internet connection at home, try using broadband instead. So far SUN has the most stable broadband.

19. Know the difference between want and need and stick to your needs.
I remember the movie “Leap Year”. The male lead asked his leading lady of what she will save if her house is burning and she only has sixty seconds to do it. Ask yourself this question before buying anything, if it worth saving then buy it.

20. Use your credit card wisely.
As much as possible, do not use it just to make both ends meet or to buy something because you can’t afford to buy it in cash. More often than not, those things that you are willing to buy but can’t afford are the things that you do not need.

After two months of practicing these saving tips, I tripled my savings and I am now close to my goal to start investing.

Mind you, those two months wasn’t easy, actually I stumbled a lot along the way. But like a baby determined to learn how to walk, I learned to accept my failures and tried harder to stand up and try again.

Happy saving!

I’ve been writing in this blog for almost six years now.
And if I were to summarize all the articles here, then I’d only need three sentences to do so.
Personal finance and the journey towards financial freedom is not a complicated undertaking.

It’s a straightforward, three-step process, that everyone can do with enough determination and discipline.
And thus presenting, the three things that you only need to do if you want to become rich and financially free.

1. Spend less than what you earn

You can achieve this by paying yourself first, living a frugal life, and creating multiple sources of income.

2. Protect yourself and your assets

You can achieve this by saving up for an emergency fund, getting life and health insurance for yourself and non-life insurance for your assets.

3. Grow your wealth by investing and creating passive income

You can achieve this by building an investment portfolio, acquiring income generating assets and starting a business.

And that’s it! Simple enough, right Keanu?



I know these three things are not easy, and there’s no quick way to accomplish them.

That’s why you need to subscribe to Ready To Be Rich below, because I’d like to help and be with you in your journey towards financial freedom.