I Bought My Peace of Mind and My Family's Security for Php5,320 Only

Last Wednesday, I decided to make a purchase. Since I avoid impulsive spending, this purchase was something that I've thought about and discussed with my spouse for a couple of weeks. I bought term insurance, with myself as insured, and with my family as beneficiaries.


When I texted my husband that I was at Insular Life paying for my peace of mind and my family's financial security, he replied, "Bakit mo ba iniisip na mamamatay ka?"


I answered, "Hindi ko naman iniisip. Pero what if, di ba? Mas okay na 'yung prepared."


Besides, why wouldn't it cross my mind? I am a mother of two very young kids, aged 5 and 1. My husband is still on residency training, with three years before he graduates and more years before he could establish himself as a surgeon. I support my parents, too. I wanted to be sure that they will be okay, at least financially, even after I am gone.

In addition, just this year, I have a colleague who was a victim of terrorist bombing while he was at work, accompanying a doctor in a convention. And very recently, we lost a good brother in our division from a dreaded disease which he was diagnosed with less than six months ago. He was just in his early 40s. These instances were wake up calls for me telling me to do something about it -- while I still can.

I immediately went to my financial advisor/mentor, asked for a quotation for my term insurance and decided to buy security for my loved ones. Since I work in the field and I am on the road most of the time, buying term insurance provided me with that much needed peace of mind.


Term insurance is very cheap. At 31 years old, mine costs an annual premium of Php5,320 for a Php1M life insurance coverage. If you are getting it at a younger age, it can be cheaper. 

With money coming in (and out unnoticed) every payday, I encourage you to make wise purchases and make the most of your hard-earned money.

Buy insurance while you are still insurable. And develop that habit of setting aside an amount for your savings and investments. 

Take those financial baby steps, regardless of how old or how young you are today. And in the years to come, you will look back and be grateful that you did.

Be very blessed!

P.S. Interested in getting a life insurance policy? Want to start investing for your long term goals? Do you want to know the options for growing your money? Email me at financialplanningforpinoys@gmail.com.

My Learnings from Kerygma Conference 2013

Photo credit: http://www.facebook.com/TheFeastPICC

Last Sunday, I was at the Kerygma Conference 2013 held at SMX Convention Center in Pasay City. Kerygma Conference is one of the biggest inspirational gathering held once a year for spiritual nourishment, meeting new and old friends, and a time for learning.

Although I missed my class last Saturday which was about entrepreneurship, I was still able to bring home new life lessons which I will be sharing below.

The first class that I was able to attend was for the married entitled Sex Factor: The Christian View on Intimacy. Here are some points discussed by the speaker, Miss Pilar Tolentino, a family counsellor at the Center for Family Ministries (CEFAM).

1. Sex is beyond physical, emotional and social. Sex is spiritual because it the time when we see God, feel God and be with God.
2. Sex is God's gift to humanity.
3. Sex is a language of love. It is a way of accepting each other and sharing with each other.
4. Sex is self-giving, and not self-gratifying. It is an opportunity to show care and compassion for our partner, and bring ourselves out for our partner.
5. Sex is a commitment and responsibility. It is sharing of our whole being.
6. Sex is sacred. It is for a higher purpose, and not just for the need or urge.
7. Sex is a factor in relational empowerment. How?

• By being others-centered, showing empathy and compassion
• Should be loving. It is not just what you want, but who you are.
• Sex can be an empowering agent for our relationship.
• It is socially responsible.

    8. Sex has its fullest meaning when with commitment and responsibility.

There was also a lesson about Winning in All Areas of your Relationships. Here are a few points.

1. Never compare your children with the children of others.
2. Most parents, especially moms, tend to do everything and would not allow their children to do anything. We must remember that teaching our kids to do chores is training them to be life-skilled in the future.
3. Since wives play a lot of different roles that consumes all of their energy, we must remember that a happy wife is equivalent to a happy life.

On spiritual, Krish Dhanam shared three important prayers:

1. Dear Jesus, feel free to show up at my expense.
2. Please raise my gifts, but lower me.
3. Do not give me so much that I will run independent of you; but don't give me too little that I will be discouraged.

Lastly, Bo Sanchez, one of my mentors gave a talk on how pain forces us to grow. He says that unsuccessful people prevent pain, while successful people pursue pain. Most people are trapped in their comfort zone, trapped in their pleasure prison, and avoid pain in their lives. Here are some points to ponder:

1. If you want to experience God's power, pursue pain.
2. Learning requires pain.
3. Raising great kids requires pain. That it is easier to create rules, and it is more difficult to create relationships.
4. A loving marriage requires pain.

Agree? Share your stories of pain and how it made you grow.

My Inspiring Success Story

Yesterday, I read a Facebook post from my favorite magazine asking for inspiring stories that they could feature in their coming issue. I immediately brought out my laptop and began writing MY inspiring story. I have emailed them my entry, and now I am keeping my fingers crossed hoping that I will be chosen. But just in case I don't, I thought of sharing my entry with you.

FROM BROKE TO FINANCIALLY FREE

I am Joan Veronica Trojillo, 31 years old, married and mother of two kids. Let me share you my story.

I was a graduate of Tarlac State University. Because I was the youngest and the only girl, my parents did not allow me to study outside our province. Because of this, I felt like I had limited opportunities compared to those who graduated from known universities. But this eventually was not a hindrance at all because I was able to work immediately after graduating. My first job was as a bank teller and then after a year, I made a career shift and worked as a medical representative. That is what I have been doing for the past nine years. I am blessed to be working for a great company. I enjoyed the benefits as an employee, the perks of being a field man which includes a company car with free gas, sales incentives, and bonus up to 17.5 months.

But inspite of all these financial blessings, I would always find myself stressed everytime the bills would arrive in the mail – utility bills, credit card payments, loans, and other household expenses – and I do not know where to get the money to pay for all these. I had zero savings, no investments either and I was practically down with debt. I had a negative net worth. If you would ask where I spent all my money, fellow Cosmo girls would know the answer, and that is SHOPPING! Since my job does not include a time in and a time out, I spend dead hours at the mall almost everyday, window shopping at first and then actually shopping for things I do not really need. I used to have more than enough pairs of shoes, tons of bags, a different colored watch for every outfit, plus the latest gadgets. They were more than enough that people would ask me why I still keep buying. As the old cliché goes, shopping then was therapy for me. It de-stresses me.

Then the unavoidable happened. I had no money to pay for bills which are necessities, and I had no one to borrow money from. I ended up selling my things on Ebay, Facebook groups and I even held a garage sale at home. Handing my precious bags, shoes, watches and gadgets to their new owners was painful. Not only because I was losing them, but because I was losing them at a way cheaper price. Eventually, I learned to detach myself from these material things and I realized that they were not really investments, even if the advertisements say so. With these, I was able to pay the bills and then had my credit cards cut. Up to this writing, I still do not own any credit card, and that is by choice.

After ten years of being employed, with my monthly earning just coming and going, my financial breakthrough started to occur last March 2013. I attended a financial seminar for the first time by the Truly Rich Club. Through this, I became aware of the many other sources of income, the ways of investing, telling your money where to go instead of asking them where they went (my favourite quote), and that the main purpose of wealth was to help others.

I applied everything I learned from that seminar. Everytime money would come in, like my salary, incentives, allowances and bonuses, I would divide them into five envelopes – 10% worship (tithe), 20% wealth (investments), 10% want (shopping!), 10% wellness (long term goals) and 50% wallet (expenses). With this strategy, I never felt deprived nor broke. And yes, living way below your means is possible. Proof? I survived!

Through that seminar, I also learned about the beauty of online marketing. I enrolled in an online course, which costs five digits by the way (I never thought I could afford that in the past), and I came to realize and develop my passion for writing. I have started building my blog on personal finance management. My blog is Financial Planning for Pinoys. I feel blessed because I am able to inspire my readers through their positive feedbacks thanking me how these practical tips have helped them. I dream of writing my own book by this year. With that, I also enrolled in another online course which teaches me how to write a book and publishing it on Kindle Amazon. The goal is to help solve financial issues of fellow employees, and also to earn income through royalties.

I have also learned how to invest in stocks. The stock market is now my big piggy bank, preparing for my early retirement. My goal is to stop working before I reach 40. I have also opened accounts for my two kids. Since time is our greatest ally in building wealth, I know they will become millionaires by the time they reach college.

I have also signed up for membership sites and I earn commission through affiliate marketing. This is another source of passive income for me.

Because I love to travel and still love to shop, I have opened an online store selling clothes which I have personally bought from other places. Not only was I providing quality clothing at a very affordable price to customers, I was also helping other people earn as my resellers. We made a great sale last December during the holidays. At the end of 2014, I am aiming to become a wholesaler.

God opened another door of opportunity for me through another business. And most recently, He brought me the right people as my team. We are now in the process of setting everything up and we will be opening this January. What a way to start the year!

 

From being broke, I now have a positive net worth and I am very happy about it. All these in a span of only six months! I now have savings and growing investments, and I never feel stressed because of being broke anymore. I am even able to support ministries and sponsor children. Plus the increasing number of people that I am being able to help through my blog and my business. Truly, I am very blessed!

Yes, you can turn your finances around. If I was able to do it, so can anyone else. You just need to have a dream of how you want to see yourself in the future and set a deadline for it, the discipline to tell your money where to go, and the determination to act on that dream. Recognize every opportunity and have the courage to take that chance. You are more than the brand of your shoes and bags. If you would want to splurge, choose self-growth. I attend seminars almost every month because there is always something new to learn. I encourage that you do, too.

My prayer is that you reach your goals in life. And when you have succeeded and achieved financial freedom, remember to use wealth to love others.

Make Money With Stocks Seminar

Investing in the stock market is very much like any other business where you buy a product to sell to someone else at a profit. Many of the same rules and principles apply.

Too many investors treat their stock market investing more like gambling at the casino. Successful and profitable investors know the difference.

The stock market is a great equalizer where people with small amounts of money can earn the same way that the “Big Players” do. It does not matter how much you start with if you use sound business techniques for your investing. What does matter is how you make your investing funds work for you.

While knowing the basic business and stock market strategies is important, the PSE has its own investing characteristics that every investor needs to understand.

 

 

How You Will Benefit

• Make more money investing in stocks without all the worry
• Keep money you make from profitable trades and not lose it
• Find out how the professionals invest in the stock market
• Understand the peculiarities of the PSE to help you invest
• Stick to a sound investing plan that works best for you

What You Will Learn

• The Business Model for Investing
• Finding the Right Purchasing Manager – Fundamental Analysis
• Working With Your Marketing Manager – Technical Analysis
• Buying the Bargains – Identifying the Best Price
• Selling For a Profit – Knowing the Right Price and Time to Get Out
• When to Have Your Midnight Madness Sale – Unloading Unprofitable Merchandise
• Enhancing Your Bottom Line – Money Management for Investors
• Why “Winners” Turn Into “Losers”
• Identifying New “Fashion Trends” in the Stock Market
• How to Make Your Small Business Grow Large
• Running Your Investing Business in the Philippines – Why It Is Different

Attend “Make Money With Stocks: Invest Like It’s a Business (and Not a Casino)” on September 14, 2013, 8:00am-12:00pm, at the PSE Auditorium, G/F Philippine Stock Exchange (Tektite Towers), Exchange Road, Ortigas Center, Pasig City.

This seminar will take you from feeling that you are at the mercy of market forces to being in control of your investing business. You will gain both knowledge and confidence as you learn how to design your stock market business to successfully Preserve Your Capital and Maximize Your Profits.

To register, click here.

How To Become Wealthy Even If You Do Not Have 20 Years To Invest In Stocks

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I have been talking to my friends and workmates who are almost of my same age, which is in our early 30s, about personal financial management. Some are even younger. And yes, they are considering growing their money in the stock market.

But there may also be some, readers of this blog or other articles about stock market investment, who are wondering if they could still be wealthy even if they are in their late 50s.

Making millions in the stock market takes a long time, around 20 years at least. This is the main reason why we are encouraged to start at a young age. But if you want to grow your wealth in 5 years, do not look at the stock market. As what my mentor says, look at entrepreneurship.

Work on Your Cash Machine, Not on the Stock Market

When I attended the Truly Rich Club's Wealth Summit last March 2013, I met the Mastermind group of mentors. All of them are very wealthy now. Each of them started from a small business from various industries. And now, the Stock Market is multiplying what they are earning through their businesses.

Business and the Stock Market

 

If you are still young, I encourage that you do the same. Do what the rich do. Get into business, preferably a business that is related to your passion and core gifts. Then grow your earnings in the stock market.

 
Be very blessed!
 

The Main Purpose Of Wealth Is To Love Others

Last week, I attended an orientation for another possible income stream. We were asked to briefly introduce ourselves. When it was my turn, I told the group that I am an employee working as a medical representative, I manage an online clothing store, I am an affiliate marketer for certain brands, membership sites and events, I blog about personal finance management, I invest in the stock market and I have another business on the way with a partner.

Yes, a do a lot of things. I make the most out of my 24 hours everyday. And you may ask, "WHAT FOR?" 

Later that day at work, I was telling my MD about the many things that have been keeping me busy these days. To my surprise, he shared a Bible verse with me about greed. He thinks I am doing all these for the love of money. Honestly, to have that reputation was a sad fact. I just told him what my real purpose was, which is to love others, and a "WOW!" was his reply. Well, at least I was able to change the way he thinks about me.

We, at the Truly Rich Club have been taught by our mentor that "the main purpose of wealth is to love others." We are encourgaed to earn more, but live a simple life, so that we could help people in need. 

My income may have increased but I still wear the same watch, still prefer using my "unsignatured" bag, rented the same apartment with my husband and lived in the same house with my parents. We are not frugal, but we are not luxurious as well.

Aside from my goals for myself and for my family, I have included child sponsorship and charity work to my list of dreams to accomplish. Recently, I have received a handwritten letter from my first sponsored child thanking me and telling me that I am a part of their live now. Wow! When your Php600 per month goes a long way for people in need, sends a child to school and create livelihood programs for their community, that was definitely something.

Over the weekend, I visited Anawim, home of the abandoned elderly, for the first time at Montalban, Rizal. Thinking how their families could have abandoned these helpless elders instantly brought tears in my eyes. Most likely, it was because of poverty. And this made me realize that if I do not save or invest today, I may end up as a resident of Anawim myself. My goal is to become a donor, and not otherwise.

When I signed up as a pilgrim for Anawim last week, the first thing I had in mind was to bring joy to our lolo's and lola's with my mere presence. True enough, having visitors brought twinkle in their eyes and smile on their faces. But what the experience actually did for me was beyond extraordinary -- a certain happiness that I cannot explain. I remember what my mentor says, "Give and you shall receive." True enough, I gave my little time for them and I received so much in return.

Ask yourself, "Why do I want to be rich?"

And I pray that you have the right reasons.


Want to gain financial freedom and spiritual abundance at the same time? Join the Truly Rich Club today. Click here. 
Interested in child sponsorship through World Vision? Click here.
Have time and donations for Anawim? Click here.

How To Truly Invest In Banks

I have a workmate who lives a frugal lifestyle. He lives way below his means. He only buys new clothes, shoes, and even undergarments during our national conference, which happens twice a year. According to him, this is because he saves his money in the bank. He feels his money is most secured by doing this.

I tell him that he is actually losing his money, the purchasing capacity of his money in particular, by keeping his money in a savings account. This is also true even in time deposit. He could not believe what I was saying.

Based on the Philippine Deposit Rates in our country today, most banks offer a mere 0.25% interest per year for regular savings account. The highest interest rate given is 1.375% for time deposit of your Php5M minimum with a holding period of one year.

But how does your money in bank depreciates? The answer is because of inflation. Last January 2012, the inflation rate in the Philippines was as high as 5.2%. Currently, it it at 2.5%. Yes, it is lower now compared in the past because of our growing economy, but it is still higher compared to the interest rates that your money earns in banks.

Invest in Banks

 

My mentor taught me that if we want to truly invest in banks, buy shares of that bank through the stock market. Personally, I have shares of the biggest banks in the country today. I have BPI (Bank of the Phil Islands), BDO (Banco de Oro) and MBT (Metrobank). 

Investing in the stock market allows your money to earn at 12% to 20% per year, way higher compared to putting your money in banks, and beating inflation rates.

Banks are ideally for your emergency fund and business only. And besides, banks use your money and invest it in the stock market, wherein they earn through capital appreciation and dividends. 

 If you want to truly invest in banks, buy the bank.

How? Two ways.

You can directly invest in the stock market, with you choosing which stocks to buy, when to buy and when to sell. You can start doing this with as little as Php5,000 to open an account with an online stockbroker. The simplest and most effective way to learn how to do this is through signing up at Bo Sanchez' Truly Rich Club. CLICK HERE.

You can also invest in the stock market indirectly through financial institutions and insurance companies. With Insular Life, which is the first and the largest Filipino-owned life insurance company, you can start investing with as little as Php20,000 per year. Aside from growing your investment portfolio, you are growing your insurance coverage through this as well. You can request for a FREE quotation by filling up our form HERE.


Grow your wealth while preserving your fund's real value.


To understand this fully, please watch the short video below.

P.S. I hope you find this post helpful and finally ACT on starting your journey towards financial freedom through investments.

Splurge When It Comes To Self-Growth

There are two kinds of growth in life and in business: Progressive growth and quantum growth.

Progressive growth is moving from step 1 to step 2, step 2 to step 3, and so on. Quantum growth is leapfrogging from Step 1 to Step 10 -- all in one stride. 

And my mentor taught me that the only way to quantum growth is by having mentors. And true enough, based from my experience, that is where Quantum Growth happens. Mentors may come in form of a book, a seminar or conference, audio talk or video talk, newsletter or eReport, or an online course, or coaching program.

The biggest roadblock in having a Mentor is that they do not usually come cheap. Nor are they free. As a matter of fact, having a Mentor is expensive. So we ignore the opportunity to learn, and keep looking for free.

Remember that you are your most important investment. Do not be cheap on yourself. Invest in yourself, invest in your self-growth, and whatever you spend will be nothing compared to the profits you will earn when you have experienced Quantum Growth.

Avoid the free lunch attitude. 

I Do Not Stop Learning, and I Continue to Pay for My Learning

 

Above is a photo from my first splurge on self-growth: Wealth Summit held last March 2013. It was a splurge because registration for this two-day seminar costs almost Php20,000! I did not want to put my hard-earned money to waste so I chose to apply all that I learned from the seminar.

After that, I began to develop my passion for reading. Robert Kiyosaki, Bo Sanchez, Larry Gamboa and Dean Pax Lapid became my Mentors through these books. Almost every week, I would buy a book on financial management, business and investment. There were times when I would finish a book in 24 hours. Now, my collection of financial books is so much more compared to all the novels I've read in the past ten years combined!

I have also enrolled in an Online Marketing Course that costs Php18,000. Through it, I have learned my love for writing, which eventually resulted to the birth of this blog.

Two weeks ago, I have attended the Money Expo which costs Php1,500 for a one-day pass. Before that, I attended a seminar on making money through Foreclosed Properties. Last week, I was at the Ateneo Graduate School of Business Forum. Next week, I will be playing the Cashflow 101 and listen to lectures on Stock Market Investment and Foreign Exchange. 

If given the opportunity, I would like to attend the TRC Super Conference in October at the luxurious Shangri-la Mactan which costs Php70,000 for four nights (exclusive of airfare). And even the Rich Dad seminar by Robert Kiyosaki which I heard costs Php200,000 for three days only. Well, who knows, maybe one day, I will be there. 

On top of all these, I have been a member of the Truly Rich Club for more than a year now paying monthly fees. I receive my regular Stocks Update, Powertalks and Wealth Strategies newsletters.

I pay a lot for my self-education. And the truth is, every peso is worth it. I keep reading, and attending seminars because there is always something new to learn.

Now, merely four months after that Wealth Summit, I have started two businesses, my two daughters and I have been investing in the Stock Market, I do affiliate marketing for huge brands, I have no bad debt, and I have found ways on how to make money work for me. (Drum roll please!)

So, do not look for free.
Pay to get Mentors.
Pay for your self-growth.

Marriage, Money And Everything Else In Between

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Among other things, the most common source of disagreement between couples is financial handling. This means big trouble when the two are opposites in the way they handle money. One may be frugal while one is a lavish spender. One may be an impulsive buyer while the other is an investor. Well, the list goes on.

Going Backwards

Yesterday, I was reading a book by one of my favorite authors, Bo Sanchez. The book was "How to Find Your One True Love." Since Kiyosaki and Stocks Update were my usual reading list, this was a breather. Let me share a few excerpts from this book:

• Make decisions only when you feel good about yourself. Figuratively, don't make decisions during the night of confusion. Sleep over it, and make decisions when you wake up in the morning and feel better.
• We think that God's will is found out there, somewhere in the stars. That's not true. God's will is found within. Ultimately, God's will is your deepest desire.
• Contradicting desires create contradicting results. Where there is no clarity of purpose, no great thing will be achieved.
• Don't rebound. Wait for at least six months of mourning and adjustment before entering into another relationship (Popoy and Basha, six-month rule, not three).
• For those who are considering "consecrated celibacy," there is no point sitting on the fence. Jump into the water and get your feet wet. If you like it, stay. If you don't, get out and find another pool.
• You can't meet THE GUY unless you meet lots and lots of guys.
• Go out and live life to the full. Expand your territories. Broaden your horizons. Conquer the world. Go out! Single life is a fantastic life to really live!
• Empirical evidence has shown that the more similarities you have with your spouse, the greater chances you have for a happy marriage.
• Real knowledge comes only when you're physically with the person, seeing him (not just hearing him or reading his words) respond to real-life situations.
• You don't need a magical first moment to meet your potential husband. The important things are mature character, financial responsibility, the ability to commit, compatible mission and values..."
• Marriages with the least adjustments are those between friends who have known each other for years before they realize that they're good marriage material.
• When a woman has a positive outlook in life, she's a magnet.
• The key to being interesting is to be interested. And there is something that men need and are hungry for like a guy thirsting for water in the desert -- Affirmation.
• Modesty wins every time. Modesty attracts good potential husbands. Immodesty attracts lust -- and guys who would never respect you.
• Have passions. Have beliefs. Have preferences. From the very start, be your best self, but be yourself nonetheless.
• Be as pretty as you can be.
• A man will always hunger after what seems to be out of his reach. And he will value that which he sacrificed a lot to gain. And he will hold of little value to things he gained easily. In other words, a man is attracted to a woman who is not looking for a man (in a desperate way). So allow him to pursue you.
• The moment your boyfriend thinks he's got you under his thumb, he'll feel the chase is over. He's got to know you've got passions, interests and missions apart from him. He's got to know that he's part of your world, but not all of it.
• Follow these two rules: 1.) Singles, tell yourself over and over again: I'd rather remain single than be married to the wrong person. 2.)I won't entertain anyone to be my boyfriend until that person has been sober from his addiction for at least a year. The person must change now -- not after I say yes to him.
• Someone who lies to his parents will one day lie to his wife. Lying, cheating and stealing come from a bankrupt character.
• Create you list of "Must-Have" and "Must-Never-Have." And as much as possible, do not compromise these lists.
• Look for a man who loves his parents, loves his siblings, loves the poor... and the probability is high that he'll be loving you, too.
• You're first move is not to look for Mr. Right. Your first move is to work on yourself so that you become Ms. Right. And when you become Ms. Right, you become a magnet. You attract him to your life.

My message here is simple. If you are married to your One True Love, there is a greater chance for a happy and loving marriage. And money? It will never be an issue.

I am very blessed because my husband and I never argue about money. He spends on the present (necessities) while I spend on the future (investments).

Dreaming of finding your one true love? Click the link on the left One True Love Club.



Reference:

1. How To Find Your One True Love by Bo Sanchez

 

Cashflow 101 Game

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Yesterday, I had the chance to chat with my friend on Facebook. Although she and I were not formally introduced, she left the company before I could personally meet her, I am glad that we talk as if we have known each other for a long time. Even until now, we have not met yet. But that is the beauty of social media. It does not only reconnect you with people you've known in the past, but it connects you to new people that are yet to come into your life.

At the end of our conversation, she invited me to join her in playing Cashflow 101 next month. It was perfect timing, because I have been looking for venues where I could try playing that game.

What is Cashflow 101?

According to Wikipedia, Cashflow 101 is an educational tool in board game format designed by Robert Kiyosaki (author of Rich Dad, Poor Dad), which aims to teach the players concepts of investing by having their money work for them in a risk free setting (play money) while simultaneously increasing their financial literacy and stressing the imperative nature of accountability.

The board game is based in a financial and economic simulation environment.

There are two stages to the game. In the first, "the rat race", the player aims to raise his or her character's passive income level to where it exceeds the character's expenses.

The winner is determined in the second stage, "the fast track". To win, a player must get his or her character to buy their "dream" or accumulate an additional $50,000 in monthly cash flow.

In place of “score cards”, there are financial statements. The game requires the players to fill out their own financial statements so that they can see more clearly what is happening with their money. It generally shows how assets generate income and demonstrates that liabilities and 'doodads' are expenses.

 

The Purpose of Playing Cashflow 101

 

According to Robert Kiyosaki, he designed the game with two tracks, the Rat Race and the Fast Track, because to him, this game is the real game of life -- that each of us is on one track or the other.

Playing the game teaches you how to get out of the Rat Race. Its purpose is to open your mind to the possibility of you becoming rich and financially free from the Rat Race, free from the drudgery of spending your life working for money and living below your means.

Kiyosaki suggests playing the Cashflow 101 at least  a dozen times, until you get out of the Rat Race in less than an hour, regardless of your profession, your salary, high or low, and what market conditions or setbacks you encounter in the game.

Fully Booked!

I called up the organizer today and unfortunately for others, registration has been closed. Fortunately for me, my friend was able to sign me up before yesterday before all slots were taken. Now that is what I call perfect timing!


Due to limited slots and all are taken, the organizer of this Cashflow 101 Game will be holding another event in the future. With my own personal experience after playing the game, I will be posting the details as soon as it is available.

 

Reference:

1. http://en.wikipedia.org/wiki/Cashflow_101

Rule of 72

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The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.


The higher the interest rate, the shorter time it will take for your money to double. Always consider this when making an investment.



Reference:

1. www.investopedia.com

Diversify Your Investments

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I enjoy going to financial seminars and expos. There is always something new to learn and opportunities for growth.

During the Wealth Summit and Money Expo 2013, I learned that diversifying investments is a MUST. This is for the same reason why we diversify our stock market portfolio -- so that if one company fails, the other companies that are growing could balance things out.

Where Else to Invest?

 

Aside from the stock market, we are encouraged to invest also in real estate and foreign exchange.

Real estate is land plus anything permanently fixed to it, including buildings, sheds and other items attached to the structure. Although, media often refers to the "real estate market" from the prespective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of real estate include undeveloped land, houses, condominiums, townhomes, office buildings, retail store and factories.

Forex is the market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.



Reference:

1. www.investopedia.com

Invest Now Or Else

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65 Percent of People Working Now Will End up as Bankrupts at Retirement Age

This is according to one of the speakers at the Money Summit. She says that 65% of the people working now will end up as bankrupts at retirement age because they do not know how to save and invest.

There was even an investment ad saying that only 1% will retire wealthy.

Most people have zero savings. If you do not save your money or invest, you will only keep on working and you may not be able to retire at age 65 because you have nothing. This is okay if you die at 66. But life expectancy is becoming longer. The oldest living person died recently in Japan at age 116. 

Think twice as to setting aside part of your money for investment for your future. Exactly how much, you may ask? You can prepare for your retirement with at least Php20,000 PER YEAR! That is only Php56/day. Imagine that! You can prepare for your retirement by missing out a simple snack per day.

Always have your retirement as the end in mind. If you keep procrastinating and delaying on when to invest, you will never start. 

Start investing now.

Understand that a day you keep delaying equals one day that you do not earn. The problem is always when to start. 

Invest now or else.

People Are Desperate To Invest

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Everyone wants to grow their money. Everyone wants to stop working for money and make money work for them instead. Everyone is tired of being in the rat race and are desperate in moving to the fast track.
 
I can say this because every now and then we hear and see people in the news being victims of various investment scams. There are also those who get into business just because they are sick of their day jobs, wants to be their own boss, and thinks that having a business is the answer to their boredom. And of course, there are those who keep their money in banks thinking that it is the wisest thing to do.

Again, the key is to keep learning.

If we take enough time to learn, we can avoid being scammed and invest our hard-earned money in investments that actually work -- investments that the rich have, that the middle-class and poor are not aware of. 

To name a few, you can invest in the stock market, forex or real estate. But before starting, please seek a mentor first. Someone who is an expert on those fields.

Getting into business is also a way to get out of the rat race. Aside from the fact that you cannot start a business right away, there is also a chance of failure. But remember that the rich fail their way to success. The key is to never quit. For those who want to get into business, I recommend reading How To Turn Your Passion Into Profit by my mentors Bo sanchez and Dean Pax Lapid. It contains the head and the heart of starting a business.

And those people who keep their money in banks thinking that it is the best way for their money to grow, think again. Most banks offer 1.25% interest per annum. The highest interest rate for time deposit is 1.85% if you have 5 million pesos and 1 year holding period. Last year's inflation rate was 2.6%. So when you think that you are growing your money in banks because of interest, you are actually losing money due to inflation. 

Banks are for deposits and withdrawals only. If you want to invest in a bank, buy the bank through the stock market. In my case, I am a part-owner of BPI, BDO and Metrobank -- the giants.

Seek for Learning

 

There are a lot of seminars available on investment, books and organizations (read: Truly Rich Club) that guide newbie investors. Attend them. Read them. And find your way towards your own successful investment stories.

Happy investing!

Is A House An Asset Or A Liability?

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Today I made a status post on my personal Facebook account stating this: "Rule of thumb: Never borrow money to buy deteriorating stuff."

Aside from the few likes, it drew attention to a friend who I have known as a financial advisor for almost a decade. (Read: expert/wiser/more knowleadgeable than I am). He asks, "What about a house?"

Since I cannot put a full article on the space provided for comments, here is my point of view regarding his query.

Is Loaning for a House a Wise Thing to do?

I have a workmate who loaned Php1M to buy a house three years ago. (Yes, properties come cheap here in the province.) His monthly amortization is Php16,000 a month for 10 years. So, his original Php1M loan becomes Php1.92M in 10 years. It almost doubles! Aside from the high interest rate, he pays for the maintenance over time (yes, a house deteriorates) and he also pays for property tax every year. 

So, obviously, loaning for a house in this example is not a wise thing to do.

I know many of you will react and say that a house is an asset because it appreciates over time. Yes, the value of a house appreciates, but over a VERY LONG period of time. In the example above, do u think the house that costs Php1M now will be saleable at Php2M at least (means Php2M amount paid plus maintenance cost plus yearly property tax) after 10 years? I doubt it.

To make things simple and more logical, whenever you plan to borrow money to purchase something, think first if it is a good debt or a bad debt. A good debt is when you buy something that puts money in your pocket. A bad debt is when it takes money out of your pocket. Simple right?

When you loan a house that not only takes money out of your pocket due to monthly amortizations, and puts nothing into your pocket, then it is a bad debt. Therefore, it is a liability.

When Does a Housing Loan Become a Good Debt?

 

As my mentor says, a housing loan becomes a good debt when you use it for real estate making it generate cashflow. 

One clear example of this is using other people's money and applying the powerful law of leverage to purchase a foreclosed property. These properties are usually priced 40% lower than their market value. You spend a little (remember you got it at a discounted price) on renovation and then sell it at a higher price as rent-to-own. Your buyer's monthly amortization becomes bigger than yours so this is cashflow for you every month. And since it is on a rent-to-own scheme, he also pays for the maintenance. 

Simplify.

 

Simplification should also be applied. Whether its a house or food or clothing, buy or borrow only for what you need. In addition, as my friend said answering his own question, "If it is for security, then do borrow but make sure that the amortization never goes beyond 50% of your salary or income."


What is your view on this? Share it in the comments below.

 

Why Aim To Be Rich?

This is Pesos and Sense's Episode 1 with Bro. Bo Sanchez, a preacher, a powerful speaker, and a bestselling author. He leads a ministry, he has a radio, tv and internet programs, editor-in-chief of magazines, and has 12 businesses.

Most importantly, he is my mentor and he taught me how to invest in the stock market.

In this video, he teaches us that money is not the root of all evil. Money is not all good either. Money is neutral. It all depends on who handles it and for what purpose is it used.

At the Truly Rich Club which is founded by Bo Sanchez, he taught us that the main purpose of wealth is to love others, especially the poor.

Why do you want to be rich? Share your reasons in the comments below.

My Children Can Retire as Multi-Millionaires

This is a photo of my beautiful daughters. Reading the title of this post, you may think it is absurd. I cannot blame you. We do not come from a rich family. My husband and I are average income-earners now. But yes, I'll say it again, my children, now at aged 5 and 1, will retire at age 65 as Billionaires!

How?

Through sowing in time of famine. 

More specifically, through investing in great, solid companies in the Stock Market.

The Untold Story of Jack and Jill

Let me share with you the story of Jack and Jill, as told by my mentor, after Jack fell down the hill and Jill came tumbling after. Jack had brain surgery. He has no health insurance and his medical expenses made his family very poor. This emotional pain became his strong why that created an inner resolve in him. He told himself, "I will never be poor when I grow up!"

At age 15, he started a small business of selling anything and everything to his classmates. He earned Php2,500 a month, which he invested in the stock market. He was faithfully doing this for 5 years.

Jill, on the other hand, was not affected by the accident except for a few scratches. She lived a happy-go-lucky lifestyle, buying the latest stuff and did not save at all. One time, Jack invited her to attend The Feast and this changed her life. She began investing in the stock market at age 27, putting Php2,500 every month, buying the same great, solid companies as Jack did. She faithfully did this until she was 65. 

Jack Pops The Question

A few years after, when they were both 65, while having lunch after going to The Feast, Jack proposed to Jill and she said YES!

Jill then asked Jack how much money did he invest. Jack said that he invested a total of Php150,000 for five years, from age 15 to 20.

To her surprise, Jill said that she invested a total of Php1.17 M for 38 years from age 27 to 65.

They then decided to call their stockbroker to know how much money they actually have. Both were totally shocked.

Here’s what happened…
Jack          Jill
15 30,000   0
16 30,000  0
17 30,000  0
18 30,000  0
19 30,000  0
20 30,000  0
21 0               0
22 0        0
23 0        0
24 0        0
25 0        0
26 0        0
27 0       30,000
28 0       30,000
29 0       30,000
30 0       30,000
31 0       30,000
32 0       30,000
33 0       30,000
34 0       30,000
35 0       30,000
36 0       30,000
38 0       30,000
39 0       30,000
40 0       30,000
41 0       30,000
42 0              30,000
43 0       30,000
44 0       30,000
45 0       30,000
46 0       30,000
47 0       30,000
48 0       30,000
49 0       30,000
50 0       30,000
51 0       30,000
52 0       30,000
53 0       30,000
54 0       30,000
56 0       30,000
57 0       30,000
58 0       30,000
59 0       30,000
60 0       30,000
61 0       30,000
62 0       30,000
63 0       30,000
64 0       30,000
65 0       30,000

Total Amount Investment:

Jill: P1,170,000
Jack: P150,000

Check below the total amount of money earned by the two when they reached 65 years old…

Total Retirement Money if it Grew at 20% A Year

Jill: P220 Million
Jack: P1 Billion

Surprised?
 
Jill is a Multi-Millionaire. 
Jack is a Billionaire.
And this means that my children can retire with a billion.

Remember how financial advisors would come up to you while your baby is still in your womb or your wife's womb and tell you that if you start at Age 0, the premiums you will be paying are smaller and the you have a longer time to grow money for your kids?

The story of Jack and Jill was something like that -- except that you do not start at age 0 and yet you retire a billionaire.

Friend, I encourage you to sow in time of famine, especially for your children. Do not wait for better times before you invest. Do not wait until you have excess money.

It does not have to be big. What is important is that you start, and invest consistently.

Because your greatest ally is time.

Happy investing!



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P.S2 Do you want to start a fund for your kids? The best time to start is always TODAY. Please fill up our financial planning form and we will email you a proposal. Go to the LET'S DISCUSS YOUR PLAN in the page above.