Together, Let Us Start Investing

I came across a Facebook post that says, " The best time to invest was yesterday; the next best time to invest is TODAY."

Have you started investing? Or the better question to ask is, have you made that decision to finally start investing?

As 2014 comes to a close and we are given a clean slate with 2015, I encourage you to make the commitment to start investing today and turn your dreams into reality.

A dream is a goal with a deadline. And I believe that it is better if we have a "partner" who we can share our dreams with and make sure that we are on track towards achieving that goal. Two days ago, I was sharing with a friend my financial goal and that is to have my first Php1M in four years, at most, and I am starting with zero. That will be Php250,000 per year on average. As I check my latest payslip, I see Php847,000 gross income to cap off 2014 (and Php133,000 in tax -- OUCH!) so putting aside more than 20% for investment would really be a challenge. So, I ask you to please bear with me as I work through this goal.

The plan is to set aside Php20,000 per month from my salary and invest it directly in the stock market with COL Financial as my online broker. I will use the Strategic Averaging Method taught by my mentors at the Truly Rich Club. Like my friend, I will update you regularly of my portfolio.

Now I ask you, who is with me here? With as little as Php5,000, you can open an account with COL Financial and invest any amount (ideally 20% of your income) every month.

To learn the easiest, safest and most effective way to invest in the stock market, sign up at the Truly Rich Club and gain financial wealth and spiritual abundance at the same time. To join, click here.

Happy investing and be very blessed!

Look Up! How to Find God in Every Situation

Regular readers of my blog know that I am a Bo Sanchez fan and a regular Feast attendee. And since our goal at the Truly Rich Club is not only to gain financial abundance but to grow spiritually as well, I am taking this opportunity to share the lessons Talk 2: Pag May Time of the series Look Up with the purpose of blessing others.

GOD IS ALWAYS IN THE PRESENT by Bro. George Gabriel

For the series LOOK UP, Bro. George Gabriel started the second talk entitled “Pag May Time” with a Bible verse from Psalms 118:24 that says, ”This is the day the Lord has made, let us rejoice and be glad in it.”

Bro. George then tells about a clip from the movie Exodus where Moses meets God for the first time. When Moses asked God what he is going to tell the Israelites when asked who God is, He answers, “I am who I am. This is what you are to say to the Israelites. I am has sent me to you.” (Exodus 3:14)

“I am” means that God is always in the present. He is the same yesterday, today and forever. He does not change. The God who touched your heart at the Feast last week is the same God who is going to touch you today and says, “I am.” The God who helped you through a financial problem ten years ago and you are experiencing it again now, God says, “I am.” If you have been traumatized in the past and you have not healed yet, God says, “I am.” See God in the present moment.

In Ecclesiastes 5:20, “It is God’s gift! God deals out joy in the present, the now.” God meets your need right now. Sometimes it is not exactly what we are asking for, but it is in the now. And because God is in the now, we need to cherish and not take for granted the present moment.

Choose not to miss out on this moment just because you cannot free from your past or you are bound by your future. God is in your now, and right now, He has miracles, abundance and blessings for you.

In Yahweh you are near in Psalm 139, it says, “Where can I run from your love? If I climb to heavens you are there. If I fly to the sunrise or sail beyond the sea still I find you there.”

God is always in your situation. And to live in the present moment, is to see God in the present moment.

ENJOY THE JOURNEY By Bro. Bo Sanchez

Life is so beautiful and precious, we need to enjoy it. The problem is we rush our lives because we have goals and deadlines that we fail to enjoy it.

More important than the destination is the journey because God is shaping our hearts on the journey, making us more like Jesus, increasing our faith, deepening our trust and expanding our love. God never rushes. We should, too.

To visually show the kinds of people who rush their lives, Bro. Bo used a freeze gun and three people appeared on stage with lessons.

1.       Pace yourself. People who rush and are always in a hurry. Remember that stress is the #1 killer in the world and there is no cure for stress. Learn to pace yourself by celebrating the journey.

2.       Push yourself. We should not push constantly. You must push yourself, and then pull back. We must learn to push seasonally.

3.       Paralyze. These are people who wake up every morning and have no dreams.

MAKE EVERY MOMENT A GIFT By Bro. JC Libiran

In life, when you want to achieve something, you need to do something. Make every moment a gift.

In Psalm 90:12, “Teach us to number our days, that we may gain wisdom of heart.” These verse teaches us two things:

1.       Never delay life. Do not wait for things to happen, make things happen. There are dreams that we want to make a reality, but they all start with a decision. Some are over exaggerating their past that they cannot move on. Some are over estimating tomorrow when tomorrow is not yet here. What we have under estimated is today. Make every moment as a gift.

2.       Never delay love. Life is short, what have I been doing in my life. Spend every moment with people who matter. There is a bigger dream for me, bigger things to do. For people who are losing hope, or losing a reason to live, be excited about our lives because it is the only thing that we have. Celebrate your life, celebrate your love.

ONE LAST NOTE

The secret to live happily is to remember that today is the first day of the rest of your life. Live today as if it were your last, because in this moment God wants you to maximize the blessings He has given you and share it to others, the love that He has put in your heart so you can give it away, the talent that is in you so you can use it to glorify Him. The best way to maximize this moment is to be God’s presence to others. Be a present by being present.

 

Be very blessed!

Early Arrival: Secrets to Becoming a Happy Retiree by Dean Pax Lapid

Two weekends ago, I was at the Kerygma Conference 2014 held at SMX Convention Center in Mall of Asia. This is the biggest inspirational event in the country -- a time to deepen our faith in God and to learn new things about various interests.

Shown on the photo above is me with my mentor on entrepreneurship, Dean Pax Lapid. Today he launched a new book, How to Become a Happy Retiree: A Guide to Retiring Wealthy and Worthy in Your 40s. Now who does not want to know about that?! This is definitely one interesting topic.


Before the book signing, Dean Pax gave a talk about the same topic. Let me share with you some important notes.


1. If the reasons why you want to retire include a bad boss, burn out, office politics and tough commute, then just change jobs.


2. Anyone can prepare for a happy retirement. It is a mission possible with the right framework. We need to be ENLIGHTENED that retirement is not a pre-requisite to death. Death does not happen at 65. What if we live too long?

Remember that our social security pension will never be enough for a decent living. We also need to be ENCOURAGED to plan for our future. Lastly, we need the EXPERIENCE to grow our hard-earned money.


3. The most expensive advice is a free advice then sells you something you do not understand. Insurance brokers (who were called such because they are usually broker than you) are the perfect example for this.

Even I have experienced this in the past. I was given a VUL product, investment with a little insurance, although what I actually needed was only term insurance. I had no idea about the difference back then. So I was paying for something I do not need.

After reading financial books and a year of premium payments later, I just cancelled that policy and my money just went down the drain. I realized that I will only be wasting more money if I continue paying for it.

Some of my friends share the same sentiments with me.

One friend was given a VUL with Php7M life insurance. She is single and has no dependent. A bigger part of her premium payments could have been allocated to investments instead of insurance.

I have two workmates who have the same insurance broker -- and both of them did not understand what they actually signed up for. One of them, who is a very close friend, even asked me to talk to this broker, explain to me my friend's policy contract, and I am to explain it to my friend. After relaying it to him, his reply was, "Ah, ganun pala yun."

Before signing anything, please make sure that you understand every detail of the proposal. Make sure that it is tailor-fit based on where you are now (your budget) and where you want to be. That is the purpose of a VUL.

As a VUL client, these are my points of concern:

a. Profile of the insurance company

b. The amount of premium. This is computed based on your financial goals, but adjustable based on your budget. Although you don't invest what is left after spending, but you invest without sacrificing your lifestyle to the extreme. You can cut on your discretionary expenses and put these into investment instead.

c. The mode of premium payment, what you are most comfortable of. It may be monthly, quarterly, semi-annually or annually.

Personally, I prefer paying annually because it gives me less "payables" to think about every single month.

d. The sum insured.

Insurance has a lot of purpose. It does not only ensure that your family will not go hungry in case God calls you home. Insurance can be used to pay off mortgage and other debts. It can also cover your kids' educational fund. It can be for your retirement income. It can be your accumulated savings. It can be for charitable donations. It can be used to pay estate and death taxes.

e. The fund allocation.

Although this is based on your risk tolerance, it is your financial advisor's duty to explain to you the difference and which is most suited for you.

Last month, I saw my husband's annual policy report. He got this five years ago, he was 29 years old then. His investment fund was allocated in fixed income (low risk, low return). His money could've grown faster if it was invested in equity fund (high risk, high return). He wouldn't be needing the money anytime soon, anyways. After explaining the difference to my husband, we had his next premiums redirected to equity.

I appeal to financial brokers. Remember that our goal is to help Pinoys get out of debt and achieve financial freedom. Let us give them the best suited investment product for their goals, and not the one which gives the highest commission. Thank you very much.



4. Investing in foreigh currency (US$) is not a good investment. If you bought US$ back in 2006 where $1= Php53.07, you have already lost 16% of your investment as the Philippine Peso continues to depreciate, now at Php44.80 per US dollar.

5. Shopping is not the buying here and there. But it refers to the aerobic footwear that never sets in a gym, a diving watch that never gets damp, or a 4 x 4 SUV that will never experience a hill/off road. When we have decided to prepare for retirement, we stop buying things that have nothing to do with a meaningful life.



6. The formula that we need to remember to live comfortably:

Passive Income + Active Income SHOULD ALWAYS BE GREATER than your Lifestyle

This may sound like a cliche, but live below your means but within your needs.

7. Money does not grow on trees. It does not grow on banks either. Learn to invest your money where it would beat inflation and make the wonder of compounded interest work for you, and not against you. 

ONE LAST NOTE

Retirement is your responsibility. It is your response to your ability to prosper your money and family. 

Credits to Dean Pax Lapid for sharing his slides. With these new learnings, may we see retirement in a WHOLE NEW WORLD.

Be very blessed!

P.S. Do you dream of being a wealthy and worthy retiree in your 40s? Learn how to grow your money directly in the stock market. Join the Truly Rich Club and be mentored by Dean Pax Lapid.

P.S.2 Do you have an insurance need AND want to grow your money indirectly in the stock market? Send me an email at financialplanningforpinoys@gmail.com and we will create a financial plan for you.

P.S.3 I hope you find this post helpful. Kindly click the SHARE buttons below. Thank you very much.

         

Why I Love Investing

I will be honest. I do not practice everything that I preach in this blog. I tell people to use the ABUNDANCE FORMULA: 100 = 10 - 20 - 70

          Utilize 100% of their God-given talents to maximize their income
          Give 10% for tithes
          Invest 20% for their future
          Live within the 70% for their expenses

I do not follow this formula anymore, particularly with the 20% investment and 70% expenses part. It is mainly because this formula is for newbies. Currently, I have allotted more for investments and less for my expenses.

Why? Two reasons.

First, I have learned to increase my income (through creating money machines called assets) without increasing my expenses. Although there is always something new that technology has to offer, I do not buy it. I have not changed my phone and laptop for more than a year now. As long as these gadgets can serve their main purpose for me, I am okay with that. But this does not mean I am being frugal. I still spend on random trips, seminars for self-growth, gifts for my husband, surprise my kids with rewards for job well done and treat my parents to a spa, haircut or a boxing ticket. I am more careful now with my expenses unlike before.

Second, I have learned the value of investments -- that no matter how hardworking we may be, money can work harder for us. This is because money does not sleep, gets tired or go on vacation. It continues to work for us NON-STOP.

Before money comes in, most people have already spent it through swiping that plastic card to buy that branded shoes or bag which was on sale. They think they have saved a few bucks, but then think again, "Do you really need this?" For those who love shopping, never buy on impulse and remember that you are NOT DEFINED by the brand of shoes or the clothes you wear. Live simply.

If you read the article 15 Frugal Billionaires Who Live Like Regular People, these wealthy men have saved up, lived modestly, and given away huge amounts of money to charity. Mark Zuckerberg, the mastermind behind Facebook, even wore the same gray t-shirt and hoodie to work everyday.

Imagine this, your Php50,000 today invested in stocks can become Php120,000 in 10 years, Php312,000 in 20 years, and Php5 million in 50 years! If you have very young kids, imagine them being multi millionaires even before they retire WITHOUT working for money, but that Php50,000 investment working for them. How cool is that?

So, I urge you to stop imagining and start investing! And soon enough, putting a part of your income regularly will be as automatic as breathing. And it is more rewarding to see your money grow over time, rather than seeing that branded bag stored in your closet.

P.S. Decided to start investing? Email me at jssalandanan@gmail.com with the title "I Want To Start Investing" and we will give you a quotation based on your income and goals.

What I Learned About Insurance Shocked Me

I do not personally own a car. The car I have been driving for the past two years is company-owned, so all of its incurred expenses like maintenance, registration and insurance is paid by the company. Aside from the maintenance and registration, I do not have an idea how much the comprehensive insurance actually costs. Not until today.

My brother, on the other hand, personally owns a car and its comprehensive insurance renewal is due this week. I asked a friend for a quotation for his car insurance. How much it costs? Php14,985 for a  car with a mere Php400,000 value! Honestly, I was surprised.

Why?

Because of two things that I find really ironic.

1. Car insurance costs higher than life insurance.

          The insurance of his car which is valued only at Php400,000 costs Php14,985 per year. On the other hand, if my brother chooses to get a life insurance now at age 38 for a Php1M coverage, it will only cost him Php5,080 per year.

          I find it ironic because a person, with all his/her talents, time and resources, is definitely of higher value than a second hand car, and yet its insurance costs less.

2. Many would rather insure their car than their lives

          When I became a financial advisor late last year and started talking to friends about insurance, I was told that they were used to getting non-life insurance only. They would insure their cars and houses, but not themselves. This is something I find hard to understand, until now. A car and a house do not have dependents. It is important to insure your properties, but it is definitely more important to insure your life, right?

          Imagine this. You're driving your insured car (while you are not insured), and then gets into an accident (knock on wood please), your car is totally wrecked and you find yourself in heaven. Then back on earth, your car gets replaced by insurance and your dependents are left with nothing because you have no insurance and zero savings. The worse part, your kids are still very young and your wife is unemployed.

          Yes, they can sell the car, if it already fully-paid from the bank. But remember that a car is not an asset because of its depreciated value. How long can it sustain your family?

          You may say that you are a careful driver. Yes, we all are careful drivers, but we all know that there are accidents that involve the most careful drivers because they are hit by drunk or reckless ones. Even a person who is sound asleep inside his home can be hit by a stray bullet. Death is unpredictable.

My message is very simple. If you have people depending on you, get a life insurance. The purpose of insurance is this: If God calls you home, your family won't grow hungry.

Decided to get a life insurance TODAY? Email me at jssalandanan@gmail.com.
LIKE our Facebook page Financial Planning For Pinoys for updates.

             

It Is Not How Much You Earn, But How Much You Save And Invest That Matters

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The title of this post may sound like a cliché, but really, it does make sense right? I hope you agree.

I work as a medical representative, and with this, I have friends who are doctors. One of my closest MD friends works from Mondays to Saturdays, leaves home to start doing rounds at 7am every single day (Sunday included), holds clinic at six major hospitals every week and finishes at around 7pm every night. Since he is one of the top (read: well-known) doctors in the area, many pharmaceutical companies ask him to be their speaker for a particular drug for their target audience. In a week, he has 2 to 3 speaking engagements on average. During these occasions, he gets home to play with his kids at around 9 to 10pm. Luckily, his kids sleep late so he gets to bond with them still.

Obviously, he works really hard. And I assume that he earns hard as well. But savings and investments wise? He said they have very little. He and his wife have shares of stocks in certain hospitals but according to him, these shares have low return. Now if you are asking where his money goes, well, most part goes to paying off mortgage and other loans.

Yes, he has a number of loans. Why? So he can pay lower taxes.

In life, there are only two things you cannot escape from. Death and taxes.

But even with this fact, it is still important that you save a part of your income, ideally 20%, for savings and investments. If you think this is impossible, just think about how you want to see yourself when you retire. Remember that depending on your children SHOULD NOT be a retirement option.

Think about it. Happy investing!

Insurance, Anyone?

I work as a fieldman driving 80 kms per day on average. This makes my job of higher risk compared to those working in the office. Because of this, our company provides us with insurance. Aside from this, I availed a term insurance so that I am still covered even if I am already unemployed.

But what is insurance for, really?

The purpose of insurance is simple: If God calls you home today, your children will not go hungry. 

Buy insurance if you have people depending on your income. Not when you do not even have kids or aging parents to support. So that when your income disappears because you disappear, the insurance money will take care of them.

Plain and simple.

Buy Term Insurance

Wikipedia defines it as this. Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active - or in force - then a death benefit will be paid.

For people like us who are learning how to invest, we should buy pure and term insurance. 

We avail of term insurance while we build our wealth with the goal of being self-insured. This is mainly because building wealth does not happen overtime. It takes years. And while we are in the process of doing that, we buy term insurance.

It is the cheapest insurance. How cheap you may ask? In my case, at age 31, with Php1 million coverage (which doubles in case I die by accident), it costs Php5,340 per year.

So my suggestion is, buy only what you need. Buy term insurance and invest the difference.

Happy investing!

The First Step To Making Money In The Stock Market Is To Learn

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I have been investing in the stock market for a year now. And as expected, I get a lot of questions regarding this subject. Friends and workmates ask me how I started doing this, who my stockbroker is, how much amount is needed to start investing, if you could withdraw your funds anytime, or how much interest will it yield in a year. While most people are interested, there are also those who are fearful, thinking that investing in the stock market is risky. This blog aims to answer those questions.

People Fear What They Do Not Understand

This is mainly the reason why I encourage you to keep learning. It eliminates the fear.

I hear people say that investing in the stock market is risky. This is what I tell them. Everyday we are faced with different risks. Crossing the street is risky. For my fellow fieldmen, hours of driving is risky. (Note: Please get insurance.) Starting a business is risky. Even being employed in a huge company is risky when it decides to reduce costs in response to economic difficulty through letting go of its loyal employees.

More ofthen than not, we just have to weigh the risk versus the reward. If you learn the rules of investing, you will understand that the risk is nothing compared to the reward.

Two Ways of Investing in the Stock Market

Basically, there are two ways to invest in the stock market. Directly and indirectly.

You can invest indirectly through a Mutual Fund Company. There are a number of great ones around. You could earn around 12 percent per year. Through mutual funds, you have a fund manager who buys and sells stocks on your behalf. This is perfect for people who want to invest in the stock market, but do not have the time to learn how it works, and time to do it.

Last year, when the stock market was on sale, meaning you can buy great companies at lower prices, my cousin wanted to start investing. She wanted to do it directly, but unfortunately, she never had the time. Her money in the bank, which was supposed to be for her first investment, became liquid due to left and right mall sale. Now, she is starting to save again, and plans on investing indirectly instead.

Yes, you can invest in the stock market directly. This is how we invest at the Truly Rich Club. According to my mentor, there are only two acceptable ways of investing in the stock market: through Money Cost Averaging and Strategic Averaging Method (which we call SAM that was mainly developed for the Truly Rich Club). We faithfully follow our SAM because we grow our money in a quicker way.

When you invest directly, aside from the time to study how the market works, and time for buying and selling, you must also have the discipline to do it every month.

Choose which works for you. And when you have decided, make the commitment to do it TODAY. Make your first million through the stock market.

Happy investing!

Invest in the Future Before the Present



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As I write the word "Future" in the title, the first thing that came into my mind were my children -- which explains why I chose the photo above. They are my strong emotional why for pursuing financial freedom and why I choose to invest in the future before the present.

 

As my mentor taught me, there are only two money strategies in the world. And the money strategy that you use determines whether you will become rich or poor in your old age.

 

The Money Strategy of the Poor

 

Income - Expense = Tithes and Investments

 

 

This formula means that the moment you receive your income, you first subtract your expenses, and then tithe and invest from whatever is left.

 

 

Even I used this strategy in the past. I have friends who use this strategy until now. I even hear them say that they will start to invest with whatever is left from their income. And I think nothing is left, because they have not started investing until now.

 

 

The Money Strategy of the Rich

 

Income - Tithes and Investments = Expenses

 

 

This winning formula means that the moment you receive your income, you first subtract your tithes (10%) and investments (20%), and then live on whatever is left.



 

This formula teaches you to invest in your future before you invest in your present. 

 

 

Millionaires Who Went Bankrupt

 

The other day, I read an article about music stars who blew millions and went bankrupt. One of which was Lady Gaga who admitted that she was left bankrupt after spending millions on crazy outfits for her Monster Ball tour.

 

Sixty percent of NBA players go bankrupt five years after they retire. Scottie Pippen earned $120 million in his basketball career, but went bankrupt.

 

In the NFL, eighty percent of football players go bankrupt after just two years.

 

Evander Holyfield earned $250 million and Mike Tyson earned $400 million, both of them got bankrupt.

 

Why?

 

Because all of them used the money strategy of the poor. Again, it is not how much you earn, but how much you invest.

 

I urge you to use the money strategy of the rich:

 

Income - Tithes and Investments = Expenses

 

If you do, you even get to enjoy two fantastic bonuses.

 

Bonus #1: No More Budgeting

 

Until last year, I used to have this cash flow graph wherein I input my income and expenses every month. But this year, I gave up. I realized it was tedious and time consuming.

 

I've stopped budgeting my money -- the way most people define it. Yes, I still have a list of my income every month, so I am reminded of how God has blessed me abundantly. But for my very simple budget, I just use The Abundance Formula taught by my mentor: 100-10-20-70 and that's just it!

 

I set aside my tithes (10%) and investments (20%) and live within 70% of my income.

 

Bonus #2: No More Fighting

 

A huge percent of couples argue about money. The husband's priority is different from that of the wife's. Fortunately, for a few years now, my husband and I have not fought about money. Even if he sees me buying a new stuff, he does not argue with me about that purchase. Why? Because he knows that I have already set aside money for our future.

 

Why argue about that? Over time, my husband has learned to trust my financial decisions. During dinner last week, I told him that my VUL from Insular Life can shoulder one of our daughter's college expenses. And that definitely put a smile on his face. He knew that will give him less future expenses to worry about. With improved financial planning, our marriage has become so much better now.

 

 

Rule: Invest in the future before you invest in the present.

 

Ask Yourself: Have I been Investing in the Future Before the Present?

 

Over time, I have been given the privilege to listen to my friends' and workmates' financial stories. They tell me about their personal struggles with money, how they have been spending it lavishly and left with nothing for investment.

 

Last week, one workmate shared, "Tulad 'tong relo ko, binili ko ng Php12,000, pero kapag tinitignan ko ngayon, masaya ba ako?" (Like this watch, I bought it for Php12,000, but looking at it now, does it make me happy?) Maybe it gave her joy, but only short-term.

 

Based from my experience, during the time when I love spending on the latest gadgets and watches, I did not find happiness in those purchases.

 

Let me share a quote from one of my most favorite books, Tuesdays with Morrie by Mitch Albom, "If you are trying to show off for people at the top, forget it. They will look down on you anyhow. And if you are trying to show off for people at the bottom, for get it. They will only envy you. Status will get you nowhere. Only an open heart will allow you to float equally between everyone."

 

This is how volunteerism and child sponsorship came in. I found long term joy knowing that I am able to make a difference in someone else's life.

 

When a friend commends me about my blog, how they can relate to my stories, and how I have inspired them to change their financial situation, I am overjoyed. And that is where I invest part of my money now -- in trainings and books for better financial planning.

 

I also realized that my random purchases, like using the latest phone or wearing a new watch DO NOT ADD VALUE to who I am as a person. Why? Because these are not real assets. My net worth does not increase with these items. An asset is simply defined as something that puts money into your pocket. Many people are still confused with that thinking that the things they own are assets, when they are actually liabilities, draining money from their pockets over time.

 

Invest for Your Long Term Goals

 

Many of the working moms dream of being a full-time housewife. Admittedly, I am one of those. Actually, I share this dream with my kids. That one day, when Mommy is no longer an employee, I can drive them to school everyday, and attend to their needs everyday. I will be like the Mommy of their classmates who don't go to work. (They are from very rich families, by the way.) You may think that doing this will only give them false hopes. On the contrary, doing this forces me to act on this dream every single day.

 

When I talk to a friend who asks for financial advice, I first ask what will the investment be for. Why? Because as one of the 7 Habits of Highly Successful People says, BEGIN WITH THE END IN MIND. This will give you the direction that will lead you to where you want to be.

 

Again, invest in the future before the present.

 

P.S. If you find this post helpful, kindly click the SHARE buttons below.

 

P.S.2 I would love to hear about your long term goals! Send me an email anytime at jssalandanan@gmail.com.

 

Be very blessed!

 

 

 





God Gives Me A Blank Check

I am a raving fan of The Feast. The Feast is a Catholic prayer meeting of the Light of Jesus Family led by Bo Sanchez. It starts with the celebration of the Holy Mass and followed by an inspirational talk on various topics, with songs of worship in between. It is one of the happiest places on earth, I invite you to join us and experience God's love and abundant blessings.

One talk series was about the 4 Laws of Wealth. You may wonder why money is being talked about during a spiritual gathering. Well, because we believe that God should reign in all areas of our life -- spiritual, relational, emotional, mental, and yes, even financial. And also, we believe that the main purpose of wealth is to help and serve others.

Last Sunday, a "blank check" was inserted into The Feast bulletin, signed by God, given for services rendered. When I saw this, I remembered what Bo said in one of his Power Talks (downloadable inspirational MP3 for members of the Truly Rich Club). He said that we can earn ANY AMOUNT that we want to earn as long as we increase our psychological wallet.

As an employee, I used to think that I can only earn the amount of money that my company gives -- my salary, my incentives, bonuses and allowances -- that it is fixed to that amount only, every single month. I was living payday after payday back then.

Through the Truly Rich Club, I learned to think as an entrepreneur (and eventually actually became one) even while I am still an employee. I began to recognize opportunities to earn on the side, do work with meaning and purpose, and still be able to manage my demanding full-time job. 

How? I apply these Top Hard Core Productive Strategies. My favourite of which is focusing on what ONLY YOU can do.

Aside from what my company gives me, I earn passive income through my stock market investments and affiliate marketing, small businesses which are almost on autopilot mode, and as a financial advisor. I have learned to increase my psychological wallet.

If I was able to do all these, so can anyone else!

Now, I even find more joy in my job because I have stopped working for money.

God Lends Us His Money For a Purpose

Over time, this is what I realized. Having money for ourselves is not the end goal of all this. We only have two hands and two feet, why would we desire so much for ourselves? Remember that the purpose of wealth is always to love and serve others.

When God blesses you financially, do not raise your standard of living, but rather raise your standard of GIVING. God is using us as a channel of His blessings. And when God sees that your heart is in the right place, He is going to bless you more.

 

"But seek first the kingdom of God and his righteousness, and all these things will be added to you."

 

Matthew 6:33

Seek God first, so He can flourish every single area of your life. Print a copy of this blank check, write the amount of monthly income that you want to receive starting on the date you will indicate, pray for it, work hard for it and experience abundant blessings.

Because God is not a God of shortage, but of surplus!

Pain Forces Me To Grow

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For one day, I was a mommy on duty. I had breakfast with my daughter, gave her a bath, prepared her things, drove her to school, stayed outside her room until they were dismissed, we had lunch and then went home so she could rest after a long day.

This is one of my dreams -- to spend time with my family. 

I would want to wake up each day next to my husband and two daughters on a big comfy bed, share every meal with them and hear their stories about work and the people they meet and the experience they have that day, driving them to school, and reading them bedtime stories until they fall asleep and I kiss them goodnight.

I hear a number of working mothers who are worried that the time may come when their kids will choose to be with their lolas (grandmother) over them, or worse, their yayas (nanny). This was my dilemma, too. When my eldest daughter was growing up, she would ask for her lola (my mother) instead of me. And every time my aunt comes home to Tarlac, she and my daughter are inseparable. They are the closest. I think this was because my aunt spends all of her time with my daughter during her entire stay.

But there were also those times, while my eldest was growing, when she would cry every time I leave for work. And yes, it was painful.

And now, another painful situation. My youngest daughter's yaya left after New Year and we haven't found any replacement until now, so we had no choice but to let her stay with my mother-in-law in Nueva Ecija. Nueva Ecija is an hour drive south from Tarlac, where my eldest daughter stays with my parents. My husband and I are working in Pampanga, another hour drive north of Tarlac.

As you can see, the quote "So near, yet so far" is very applicable to us.

Yesterday was my Youngest Daughter's Birthday

Yesterday was Elise's birthday, my daughter. We celebrated it in Nueva Ecija. We spent the whole day with her and she was very happy. There was never an instance that she threw a tantrum. All she did was tell stories, hug and kiss us, and says, "I love you." It was obvious that she missed us so much.

But in the evening, we had to leave. We cannot even bid her goodbye because we cannot bear to see her cry. My mother-in-law had to distract her so we could leave. When we got home here in Tarlac, we asked how she was. My in-law said that Elise looked for us, asked where Daddy, Mommy and Ate were. When she realized that we already left, tears fell from her eyes. She went inside her room, laid on her side, and cried quietly until she fell asleep.

At a very young age, she felt extreme joy and extreme sadness on the same day. I blame myself for this. As a mother, this breaks my heart.

This Pain Forces Me To Grow

 
This pain becomes my very strong emotional why for aiming financial freedom. I have been thinking, that if I am financially free, I could quit my job (no matter how good it pays) and just take care of my family.

I want to get out of the vicious cycle that I've been for so many years wherein my salary just come and quickly go, and my time away from my kids because of work just goes to nothing. And these are the years where my daughters need me the most. I must make up for it ASAP! 

As parents, we are working very hard for our children's future. But does this necessarily mean that we have to miss the present?

Set a Goal and Use that Pain to Motivate You

As I write this, I pray that God blesses us abundantly, grant promotions, open doors of opportunity, and increase our income and help us attain financial freedom so we could spend time with people who truly matters to us.

As for me, I'm giving myself four years at most. I will be a full-time wife and mother, and everything else will just be part time.

Now, may all our dreams come true!

Create Wealth for Your Old Age

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Three days ago, I was having a conversation with a good friend. She is in her early 40s, a medical doctor with around 80 to 100 patients per week. Because of this, she starts working early and ends very late, almost everyday. She was telling me that she wants to start investing so that after a few years, she can have a laid-back and a more relaxed kind of life even while she is still practicing her profession.

On a Facebook page that I manage, Financial Planning For Pinoys, a 40 year old follower sent me a message saying that she wants to have a cash allowance for herself in the near future even while she is currently saving for her children who are in college.

I believe every person who has been working for a long time has this same goal -- to have money for old age.

My Visit to Anawim was an Eye Opener

With these concerns, I remembered my pilgrimage to Anawim last August 2013. Anawim is the home of the abandoned elderly located in Montalban, Rizal. Many of its residents were not always poor. Some were government employees, one was a principal of a school and another was a dentist. Yes, there were maids and laundrywomen, but they, too, were earning money then. Money which they sent to their nephews and nieces who only abandoned them in their old age.

If you are earning today, what happened to them can happen to you unless you create wealth for your old age.

Although Anawim was a very nice place to stay, I do not want to become one of its residents. I choose to become a donor instead. But how can we do this?

Build Wealth Over Time

My mentor taught me that the secret of wealth is to keep your wealth reproducing after its own kind.

Invest in paper assets now. It is the easiest way to build wealth since not everyone can start a business or buy an income-generating property.

Since we are into a long term investment, I encourage you to invest in the stock market. If you follow a simple system which I learned through the Truly Rich Club, the stock market is the best, safest and most effective way to build your wealth in your old age.

 

"What seems inconsequential over the short term becomes profoundly important in the long term."

 

 

If you invest Php20,000 per year, which is around Php55 per day, in the stock market at 10% interest growth per year, it becomes Php560,000 in 15 years! Even if you stop adding capital after 15 years, your money grows to Php900,000 after 5 more years, or Php1.3 million after 10 years. The longer your money stays, the higher it grows because we are talking about compounded interest.

 

So, whether you are in your 40s or have just started working and in your 20s, I encourage you to start investing TODAY. Create wealth for your old age. And remember that depending on your children is not a good retirement plan.

Happy investing!

My Misconceptions About Mutual Funds

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For almost a year now, I have been investing in the Philippine stock market directly. This means that I have a stockbroker who acts as a middleman, and I choose which companies to buy and when to sell them based on the recommendations of my mentors in the Truly Rich Club. The Truly Rich Club is a membership site founded by Bo Sanchez, a Catholic lay preacher, which aims in helping people achieve financial and spiritual abundance at the same time.

I've chosen the direct method because I've always thought that investing in the stock market indirectly, which is through mutual funds, was not a practical thing to do.

But a couple of months ago, when I became a licensed financial advisor, I learned about the features and benefits of mutual funds, and my thinking has changed. True enough, learning has its advantage.

Let me share with you my misconceptions about mutual funds and the truth behind each myth.


MYTH #1     When you invest through mutual funds, the company will take a part of what your money earned through charges every now and then.

FACT

There are mutual fund plans that will only charge you initially, around 7% of your investment. Then the rest will be invested. When you make a withdrawal, you will no longer be charged.

MYTH #2     Investing directly is more convenient than investing through a mutual fund.

FACT

If you have the time to read and study about investing in the stock market, you may opt to do it directly. And yes, it is convenient because it can be done online. But with our busy schedule, even though you may want to do it, you may not have the time. I have talked to a number of my friends who want to invest, teaching them how to do it directly, but sadly no one actually did it. They were just too busy. Some invested through a mutual fund instead. They just give their money to a reliable insurance company, and the company's fund manager does all the work. Now, for most people, that is convenience.

MYTH #3     Part of my investment goes to paying the fund manager every now and then when I can do his work when I invest directly

FACT

Again, there is only an initial charge for the fund manager to do his work. And it is a decent amount. Besides, when you invest directly, you are also being charged every time you buy and sell stocks.

CHOOSE WHICH PATH TO TAKE

Investing directly and indirectly has its pros and cons. Choose which works for you. As for me, I plan to do both. Currently, I invest directly through the country's leading online stockbroker. You can start doing this with as little as Php5,000 plus the discipline to continuously do it no matter what the situation of the stock market is.

Next month, I will start investing through mutual funds. With my preferred insurance company, which is the largest in the country today, I can do this with as little as Php10,000 per year.

With capital requirements like this, anyone who has a steady income can invest. I encourage you to start TODAY.

LAST NOTE

This I also realized, that what makes mutual funds better than investing directly is the Insurance Coverage. If something happens to me and the family knows that I have a mutual fund, the insurance company gives my beneficiaries 125% or 500% of my investment, depending on the plan I chose. They can even get the benefit amount IN FULL, no tax! Now that is peace of mind.


I hope this article was of help to you. if you have any queries, please post them on the COMMENTS below.

Stock Market Investing FAQ

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For the past days, since I became active in writing blogs again, I have been receiving a number of queries about stock market investment. This post aims to address those concerns. Here are to name a few:

1. I want to invest in the stock market. How do I start?

          Before asking how, you must have an answer to WHEN do you want to start. Most of the time, people want to invest, they ask questions and get answers, but then do not start investing at all. I encourage you to start investing NOW. If the market is down, do not wait for it to go up. This is a great time to buy because this means that you can buy great companies at a lower price. When the market goes up, keep on buying these great companies. TEL (PLDT) which costs Php2748/share now will definitely cost more than that after twenty years right? Back in 1986, it costs less than Php10/share.

          Once decided, the question now is how do you want to invest in the stock market? Is it Directly or Indirectly?

Directly is when you have a stockbroker, who acts as a middleman every time you buy and sell stocks, but it is YOU who decide which companies to buy or sell. To be able to do this, you must have the time to learn how the stock market works and how people earn money and lose money from it. As for me, my stockbroker is COL Financial. It is the leading and fastest growing online stockbrokerage firm in the Philippines. They offer investment seminars for FREE. Please check their website for schedules.

Indirectly is through a mutual fund. This is for people who want to invest in the stock market but do not have the time and knowledge to do so. A fund manager will do this for you. Talk to your financial advisor (ahem!). Discuss with her the kind of investment that you want (either low risk low return, or high risk high return), how much money you want to invest (maybe one time payment or multiple pay), if you want something that is pure investment, or you prefer that has insurance coverage. It can be as flexible as you need it to be.

2. How much money do I need to invest in the stock market?

          If directly, you can start by opening an account with as little as Php5,000. If indirectly, you can invest even with only Php20,000 per year.

          Investing 20% of your income for your future is a good start, which increases as your income increases.

3. Can anyone invest in the stock market?

          As long as you have a regular source of income, like your salary, then you can invest in the stock market. It is not as complicated as it seems to be. Even my kids, who started investing at aged 5 and 1, are stock market investors. Of course, it is I who manage their accounts. As parents, I believe that it is our responsibility to do what we can NOW to secure their future.

4. What is the interest rate in the stock market?

          On average, it ranges from 12 to 20 percent per year, compounded. Although this is not guaranteed, it is still higher than what your favorite bank could offer. Plus, it is higher than the inflation rate. Do not lose the value of your money. Invest it where it grows faster to beat inflation.

One Last Note

          To truly appreciate it, what you invest in the stock market is money that you will not be using for the next five years, at least. Remember that this is a long term investment. If you put your "pamalengke" money in there, you might be needing it soon and have no choice but to sell at a loss. 

Set aside an Emergency Fund. Your investment in the stock market will be your Retirement Fund.

I hope this post was helpful. If you have other queries, please post them on the comments below.

Happy investing!