Why Prefer Delayed Gratification

A couple of days ago, I came across a Facebook post about purchasing the latest gadget instead of investing in the stock market with your Christmas bonus. The latest gadget "then" was the Nokia N95.

Maybe many of you do not know this unit because it was released in the Philippines back in 2007, but it was the "latest" model of its time. Simply put, it was like the iPhone 6 Plus or Samsung Galaxy S6 Edge Plus TODAY.

I remember owning a Nokia N95 myself during that time when working hard and spending harder were the only two things I know that has something to do with money. It costs more or less Php35,000. Being with a new company for only a year then, that amount almost equals my salary for four months!

Now, I have no idea where my Nokia N95 went. I am not sure if I misplaced it, sold it at a lot cheaper price or simply gave it away -- and that was my four months of hard work going down the drain. Ouch!

If I invested my Php35,000 in the stock market instead, that would have been Php150,000 today with my small investment growing at 20% average per year with the power of compounded interest. Wow!

That is delayed gratification.

And recently, the Samsung Galaxy S6 Plus Edge has arrived. And yes, it was such a beauty -- and appears to be very functional, too. With all of it's features, I told myself that I wanted to buy one when the 13th month bonus arrives, that maybe I can actually "splurge on impulse" just like everyone does. 

Fortunately, I came to my senses the following day and changed my mind. I told myself that I have graduated from being an impulsive buyer and that I am sticking with my long term plans.

Why Get a New Phone When the Old One Still Works?

Over dinner one night, my husband was telling me that we can get a postpaid plan with Php1999 monthly so that we can upgrade our phones. But then I told him that I don't need another plan, and that I am okay with my current plan that I get to enjoy for FREE because it is shouldered by the company. Besides, I am still okay with my current phone which I purchased more than a year ago. It has all the features that I need.

What I love most about my phone is that even if my kids would accidentally drop my phone on the floor, IT IS OKAY. They've actually dropped it more than a couple of times and it's no big deal.

And my husband agreed that a new phone would only mean an additional expense. That Plan 1999 for each would cost us almost Php4,000 per month or Php48,000 per year. Since it will be under contract for 2 years, that would be Php96,000 total at least. Wow! For a rank and file like me, or resident MD like my husband, Php96,000 is a lot of money!

After computing, my husband and I agreed that, yes, we are still okay with our old phones. We would rather spend on "stuff" that increases in value over time -- then maybe buy the latest phone from the interest. 

Invest in the Future Before the Present

I think the problem why many of us would rather spend than save or invest is because we want instant gratification. We want to see or experience the fruits of our hard work NOW, and not later.

Second reason why we keep on spending is because we do not know where to put our money due to lack of financial education.

If you knew that you only need Php840 to own a small part of CEB (Cebu Pacific) and have 10 shares under your name, that will earn you passive income through dividends and capital appreciation over time, wouldn't you invest your small amount on that? Php840 equals 5 cups of your favorite signature frappe, by the way.

This is investing in the stock market directly. The easiest and most effective way of doing this is through the Strategic Averaging Method (SAM) which I learned through Bo Sanchez' Truly Rich Club. To know more about this, CLICK HERE.

Another way is doing it indirectly through a VUL. If you have dependents, this is the better way to invest because your investment comes with insurance. Insurance will not make you rich. But it makes sure that your dependents will not become poor when God calls you home while you are still in the process of building your wealth. Your investment, that is what will make you rich. 

With Insular Life's Wealth Secure, you can invest in the TOP 10 companies of the PSE with as little as Php20,000 per year. If you simply want to grow your money, setting aside a minimum can be an option. 

But I encourage you to talk to your trusted Financial Advisor first and discuss your long term goals with him/her. I got my first VUL in 2014, and this is where I build my retirement fund. Based on computations, considering inflation and time value of money, I can retire comfortably with 15M -- which is actually my target amount. 

Later on, you can get another VUL, like what I did, investing just the minimum, which has the sole purpose of growing your money. 

Read books, attend seminars, and have mentors. Invest in yourself because you are your greatest asset, and never stop learning.

Our small sacrifices today will mean a huge difference in the future. That is delayed gratification.

Make Your Choice Today

Will you buy the latest phone just because you want it and not really need it?

Do you still prefer instant gratification over delayed gratification?

Will you use your 13th month pay to start investing or simply spend it all?

Remember, in the future, when we are already rich, we can buy pretty much whatever our heart desires. Just remember that the main purpose of wealth is to love and serve others.


P.S. I hopr you find this post helpful, and please click the SHARE button below.

Are You Interested or Committed?

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Arnold Glasow said, "Success isn't a result of spontaneous combustion. You must set yourself on fire."

Are you on fire?

There are two kinds of people who are reading this blog post now:
Those who wish to be wealthy.
And those who are committed to be wealthy.

Which kind are you?

Through my journey to financial freedom, many people have asked me about investing.  Almost everyday, I answer inquiries about investments in the stock market. Before our conference at work last July, I have a few workmates who messaged me saying that they would want to talk to me about this. But during those five days, only one had the time to do so. And sadly, that one person has not started investing until now although two months have already passed.

They were plain interested.

On the other hand, there are those who are (drum roll please!) committed. Because they have realized the value of investing today for the fulfilment of their dreams tomorrow, they have made it their priority. Every time money comes in, they set aside an amount for investment then spend what is left. This is the strategy of the rich. Opposite to that of the poor wherein they save and invest what is left after spending. And obviously, nothing is left. They would wait for another payday, spend it the same way, and this cycle goes on.

Choose to be Committed

Last June, I met a doctor who was referred to me by my friend because he wants to start investing. Practicing his profession in San Fernando and Angeles City in Pampanga, this doctor is very busy. He starts work early and usually finishes late in the evening. One time, I received an unexpected call from him, asked me if I could accompany him to Betis while he looks for furniture because that is the only time he has. He said that I can explain how investing in the stock market works while on the road. That was the first time I met him.

Two days later, we met again and this time, he was already signing the policy application form for the VUL that I offered him -- a savings/investment/insurance product all rolled into one.

You may think that money was that easy for him to be able to decide that quickly. Truth is, his money was not yet available during our first meeting. But he has realized the advantage of investing NOW over investing LATER and so he allotted his professional fees for that.

Yesterday, I dropped by their house to pick up policy application forms, but this time for his 2 nephews and 1 niece. He understands that in investing, time is our greatest ally, and that when we start earlier, our money has more time to grow and work for us.

Sometimes, being busy is just an excuse. If we are committed to doing something, we can always make time for it.

Me and My Busy Life

Last September I was very busy and very productive -- and I thank God for it! After my product training last August with Insular Life and the Select Equities Fund being offered for a limited time only, I started blogging actively about investments again. I felt the urgency to teach people about investing because with Select Equities Fund, you can be a "part-owner" of the Top 10 companies in the stock market at a price of less than Php1.00 per unit. I do not want people to miss such a great product.

During those days, I would find myself typing on my laptop, writing a new blog post or updating an old one, either past midnight after work or early morning before going to work. And my blog was serving its purpose. It was doing the "selling" for me. I get inquiries about investments and SEF almost every single day from my Facebook friends. In between work, while waiting for MDs, I was busy preparing investment proposals. After work on Friday nights, or before going home from The Feast in PICC, I would meet with these friends to discuss about SEF. For those who I cannot personally talk to, I mailed them the proposals and made the sticky notes do the explaining for me. As they say, if there's a will, there's a way.

And yes, all of these effort paid off because in one month, I had ten COMMITTED friends who began their investing journey, ten friends whom I have helped realize the value of investment and preparing for the retirement as early as today. I cannot be happier.

Why?

Because as I was helping them fulfill their dreams, I was achieving my dreams as well -- which is working with purpose and meaning. Things cannot get any better than that!

Go Against The Culture

Say it out loud: "I am committed to be wealthy!"
Is there a teeny weenie feeling of guilt? This is because you are going against a grain in our culture. That grain which values docility, submission and passiveness.

The norm says that all houses are assets, put your hard-earned money in banks, you will lose all your money in the stock market, and that you are too young to plan for your retirement.

I remember a quote from one of my favourite books Tuesdays with Morrie by Mitch Albom. It says, "You have to be strong enough to say that if the culture doesn't work, don't buy it. Create your own. Most people can't do it."

The truth is, Every successful people is aggressive when it comes to their dreams.

Do not dilly-dally. Your life is happening in front of you right now. Do you want to be successful? Then be aggressive towards your dreams.

An Investment in Knowledge Pays the Highest Interest

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The title was a quote by Benjamin Franklin.

Ten years ago, when I first started working, an insurance broker came to me and offered me something which I did not really understood back then. Because I did not know what it was really for, I just allowed it to lapse. My premiums for a few years, around Php100k just went down the drain.

Three years ago, another insurance broker talked to me. I know her personally so there I was again, signing a policy contract that I do not understand. After a few months, when I started learning about financials, I came back to my insurance broker and asked how much will my kids get in case something happens to me. She said it was a measly Php150,000. Surprised, I asked, "Just that?!" Well, that was what I unknowingly signed up for. And thinking that I will be wasting more money if I continue with this particular policy that I do not need, I made it lapse again. This product does not answer my main concern which is financial security for my dependents when God calls me home. And again, my hard-earned money went down the drain. To my recall, I think I have also wasted three-digits for that.

This is the price I had to pay for lack of knowledge, or lack of interest to learn.

Last year, I met a new friend who works in a leading insurance company (#1 to be exact). She did not offer me insurance. But since she has been reading my blog, she offered me to join her team. Seeing this as an opportunity to learn and also earn on the side, I said YES without thinking twice.

Before 2013 ended, I was a licensed financial advisor myself. Knowing what exactly me and my family's financial needs and wants, most of my bonuses from work went to getting four insurance policies. A life insurance for me and my husband, and an investment plan that gives GUARANTEED allowance for each of my children for as long as they live with coverage that their beneficiaries (my grandchildren) will receive when they expire. And yes, these came cheap. I work as a rank and file so my bonuses were not really that huge.

Last year, at age 32, I started investing for my retirement. With PHp42,200 paid semi-annually (Php80,000 if annually) for ten years only, invested in the stock market, I will be retiring at 65 with Php15M. If I started earlier, this could have been bigger since TIME is our greatest ally in investing. But then again, better late than never. Yes, I honestly think I started investing late in life. So, if you haven't started investing yet, whatever your age may be now, I encourage you to START NOW. Remember, investing for your retirement just a few years before you retire is like learning to swim when the boat is already sinking. 

I told my friend about this particular policy plan and he was in disbelief. I told him that is possible using COMPOUNDED INTEREST. It is the same force that works on your credit card debt every time you pay only the minimum. If you own a credit card, make it a rule of thumb to PAY IN FULL ALWAYS.

Make compounded interest work for you. Talk to your financial advisor (ahem!). Avoid insurance brokers who will only try to sell you whatever it is that gives them huge commissions. Check their financial backgrounds first and make sure not to get money advice from broke people. As one of my mentor says, the most expensive advice is the free advice that you get then sells you something you don't need.

Make sure that your financial advisor provides you with an investment/insurance product that answers your need and is also within your budget. Invest only the amount that will not compromise your lifestyle. With lifestyle, I would mean simple living okay? Never buy an investment product that you cannot afford or else your policy will only lapse. Check also the background of the company. Make sure that they are registered with the Insurance Commission and have been in the business for a hundred years surpassing even a stock market crash.

Do not wait for better days to start investing. You can start with Php20,000 per year (less than Php2,000 per month) and increase it as your income increases or your expenses decreases. When you realize the value of investing and how it serves as a bridge towards achieving your financial dreams, setting aside for money for this bridge would be easy. Next to tithing (which is the best investment), investing for your future will be your priority.

For your financial concerns, you may post your comments below or send us a message in our Facebook page Financial Planning for Pinoys.

Happy investing!

P.S. Finally decided to start investing? Send me an email at jssalandanan@gmail.com .

The Three Options In Life

Late last night, I was talking with my husband. I was telling him that I've been feeling odd for the past three days -- I was burping more often than usual, I always feel the need to burp, I feel bloated, and I have been constipated. Being a medical doctor, he told me to have an X-ray ASAP. With the sense of urgency in his tone, he sounded worried. And being the woman that I am, who has undergone two cesarian sections and an exploratory laparotomy, I began to think. Although the situation that I may be in may not be major, but the what ifs crossed my mind.

What if I die too soon?

 

And on the contrary, what if I live too long?

I want to live for as long as I could -- go places, support and encourage my kids as they grow up, take care of grandchildren, and grow old with my dear husband -- but I know that God can call me home anytime. With this in mind, I immediately organized my receipts for reimbursement and liquidation at work. I also filled up another insurance/investment policy, and reviewed my other issued insurance policies.

Last night, this is what I realized. There are three options in life: 1. Enjoy now, sacrifice later; 2. Sacrifice now, enjoy later; and 3. Enjoy now, enjoy later. I'm choosing the third option.

 

Enjoy now, Enjoy later

 

 

 

At the start of 2014, I told myself I will be frugal this year. I will not travel (although it is one of my favourite things to do) if not for free. I work in sales and we are rewarded with incentive trips, so this is possible. I will save as much as I could so I could invest it all for the future.

 

But then I realized, there is more to life than investing for the future. I must also invest in the present. With this, I am not referring to latest gadgets or trendy clothes. But deeper, and more meaningful than that -- which is time for myself, time for my family and time for others.

In 2014, I failed to keep my word when I said that I will not travel. I went to Bohol in June, and went back in October for the same reason -- volunteer work. I joined World Vision's Volunteer Caravan in Visayas TWICE. And I must say, it was my most meaningful expense that year.

With my fellow volunteers, we helped in building houses (read: masonry work) for the earthquake-stricken residents in Maribojoc and visited schools teaching the kids about health and hygiene. When asked about their experiences during the earthquake, one child shared that he lost his mother that day. As tragic as it is, strong faith in God and hope for better things to come was evident in his eyes. He could still smile inspite of what had happened.

Right there and then I realized that I was truly blessed. And I told myself that the least I can do was to share these blessings even with people who can never repay me.

This is one fulfilling way of enjoying today -- giving more of yourself in the service of others -- and it has been very rewarding. 

 

Final Word

 

We spend so much time and energy at work to receive that monthly pay check. We get into business for additional income. We learn how to grow our money and make it work for us. We aim in getting out of the rat race and become financially free. And then we ask ourselves, what for?

My answer? To earn as much as I can so that I can give as much as I can, today and in the future.

Be very blessed!

Knowledge Eliminates Fear

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"I am not afraid of storms. For I am learning to sail my ship." - Louisa May Alcott.

Last week, I was talking to a new friend about stock market investing. She was pretty much convinced that it is better to put her hard-earned money in the stock market and allow it to grow over time instead of settling for the measly interest that the bank offers.

When I followed up on her last night, asking if she had opened her account with COL Financial, the leading online stockbroker in the Philippines today, she told me that she still has her hesitation to invest because of fear.

This is where the Truly Rich Club comes in. It teaches you what you need to know.

Back in 2013, I reached my rock bottom moment when I was so stressed with bills to pay coming in every month. I was employed with a decent salary, but I was basically living payday after payday. I had no savings, no investments, and I was down with debt. I had a negative net worth.  Financially, I was lost.

I believe it was by God's grace that I stumbled upon Bo Sanchez' Truly Rich Club on the internet. It taught me what I needed to know and I was able to give my life, not only financial, an overhaul. The club equipped me with the knowledge that eliminated my fears. And this is where my financial journey took its first step.

Risks = Returns

Many people think that investing in the stock market is risky. Unfortunately, that is the only risk they know of.

Well, guess what? Starting a new business is risky. Keeping a day job is risky. Putting your money in banks is risky. Even merely driving to work or crossing the street is risky.

Warren Buffet says, "Risk comes from not knowing what you're doing."

The way to eliminate risk, or at least minimize it, is to increase knowledge.

I read books on financials during my free time. I attend seminars on financial education every now and then. I enrolled on an online mentoring course on how to start and maintain this blog. I am a member of the Truly Rich Club to be mentored by the experts on stock market and entrepreneurship.

Knowledge dismisses fear. I am confident that I am doing things the right way because I am backed up with the learning and experience of experts in fields that I am getting into now. 

This is also similar to saying never invest in something you do not understand. A couple of months ago, a friend asked me if I wanted to invest money in a company that he recently invested in. I asked my friend what is the nature of the business, how long has it been running, and what will they do with my money just in case I also invest in them. He could not give me sure answers. That was a red flag. I am sure you do not want to see your hard-earned money simply go down the drain. 

For example, the stock market is something that we have no control of. I encourage you to seek a mentor who is an expert and has studied and devoted his life in studying how the stock market works. Same for business, real estate, etc.

My Journey in Stock Market Investing

It was in 2013 when I started learning about the stock market. Over time, I realized that it is not as complicated as we thought it to be. I have learned that our thinking that the stock market is only for the rich or that we need to be in front of our computers the whole time were just misconceptions.

You may ask, "Really?"

Yes, really. I began investing in the stock market directly with Php5,000. The need to open my COL portfolio is when I am going to buy or sell shares, which happens at least twice a month. It does not take so much of my time that I can actually do this while on queue at the expressway toll exit.

Yes, it is that easy, and have been very rewarding, too.

When I see GREEN (which means GAIN) that is 6% and above, I feel happy. I knew that my money has beat inflation. I also feel this when I receive emails notifying me of dividends from these blue chip companies.

When I see RED (which means LOSS), I feel excited. It's like seeing your favourite expensive brands ON SALE. Time to go stock market shopping!

But what I love most about the stock market is that it is the BRIDGE to my long-term dreams. With very little amount invested every month, I can see my daughters' college fund growing and my retirement fund growing. And this gives me peace of mind.

While others worry about investing in the stock market, the stock market answers my financial worries.  And this is what I love most about it.

Curious Who My Mentors Are?

I get financial and spiritual guidance from Bo Sanchez and his team of mentors through the Truly Rich Club.

I have learned online marketing from Jomar Hilario.

I follow stock market principles of Warren Buffett.

I read books by Robert Kiyosaki of the Rich Dad Poor Dad fame.

These are just to name a few.


Remember that the first step to earning, is to learn. And never stop learning.

Be Patient With Your Progress

In April 2014, I remembered experiencing a paradigm shift. Because of that, I stopped writing for a month or two. Let me share with you what happened then.

In #Hugot lingo, "May pinagdadaanan." Lolz.

Kidding aside. I was reading a new financial book then, which says that a 10% per annum average interest rate in the stock market is peanuts (read: measly or relatively small) and not even guaranteed. And it made me tell myself, "It has a point." Since I have always been encouraging everyone to invest in the stock market, this became disturbing and caused drastic moves.

With a little gain, I pulled out ALL the money which I directly invest in the stock market through COL Financial. I then put a little of that withdrawn amount indirectly in the stock market through my Insular Life VUL, a part was deposited to the bank, and another part was planned to be used to grow our small business.

What was I thinking then?!

I was being aggressive and I wanted to hurry my financial growth. I saw greater opportunity to grow my money in business. I got excited and found myself talking to people I hardly know, considering to partner with them either for expansion or for a new business I have no knowledge of, nor is it connected to my core gift. Thinking about it now, yes, it was a crazy thought.

But then I realized that God really works in mysterious ways. NOTHING that I wanted to happen actually worked! Either there was already an existing business center in that area, or my supposed to be partner just vanished into thin air. This may be ironic, but yes, Thank God!

It was not God's rejection, but I think of it as God's redirection.

And as I check my archive of Wealth Strategies newsletter from the Truly Rich Club, I started to think straight again. 

By the way, let me just share with you that every time I feel discouraged, negative, down, or simply do not know what to do, the newsletters from the Truly Rich Club provides me with those "exactly what I needed to hear" answers and brings me back to God, to my passion and purpose in life. I encourage you to join, too. It is where my life journey with God started. It has not only blessed me financially, but in all areas of my life.

From the archives, I read about the story of the three farmers. (I will share with you the story on my next post.) One of its lessons is "Respect Your Pace."

As a TRC member, Bo Sanchez teaches us to invest for the long term through putting small amounts each month in gigantic companies in the stock market. We call it Strategic Averaging Method or SAM.

I have been following this for three years now, and just like most members, it came to a point in the past when I gave up. For some time, I was disappointed and frustrated. Why? Because its growth was slow.

But as I read the story of the three farmers and its lessons, I realize that I should not hurry my growth. Because when you are in a hurry to grow, you will make all sorts of disastrous mistakes -- just like what I almost did!

When we want quick money, we get burned.

Bo teaches us that there is Organic Growth and Outrageous Growth. Both will happen in your life. But you need to have the right growth at the right time.

Here is the rule: At the start, grow organically, not outrageously. And some time in the future, that organic growth will become outrageous growth.

Do not be in a hurry to grow your money. With the magic of compounded interest, we will get there.  After all, the stock market is a device for transferring money from the impatient to the patient.

Be patient with your progress.

Be very blessed!


P.S. By the way, over time, I learned not to settle with "small amounts" invested in the stock market, but rather, "invest as much as you can."

Let me share an excerpt from the book The Tao of Warren Buffett. It says, "The great secret to getting rich is getting your money to compound for you, and the larger sum you start with, all the better."

P.S. 2. If you find this post helpful, kindly click the SHARE buttons. Thank you.

A Lot of Available Cash Can Harm Your Business

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My mentor taught me that someone who is starting his first business should not have a lot of cash. He believes that a lot of cash can harm you more than help you. I agree with him.

If you are starting your first business now and you have very little cash, that is a blessing! Why?

You will learn to work from home. Do not rent office spaces yet!
You will learn to use what you have. Do not buy new stuff yet!
And it will be a fantastic story to tell 20 years from now that you started your gigantic company in your living room with only Php10,000, right?

First Businesses Usually Fail

This is another reason why having a lot of money at the start of your business is bad for you.

When you start your first business, you fail. Yes, it may be bad news, but always remember that failure is not God's Rejection, but God's Redirection.

And not ALL first businesses vanish into thin air. There are some who will survive, but will be revised, redesigned, rebuilt,...

My Story of Failure

Once upon a time, and not a lot of people know about this, I started my first business. Back then, I was so much into online shopping. EBay and Multiply were my favourite websites. One time, I came across a seller that offers a "reseller price" when you purchase wholesale. Since I had no money then and thought of getting into business, I applied for a bank loan. I have always believed that the only valid reason to get a loan is for business, period.

When my first loan was approved unexpectedly, I was very happy. Since the required minimum to avail wholesale was not that much, the released amount was more than what I actually need for the business. So with that, more than half of my loan only went to buying personal unnecessary stuff (shopping!).

Here is where the other part of the problem was. Since I made a purchase online, I did not know how the products actually looked. Yes, they were beautifully displayed online (thanks to Photoshop), but when I got them, I was not very pleased. These were branded overruns.  I was not able to determine the quality based on the texture, the kind of material used, the badge, the stitches and the actual sizes because I only saw them online prior to my purchase. Honestly, I had a hard time selling them. I sold a few, but I gave away most of it.

Looking back, I did not research. I never studied who my niche market would be, or how will I sell these stuff. I also did not know anything about the business because I have not bought or worn overruns prior to that. Personally, I do not even shop that much clothes before. I did not even look for a mentor who could guide me.

It was a leap in the dark.
I literally "jumped" into it blind.
Yes, my loan just went to nothing.

Focus on Your Gift, Not on Your Cash

Having big cash and little business sense is a very dangerous mix. Because you will be in a hurry to "plunk" it into your first business, not understanding that first businesses usually fail.

If you stick to your core gift, you will be able to find a business that does not need that much cash.

My first business that I could consider successful is this blog. Why? Because I believe that writing is my core gift. When I see "LIKES" on my blog posts, or an increase in page views, or added income from clicked ads, or when I receive messages from readers telling me that my blog have helped them, I feel happy and fulfilled.

How much capital did I need for this business?
Nothing. Zero!

I also believe that our core gift will not only bless other people, but it will also bless us. Because I am such an investment advocate, I do not only WRITE about financial planning, but actually DO financial planning for people who want to invest and make their long-term dreams real.

Through being a licensed financial advisor for Insular Life, the No.1 life insurance company based on NET WORTH and the largest in the insurance industry, I offer products that are tailor-fit for every client's need. Through helping them realize their dreams, I am making my own dreams real. Yes, it has been financially rewarding.

Because this business has prospered me, I am able to prosper others as well through child sponsorship and giving money to do God's work. Remember that God lent us His money for a purpose, and that is to help and serve others.

My Second Business Needed Only P30,000

My friend from the Truly Rich Club asked me to become his business partner. The initial capital investment was only Php30,000. And since everything will be equally divided between the two of us, the expenses and profits, I only needed Php15,000 to start our direct selling business.

Since it provides active income for dealers and passive income for us, we spent mainly in marketing. Since what we are selling is organic, I also love the fact that our business is also helping our farmers through increased in production.

Then one business opportunity led to another. Earlier this year, we had the chance of growing our organic product portfolio with another business deal from Davao City. This time, we can cater to anyone, anywhere, without restrictions. Through word of mouth and social media, our business has the potential to grow nationwide. This would mean providing extra income to the masses and our farmers.

Recently, through social media, I was led to another business that is still connected to our organic products. We are venturing to agricultural tours in the Philippines through Costales Agritours and our first stop will be at Ilocos Norte happening on August 31 to September 2. This will enable us to learn new things, grow our network, help more people earn on the side by being our retailers, and support our farmers due to increased productivity. My new agribusiness partner said that we will be going around the country for agriculture tourism and I am just excited to do that. I know that the best is yet to come!

Start Your Business Without Much Cash

What is the winning combination of entrepreneurial success?

A lot of passion and very little cash!

Because "very little cash" will force you to be more creative, more resourceful, more imaginative, more persevering, more sacrificial -- things needed for a great entrepreneur!

There were horror stories of kids of very wealthy parents who started business with the help of Daddy's millions and just lost them. Because money is too easy for them. Money isn't valued. So they are careless with it.

Later on, as you grow in your business skills and you begin to taste small successes, that is the time to borrow money to expand your business.

May this post be helpful for budding entrepreneurs. Be very blessed!



P.S. The COSTALES Agritours - Ilocos Norte Trail will be held on August 30 to September 1, 2015. We are committed and focused to provide best-in-class Educational, Recreational and Agri-Business agritours. Let us support Farm Tourism and help us in our inclusive growth agenda. For inquiries and reservations, you may contact Ms. Ena Jane Javier at 0936-938-3167 or you may send an email to costales.agritours@gmail.com. Thank you very much.

Why You Should Be an Entrepreneur

http://www.flickr.com/photos/8344872@N05/4580637212

Our mentors at the Truly Rich Club basically educate us on how to create multiple income streams. Through the club, I learned how to invest in the stock market, become an affiliate marketer and get into business, all of which are my sources of passive income while I am still an employee.

Many years ago, I had my first job a month after graduation. My first salary was Php6,500. As the years went by, it continued to grow. From Php7,000 to Php10,000 to Php40,000. Yes, it was growing and growing and growing, and I was happy because the company I've been working for pays higher compared to others of the same field. But unfortunately, it was never enough!

Please don't get me wrong. My salary was enough for my basic expenses. I can regularly tithe. I can give my mother a Php25,000 household allowance every month for the grocery and pay the bills. Somehow I felt proud that what I was giving her can support an average family. I can take my kids to SM almost every weekend. I can surprise my husband with dinner (my treat!) or buy something for him even when there is no occasion -- and still be left with money to invest in my COL portfolio and pay for my Insular Life premiums.

I was very happy. We may not be rich (yet), but we are okay.

But still, there is this pain inside me. While listening to a Power Talk, also from the Truly Rich Club, I came to know that Anawim, the home of the abandoned elderly in Rizal, needs Php700,000 every month to support its residents. That is huge! Every now and then, I also receive emails from World Vision saying that there are still a lot of children that need to be sponsored. And my inability to give as much as I wanted to caused my pain.

I realized that I needed to do something if I wanted to give more. That was when I decided to become an entrepreneur.

My Path to Entrepreneurship

My salary, although growing each year, was fixed by the company I work for. With entrepreneurship, it was different.

Two years ago, my friend from the Truly Rich Club and I started our small business. I believed that it was God opening a door of opportunity for us since I met my partner only through the members' Facebook group. He was from Davao and I was from Tarlac. Because of the distance, we've met personally only once. Fortunately, because of today's technology, the distance was never a hindrance to push trough with our business plan. We became a distributor of a moringa-based organic liniment in Central Luzon.

But because we have our own small business, we can determine how much we would earn. We realized that if we work hard, do our marketing homework, worked with the right people, and expanded our business, we would earn more. Eventually, we had our second branch in Quezon City a few months after.

I admit, it was not as smooth sailing as I imagined it to be. We held seminars to introduce our product and only seven people would be our audience, three of which were even applicants as staff! And when we finally get members to sign up and make an initial purchase, they suddenly become inactive, so we would start again from scratch. Yes, we lost a lot of time, but we gained so much wisdom.

In January 2014, our business had its breakthrough. Through a local trade fair, we discovered our niche market. Now, we weren't inviting people to attend our seminars anymore. But instead, we are being invited to group meetings to discuss about our product and its business opportunity. We do not talk to a group of seven people anymore, but to a group of more than a hundred!

And because I am still an employee, I have a great team that works hand in hand with me in running our small business. My mother, who developed her skills from years of direct selling in the past, manages the business with me. We were aiming for minimum overhead expenses that we turned a small area in our garage into a stockroom.

Then one business opportunity lead to another. Our portfolio of organic products have grown. For our latest products, are sales are not being restricted within Central Luzon only. We can actually sell to anyone, anywhere. Because of social media, this has become possible. For online purchases, my father is the one who is in-charge of bringing the orders to our very reliable courier.

At the end of this month, we are venturing into another business which is related to our organic liniment -- agricultural tours in the Philippines, and our first stop will be at Ilocos Norte. This will enable us to learn new things, grow our network, help more people earn on the side by being our retailers, and support our farmers due to increased productivity. The goal has grown, too, and not just to make money. But rather, to THINK DIFFERENTLY and CREATE OPPORTUNITIES for many. To be honest, I am extremely overwhelmed and excited about this! With how wonderfully things are going, I believe that God definitely has His signature all over this.

Most importantly, because of my growing income, I am able to give more to ministries that do God's work.

Final Word

For my fellow employees, I encourage you to create passive income so that we can take mini-retirements NOW -- while we are younger and the kids are still with us.

As my mentor taught me, the key is to create passive income.

And one of the ways of creating passive income is by starting a business.

Be very blessed!


P.S. The COSTALES Agritours - Ilocos Norte Trail will be held on August 30 to September 1, 2015. We are committed and focused to provide best-in-class Educational, Recreational and Agri-Business agritours. Let us support Farm Tourism and help us in our inclusive growth agenda. For inquiries and reservations, you may contact Ms. Ena Jane Javier at 0936-938-3167 or you may send an email to costales.agritours@gmail.com. Thank you very much.

 

Time is Our Greatest Ally

I have been blatant about this on my social media account -- I LOVE INVESTING!!!

I do. I used to tell my friends that if only I knew then what I know now, my investment portfolio could have grown to millions at this time even with investing small amounts.

Why? Because as my mentor says, "Time is our greatest ally."

But since we can not do anything about the past but learn from it, I am happy that I started investing the moment I learned about it. I encourage you to do the same. I believe that the fruits of our investment is God's gift to the world, proving that there is no shortage of His blessings, and that these blessings are on the table for the taking. But also remember that God lent us His money for a purpose, which is to bless the world.

Let me share with you a story.

Since last week, I have been exchanging messages with my doctor's wife about the most suitable investment product that will shoulder their 4-year old daughter's college education. I made a proposal before going to bed last night, and made another proposal when I woke up this morning. Yes, I love investing that much that the first and last thing I do every single day has something to do with it. It has become almost as natural as breathing for me. (Lol!)

Here is what I came up this morning. It got me too excited that I wanted it to share here. PRONTO! And I do not want to commit the sin of omission if I keep this relevant information to myself.

(Best viewed on your laptop or desktop)

Policy Year	Attained Age	PREMIUM ALLOCATION	END OF YEAR PARTIAL WITHDRAWALS			ILLUSTRATIVE BENEFITS
						Full Withdrawal Value			Death Benefit
						Low	Medium	High	Low	Medium	High
1	5	40,000.00	0.00			41,354.83	42,949.72	43,747.19	1,041,354.83	1,042,949.72	1,043,747.19
2	6	55,000.00	0.00			99,963.86	105,535.42	108,369.10	1,099,963.86	1,105,535.42	1,108,369.10
3	7	75,000.00	0.00			181,717.24	194,727.98	201,453.20	1,181,717.24	1,194,727.98	1,201,453.20
4	8	90,000.00	0.00			282,340.76	307,255.94	320,345.71	1,282,340.76	1,307,255.94	1,320,345.71
5	9	90,000.00	0.00			386,989.22	428,786.14	451,127.47	1,386,989.22	1,428,786.14	1,451,127.47
6	10	100,000.00	0.00			506,223.62	570,838.75	605,987.40	1,506,223.62	1,570,838.75	1,605,987.40
7	11	100,000.00	0.00			630,227.40	724,255.57	776,333.33	1,630,227.40	1,724,255.57	1,776,333.33
8	12	100,000.00	0.00			759,191.33	889,945.74	963,713.85	1,759,191.33	1,889,945.74	1,963,713.85
9	13	100,000.00	0.00			893,191.23	1,068,765.98	1,169,706.02	1,893,191.23	2,068,765.98	2,169,706.02
10	14	100,000.00	0.00			1,032,551.12	1,261,891.84	1,396,297.41	2,032,551.12	2,261,891.84	2,396,297.41
11	15	0.00	0.00			1,084,101.36	1,375,971.07	1,550,780.80	2,084,101.36	2,375,971.07	2,550,780.80
12	16	0.00	0.00			1,138,127.15	1,500,283.55	1,722,285.44	2,138,127.15	2,500,283.55	2,722,285.44
13	17	0.00	0.00			1,194,753.25	1,635,758.46	1,912,700.69	2,194,753.25	2,635,758.46	2,912,700.69
14	18	0.00	250,000.00			1,004,110.72	1,533,409.36	1,874,125.63	2,004,110.72	2,533,409.36	2,874,125.63
15	19	0.00	250,000.00			793,294.48	1,405,080.99	1,810,526.95	1,793,294.48	2,405,080.99	2,810,526.95
16	20	0.00	250,000.00			574,045.58	1,266,486.36	1,740,568.40	1,574,045.58	2,266,486.36	2,740,568.40
17	21	0.00	250,000.00			346,026.73	1,116,804.16	1,663,614.00	1,346,026.73	2,116,804.16	2,663,614.00
18	22	0.00	250,000.00			108,887.12	955,147.38	1,578,964.16	1,108,887.12	1,955,147.38	2,578,964.16
19	23	0.00	0.00			112,139.35	1,030,432.92	1,735,722.93	1,112,139.35	2,030,432.92	2,735,722.93
20	24	0.00	0.00			115,521.66	1,111,741.31	1,908,157.57	1,115,521.66	2,111,741.31	2,908,157.57
51	55	0.00	0.00			279,787.68	11,882,755.17	36,347,179.49	1,279,787.68	12,882,755.17	37,347,179.49
56	60	0.00	0.00			298,754.91	17,413,945.30	58,489,604.07	1,298,754.91	18,413,945.30	59,489,604.07
61	65	0.00	0.00			295,547.90	25,512,305.25	94,120,100.49	1,295,547.90	26,512,305.25	95,120,100.49
66	70	0.00	0.00			248,773.14	37,364,209.71	151,453,792.47	1,248,773.14	38,364,209.71	152,453,792.47
76	80	0.00	0.00			0.00	80,075,342.81	392,184,804.71	0.00	81,075,342.81	393,184,804.71

Through investing PHp100,000 every year in the stock market for 10 years, the parents will be able to build an investment fund for their child's future expenses, which includes a Php250,000 annual withdrawal for five years for college expenses (assuming that the child takes a five-year course).

And this is the most exciting part. Without doing anything, their daughter can retire with Php94M when she reaches 65!

Note that this is an estimate with a 10% interest compounded every year. But with the stock market's performance history, it can grow to almost 24% per year, as it did for the past five years on average.

This is an illustration of time being our greatest ally and money working hard for us.

Stop stressing yourself and working hard for money. Make investments. Be financially free.

Be very blessed.


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P.P.S. To request for a quotation and to schedule an appointment with our financial planners, you may fill up our form HERE.

If I Started Investing the Moment I Started Earning, I Would Have Been a Multimillionaire Now

Time check 11:15 p.m., Tuesday.

I just got home from work. My counterpart had a focused group discussion with selected doctors. Our speaker invited bank personnel to discuss investment products to him and his wife after the lecture. Since our guest doctors had left and my counterparts and I had nothing else to do, we opted to listen to their presentations as well.

They talked about the stock market, insurance, mutual funds, auto and housing loans.

The topic was quite interesting, actually my favorite, that we talked about it even after our doctors and the bankers had left.

One was the housing loan. We are five in the group. Three have availed of a housing loan, one is planning to, while one has absolutely no plans.

Admittedly, I am the one who has no plans. I mean, no plans at the moment, so to speak.

Seven Digit Loans Scare Me -- as in!

This morning, my mother told me that she was given a residential lot by her rich sister. Since the lot was already free, she asked me if I would want to get a housing loan. My response was a sound NO.

Why?

Yes, I dream of building a beautiful house for my parents but not majority of the amount through a housing loan.

Honestly, the thought of huge interest rates is already excruciating for me -- what more of actually being enslaved by it. I do not like the idea of working for banks through loans. If I have a loan that big, I would not be able to retire from my job and pursue my passion whenever I want to.

I have shares of BDO, BPI and Metrobank in the stock market. As these banks earn from clients' loans, I earn, too. And right now, I would prefer things as that. I am THAT scared of loans.

Why Borrow When You Can Buy in CASH?

Yes, it's against the norm, but it is not IMPOSSIBLE to build a house without borrowing money.

My friend once said, "Unless you borrow, you will not be able to buy anything."

I disagree. I firmly believe that this is one of the purpose of investment -- for us not be slaves of debts.

And this came to mind. Instead of paying Php20,000 per month (estimate) as amortization, what if I invested Php20,000 per month in the stock market for TEN YEARS the moment I started earning thirteen years ago?  That was in 2013 and I was only 21 years old then.

Okay, let's do the math.

Below is a sample computation of investing Php240,000 per year (Php20,000 per month) in the stock market for ten years through a VUL starting at age 21, with a MINIMUM insurance coverage of Php1.2M if by natural death, or Php2.4M if death by accident.

Because at age 21, I have my parents as dependents, so insurance is a definite MUST. The accidental benefit rider is also very important because I work as a field man.

Policy Year	Attained Age	TOTAL PREMIUMS PAID	ILLUSTRATIVE BENEFITS
			Full Withdrawal Value			Death Benefit
			Low (4%)	Medium (8%)	High (10%)	Low	Medium	High
1	22	240,000.00	98,663.19	102,478.67	104,386.51	1,298,663.19	1,302,478.67	1,304,386.51
2	23	240,000.00	238,565.81	251,885.46	258,659.98	1,438,565.81	1,451,885.46	1,458,659.98
3	24	240,000.00	433,984.53	465,084.80	481,160.80	1,633,984.53	1,665,084.80	1,681,160.80
4	25	240,000.00	674,660.00	734,220.08	765,511.70	1,874,660.00	1,934,220.08	1,965,511.70
5	26	240,000.00	924,962.48	1,024,886.19	1,078,297.70	2,124,962.48	2,224,886.19	2,278,297.70
6	27	240,000.00	1,210,237.07	1,364,725.58	1,448,762.29	2,410,237.07	2,564,725.58	2,648,762.29
7	28	240,000.00	1,506,775.54	1,731,601.96	1,856,121.65	2,706,775.54	2,931,601.96	3,056,121.65
8	29	240,000.00	1,815,175.55	2,127,828.45	2,304,216.95	3,015,175.55	3,327,828.45	3,504,216.95
9	30	240,000.00	2,135,911.56	2,555,753.06	2,797,121.78	3,335,911.56	3,755,753.06	3,997,121.78
10	31	240,000.00	2,469,477.01	3,017,911.64	3,339,317.10	3,669,477.01	4,217,911.64	4,539,317.10
11	32	0.00	2,592,614.74	3,290,586.52	3,708,616.12	3,792,614.74	4,490,586.52	4,908,616.12
12	33	0.00	2,721,958.61	3,588,020.28	4,118,907.33	3,921,958.61	4,788,020.28	5,318,907.33
13	34	0.00	2,857,674.31	3,912,310.85	4,574,589.18	4,057,674.31	5,112,310.85	5,774,589.18
14	35	0.00	3,000,230.08	4,266,047.01	5,080,851.71	4,200,230.08	5,466,047.01	6,280,851.71
15	36	0.00	3,149,970.66	4,651,902.41	5,643,309.39	4,349,970.66	5,851,902.41	6,843,309.39
16	37	0.00	3,307,111.07	5,072,643.32	6,268,048.18	4,507,111.07	6,272,643.32	7,468,048.18
17	38	0.00	3,472,171.35	5,531,587.50	6,962,132.98	4,672,171.35	6,731,587.50	8,162,132.98
18	39	0.00	3,645,403.57	6,032,053.65	7,733,109.50	4,845,403.57	7,232,053.65	8,933,109.50
19	40	0.00	3,827,219.60	6,577,811.95	8,589,512.73	5,027,219.60	7,777,811.95	9,789,512.73
20	41	0.00	4,018,052.05	7,172,974.94	9,540,825.03	5,218,052.05	8,372,974.94	10,740,825.03
34	55	0.00	7,923,109.28	24,120,738.32	41,536,221.65	9,123,109.28	25,320,738.32	42,736,221.65
39	60	0.00	10,080,462.27	37,193,187.80	70,248,161.95	11,280,462.27	38,393,187.80	71,448,161.95
44	65	0.00	12,806,983.22	57,345,505.33	118,810,955.56	14,006,983.22	58,545,505.33	120,010,955.56
49	70	0.00	16,240,944.72	88,408,424.81	200,950,604.70	17,440,944.72	89,608,424.81	202,150,604.70
59	80	0.00	25,937,454.09	210,095,207.65	574,932,179.55	27,137,454.09	211,295,207.65	576,132,179.55

You may say that PHp20,000 every month is such a huge amount when very little is left from your salary.

Let me share with you what Robert Kiyosaki said.

 

 

"The philosophy of the rich and the poor is this:

The rich invest their money and spend what is left.

The poor spend their money and invest what is left."

 

 

 

If you want to be rich, make investment your SECOND expense. Make tithing your FIRST. Then live on what is left.

 

 

 

I Would Have Been a Multimillionaire Now

Based on the computation above, if I invested my money in the stock market through a VUL earning an interest of 10% every year, and compounded over time, I would have had Php4.5M today that I am 34.

Whew! That could have been a lot of money!

By the time I reach 40, I would have had almost Php8.5M in my investment portfolio.

What to do with Php8.4M?

I can build a simple Php2M house for my parents, and reinvest the remaining Php6M to continue growing through compounded interest and use it for my retirement when I reach 60.

Or better yet, I can retire right now with that amount and just live on the interest. But...

Right Now, I Could Only WISH that I Knew Then What I Know Now

If I did, I would not be spending time in a day job anymore. I would probably be staying at home, just chasing Pokemons while my kids are in school, and my husband is at work.

But There is Always a Reason to Trust in God's Timing

I have always believed that I am exactly where God wants me to be.

Thinking about it now, I realized that if I learned about investing thirteen years ago and started growing my wealth even before I was married, I will not know about the pain of being away from my kids on some nights because I finish work late in the evening.

My eight-year old Gaby will probably be used to seeing me everyday that she will never ask me to clear my schedule on weekends. (Yes, on Friday nights, she asks me to just stay at home for the weekend and do nothing else but be with them.)

My four-year old Elise would not question why I am unable to drive her to school at 12nn when I am able to drive Ate at 8am.

Oh, the pain of being a working mom, and this pain forces me to grow, even until today.

If I learned about investing thirteen years ago, I would not have workmates taking care of their families through getting life insurance and starting to build their retirement fund NOW.

If I learned about investing thirteen years ago, I would have not realized my talent for writing and this blog will be non-existent.

If I learned about investing thirteen years ago, I would not have developed my passion for spreading financial literacy with the dream of making it my profession someday.

If I learned about investing, I will not be receiving overwhelming messages of how I have inspired others with what I do and what I write about, which I believe is my purpose in life.

The list goes on...

And I thank God, not because I did not learn about investing thirteen years ago, but because I am exactly where He wants me to be -- taking this financial journey with you.

I Choose to have No Regrets

My post in the past was this, "I wish I knew then what I know now."

Today, it has become, "There is a reason why I learned about this just now."

And the moment I began learning about investment, I acted on it ASAP. I did not dilly dally, nor did I procrastinate.

The key to investing is simple. It's TIME. So, I urge you, now that you have learned the value of investment and how it can do so many beautiful things for your life, PLEASE start your investment journey.

Not thirteen years after.

But TODAY.

Be very blessed!


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