Avoid the Free Lunch Attitude

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I work as a medical representative in a leading pharmaceutical company in the country. Compared to othes medreps from small companies, I get a lot of perks. I get to drive a brandnew company car every five years, with free gas and maintenance. I can even reimburse my parking fees and toll fees. I get to travel during our conferences or as an accompanying medrep to our MDs, all expenses paid and staying at a classy hotel. If leaving the country for an incentive trip, I even get a pocket money during the whole duration of the trip. If my MD wants to have lunch or spa, I do it with them and mine is free, charged to the company.

In less than two weeks from today, we will be receiving our incentives payback and profit sharing. Personally, these are the bonuses I look forward to the most every single year as an employee. 

And these, among many others, are the perks that I will most definitely miss when I have finally decided to become unemployed.

A co-employee once told me that if I keep depending on all these perks, I will never be able to quit my job. And the truth is, these are mainly my reason for staying.

Some would say these are benefits. I would say these are my free lunch at work, just to name a few. If I keep depending merely on these freebies, it stops me from growing financially.

If I do not grow financially, I would not have money to enjoy traveling with my family, or treat them to a classy hotel stay, or even enjoy spa sessions with my mom GUILTLESSLY.

If I do not grow financially, I would not have money to invest in the stock market or money to expand my business.

 

Graduate from Free Lunch

My first company car dued last 2012. I had the option of buying it for Php113,000, around 20% of its actual value. I have been working for five years that time, I had practically zero savings, and I even needed to borrow money from my mother-in-law to be able to get that car. I sold it for Php250,000, paid off my debts, went shopping, and left with nothing.

This was how badly I used to handle money. I had this thinking that I could always depend on free lunch -- that every 10th and 25th of the month, with bonuses and incentives in between, I would have money to spend again, anyways.

A few months after that, I became a member of the Truly Rich Club and I have learned to increase my financial IQ. Today, I have money readily available when my current car will due next year. I also have growing investments on the side, all for the aim of financial freedom. I became wiser. I became more financially literate. My mentor taught me that the first and most important skill you'll ever need in becoming successful is to take personal responsibility.

Now, I have learned to live below my means. When money comes in, I choose to buy assets instead of liabilities. I can clearly distinguish the difference now between the two. I invest in God's work, I invest for the future through my growing stock market portfolio, and I have started investing for my very young kids, too. I have learned to recognize opportunities to earn more so that I can help and serve more. Inspite of these, I never feel deprived because I also allot a certain percentage of my income for my wants. These are simple wants because I have also realized that I am worth more than the brand of the bags I use or the clothes I wear. With this, I consistently increase my value through investing in self-growth and learnings, by attending seminars and reading books.

Free lunches are crutches. They’re there to help you while your legs heal. But once they’re healed, you need to throw away the crutches. If you don’t throw away the crutches, your legs will never be fully healed. In the same way, if you don’t avoid free lunches, you’ll never grow in your capacity to earn.


P.S.
A year ago, I joined the Truly Rich Club by Bo Sanchez. From someone whose every salary and bonus went to paying the bills and buying unnecessary stuff, I have learned to grow my financials and I am now investing in the stock market every month with guidance from its mentors. I am inviting you to join the club, too.

Saving VS. Investing

Before 2015 ended, I came across a lot of saving challenges to start off the coming year. There was the 52-week "kuripot" (frugal) challenge, and the 52-week reverse "kuripot" challenge, among many others. 

I did not get the point in an increasing or decreasing saved amount, so I thought of making my own money challenge for 2016 -- to save Php2,000 every week in my piggy bank as shown above.

After putting in my first two thousand pesos, I changed my mind and thought of doing something else instead.

Shift Happens

If I save Php2,000 every week into my piggy bank for 52 weeks, I will have a fixed amount of Php104,000 by the end of 2016. That is guaranteed.

But being the high-risk/high-return kind of person that I am, I told myself, "Why not invest these small amounts into the stock market instead and make it my giant piggy bank?"

And that is exactly what I did. 

16 Weeks Later...

If I continued saving, I would have had Php32,000 today.

But through my online stockbroker, COL Financial, I invested and was able to build my stocks portfolio.

In January, I bought 10 shares of Ayala Corporation (AC).

In February, I failed to add on my portfolio.

In March, I bought 5 shares of PLDT (TEL), 100 shares of Double Dragon (DD), and 20 shares of Metrobank (MBT).

This month, April, I bought additional 60 shares of MBT, and 200 more shares of DD.

In total, at average prices plus charges, I spent roughly Php32,000 for all these.

Upon checking last Friday, below is my updated stocks portfolio.

Stock Code	Stock Name	Market Price	Total Shares	Market Value	Gain/Loss	%Gain/Loss
AC	Ayala Corporation	782.0000	10	7757.33	1604.01	26.07%
DD	Doubledragon Properties Corp.	37.5000	300	11160.56	961.85	9.43%
MBT	Metropolitan Bank & Trust Com.	84.0000	86	7164.40	-233.52	-3.16%
TEL	Phil. Long Distance Tel. Co.	1896.0000	5	9404.63	393.12	4.36%
TOTAL EQUITIES					35,486.92
TOTAL EQUITIES GAIN/LOSS					2,725.46

Note that the additional 6 shares of MBT were as dividends from last year, and I also received cash dividends from TEL and MBT this year.

Saving and Investing

We save our emergency fund. This is the money we keep in banks or piggy banks for easy access.

But if we really want to grow our money, we invest it. The easiest way is through the stock market.

My Php32,000 capital is now worth more than Php35,000 today. How much more if I keep adding small amounts until five or ten years from today.

This is the "evident" reason why I keep encouraging you to invest TODAY, and not later.

Grow your money. Learn how to make it work for you. So that in the long run, you can stop working for money, pursue your passion, spend time with people that matter and live life based on your own terms. 

Two years later today... November 2017

(Updating this post)

AC is now priced at Php1,017/share.
DD is at Php37.40/share.
MBT sells at Php95.85/share.
And TEL is at Php1,500/share.


It's bonus season once again, and if you have no plans of investing yet, I think that you should think twice, even thrice.

Remember that nothing is more expensive than a missed opportunity.


Happy long-term investing!


P.S.

I hope you find this post helpful, and kindly click the SHARE buttons below. Send me an email anytime at financialplanningforpinyos@gmail.com. I would love to hear your thoughts. 

Be a 5-Jar Person

At most times, I feel like I have the perfect day job.

Why?

I am not confined with a 9 to 5 job. Because of this, while I am at work and patiently waiting for doctors, that is already spare time for me. And as Robert Kiyosaki says, "Wealth is created by what you do on your spare time." During these times, I am able to do online marketing, read books and write blog posts about financial planning.

And right now, right here at the hospital, is writing time for me -- which I consider as work with purpose and meaning. And I love doing this every single time!!!

The 5-Jar Money System

I was reading an old newsletter from the Truly Rich Club about dividing your income and I thought of sharing it with you here. This is the same system that I used when I began my journey towards financial freedom back in 2013.

Browsing through Facebook earlier, I read a post by J. Randell Tiongson that says, "Budgets allow you to pay now, so you can play later."

There are those who do budgeting money very seriously -- complete with Excel files of their daily spending. Once upon a time, I tried doing that using an app wherein I enter my every expense. I lasted for only a couple of days and gave up. For me, it was pointless listing down my expenses and see where I can save from that list.

This 5-Jar Money System works better for me. 

How?

Everytime money comes in, I would just divide it into the following jars. That simple.

So here are the 5 Money Jars:

1. Eternity Funds are your tithes to God. My mentor taught us to call it as such because we are investing into eternity. This is my very first expense -- giving to God the first and the best, and not the leftovers.

2. Everyday Funds are for your expected expenses -- food, gas, clothes, etc. If you run out of money in this jar, you stop spending, period.

3. Emergency Funds are for your unexpected expenses -- car repairs, house repairs, etc, -- which should be the sum of at least three months of your monthly salary deposited in the bank for easy withdrawal.

4. Enjoyment Funds are about 5 to 10 percent of your income for vacations, movies, restaurants, spa, and any fun thing you want to do -- because what is life without play, right? Plus we never want to feel deprived. As for me, I set aside 10 percent for this.

5. Emancipation Funds. This is where you invest at least 20 percent of your income into the stock market. That is how you become wealthy.

Choose Which System Works For You

You can do the complicated stuff, or this simple money jars system. See which works for you.

If you find this post helpful, please click the SHARE buttons below.

Be very blessed!